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Many e-shopping carts have been poorly designed (Amazon.com, Netsol, airlines companies, eBay, Buy.com, etc.) They have terrible navigation tools. They force you to browse 10 pages to complete your transaction, trying to sell you all sorts of irrelevant products. In short, they make you waste 30 minutes of your time for a basic purchase, creating a bad user experience, and increasing the chance that next time, you will purchase over the phone (a much more costly option for the retailer), or not at all, or go to a competitor.

The problem is that large retailers have business units that are almost independent: web analytics, user retention / cost of user acquisition, user experience, up-sell / cross-sell, inventory management, sales forecasting, competitive intelligence, market research, etc. Optimization takes place separately: one department optimizes landing page, another one optimizes cross-sell, another one optimizes pay-per-click ads or SEM/SEO, but they don't work together.

Are there any e-retailer using a global optimization system? A system that really takes into account the long term impact of cost of user acquisition and churn? Should such a system be difficult / impossible to implement because of internal politics?

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I believe that you have pinpointed another area in which datamining can be quite valuable. For example, what I would do is conduct a link analysis using SAS, SPSS or another tool that will visually show the various paths (and breakdowns in the ordering experience) taken via the online shopping cart. I remember SPSS's Clementine product (I think now it is called IBM Intelligent Modeler) having a product that would display a web-like result in which various paths could be followed: the thicker the line in the web, the more traffic traveled via this route. Dataminers must turn their ability to find answers in data into graphical results that can be easily presented to senior decision-makers: so that they may make decisions and rectify the gaps that exist and lead to e-shopping cart abandonment. What do you think?

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