Speakers at the eTail conference in Washington stressed both web analytics and social networking as the most effective means to understand both data and human behavior.
While many companies look at what the consumer is buying, they are missing out on predictive modeling, seasonal cycles, buying/browsing patterns, and gauging the value of "action words" that give more insight into the behavior of consumers. Sheldon Gilbert, founder and CEO of
Proclivity Systems, whose company focuses on analytics and predictive behavior modeling, added that “customers are telling us things constantly, but we don't see it. Many of you are sitting on a goldmine."
Gilbert added that “the data will tell you what to offer,” and that “human behavior is fairly predictive.” The best way to create offers is to learn what customers of one particular product are also buying. He also pointed out that this type of modeling behavior will only get more advanced as we tap into social media groups, blogs, videos and customer reviews for data.
In addition, the “wisdom of the crowds” mentality and how it comes into play regarding purchasing patterns was discussed. “People who are friends, consciously and subconsciously, buy similar products,” he said.
Also speaking at the conference, Pattiann McAdams-Russell, president of
Avon's online division, said that the cosmetics direct merchant is digging deeper into social networking as a way to give its sellers more power. By year's end, Avon representatives will have the ability to
blog on their personal Avon Websites. This will enable them to further tell the story of the products they sell. Reps will also be able to chat live to help customers make their decisions.
Avon is also testing with Facebook and MySpace to attract a younger business. The company is integrating with Facebook to allow reps to have a storefront within that social network. McAdams-Russell said this type of social integration "will allow for engaging testimonials, and allow users to share knowledge of their products with their friends."
My POV - the ecommerce landscape is constantly evolving. As we gain insights into how people shop, we start speaking their own language. This only helps make the transaction run smoother, kinda like your good ol' fashioned "relationship". All you need is honesty, loyalty, and trust.
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