The prudsys Realtime Decisioning Engine (prudsys RDE for short) allows you to combine services from the areas of recommendations, marketing automation and dynamic pricing at will.
In this digital age, it is essential to personalize all touchpoints if you wish to specifically target your customers. The prudsys RDE lets you propose the perfect offer to every customer at the ideal time, via the right channel and with the proper price tag. The modular design of our intelligent real-time solution lets you implement countless innovative applications.
This integrative approach makes it easy to combine the respective strengths of the recommendations, marketing automation and dynamic pricing areas. This puts you in a position to personalize 98 percent of your customer interactions. Use the prudsys RDE to get to know the versatile use cases and be inspired. We look forward to putting your ideas into action.
Personalized product recommendations in the online shop
The prudsys RDE includes the world’s most powerful recommendation engine. Personalized product recommendations in the online shop have proven to be particularly effective. Visitors looking at pants on the product detail page of a fashion site, for example, are met with recommendations for a matching outfit including a shirt, belt, shoes and jacket. The recommendation engine must learn from every interaction in real time in order to offer customers a shopping experience boasting maximum personal relevance. That is the only way to guarantee that the current needs of the customer are incorporated into the recommendation calculation.
Personalized product recommendations in the newsletter, on consultant tablets at the point of sale, in the call center and on printed package inserts are also appropriate fields for the use of our recommendation engine. In addition, the prudsys RDE is used to generate personalized search result lists and to recommend all types of content. This includes, for example, the recommendation of editorial content on news portals.
2. Marketing automation
Automated incentives in the online shop
Marketing automation is another versatile function of the prudsys RDE. This function is supported by personalized real-time scoring, which in turn makes it possible to form predictions about buying patterns and create corresponding promotions. This is achieved because the prudsys RDE is constantly learning from the interactions between customer behavior, generated marketing measures and user response. For example, a visitor to an online shop is quick to fill the shopping basket but slow to complete the purchase. The threat of purchase cancellation looms! After a certain period of time the customer receives a purchase incentive in the form of a message stating that if he completes the purchase within the next ten minutes he will receive free shipping or a personalized discount in keeping with the profit margin. This effectively counteracts the looming shopping basket cancellation.
Marketing automation tools are perfectly suited for use in the field of return avoidance. If the probability of a return reaches a predetermined threshold value, the return can be strategically prevented. In the fashion sector this takes place, for example, by displaying a contact box or a digital size chart. In addition, the use of real-time scoring offers the option of generating a personalized shop design for each user.
3. Dynamic pricing
Value-added price optimization in the online shop
Dynamic pricing is a powerful component of the prudsys RDE and is deemed an important aspect of every digitization strategy in business. The varieties are extensive as the dynamic pricing adapts to the respective goals of the price strategies. Intelligent algorithms dynamically calculate the price acceptance for each item in real time and for each sales channel at any time. The result is the optimum price, calculated based on the appreciation of the consumer. For basic and long tail items, for example, prices are controlled fully automatically using the prudsys RDE in the online shop, providing relief for category management. Inventory can also be optimized for seasonal and fresh items (waste optimization). Many factors are included in pricing here, such as the competition, the weather, regional and time factors as well as inventory.
The use of pricing intelligence is also well suited to strategic pricing. In this case, the competitor’s price is weighted higher than with value-added pricing. There is, however, no 1:1 adaptation, avoiding ruinous price spirals. Price adaptation occurs against the backdrop of the retailer’s brand strength. Strategic pricing is particularly well suited when it comes to basic items on which the consumer focuses heavily. The specified target function is optimized. Strategic pricing can thus help improve sales, purchase frequency, market share and price image.
4. Recommendations and marketing automation
Customized target group selection paired with personalized product recommendations in the newsletter
The combination of recommendations and marketing automation offers, among other things, the possibility of determining relevant target groups for e-mail campaigns. The prudsys RDE incorporates the individual master data of the potential recipient (historical data and real-time data) to calculate the perfect target group to generate the marketing campaign which it then executes fully automatically. If, for example, a newsletter is to be used to increase sales for the product group “crime novels”, the prudsys RDE determines the ideal recipients and then generates relevant customized product recommendations from this category. Relevance is an essential factor when it comes to the success of e-mail marketing. The correct content for each individual recipient increases the conversion rate and strengthens both customer loyalty and the total customer lifetime value at the same time.
The combination of marketing automation and recommendations is also suitable for the automatic target group selection for marketing campaigns. Let’s assume that a retailer has a huge number of hard disks in stock and would like to reduce that inventory. To this end he sends a special newsletter to every customer that might be interested in such a hard drive. The marketing automation tool selects the suitable recipients. At the same time, the retailer recommends other products to the selected customers in the same e-mail, products that are tailored to the individual interests of the users in question. In this case it is best to limit the selection to products from the same category.
5. Recommendations and dynamic pricing
Personalized discount coupons in the newsletter
The interaction between recommendations and dynamic pricing results in innovative scenarios. With the help of the recommendations component, behavioral data from the customers in the online shop is collected and personalized recommendations are calculated in real time. At the same time, the purchase frequency and profit margin for each shopping basket is automatically determined and classified. Based on this data, personalized coupons with a variety of discounts for each individual customer are generated. These are then displayed in the customer newsletter, offering additional incentive to purchase.
An effective way of increasing sales and earnings is to provide personalized product bundles with automated prices in the online shop. On the product detail page of a certain product, a complementary product tailored to the individual interests of the customer is offered at a discounted price. This technique is particularly good for booksellers who are otherwise not permitted to offer discounts on books due to the fixed book prices in Germany. The book combined with the matching DVD or audio book allows for discounting and results in a considerably higher shopping basket value.
6. Marketing automation and dynamic pricing
Patronage rewards for returning customers
The combination of marketing automation and dynamic pricing opens up a wide range of application options. The marketing automation component helps select a desired customer group, one with the attribute “bulk orders”, for example. This takes place in the online shop using individual behavioral data and in physical shops with rewards cards. At the same time, the purchase frequency and profit margin for each shopping basket is automatically determined and classified. Customer value is calculated based on this data and particularly loyal customers receive a reward in the form of a coupon. This coupon can be sent out, for example, to the appropriate group of recipients or printed at the check-out in the store.
This scenario also lends itself for use in call centers or at the POS by way of consultant tablets. Particularly loyal customers such as those described above are identified and provided with an incentive in the form of a personalized discount.
7. Recommendations, marketing automation and dynamic pricing
Combined forces for maximum success in personalization
Linking recommendations, marketing automation and dynamic pricing is the ultimate in personalization, opening up an ideal customer experience with numerous applications. The prudsys RDE learns both from real-time behavioral data as well as from master data, forming a comprehensive personalized customer approach including the fully automated price adjustment of relevant products and intelligent couponing. This way, retailers can combat potential shopping basket cancellations with personalized discounts for selected products and retain their customers using services that are perfectly tailored to those customers.
Personalized prudsys RDE recommendations paired with dynamic prices and intelligent real-time scoring can be implemented using any medium – online or off. There is no limit to imagination. It would be possible, for example, to assign a customer a certain buyer group by way of marketing automation and then to adapt the shop design accordingly: large emotional teaser images and a template with top sellers for new customers and more product details and personalized recommendations for regular customers. By clicking on a product recommendation, appropriate complementary products are offered in the product bundle along with a personalized discount.