According to surveys, the retail business currently spends roughly $49 million. With AI factored in, the spend is predicted to reach $12 billion.
The AI-nativity movement has two things propelling its growth:
1. Competitiveness in a global marketplace
2. Increasing focus on customer centricity and connection.
These incidentally center around a better understanding of customer journeys and how omnichannel retail influences purchase decisions. More critically, it also involves how retailers can use AI to define the use of personalization on their sites more explicitly.
The customer is one of Asia’s most prominent retail conglomerates with a multi-category eCommerce platform. They operate across fashion, footwear, accessories, electronics, and luxury verticals, with their omnichannel model offering customers the convenience of quicker delivery, easy pick-up, and returns. They currently play host to 1200+ brands with 1000 stores across India.
The customer team and Vue.ai team have been working to implement multiple data-backed strategies that improve conversions and increase engagement and retention through personalization.
growth in direct revenue
contribution in 2021
increase in user
growth in direct attribution
rate from Q3 to Q4
The company’s core focus has been delivering exceptional shopper journeys while ensuring maximum conversion and retention. Intelligence at scale about shopper preferences on-site and bespoke customer journey for every retail category on-site was necessary while also having the flexibility to apply specific business rules across the site.
The partnership between the customer and Vue.ai was designed to deliver:
Bespoke shopper journeys on the site—across brands, categories, channels, and verticals.
Personalization from the first touchpoint for every shopper, no matter their source of entry
Personalization across multiple categories, including eyewear, electronics, and fashion
The customer partnered with Vue.ai as the solutions offered would fulfill their need to understand shopper behavior across categories while providing nuanced feedback on how to deliver engaging and relevant recommendations tailored for every shopper on site.
Vue.ai’s personalization solution learns with every click the shopper makes and with every shopper on the site. Constant iteration and data-backed understanding of shopper behavior on-site help offer personalized recommendations to every shopper whenever they come on-site. Shoppers who engaged with these recommendations showed a consistent engagement and converted more.
Impact of personalization on apparel:
Vue.ai’s personalization solution works by understanding products at the attribute level, making building recommendation strategies for shoppers easier. For the apparel category, improvements based on shopper data and shopper journey on the site helped the customer see a significant uplift in direct attribution throughout the year.
The attribution in this category grew 95% from Q3 to Q4.
Impact of personalization on electronics:
Recommendations for the non-fashion category - electronics were improved based on shopper interaction with the various categories and a better understanding of how the category is consumed. Data showed that shoppers tend to show high brand affinity in non-fashion categories, and improvements helped the customer see a lift in the shoppers’ engagement and direct attribution.
The electronics category attribution grew by 31% from Q3 to Q4 2021
Impact of personalization on beauty & grooming:
Recommendations for the non-fashion category - beauty and grooming were based on shopper interaction with specific products. Data helped the teams understand that brand loyalty, ingredient-specific purchases, and repeat purchases were common in this category. Improvements made on the back of this and other data helped customers see a lift in shopper engagement and direct attribution.
The beauty category attribution grew by 31% from Q3 to Q4 2021
AI-powered personalization engine for eCommerce
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