AI and behavioral economics driving optimised conversion rates

AI and behavioral economics driving optimised conversion rates

The objective

How to turn shopping carts into sales: AI-driven conversion optimisation of online store shopping carts

The number of abandoned shopping carts in online retailing is exceptionally high. Depending on the sector or branch, the share of shopping cart abandoners stands between 60 and 80 %. This phenomenon burdens conversion rates and costs retailers billions worldwide.

 

If your company is also looking for ways to prevent shopping carts from being abandoned and would like to implement conversion rate optimisation, you will find seasoned and specialised experts on our KPS User Experience Team. We perceive the user experience as a success multiplier and focus on User Driven Growth for your business success. We take a structured approach and bundle all the relevant methodological tools in the KPS UX Operating Model

Challenge

Billions lost in online retailing? A huge revenue opportunity.


Shopping carts filled and then left standing orphaned: According to statistics, online shoppers abandoning their carts accounts for global online retail losses exceeding $4 trillion in revenue in 2021. In almost 60% of the cases, visitors leave online stores empty handed, because they are only prepared to do some virtual window shopping, but are not willing to actually make a purchase. This group of shopping cart abandoners is difficult to influence. In all other cases, the reticence is due to mostly avoidable reasons why shopping carts are abandoned in the first place. Above all, this includes targeting and addressing users in a manner that is not sufficiently adapted based on context and is hardly motivating on top. Accordingly, it is worthwhile to apply the lever for conversion optimisation at this point.

The solution

How situationally adapted user targeting works.

Situationally adapted user targeting and addressing is anchored in the interaction context of the customer journey in multifaceted ways. It is derived from product features, marketing campaigns, the visitor's click behavior, and - if the customer is logged in - from existing customer information. The technological challenge is to correlate customer data in such a way that individually effective and psychological buying incentives can be deployed precisely in the context of user interaction. This is a task that is ideally cut out for AI algorithms - especially in eCommerce.

KPS Partner behamics

AI technologies and the principles of behavioral economics.

KPS works with its partner behamics to integrate the intelligently steered targeting and addressing of users into complex UX models. Self-learning algorithms interpret the multi-layered customer data during user interaction and draw conclusions about visitor behavior that flow back into the database. The expanding reservoir of data is related to scientific findings in behavioral economics. Based on this, the behamics AI determines the psychologically effective purchase incentive, which is deployed depending on the context so as to optimize conversion rates.

Practical example

Higher sales and conversion rates for a Swiss sporting goods giant.

The example of one of the largest sporting goods retailers in the DACH region demonstrates the positive impact of a comprehensive KPS UX solution in connection with integrated, behavioral economics-based AI. The company achieved gains in conversion rates of between 5 and 10%, meaning that the sporting goods retailer generated between 8 and 12% higher sales. The holistically optimised customer journey proved the decisive factor, whereby the self-learning algorithms additionally provide sales-promoting incentives. Consequently, the number of abandoned shopping carts has dropped significantly and the rising conversion rate has improved the company's competitive position.

KPS & behamics

KPS UX for stronger conversion rates

KPS designs comprehensive UX models and seamlessly integrates behamics AI into a holistically optimised customer journey. We will accompany your UX transformation individually and precisely customize the best practices of the KPS Instant Platform to your requirements. In this way, you can quickly and reliably benefit from the advantages of behaviorally psychologically controlled customer targeting and addressing. In most cases, the integration of behamics AI takes less than a week , so you will quickly experience the effects of conversion optimisation.

Contact

Get in touch and learn more about AI-based conversion rate optimisation!

With a current team of 25 experts, at least 100 different focus points in addition to the basic UX expertise and the combined experience of around 300 years in the digital sector, the KPS UX team is always at hand with consulting approaches, sound methodological setups, workshop formats as well as innovative ideas and concepts. So let's talk about your users - and multiply your business success!

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