Promotion Optimization
for eCommerce Businesses
Build campaigns and flows with machine learning optimized promotions that increase conversion and retention. Give every shopper the exact push needed for making the purchase and ensure that incentives are calibrated to each specific stage of the customer journey.
While discounting can increase your conversion rates and AOV it is a double edged sword. Too much discounting will eat into your profit margins and long term ROI. Avoid promotion overspend with highly targeted individualized discounts.
Price sensitive customers must incentivized by the prospect of saving money in order to be motivated to buy from you. This is unsustainable. Avoid the price sensitivity trap by only delivering the right discounts to the right customer at the right time.
Your eCommerce and analytics data contains all the information you need to optimize promotions. But your data is of no value if it lies around unstructured and not consolidated. You must transform and organize you data to extract the hidden value.
Identifying a customer's intent to purchase and price sensitivity from behavioral data is the second step. Purchase intent measures propensity to buy and guides your timing. Price sensitivity measures willingness to pay and guides your offer.
Tailoring your offers and promotions based on purchase intent and price sensitivity is the key to wildly profitable lifecycle marketing. This is achieved by leveraging Klaviyos advanced API and template system.
The final step is optimization with a specified objective. Optimizing for the actionable outcome (retention, conversion, AOV) over the right prescriptive models is the last step and an important strategic decision.
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