Our more advanced service is prediction analysis. Prediction analysis will make predictions based on projected pricing, eg if the price is 100 pounds what would be the number of sales? This is a very advanced service which can be instrumental to a business.
Essential to a prediction process is understanding market pricing. This is obtained from a price database which also has history elements. Hence the price distribution is known. A price might vary for example from 100 to 200 pounds.
To predict on past behaviour we need to measure sales against market dynamics. Hence the client site will feedback sales figures into our systems and we then measure sales based on market prices. Hence if the client had 2% conversions when they sold at (market price+3%) and 4% at market price, we can say that the sales doubled when the pricing moved from +3% to 0%. Therefore when the market price changed by 10% the client can adjusted their pricing to market price and double sales.
Pediction is based on the degree of data and the systems get better over time. Hence the systems deliver a confidence factor or a certainty factor based on the degree of confidence. Hence we could say sales will double with a confidence of 30% meaning data is limited and the risk element is high.
To build data feedbacks we implement onto the client site tracking to show sales, bounce rates, adding to carts without buying, and other KPIs. This is then feedback into the market dynamics data. Hence if people only add to cart 1% of the time and the market price is below the sales price by 10% then we can predict what will happen when the sales price is reduced to say 5% above market price.
Typically conversions are 1-4% on websites and hence clients need to have a clear picture of the costs of advertising and the potential return.
The more data which exists then the more reliable the predictions can be.
We offer predictions.
Market prices drives predictions and sales data.
We seek to improve conversion rates for clients.