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eXtra Boosts AOV by 52% with Product Recommendations

Case Study

eXtra Boosts AOV by 52% with Product Recommendations

Segment

Consumer Electronics

Challenge

To increase Conversion Rate and AOV using the right product recommendation strategies

Product Used

The Outcome

0 %
higher Items Per Order (IPO) from recommendations
0 %
increase in Conversion Rate
0 %
higher AOV from recommendations

The eXtra Story

eXtra is one of the most popular consumer electronics and home appliances marketplace in the Gulf region, with both online and offline operations in Saudi Arabia, Bahrain, and Oman. It was started in 2003 by United Electronics Company (UEC).

eXtra now has over 45 stores in Saudi Arabia and 3 stores each in Bahrain and Oman, in addition to three websites serving customers in both English and Arabic. They offer over 12,000 different products, including leading international brands, and cater to over 12 million shoppers.

They also offer comprehensive after-sales service such as extended warranty, free home delivery, product installation, and 24×7 remote assistance through three dedicated service centers across Saudi Arabia.

The Challenge

eXtra has been working with ADA Global for close to seven years now. They realized the need to aid their customers in product discovery early on, and wanted to recommend the most relevant products to customers at every step of their journey. A search for the right platform to put this vision into action led them to ADA Global Recommend™.

The electronics retailer continues to place their trust in the platform because of its proven ability to significantly and consistently improve key metrics such as Conversion Rates, Revenue per Click, Average Order Values, and Attributable Sales.

Personalizing All Path-to-Purchase Commerce Touchpoints

Recommend™ makes it very easy for eXtra to deploy different strategies, assign weights to them as per business KPIs, and decide how and where to display product recommendations on a page.

They use product recommendation placements across different pages on their websites and apps. They optimize the impact of these recommendations by using a variety of recommendation strategies, including but not limited to:

  • Advanced Merchandising Strategy
  • Movers and Shakers
  • New Arrivals
  • Site-wide Top Products
  • Popular Products
  • Category Top Sellers
  • Brand Top Sellers
  • Top Offers
  • Frequently Bought Together
  • Related to Cart
  • Related to Cart Category
  • Recently Viewed

The top five strategies that have worked well for them are: recently viewed, others also viewed (category level), others also bought (category level), advanced merchandising strategy, and personalized as per users’ pageview history.
Here are some examples of these placements:

1 Related Items and Category Top Sellers on the Product Detail Page

2 Popular Products and Top Products on the Category Page

3 Advanced Merchandising Strategy on the Add to Cart Confirmation Page

4 Top Sellers on the Cart Page

The Results

eXtra has seen the Average Order Value go up by 52% when product recommendations are present on a page, versus when there are no product recommendations on a page. Similarly, the number of Items per Order is 50.5% higher when there are product recommendations on a page than when there are none.

The electronics retailer’s Revenue per Click grew by 100%, and they have seen a year-on-year uplift of up to 73% in conversion rates (2020-2021) by leveraging the capabilities of Recommend™.

Here’s a quick summary of the growth:

Looking Ahead

eXtra is keen to leverage more of the capabilities of the ADA Global platform to implement more nuanced product recommendation strategies, such as Advanced Merchandising.

They also plan to explore the features of DeepRecs Natural Language Processing (NLP) and deploy it on their websites and mobile app. They believe NLP will not only give them competitive advantage, but also make it easier for their customers to discover more relevant products as well as niche products.

Table Of Contents
The Outcome
The eXtra Story
The Challenge
Personalizing All Path-to-Purchase Commerce Touchpoints
The Results
Looking Ahead

“As a customer-first business, we are always looking to improve digital experiences for our customers. Through ADA Global Recommend™, we are able to add value to our customers’ shopping journeys by showing products most relevant to them.”

Imran Khan
e-Commerce Director, eXtra

“Recommend™ has been consistently delivering 5% to 7% conversion rates for us, in addition to higher AOVs and IPOs. This has encouraged us to explore more nuanced product recommendation strategies within the platform. We’re also looking forward to exploring DeepRecs NLP, which will help us further individualize experiences for our customers.”

Shahin Riaz
Head of Product, eXtra

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B. TECH Hyper-personalizes Key Touchpoints in Digital Commerce

Case Study

B. TECH Hyper-personalizes Key Touchpoints in Digital Commerce

Segment

Consumer Electronics

Objective

Drive sales with personalization across the buying journey on web, mobile site, Android and iOS apps

Product Used

The Results

0 %
attributable sales (compared to 11% earlier)
0 %
attributable revenue from cross-sell
0 X RPMV
(revenue per 1000 views) from cross-sell compared to recommendations avg
0 X RPMV
on cart page compared to recommendations avg

The Overview

B.TECH is the number 1 consumer electronics retailer in Egypt with over 100 stores and a growing online presence. Revenue from eCommerce saw significant growth in 2020 as consumers were home bound and relied on gadgets and electronics for not just professionally, but also for social and entertainment needs. In addition, the country’s growing purchasing power promises continued growth for the electronics industry, even as financing and monthly payments are popular with shoppers.

The retailer recognized the need to aid product discovery and help online shoppers deeply explore the product catalogue to make an informed buying decision. Electronics buyers want to compare product models, dive into the key features, explore related accessories, and they often make multiple visits before making a purchase.

B.TECH wanted to address these customer journey needs seamlessly with personalization and deployed ADA Global Recommend across their homepage, category pages, search results/no-results pages, item pages, add-to-cart and cart pages.

The electronics category pages start with ‘Top 10 best sellers’, helping shoppers to quickly start exploration, as they are likely to be open to suggestions early on. This merchandised placement also works well for cold start scenarios, i.e., for new shoppers that don’t have much behavioral data or known preferences.

B.TECH’s Commerce Personalization In Action

Item Page

As the shopper navigates to a specific item page, they are assisted with a placement ‘Compare with similar items’ that helps them evaluate other products. Here they can easily see all item specs without having to jump back and forth between pages, and can either navigate to the item page or add the chosen item to cart directly. This placement leverages ADA Global’s advanced merchandising that allows merchandisers to control recommendations using attributes such as brand, price range and compatibility. This enables upsell and cross-sell based on the seed product and without the need for extensive manual merchandising that is impractical for small teams.

Add to Cart Page

When a shopper decides on a product and adds it to the cart, they get highly relevant cross-sell recommendations for accessories compatible with the main product.

For a TV, for instance, they are reminded of the wall mount and home theatre system that they likely need. This strategy contributes to 5% of attributable revenue from cross-sell.

Cart Page

As the shopper progresses to the cart page, they are once again reminded of complementary products for their cart contents at the bottom of the page, allowing them to consider additional useful items without the experience being intrusive or pushy. The unique design also allows shoppers to switch between products in their cart and consider cross-sell recommendations for each of them separately.

Addressing Abandonment and Returning Shoppers

To address cart and search abandonment and help returning shoppers resume their exploration, B.TECH has designed some specific placements using ADA Global pre-built strategies and real-time customer profile.

Three effective examples of these placements are as follows.
First is for shoppers who interact with the search bar. Since searchers have a strong intent and are more likely to convert, B.TECH leverages specific search terms used by an individual to generate personalized recommendations. For e.g. a search for ‘dishwasher’ and ‘dust bags’ is captured and used to surface relevant products in the same session.

Second, a clean homepage placement reminds returning shoppers of recently viewed products and products in cart, helping them resume their journey with ease and driving higher conversions.

In addition to personalized homepage placements shown above, the B.TECH business team retains control over merchandised placements showcasing seasonal promotions.

These could be products for specific occasions (e.g. Mother’s Day promotion), products with interest rate offers or even brands they’re promoting currently.

A third way to address abandonment is as follows – if a shopper empties their cart without making a purchase, instead of seeing a blank page, they immediately see alternatives based on their recent cart contents. This recommendation strategy for shoppers with clear intent contributes to the retailer now attaining 10X revenue per thousand views, powering their bottom of the funnel conversions.

In the future, B.TECH also plans to expand the personalized shopping experience to its 100+ retail stores and deliver on its vision of a customer-centric omnichannel experience.

Table Of Contents
The Results
The Overview

“Shoppers like to compare products from different brands and evaluate different models to be certain they’re making a sound decision. It is a very involved journey, and by providing personalized similar product comparisons on the item page, we’re able to reduce mid-funnel drops and improve our conversions.”

Hazem Salah
Principal Product Manager for E-Commerce & Innovation

“Products recommended on the cart page are akin to checkout counter displays in the store. The key difference, however, is that these can be much more tailored to your current cart contents. We can now show relevant, compatible accessories, products that are frequently bought together and this has contributed to 5% of revenue from cross-sell and 10X RPMV on the cart page. Our customers clearly value it, as they spend less time searching and are reminded of items they might’ve otherwise forgotten about.”

Hazem Salah
Principal Product Manager for E-Commerce & Innovation

“Optimizing for various abandonment scenarios is crucial to our commerce business because shoppers typically purchase only after multiple visits and doing their research. With ADA Global’s real-time customer profiles and AI decisioning, 1:1 personalization is a breeze – and we’re no more wasting opportunities but getting the most value from our visitors.”

Hazem Salah
Principal Product Manager for E-Commerce & Innovation

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0 %
Reduction in out-of-stock across stores
0 %
increase in revenue

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