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

question
Unclear Data strategy
obstacle
Incomplete Data
cloud-computing
Big Data computing
project
Insufficient AI/ML Talent

Tavix AI Engagement

planning
Data Strategy Coaching
big-data
External Data sourcing
big-data (1)
Big Data Architecture
risks
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.

pay-per-click
70x increase in Click Through Rates
conversion-rate
30x increase in Conversion Rates
dashboard
2.3K gigabites of data analysed
lending
2.7B transactions analysed