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Predictive Analytics in Ecommerce
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Predictive Analytics in Ecommerce


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Ecommerce in India has grown up to be huge and enviable industry in last few years. Increasing base of internet connected consumers with growing income is driving this stupendous growth. However …

Ecommerce in India has grown up to be huge and enviable industry in last few years. Increasing base of internet connected consumers with growing income is driving this stupendous growth. However challenges remain in terms of stiff competition, high customer acquisition costs, fickle customer loyalty and lower margins. Can predictive analytics help these firms solve some of these challenges? Yes if adopted and applied religiously across functions. Predictive analytics can help unlock value across data sources and help firms improve efficiency and ROI of marketing campaigns, improving lead conversions and lot more. This deck attempts to map predictive analytics offerings across life cycle of customer.

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  • 1. Predictive Analytics: Ecommerce Business Intelligence Technology Consulting Email: Analytics Consulting © 2014 Valiance Solutions
  • 2. E-tailing Challenges Increased competition in same verticals High marketing spends High Cost of Customer Acquisition Lower Brand Recall (Switching Customer Loyalty) Lower or Zero profit margins • How do I lower my cost of acquisition? • Which factors drive my customers towards repeat purchase? • Can I increase effectiveness of marketing campaigns? • Which assortment sales can improve my margins? • How can I increase average transaction size? • How do I personalize my campaigns for maximum response? Email: © 2014 Valiance Solutions
  • 3. Can data address my challenges? Customer Demographics Transactional Data Click Stream Data Social Media Streams Customer Service Logs Marketing Campaigns Email: © 2014 Valiance Solutions
  • 4. Analytics Value Chain: How do we use Data? BI/Dashboards BI/Dashboards Predictive Model Email: Predictive Model © 2014 Valiance Solutions
  • 5. Analytics Value Chain: Customer Purchase Decision Will my customer complete or abandon this transaction? Email: What can I offer the customer to make sure purchase is completed? Suggest other product recommendations at optimal price point. Combine with other product as combo-pack. Arrange call back to the customer. Prescriptive Analytics Higher Price Higher Shipping Cost Not ready to purchase. Product not too his liking. Diagnostic Analytics Descriptive Analytics Customer puts off the purchase decision Will he make a purchase? Predictive Analytics Purchase Decision Reasons for not Transacting © 2014 Valiance Solutions
  • 6. Use Case: Product Recommendations 360 Degree view of prospect Regression CHAID Prospect Scoring Product Affinity Data     High Medium Low 1. 2. Know what your customers love to buy and right time to cross sell/up sell. Finer Insight into Customer Higher Conversions 360 degree view of customer resulting in personalized and cost efficient marketing campaigns. Campaigning to segments most likely to respond to offers and promotions lowers cost of customer acquisition Identify drivers to sales and repeat purchase behavior Email: © 2014 Valiance Solutions
  • 7. Overall Execution Strategy: Product Recommendations 1 Customer Segmentation into Bands • HNI • MNI • LNI 3 Devise Campaign Strategy Feedback Loop Purchase Propensity/ Product Affinity 2 Campaign Execution and Performance Measurement Measuring the performance of the campaigns Assign Low campaign Priority. Assign High campaign Priority. Types of campaigns Campaign Response tracking 4 Email: Customer engagement, X-Sell campaigns © 2014 Valiance Solutions
  • 8. Success Stories Staples executes nearly 1,500 multichannel campaigns annually based on 25 million customer records. "We did a financial analysis of the implementation, and we found that we were getting an internal rate of return of 137 percent," explains Foreman. developed a comprehensive retargeting program that increased salesper-send ratio for marketing emails and delivered a more personalized shopping experience. Increased sales-per-send ratio for marketing emails by 271 percent, open rate by 23 percent and click-through rate by 68 percent. EEKA Fashion improved the accuracy of sales projections, optimized the merchandise mix at stores and protected profit margins using predictive Analytics internetstores AG increased its customer conversion rate by more than 50 percent and gained double-digit sales growth with a predictive analytics embedded email marketing management solution. Email: © 2014 Valiance Solutions
  • 9. Analytics Life Cycle Acquire customers Manage customers • Personalization • Survey Analytics • Product Affinity • Channel analysis • X-sell/up-sell modeling • Social Media Analytics • Call centre analytics • Campaign effectiveness • Market Mix Modeling • Product Analysis • Profitability analysis • Customer Value Scoring Models • Campaign analysis • The Core Team with combined 24 years of combined experience • Successfully implemented 50+ Decision Engines for clients across verticals • Satisfaction & Loyalty Indices. • Sentiment Analysis. • Detractors / Promoter Analysis • Lifetime value prediction. • Text Analytics. • Propensity Modeling EXPERIENCE Voice of Customer Analytics Retain Customers • Loyalty analysis • Acquisition Response Models • Customer Profiling & Segmentation Expand relationship TECHNICAL EXPERTISE • • • • • • • Regression Techniques Segmentation CHAID / CART Time Series Forecasting Conjoint Techniques Cluster Analysis Factor Analysis • Linear Optimization • Genetic Algorithm • Random Forest • ARIMA • Neural Networks • Linear Networks • Bayesian networks Email: TOOLS EXPERTISE • • • • • • • KXEN SAS SPSS R ANSWER TREE POLY ANALYST SQL © 2014 Valiance Solutions
  • 10. About Us     Valiance Solutions is a global analytics & technology consulting firm providing business solutions to clients globally using cutting edge technologies. Valiance started it’s journey in 2011 with two employees and since then it has grown to 15 plus team. It has served as consulting partner in CRM space for retail firms, US based market research firm and firms like Reliance and Easy Cabs in India. Leadership team comes from IIT’s and IIM’s with 24 years of combined experience in delivering IT and analytics solutions to Investment Banks globally and BFSI companies in India. Advisory team comprises of seasoned industry executives who have serve as thought leaders with global firms. Head Quarters: Delhi, India Global Clientele Email: Strong Team © 2014 Valiance Solutions
  • 11. Contact Us Valiance Solutions Private Limited A-146, Opposite TCS building, Sector 63, Noida, U.P - 201306 India. Vikas Kamra (+91 9873719129) Visit us @ +91 120 4119409 Email: © 2014 Valiance Solutions