Brands are actively looking to increase revenues from their own website in addition to sale on marketplaces such as Amazon. In order to do that, the greatest challenge is the Customer Acquisition Cost which in several cases could be as high as 30% to 40% of the sale value (GMV). Brands find this unsustainable as they are not looking to burn cash to achieve growth in online sales. Shoptimize has been working closely with these brands for several years now and realizes this problem. Shoptimize is actively investing in Artificial Intelligence in order to reduce Acquisition costs for brands. These investments have now started paying off with companies having cut their acquisition costs into half of what they were before applying AI.
Broad areas where we applying Artificial Intelligence has shown substantial results:
Shoptimize has seen conversion ratios improve by as much as 200% by ensuring the right message is positioned to the right user. The Shoptimize platform picks the right message for the right user segment with a focus on optimizing conversion ratio. Over time, the Shoptimize platform also learns about a user’s preferences and positions banners and offers accordingly. With over 10 million monthly active users, Shoptimize is able to train the learning algorithms at a much faster pace than it would be possible for an individual brand. This gives the brand the ability to deliver an experience close to what they would get on leading marketplaces.
User Experience Personalization
The Shoptimize AI algorithms track usage of the website while the user is browsing and positions messages and offers that the user are most likely to respond to. This real time experience optimization allows us to further fine tune the experience not just based on the profile of the user but also actions that she / he is taking on the website during that session. We can help influence the order in which search results show up, catalogues are displayed and coupons are shown to the user.
Based on the rich data that Shoptimize tracks for the brand, we are able to build ideal product recommendations based on actions taken by users similar to the user who is currently browsing. This is a great way to recommend different products to different users based on their preferences. By doing this, we were able to increase the sale of long tail items at one of our customers by as much as 235% in a matter of 3 months.
Digital Marketing Optimization
Shoptimize believes that a user’s shopping experience starts when she / he first views an online ad or some content that drives the user to the website and ends when this person places her second order or in other words, becomes a repeat buyer on the website. We are now actively leveraging the user information gathered from the website to create personalized campaigns through SEM and SMM. This has led to a steady decrease in the Cost Per Click on the campaigns and is increasing the Click-Through-Rates of our ads.