Looking for a method to engage and retain your visitors? This presentation shows you how predictive algorithms for behavioral targeting can help you to reach these goals. Akanoo presents together with the client Gaastra how smart algorithms outperform simple heuristics to convert onlineshop visitors.

1. Personalisation 2.0
Predictive algorithms for behavioral targeting to engage and retain visitors
David Goy & Dr. Jan-Paul Lüdtke
11.08.2015

3. Onsite optimisation and personalisation are not the same

4. Multivariate Testing is not enough

5. Winning options in A/B/n tests neglect important needs

6. Winning options in A/B/n tests neglect important needs
Variation A
Variation B
13% CR = Winner ?
8% CR
BUT
We need to consider all relevant
KPIs!
● What about likelihood of
recurring visits and
purchases?
● What about returns?
● And what can we do about
the remaining 87%?

7. Personalisation must not follow simple rules

8. Session-based heuristics neglect the nature of online purchases
70%of online shoppers leave
tabs between purchases
43%of online shoppers take
multiple sessions to make a purchase
BUT

9. Visitors will abuse session-based heuristics

10. Behavioral targeting requires algorithmic understanding
and reaction to visitors intentions

11. Online retailer need to consider complete customer journeys
+
EXIT

12. EXIT
Smart algorithms identify the right targeting moments

13. How Gaastra moved from simple heuristics to intelligent on-
site personalisation

14. About Gaastra
at a glance
● Founded in 1897
● Leading premium brand for sailing fashion
● Online shop since 2007 and active in five countries
● Personalisation solutions
○ Recommendation and cross-selling engine
○ On-site targeting
○ CRM-Segmentation

15. How real-time targeting started at Gaastra
Trigger rule: Exit gestures
Location: Position in centre of page
Content: 10% off
Major drawbacks
● Workload
● Lacking performance transparency
● High costs due to high display count of incentives
● Affiliate network provision

16. From rule-based targeting to behavioral personalisation
Demo: http://akanoo.com/de/interactive/workshop/
Results
Major benefits
● Proactive campaign management and optimisation
● Reduced and more specific amount of targeting
● Full transparency on added revenue and CLV
+33%
CR UPLIFT
vs. control group
+16%
REV UPLIFT
vs. control group
+5.7%
TOTAL CLV
on overall shop

17. Your Personalisation Check List
Tick the boxes and your personalisation partner will improve your bottom line
Considers different visitor personas.
Prevents coupon or voucher abuse.
Only charges for truly incremental revenue
or profits.
Proves that personalisation increases
Customer Lifetime Value.

18. Any further questions?
Find more information on akanoo.com or
write us a mail to hi@akanoo.com!