Certona Corporation
e-Commerce Marketing
Website: http://www.certona.com
Phone: 760-942-0200
Resonance® - Real-Time, Individualized Product Recommendation Service
That Boosts Internet Retail Sales
Certona’s Opportunity and Value Proposition: Online retailers are powerfully motivated to adopt new methods to engage visitors and maximize the revenue potential or the average order value of every visitor in every online shopping session. They know that great improvement is possible, because today less than 3 out of every 100 online visitors actually become customers.
Resonance, Certona’s dynamic recommendation and behavioral targeting service, generates additional (incremental) revenues from its individualized and targeted product recommendations, delivered on Internet retailer sites in real time. The demonstrated incremental lift in top-line revenues has ranged from 3-15%, a direct result of more relevant and personalized product recommendations by Resonance on actual and existing customer e-commerce sites.
Key Customer Benefits:
- Increase site revenues by offering the right product to the right customer, at the right time
- Sell more to each customer (Average Order Value and Items Per Cart)
- Individualize and optimize merchandizing campaigns (sales, e-mail) to each customer
- Automate laborious product recommendation processes to reduce costs and ongoing maintenance
Advantages of Resonance: The most unique and revolutionary aspect of Resonance is its ability to accurately profile a visitor in real time and predict that visitor’s interest in products, content or advertisements, after only a few clicks and without any previous transactional or demographic data. Resonance continues to adapt over time to a site’s behavior and transactional patterns and constantly uses the added intelligence to optimize its performance. The powerful continuous self-learning feature of Resonance’s proprietary neural network engine combined with the ease of implementation creates a compelling value proposition for the majority of Internet retailers who do not have the sophisticated analytics resources of larger sites like Amazon.
In addition to generating incremental revenues, Resonance automates the complex task of matching cross-sell/up-sell product recommendations across very large product online catalogs. Today on most sites, this task is performed manually by merchandisers and online marketing staff, using inadequate homegrown systems or expensive, high-maintenance, rules-based software solutions. Certona’s customers enjoy rapid implementation in two weeks or less and a lift in revenues and average order values within one to three months of going live.
Market Strategy and Revenue Model: Certona has identified over 2,500 qualified online retailer sites in the U.S. with $3 million to over $1 billion in annual online revenues, selling a variety of consumer products. The primary target market will be sites making $20 million or more. The company is actively engaged in discussions with the leading e-commerce platform providers as potential distribution channels.
Certona has a subscription-based recurring revenue model with either a fixed fee equal to 0.1-1% of annual online revenues or revenue-share equal to 5-15% of incremental revenues generated by Resonance. The typical commitment is for one year and the average annual contract value is expected to be about $40,000.
Resonance is simple to implement as hosted service and after the initial 30-60 days of training the engine on the customer site, it can be operational without requiring any human intervention or product domain expertise. The service is offered on a no-cost, no-risk basis, based on delivering incremental revenues to Internet retailers.
