‘Technology + Service = Conrad’ is the motto for this specialist retailer’s E-Shop for Business Customers. Our next best offer engine ensures that every Conrad customer finds what he wants quickly.
I will be presenting this project together with Dr. Jörg Dubiel, Head of Corporate Intelligence at Conrad Electronic S.E., at the Big Data Summit 2016 in Hanau on 25 February 2016.
Imagine entering a warehouse containing over 700,000 products and having to find the battery, measuring instrument or electronic tool that you just happen to need. You don’t stand a chance! But this represents the array of products that you can access when you visit the Conrad Electronic online-shop – at the touch of a button, backed up by a massive quantity of data.
Conrad’s Dr. Jörg Dubiel and I asked ourselves how we could exploit this mass of data to boost the online-shop’s conversion rate. We know that in the course of the working day, business customers often access the shop with their smartphone or tablet. The objective was therefore to be able to show every visitor exactly what he is looking for on these relatively small screens.
Using predictive analytics, we went on to develop an algorithm that determines the ‘next best offer’ out of around 20,000 products in a single operation for all customers known to the company. Customers across all channels can then be offered the products with the highest individual likelihood of purchase.
In a pilot phase carried out to test how that works, every sixth existing customer, or about 15 percent, purchased one or more of the pre-selected goods. An unsubstantiated product recommendation rather than the next best offer would inevitably have resulted in only a few random purchases.
The value of such big data analytics projects increases in line with the size of the product range. For Conrad, the potential growth in turnover is considerable. And the company delivers on its promise – ‘Technology + Service = Conrad’ – in response to both consumers and business customers because they are keen to get specialist advice. Whether this occurs automatically in the form of a next best offer in e-commerce, or personally with a shop-assistant, is not really an issue. The important thing for the prospective customer is to feel that his needs have been understood. And that’s where next best offer analytics stands out.
You’re welcome to take a look at how ‘listening to the customer’ via predictive analytics works!
At the Big Data Summit on 25 February 2016 in Hanau, we will be presenting the challenges and successes of the ‘next best offer’ project at Conrad.