Let's build a surprising experience
Competition in the e-commerce market is fierce. Comparison websites make it easy for the consumer to compare the offers of different retailers and select the one that matches their individual needs best. In order to outsmart competition in this dynamic environment with all-year-round promotions, it has become necessary to really understand consumer’s behavior and quickly react to market changes. We helped OTTO to be the first to make its consumers a competitive offer by predicting their relative market position on comparison websites with our dynamic pricing solution.
But only a competitive offer is not enough, together with OTTO we focus on engaging consumers with their brand and offer a pleasant experience to each individual. In OTTO’s case, this means guiding more than a million consumers through an assortment that contains of over 180.000 different products. Consumer have no interest in the entire assortment, they want to get access to the right products as quickly as possible. Regular category-based recommendations placed just below the product that is currently viewed are often not sufficient. We have to dive deeper into the data to get a better understanding of the needs of an individual and to predict which offers fulfill their needs best and personalize the entire website experience. We have to recreate the human touch that was lost in the age of digitization with our algorithms. To maximize revenue with fixed EBT by making personalized and competitive offer the consumer can’t resist.
Dynamically outsmart competition
Predict market position
Due to the increased transparency of the e-commerce market, it is important to have the optimal market position on comparison websites. For OTTO, we predicted the market position per selected price-point. In this case, not only price is of importance, but also other factors such as product availability and delivery times.
Consumers react differently to price changes for different products. We predicted the price-elasticity of each product and the expected revenue for each price-point. This enabled OTTO to find the perfect price taken into account business KPI’s and optimize their market position, instead of always aim at claiming a top 1 position on comparison websites which might lead to decreased margins.
Every day we surprise 9900 consumers with the products they like
A personalized and surprising online experience
Highly personalized content
To create an appealing and converting website experience, we show the most relevant products to each individual consumer based on a deep understanding of the customers’ needs and behavior. We’ve implemented the personalized content all-over the website journey. Is it the first time you visit the website? Then the homepage will be filled with the most popular products of that day!
Cross and up-sell
To effectively increase cross- and upsell opportunities, OTTO has to truly understand the customers’ needs. By not sticking to the product category but using behavioral data such transaction data and clicking behavior to recommend other products from the assortment, it is possible to personalize the offerings over a broad range of product categories.
In contrast to recommendation systems that only take the consumer’s taste and likeliness to buy into account, OTTO remains in control of its most important business results. By taking their business goals as input. They are able to select their most important business KPI and the algorithms optimize the content accordingly.
Our customer success experts would like to help you on your way to always being relevant to your consumers! Discover in the Inspire Product Guide how our AI decisioning engine can significantly improve both conversion and customer loyalty, or request a demo.