We just can’t stop talking about AI. And we’re not alone. Leading marketing agencies worldwide are embracing AI, albeit cautiously, and using it to improve results for their web development and e-commerce clients.
Here at Highforge, we’re helping Central Florida businesses use AI’s fascinating predictive analytics to increase conversion rates for their websites. But what are predictive analytics, how does AI use them and how do they improve conversion rates? Let’s dive in!
What are Predictive Analytics?
Generally, predictive analytics are the advanced use of data like statistics, algorithms and machine learning to predict future outcomes. They aim to analyze historical data and identify patterns and trends that can be used to forecast what is most likely to happen in the future. Businesses use them to evaluate market trends and customer behaviors, and they can provide deep business intelligence insights.
With trends changing by the minute, it’s harder than ever to keep your digital presence up to date. Think Tik Tok’s non-playable character (NPC) viral trend that came out of nowhere … wasn’t it just almond mom or soft girl aesthetic? … yes it was all of those. Predictive analytics uses complex methodologies to analyze an enormous amount of user data to predict what new trends are healing our way next.
But it’s not just trends. AI’s predictive analytics can suggest probable customer responses, purchases and things like related or complimentary products that may interest the user. These results can help Florida businesses like yours not only attract and retain customers but also upsell and grow those who are the most profitable.
How Businesses Use AI’s Predictive Analytics
AI’s predictive analytics can help identify users who are most likely to convert. This can include things like the number of times they’ve visited your website, time spent on specific pages, previous purchases, or even the referral source and a myriad of other elements.
Using this data, you can segment your customer base into low, medium and high conversion probability (or whatever labels you choose). Then you can develop marketing campaigns around those groups.
But let’s take AI a step further. AI’s predictive analytics can grow so robust they can even predict the performance of a marketing campaign and how likely it is to convert customers based on the group they’re in. When you think about it, it’s actually rather mindblowing. We’re talking about measuring the performance of a marketing campaign that hasn’t even launched yet. Groundbreaking for sure.
However, it’s important to note the more data AI has to work with, the better its predictive analytics are, so you do need to feed the monster. Pulling in data like demographics, geographic location and social media activity can provide even more insight than relying only on your website data.
Benefits of AI’s Predictive Analytics
After gathering, consolidating and analyzing all kinds of user data, AI-powered predictive analytics can analyze factors like product/service demand, competitor pricing and user behavior to, for example, optimize pricing in real-time. By offering dynamic pricing, AI can increase the likelihood of that user making a purchase.
AI can also forecast behaviors like shopping cart abandonment or loss of customer interest. Just think, instead of seeing those results in a monthly report, AI can use the information to serve up a pop up of a special offer, discount or free shipping to close the sale, thereby boosting your conversion rate.
Furthermore, AI’s predictive analytics can benefit businesses in the Southeast by forecasting quarterly sales. They can even predict customer churn so you can develop proactive measures to retain those customers.
And as we discussed last month, AI is fantastic at running recommendation engines to increase not only conversions but also the total sales amount per customer.
Of course, while predictive analytics can offer extremely valuable insights, it can’t guarantee results of a future state. Its predictions are based on historical data, so while they can be very beneficial to most businesses, it’s important to note limitations exist with any predictive modeling tool.
Are you a believer yet? We sure are. At Highforge, we believe AI is a game changer, and we’re taking what we love about it and putting that to effective use by boosting our customers’ competitive advantages in today’s challenging business environment.
Are you ready to take your marketing to the next level and use AI’s predictive analytics to improve conversions for your website? Get started by contacting us today!