Intelligent Design: Transform Your Website into a Sales Engine with Machine Learning

Machine learning: The phrase evokes images of computers playing chess or IBM’s Watson destroying two legendary Jeopardy! champions in a three-day tournament. The truth is, though, machine learning is no longer a novelty; it’s now an integral part of our daily lives. Every time you receive a product recommendation from Amazon, your email server weeds out spam before it reaches your inbox or you enjoy a playlist on Pandora, you’re seeing machine learning in action. In a nutshell, machine learning is the science of training computers to recognize data patterns and make adjustments automatically when those patterns change. While on the surface this may not sound very exciting, nothing could be further from the truth. In fact, machine learning is the key to transforming your website into a lean, mean selling machine.

Understanding machine learning in 100 words or less

Machine learning uses algorithms to build models from data; as more data is collected, the algorithms are “trained” to adapt to changes. There are two ways in which machine learning can be implemented: supervised and unsupervised. Supervised learning algorithms are used to create models that establish relationships between types of data — the relationship between purchase data and user clickstream data, for example. Unsupervised learning uses algorithms to gain insights into customer behaviors and preferences by looking for patterns within the data. Both of these methodologies are designed to make marketing and e-commerce more exact, more personal and more profitable.

Putting machine learning to work

Netflix, Pandora and Amazon are all familiar examples of machine learning in action. All three use recommender systems powered by complex algorithms. These systems collect data about your browsing activities, past selections and any ratings or reviews you may have provided. Then they segment you into clusters with other customers who have demonstrated similar interests or behaviors and use this data to suggest items that might appeal to you based on the browsing and purchasing habits of these other customers. You see this on Netflix as the category titled “Because you watched...” and on Amazon as “Customers who viewed this also viewed...” To gain a deeper understanding of how these algorithms work, let’s take a closer look at Amazon. To Amazon, you are a very long row of numbers in a massive table of data. Your row represents everything you’ve looked at, clicked on, purchased (or, equally as important, not purchased) or reviewed on the site. The other rows in this gargantuan table encompass the same thing for the millions of other customers who shop on Amazon. With every click, visit and purchase, more data is added to your row, which allows Amazon to constantly mold and shape the products it recommends to you and the special offers you receive based on an ever-evolving stream of information about you that is being collected and stored. Another innovative example is True Fit, a retail software start-up that is on a mission to apply data analytics to increase customer confidence in online clothing purchases while decreasing the number of returns for e-railers. Well-known fashion retailers, including Nordstrom, Macy’s and Guess, have implemented True Fit’s algorithms on their e-commerce sites. When customers shop on these sites, they’re asked to create a profile that includes their height, weight and perhaps most importantly, the size and brand of their favorite piece of clothing. Using that data, True Fit is able to recommend the correct size for a specific brand and article of clothing. Even more importantly, as customers continue to use the True Fit system, it learns more about their personal style and preferences and steers them toward purchases they’ll be more likely to keep and enjoy rather than return.

How machine learning drives smarter marketing

You don’t need the resources of major e-commerce giants like Amazon or Netflix to take advantage of machine learning to to improve your e-commerce site and your online marketing efforts. By enhancing your existing site with systems that allow you to create a virtual marketing intelligence brain, you can create a more personalized – and therefore higher quality – shopping experience for your customers. By establishing this type of marketing intelligence ecosystem, you can mine the data provided by customers every time they visit your site to answer vital questions that will help you fine-tune your site and your online marketing strategy – questions like these:

• How likely is a given website visitor to convert?
• What behaviors characterize customers who are likely to buy?
• What behaviors characterize customers who are likely not to buy?
• How can new visitors be identified as high-potential long-term customers?
• Which type of web traffic has the most value?
• Which products or services appeal most to a given segment of customers?
• Given the contents of a particular customer’s shopping cart, which additional products are high-potential recommendations?
• How can website visits be optimized to provide the best possible experience for each individual customer?

Making it personal

The final question in the list above is one that deserves special notice because of the staggering potential for using machine learning to create a more personalized shopping experience – one of the key drivers for increasing online sales. Not only can the data collected via such marketing intelligence ecosystems be used to drive recommender systems, it can also be used to create personalized advertising based on market segments — or even individual profiles — that can be distributed across a variety of desktop, mobile and social platforms. This type of advertising can be tailored to any number of personal preferences and demographic information, including age, marital status, location, lifestyle choices, typical purchases, brand preferences and so on. Ads can be focused to such a granular level that they reflect specific colors a given customer prefers, and their individual purchase drivers, such as status or cost-effectiveness. Another exciting aspect of machine learning-based personalization is the development of individual customer profiles. You can even combine online and offline customer data to create a more complete picture of a given user. Types of data included in this profile might include online and in-store purchases, membership and activity in rewards programs, product ratings and clothing sizes. Just imagine how much more powerful your marketing efforts could be if you were armed with this level of information. One of the most important aspects of a successful marketing intelligence ecosystem is how data mined from customer activities is combined with sound business rules in order to make smart recommendations that are well received by customers and that do not compromise their trust in your brand. For example, most people who walk into a supermarket like bananas and will often buy some. So shouldn’t the recommender simply recommend bananas to every customer? No – because it wouldn’t help the customer, and it wouldn’t increase banana sales. So a smart supermarket recommender would always include a rule to exclude recommending bananas. At the other end of the spectrum, the recommender shouldn’t push high-margin items just because it’s beneficial to the seller’s bottom line. It’s like going to a restaurant where the server steers you toward a particular high-dollar entree. Is it really his favorite? Or did the chef urge the staff to push the dish because it comes with a side order of premium mark-up? To build trust, the best recommender systems strive for some degree of transparency by giving customers clues as to why a particular item was recommended and letting them adjust their profile if they don’t like the recommendations they’re receiving.

Science fact, not fiction

Machine learning can give your business a serious competitive edge by opening the door new opportunities in the marketplace. It can help you personalize and improve your customer experience dramatically and thereby drive sales and revenues. Creatives and developers alike are rapidly pioneering new and innovative ways for marketers to use machine learning — and the future of marketing built on these ideas has seemingly endless possibilities.

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The Unsexy Side of Marketing

These days, everyone wants to build an app. Everyone is publishing their own e-book. Everyone is pinning their hearts out on Pinterest. They all want to be first on the latest, greatest marketing bandwagon with the hottest buzz.

And while these are all valid and effective tactics, that’s no reason to abandon the proven standbys. Sometimes the less glamorous road is the most efficient and effective pathway to reach and connect with your particular target audience.

Let’s take a look at a few of these tried-and-true methods and how you can put them to work to help you reach your business growth goals:

Blogging

A company blog is an excellent way to engage your customers on a personal level and to provide some very relevant information to your target audience. Your target audience will be much more likely to find you if you are writing about topics that interest them. Just be sure to follow these pointers:

• Blog about topics that interest your target audience. You could provide how-to articles, inspirational round-ups, updates of your company, a contest or event you are hosting, etc.
• Blog with consistency. Each post can and should be varied, but they should always reflect the values of the company.
• The blog should be personal and authentic. If it achieves both of these, then the general public and (most importantly) customers will trust your company.
• Always link within the content of each post to one other post on your site. But only do this if it fits within the context of the article. Remember, you always have the "Related Articles" section at the end in which you can point readers to more. A link within your content, however, weighs a bit heavier as far as SEO is concerned.
• Do not forget an RSS feed and newsletter sign-up form. Make these easy to find and any forms short with as little information required as possible.

Another way to use blogging is to write for other blogs that are related to your company but that are not competitors. For instance, a landscaping business could submit guest posts to "green" blogs, home and garden blogs, other landscaping blogs that are not affiliated with another landscaping company, and any other blog that has readers within your target audience description. You will just want to make sure that blogs allow you to place a keyword phrase embedded with your link either in the content of the article or in the "About the Author" section. Not only does guest blogging build up your company as an expert in your field, but it also increases your page rank on search engines.

Facebook and Twitter

Facebook and Twitter aren't the new kids on the block they used to be, but fact is, most of your customers probably still use them day in and day out.

Keep posting on these networks regularly, but make sure that updates are written on an individual basis. Avoiding mass updates will give the perception that your company is relatable and values individuals.

Your updates can be your latest blog post, a countdown to a company event, discounts or coupons, a drawing or contest for a drawing. Do not update about how you are feeling today, rants on the latest political news, your opinion of competitors, or anything else that could annoy or distract your customers from their relationship with your company. Before posting an update, ask yourself if this is something that you as a customer would want to see from a company you love.

Online directories

Add yourself to as many applicable online directories as possible. Online directories increase your popularity on search engines. This means that it is more likely for you to be discovered through general search entries.

Google Maps is not generally considered a directory, but it may be the most important place to get your company listed. If you have a “headquarters,” post its location on Google Maps. Mark it as headquarters. Then, if there are satellite sites, include those as well.

Direct mail marketing

Direct mail does not necessarily mean via the postal service. Direct mail marketing can also mean email. These emails should be as personal as possible, so consider using customers' names in the subject and throughout the content of the email.

For postal mailers, include a flyer or use postcards. Both print mail and emails can contain a mixture of new developments in the company, things to be looking forward to, promotions and coupons, and any other sort of relational news. Try to avoid including too many statistical reports or numbers. These turn people off, and they will promptly throw away your letter or delete your email.

Keep direct mailers short and simple. Here are a few points to consider when planning for a direct mail marketing campaign:

• Postcards are still incredibly effective so long as they’re clean, unique, and have memorable graphics, along with the other important pieces of information below.
• Include just a snatch of information, enough to make them curious.
• Tell them what you want them to do with a strong, actionable call to action (i.e. buttons that say Purchase, phrases such as "Visit our website or scan our QR code to find out more").
• Provide irresistible incentives, such as limited time offers for free items with a purchase, a discount, or a chance to win a drawing for a prize.
• Include a URL, Twitter name, QR code, purchase button, or another source for them to find out more information.
• Be sure that you cater to your recipients. Consider age, race, ethnicity, gender, sex, and religious orientation.

Yellow Pages

Both online and off, the yellow pages is a valuable marketing avenue. If your business relies on both local and online customers, purchase ad space in both your local yellow pages as well as for the online yellow pages. This will not only improve your chances of being found when prospects complete an online search but also when they are looking through the local phone book for businesses who offer your services or products. Just be sure that your ad is large enough to be seen next to other marketing giants in your industry. Also, be sure to advertise yourself as unique. What niche services do you offer that your competitors do not? Are you family owned and operated? Do you give individualized attention to each customer? Creating a unique angle on your ad will make you stand out to your target audience.

Remember that while adapting to new ideas and technologies is essential, it doesn’t necessarily render the old methods invalid. Your job is to find the right combination to reach and resonate with your target market so that you can build your own community of fans and followers. No matter how they come into your circle, their loyalty and their advocacy of your brand is a result that will stand the test of time.

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