RECOMMENDATION ENGINE
The Power Of Persuasion-Capture New Clients And Increase Upsells With A Custom-Tailored Recommendation Engine! Well-Known Online Marketplace Experienced A 33% Increase In Comp Sales, Without Increasing Their Marketing Budget!
Client was a well-respected online marketplace, offering over 40,000 SKUs in multiple product categories. Sales volume was on a steady rise, but due to marketing spending and promotions-profit margins were low. Client was searching for a way to increase sales and profitability, without increasing their marketing budget.
BENEFITS
BOTTOM-LINE
Profit-driven recommendation engine produced double-digit lift in sales.
PROFITABILITY
Increased sales volume, and upsells-without increasing focus on discounts and promotions.
MORE RELEVANT
Improved users experience, as intuitive recommendation engine suggested the right products, at the right time.
THE CHALLENGE
The client was a major player in the online marketplace. While they experienced exponential growth from 2010-2013, their sales volume experienced modest profitability in the past three years. While marketing campaigns helped to increase overall sale volume, it was at the cost of highly discounted products and value-adds-that minimized profitability. While there was still a place for promotions and discounts, such as longer return policy, free shipping, expedited shipping, and cash back offers-the client was searching for an innovative new recommendation engine that would accurately determine the needs of the shopper. Their current recommendation engine accounted for less than 6% of sales, and the Dextro Analytics team knew we could do better!
Solution
1. Dextro Analytics utilized human learning to map the journey of online and offline buying habits.
2. Data engineers then blended the web data, product data, product images, pricing, campaign data, transaction data, returns, member's profile data, external zip-code level data, and geo-location data to create holistic pipeline of data to create an advanced analytics tool.
3. Through Dextro's proprietary linked-based recommendation engine, our decision and data engineers implemented real-time recommendation platform-which suggested a meaningful selection of products within and across categories.
4. The recommendation engine populated in milliseconds of each search query, and improved the customer experience by suggesting meaningful upsells, complementary products, and product alternatives.
RESULTS
1. Just in two-months, client saw 33% sales through recommendation engine.
2. The client was highly amazed by image detection feature, which quickly refines the recommendation at scale.
3. Dextro's proprietary cold-start algorithm helped personalize the website for new visitor based on where they come from.
“In the history of our company, we never saw double-digit growth in sales just by recommendation engine. Dextro Analytics dazzled entire management team.”
- Chief Marketing Officer
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