Case Study:Grocery chain client in Denmark seeking better monetize solutions for their internal data
Our Client is the largest grocery chain in Denmark with over 300 physical stores, an online delivery business, and several different retail and online brands .Usually stores offers customized discount to high-end consumer on staples, groceries, and home goods.
Objective
Client sought to better monetize their internal data spanning for millions of individual customer purchases, increase customer loyalty, and grow their rapidly expanding online ordering and delivery business. Equipped with raw internal data and a well-established legacy database and IT resources, Client engaged Tavix team to assist converting their raw data into getting business value proposition.
Client Challenges
Unclear Data strategy
Incomplete Data
Big Data computing
Insufficient AI/ML Talent
Tavix AI Engagement
Data Strategy Coaching
External Data sourcing
Big Data Architecture
AI/ML Coaching
Solution
In collaboration with client’s senior leadership team , Tavix team formulated a strategy to use internal and key external data points to increase customer LTV through personalized promotions and predictive shopping carts which would know what customers needed to buy before they knew themselves.
With Tavix AI Engine , terabytes of internal data points were enhanced with key external data such as recent weather patterns and upcoming forecasts. With fully automated data collection, processing, and augmentation established, Client and Tavix Data science team were able to incorporate multiple custom designed machine learning algorithms to accurately predict
(i) which customer would be shopping for a given product on a given day,
(ii) the best products to bundle as a personalized upsell for each customer,
(iii) how sensitive a specific customer would be to price promotions.
These insights enabled client’s operational team to fully optimize then product line & also provide insights like what to offer and when to offer at individual customers level. This basically personalized their user experience & makes them eligible for promotions and rewards – maximizing customer loyalty and basket sizes, while minimizing customer churn and foregone revenue.
Results
Immediately upon the completion of Tavix Data science engagement, Client email campaign metrics saw a meteoric rise. Click through rates were up more than 7000%, while conversion rates saw a 3000% increase. The impact on bottom line revenues in the quarter post deployment was estimated to be in the US$ millions.
70x increase in Click Through Rates
30x increase in Conversion Rates
2.3K gigabites of data analysed
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