Optimove released this week a new version of its relationship marketing center.
Optimove 6.0 allows users to automate Targeted marketing campaigns for new visitors also precisely It combines web analytics tools with look-alike data, machine learning and artificial intelligence from its retention ecosystem to make accurate predictions future expenditures before customers make a purchase.
Based on these predictions, Optimove 6.0 divides visitors into micro-categories and indicates which campaigns are most likely to result in conversions.
The goal is to capture more than 98% of people who visit a website but do not buy, according to the company.
"Our own data shows that 94.3% of active site browsers do not buy within the first five minutes of navigation," said Ray Wang, senior analyst at Constellation Research.
"Improving relevance through the context via [artificial intelligence] is the only way to invoke the commitment," he told CRM Buyer. "The commitment is the determining factor of conversion rates or sales, the only important measure being the optimization of the conversion rate."
What does Optimove 6.0 do?
Optimove 6.0 reduces the conflict between often-siled customer acquisition and retention teams, whose approaches to reducing cost per acquisition and keeping customers in the long run are often in opposition, according to the company.
This conflict causes losses when teams move from one CRM application to another.
After integrating both lifecycle tools into a single CRM solution, marketers will see conversion sales increase by 25 percent on average, Optimove said.
The customer acquisition and retention teams "sit in different departments," Wang noted. "In many cases, you multiply that by each channel – for example, the web team versus the contact center versus the mobile."
Optimove 6.0 is limited in that it is "an approach to optimize sales rather than a solution in itself," said Michael Jude, director of research at Stratecast / Frost & Sullivan.
It "targets specific customers with specific marketing and commercial approaches," he told CRM Buyer. "All underlying sales guarantees must be produced, tested on the market, etc."
Improve conversion rates
Improving customer conversion by 25% may be too ambitious a goal, suggested Constellation Wang. "Improve conversion rates by 10% is enough, 25% is extraordinary."
The overall conversion rate of visitors to e-commerce sites worldwide was 2.48% in the first quarter of this year, according to Statista. This was down 2.94% in the previous quarter.
depends on many factors. A shop selling high-end electronics will not have the same conversion rate as a $ 10 US T-shirt seller. One with a faithful list of, say, 100,000 buyers will have a better conversion rate than one who buys cold traffic on Facebook.
The conversion rates "are very situational", observes Jude de Frost. "I could sell buggy whips, for example, and, if nobody really buys such things, the market could already be saturated."
Among the factors affecting conversion rates, according to Invespro, are:
- Product type
- Cost of the product or average value of an order
- Source of traffic
- Type of apparatus
"The challenge for Optimove is how they will ultimately incorporate it into the business process," Wang Wang of Constellation said. "You have to orchestrate the process in order to offer better customization."
Optimove has done a good job with customization, and machine learning is where he will stand out from the competition, he suggested.
In the end, what will drive the differentiation, Wang noted, these are not the algorithms "but the type of customers that owns a company".