How AI technology generates more than 20% of orders with a personalized approach: the case study of Kliper.cl
Generally, in online stores and marketplaces with a large number of brands, it is more difficult to make a purchase decision in the face of the multitude of offers. That, added to the overwhelming number of alternatives we find while browsing online, can affect eCommerce businesses’ sales. In the book “The paradox of choice: why more is less,” the American psychologist Barry Schwartz calls, as its title indicates, the paradox of choice. It refers to the fact that the greater the number of options, the greater the insecurity and uncertainty generated at the moment of decision.
Is it possible to struggle against this phenomenon? The answer is yes, and the implementation of Artificial Intelligence will be your best ally to strive for encouraging users to make a buying decision. The key is to facilitate the purchase journey, building a unique version of the online store for every customer. Do you want to know how? Let’s see below Kliper.cl strategy to increase sales with the implementation of Retail Rocket technology.
Kliper is an exclusive online store with a vast range of fashion and outdoor products for the whole family. It is part of Komax, a retail company that represents major brands of clothing, accessories, and footwear, both in Chile and Peru. In its wide assortment, you will find firms such as The North Face, Kipling, DC Shoes, Brooks Brothers, UGG, Marmot, Mammut, among others.
For businesses, data is as important as the products and services they sell. Companies, aware of this, are turning to the AI technology that will store, manage and analyze customer data to maximize profits with a personalized offer in real-time.
Kliper turned to Retail Rocket with clear objectives:
- To improve the shopping experience, by facilitating the purchase decision
- To increase loyalty and Customer Retention
- To increase the KPIs: conversion, average order value, and revenue
Retail Rocket solution
Every online store has its peculiarities, so the Retail Rocket team always offers a personalized solution that fits the goals of each client. In this case, being one of Kliper’s main challenges to help its customer’s purchase decision in a store with such a wide assortment, the strategy set will focus on AI personalization in Customer Journey’s decision and purchase stages.
- To implement AI personalization technology in both website and email marketing campaigns.
- To display personalized product recommendations in real-time to increase customer satisfaction, loyalty, and retention.
Product offer personalization on the website to facilitate the purchase decision
The Retail Rocket’s AI technology allows Kliper to display a unique version of the store for every single user based on their interests and behavior. Offering personal recommendations in real-time on the website’s main pages will increase visitors’ interest who click on a product to see its information in detail and continue to browse in the online store.
Recommendations on the Home Page: familiarization with the store’s popular products
The level of interest raised on the home page, like a shop window, will determine how long a visitor stays on the website and whether or not they make a purchase.
With first-time visitors, the store does not yet have information about them. In this case, recommending the bestsellers, as Kliper does, is a perfect option to encourage them to interact with the site based on other user’s purchases.
On the other hand, the welcome to regular customers or users who have already visited the store will be much more precise and effective. Having stored data will allow displaying a personal block with bestsellers that match their interests. That will increase the user interest, as every single one will be shown a unique site version and a personalized offer.
Recommendations on the category page: we help the user in the product search
On this page, the visitor is one step closer to becoming a customer. At this stage, the store has a larger amount of information stored. That allows the online store to display a recommendation block with a higher level of personalization, which will help the user to find what they are looking for. Kliper.cl includes a selection of popular products in the category, based on user behavior in real-time.
Personal recommendations on the Product Card Page: cross-selling
However, the fact that a visitor arrives at this page does not guarantee a sale. Therefore, it is essential to offer other personalized alternatives to help them make up their mind. For example, if a user doubts when viewing the product’s features, there will be other similar options, thus preventing them from leaving the store. To achieve this, to show a recommendations block with alternative products is very effective, as Kliper does.
Nor should you miss the opportunity to increase the average order value, and this is where the cross-selling technique comes into play. Showing an additional block with related products, which are usually purchased together with the one the user is viewing, is very effective in increasing the average order value and revenue.
In Kliper.cl, the recommendations of both blocks change in real-time based on the product card. Artificial Intelligence is not only based on the typology of products and categories to personalize the recommendations but also on other features such as model, style, colors, sizes, etc. For example, we can see below how the pattern and color of similar products match the one a user is viewing.
In the following image, although the garment that the user is viewing is also a pair of pants, both the color and the cut are different from the previous example, and therefore the garments shown in both blocks also change in real-time.
The implementation of Retail Rocket’s technology makes it possible to show recommendations in real-time with benefits both for the online store, increasing its revenue, and for satisfied shoppers who, thanks to it, will quickly find what they want. The how? Artificial Intelligence can identify what a user is looking for, even before they know it, by analyzing and storing their behavior.
Personal recommendations on the Cart Page: increasing the average order value by cross-selling
When a customer is about to complete an order, do not miss the opportunity to increase the average ticket per order. Cross-selling is very effective to achieve it by showing the recommendation of additional personal products that can be added to the cart.
Smart form: increasing the subscriber base with a welcome discount coupon
Optimizing the power of Artificial Intelligence is not possible without implementing AI technology in email marketing campaigns too. Only thus, can it be possible to cover the entire customer journey in the online store. As the first step is to encourage a visitor to register, Kliper.cl offers a 15% discount code on a smart form to increase its subscriber base.
Welcome email for new subscribers
Once a visitor is registered, Kliper.cl sends an email with a welcome promotional code. In this first contact of the online store with its customers, it is essential to present the brand and provide relevant information to facilitate and drive the purchase. Kliper also takes the opportunity to thank users for subscribing to the Newsletter, inform them how to use the discount, and implement direct access to the online store and categories.
Website integration results
Let’s see the results obtained by personalizing the website:
- 19% of the online store’s orders come from the recommendation blocks on the website.
- 3.20% conversion rate with recommendations, 340.43% higher than the average on the site.
- 12.83% of the online shop’s revenue comes from the recommendation blocks on the website
- The average order value is 6.89% higher with recommendation blocks.
Personal recommendations in email marketing campaigns
The online shop personalization does not end with the placing of an order. That is just the beginning, and it is email marketing campaigns that allow the online store to cover the entire Customer Journey: from the first time a visitor enters the site, during the purchase, and even after some time.
The configuration of triggered emails consists of automating the sending of Newsletters that will be activated according to a user’s interaction on the website.
Kliper.cl has four scenarios activated:
- Abandoned view
- Abandoned cart
- Abandoned cart’s followup
- Abandoned view price drop
Email marketing personalization results
The results obtained show the effectiveness of email marketing for customer retention, with a conversion rate of 8.27%, meaning an increase of 879.8% compared to the site’s average.
1.8% of orders came from this channel, increasing the revenue by 1.45%.
Offering a personal approach is key to optimizing an online store’s performance. Artificial Intelligence Integration provides benefits not only to the company that increases KPIs but also to users who easily find what they are looking for, creating a unique shopping experience.
By implementing the Retail Rocket’s technology, Kliper achieved the results below:
- 20.8% increase in orders
- 14.28% increase in online store revenue
- 6.9% increase in average order value compared to the website average
- Compared to the online store average, the conversion rate is with recommendations 3.5 times higher on the website and 8.8 times higher in the email channel.
“Retail Rocket has been a significant player in helping us to personalize our sites and optimize the shopping process by providing recommendations according to our users’ preferences. They have helped us improve our conversion, orders, and shopping and browsing experience through personalized product showcases, email marketing, Push Notification, and Pop-ups, among others. They also provide us with relevant and valuable performance reports to make decisions based on the metrics and KPIs set to measure each tool”.
Catalina Lavanchy – Ecommerce sales & Marketing Manager · Komax S.A.