AI Technology Helps Drive E-Com Sales – WWD

0
1


As the coronavirus outbreak continues to drive consumers to shop online, XGen, the AI-powered personalization platform, is now offering 30-to 60-day free trials for retailers and e-commerce brands. The company also released a case study touting the technology’s impact on sales as well as a platform integration period of two weeks, which is about twice as fast as other e-commerce personalization solutions.

Frank Faricy, chief executive officer of XGen, said the company’s system “utilizes new, proprietary AI technology to predict consumer behavior and buying habits.” Faricy claimed that current personalization platforms are like “a Cessna 172 while our technology is like a top-tier fighter jet.”

“We deliver a detailed analysis of client web site traffic and a commensurate personalization deployment strategy to deliver end-to-end service and guidance to get results,” Faricy said, going on to claim that the platform is “particularly effective in the luxury goods space. It delivers a unique and tailored experience seamlessly to each individual consumer based on their likes and dislikes.”

“We predict consumer behavior and tailor it to the retailer’s site,” he added.

Fabio Guidetti, managing partner at XGen, said demand for the company’s technology continues to grow “as e-commerce continues to play an important role right now.”

In the case study, Style Capital was looking to increase order volume by 10 or more percent and wanted to implement the technology “in under four weeks without requiring significant IT resources.”

The deployment involved A/B testing that exposed 50 percent of Style Capital’s site traffic to XGen’s X1Mind and AI engine — which “learns dynamic user-patterns” by “predicting not reacting,” the company said in the case study.

The results included an implementation period that was “twice as fast as client goal” and “lift [that] was measurable within a few days.” XGen said there was a 34 percent increase in purchases within three weeks of the XGen engine deployment.

Faricy noted that the technology doesn’t require any configuration, and the predictions and recommendations generated by the engine are fully automated. But what sets XGen apart from other personalization engines is how it learns, he said.

The ceo said current personalization systems use “item-based learning” where recommendations are presented to consumers based on their similarity. “For instance, if you click on shoe #123 and historically the bestselling item sold with that shoe is belt #456, you will be shown that belt,” the company stated in a presentation on its technology.

XGen contended that item-based learning is fundamentally flawed in “that different consumers clicking on that same shoe, all see the same belt. It is a calculation of averages, not individuals. Such lists as ‘styled with’ and ‘sold with’ are examples of this.”

In contrast, the XGen engine uses “event-based learning” that keys into “the behavioral patterns of the consumer in relationship to the site and the products, learning from all of their interactions.” This approach can “yield exponentially more data about consumers and can inherently drive 1-to-1 recommendations,” the company claimed. “It is a far more accurate and in-depth learning method.”

 

 





Source link