Probability

Probability is the likelihood of an outcome. In data-driven decision-making, probability reflects the confidence that an outcome will be the result of an action. The result that is most likely will have the highest probability, and the result that is the least likely will have the lowest probability.

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Why is probability important in personalization?

When you run A/B tests or use predictive data models, probability helps you determine the appropriate course of action to take to achieve your goals.

If you were running an A/B test, you might see that Variation B is outperforming Variation A. In that case, your testing software would tell you that Variation B has a higher probability of converting visitors. With that information, you would declare Variation B to be the winner, and use it as your new control.

For personalization software that uses predictive data models, probability helps the software determine which content to serve your visitors. By analyzing user attributes and user behaviour, your software can decide how to deliver relevant content to increase the probability of conversions. A higher probability means a higher level of confidence for achieving your conversion goals.

Click here for more information about how you can leverage personalization software to boost your ecommerce conversions.