This New Tool Can Predict Online Customer Behavior – So Retailers Can Step In and Boost Conversion
Selling product online has become a critical revenue opportunity for the industry, but attracting customers to a brand website is only the first step. In order to capitalize on all digital visitors, whether first-time or return customers, Namogoo has launched an intent-based promotions machine to help retailers convert online.
When a shopper is browsing in-store, sales associates use visual clues to detect whether they are seriously browsing or have no real intent to purchase. They can then react accordingly, dedicating their time and energy to those more likely to spend and encouraging hesitant customers to purchase. Online, there are similar behavioral clues but they can be hard to detect without the right software.
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There are additional complications online: Shoppers are easily distracted by other browser activities and may abandon their cart, if their attention isn’t held. The ability to compare prices and similar products can also entice consumers away from one brand and towards another. But with Namogoo’s new solution, merchants can activate personalized incentives within their e-commerce platforms, to keep shoppers engaged – and purchasing.
“With Namogoo’s unique proprietary technology, retailers can now shift their promotion budget away from visitors who would have purchased anyway or have no shopping intent, and towards visitors who will convert when presented with the right promotion at the ideal moment in the customer journey, protecting both their margins and brand perception,” said Ohad Greenshpan, co-founder and CTO of Namogoo.
Traditional promotion marketing often relies on segmentation, whereby merchants identity groups of consumers and target them all as a collective. While this can have beneficial results, the “one size fits most” approach can leave businesses vulnerable; some customers may not respond to the promotion and abandon the site, while too freely used marketing discounts can cut into profit margins.
Through the use of machine learning, Namogoo’s Intent-Based Promotions tool can predict shopper intent by analyzing their unique online signals in real-time. These actions can reveal how consumers are likely to behave – and when they are likely to exit early, which in turn creates an opportunity for a retailer to intervene and encourage conversion.
Knowing how a customer will respond can help retailers finetune their engagement strategy. Namogoo reports that by using a tailored promotion, “brands can expect at least a 25% reduction in promotion costs while achieving a 15% increase in revenue.” For instance, if a retailer knows that a shopper is likely to purchase but is weighing up the price, they can trigger a one-time discount code in order to nudge them towards checkout.
“Retailers know that every phase of every site visit is an opportunity that can either be won or lost, and in this incredibly competitive retail environment, losing customers is not an option,” said Chemi Katz, CEO and co-founder of Namogoo. “The addition of Intent-Based Promotions to our platform ensures that every site visit stands the best chance of converting. In short, we’re both clearing the path, and driving customers forward, and when customer journeys flow, everyone reaches their goals.”
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