Over the past few weeks, I’ve had the pleasure of seeing a few demos of some incredible new eCommerce technologies. And let me tell you, there are some truly great and exciting ideas out there. Customer preferences are changing constantly, and demand is greater than ever. As a result, the competition is growing exponentially, leading to some incredibly innovative new technologies.
Some of the more exciting technologies I’ve seen lately is focused around giving eCommerce companies a better understanding and use for their data, which ultimately translates into a better understanding of the customer. Companies with better data are better equipped to create a more relevant customer experience and translate that into increased revenue and loyalty.
Coherent path uses hyperbolic geometry to create multi-dimensional maps of customer interaction. The maps are then used, not to offer customers things based on past behavior, but to guide them on journey towards a specified business goal. In other words, Coherent Path helps companies understand how a small number of moves might encourage a customer to move in their chosen direction.Let’s take a deeper look at one such company whose products I find fascinating – Coherent Path. Their products are based on mathematical models that create a “map” of a customer’s journey. Originally inspired by fraud detection technology, Coherent path analyzes a consumer’s past transactions to help companies achieve a deeper understanding of their online habits and behaviors. This type of information is a marketer’s holy grail, far surpassing personalization and segmentation. It’s really more individualization, in my opinion.
Map creation uses a process that analyzes several years of customer data to generate recommendations based on business goals. It’s also “smart” at altering both long and short-term customer journeys. For example, it may not be a very long journey if you want to encourage customers who are currently purchasing DVDs into customers that purchase Blu-Ray discs. However, the journeys start getting a little more complex when you want to try and move a customer from DVD purchases towards buying expensive movie memorabilia. This sort of directional shift is what Coherent Path can model based on overall customer and transaction data. Basically, businesses sets their customer journey goals (for example higher purchase frequency) and Coherent Path helps them understand how to motivate customers to react in support of those goals.
I find the technology behind this product incredibly interesting and feel it has broad applicability to eCommerce companies looking to maximize lifetime customer value. I had the pleasure of hearing their CTO talk about the math behind the process recently, and it was fascinating. What’s even more amazing is when he described how they have taken very advanced mathematics concepts and applied them to very large data sets to put usable and actionable data in the hands of business decision-makers. Great stuff.
Data can be used in many advanced and creative ways to understand and influence consumers. Not only can data help alter an online journey, it can also help you wisely design your pricing and marketing strategy automatically and in real-time. This is where a company like QuickLizard, the technology I will profile next, comes into play. Stay tuned for my thoughts on QuckLizard in an upcoming blog where I discuss their incredible new technology and business model that lets eCommerce business focus on real-time pricing optimization and marketing performance improvement – some truly amazing stuff.