Grow ecommerce profits—NOT just conversions
58.4% of consumers make an online purchase every week
Ecommerce has margins 5.2% lower compared to store ones
2
3
Successfully riding the ecommerce growth wave takes more than showcasing product on a website.
It involves providing a best-in-class ecommerce experience, centered around 1:1 personalization, maximization of profits, and merchandiser enablement through artificial intelligence (AI).
In ecommerce, one size doesn’t fit all. It’s about people, not personas.
Get up close and personal(ized)
Appealing to groups of customers based on predetermined personas won’t satisfy today’s consumers and does little for a brand’s business.
In fact, truly personalizing the ecommerce experience is no longer an option—it’s a “must do” if brands are to win and retain customers.
Worldwide online retail sales reached $4.9 trillion in 2021 and will increase by 50% in the next four years
1
71% of consumers expect
1:1 personalization , and 80% of consumers are more likely to buy from a company that provides a tailored experience
5
70% of consumers remain loyal to a company only if it understands their individual needs
6
Personalization lowers consumer acquisition cost (CAC) by 50% — and increases revenues by 10%
7
4
But in the world of ecommerce, 1:1 personalization is hard.
Many consumers return to shop sites only two to three times per year
More than 80% of ecommerce sessions are anonymous
8
9
LEARN MORE
a leader in cognitive search, offers an AI-powered search capability that empowers retailers to overcome common obstacles to personalization and create the 1:1 personalized ecommerce experience customers demand.
WITHOUT COVEO, every customer has the same out-of-the-box ecommerce experience, based on poor results delivered by keyword and semantic search engines. And basic collaborative filtering recommendations show the same popular products to all online shoppers.
WITH COVEO, every customer—whether logged in to a brand’s website, or not—enjoys a 1:1 personalized experience that isn’t based on any rules.
Algorithmic modeling of product affinities
Context—the type of device the customer is using to shop and shopper location
Successful historical events, such as when the customer added products to their cart, viewed a product detail page (PDP), or made a purchase
Real-time activity—for example, the customer is viewing a specific PDP and/or has placed items in their cart
During each search, our powerful AI component detects shopper intent and personalizes recommendations in real time, based on:
In making 1:1 personalized recommendations, we:
Suggests products that are the most relevant to each individual customer, not the average customer
Considers the long tail of all products, delighting customers, decreasing markdowns, and increasing margins
Coveo Helps Retailers Thrive
Complex demand: millions of customers, hundreds of thousands of products
Complex business: each product with different margins, returns, inventory…
Deep insights: merchants have thousands of ideas that should be easily tested
Delight customers with the right product for each person for each interaction
Help retailers by maximizing profits
Coveo AI
How Coveo’s AI platform sets the stage for relevant AND profitable shopper experiences
Merchandise popularity is a vicious cycle.
Product popularity contests have no place in e-commerce. It’s profits—not popularity—that count when it comes to product recommendations.
Maximize profits automatically
Only 16% of customers want popular products
10
When products that are most popular on average are recommended, and the same discounted products are promoted to everyone, retailers must take markdowns on other products
Coveo’s recommendation capability breaks the cycle, maximizing profits automatically.
“Badging” higher-margin products and presenting them to shoppers as hand-selected just for them
Promoting more profitable products using SKU-level margin data or a margin index
Coveo enables optimization for higher gross margins by automatically:
WITH COVEO: AI ranks products based on individual customer preferences and complex business metrics, like revenue, margins, returns, shipping costs, and excess inventory—significantly improving profitability and customer loyalty.
WITHOUT COVEO: Products are ranked according to clickthrough rate, so purchasing suggestions feature the most popular products rather than those that are relevant to individual shoppers.
Coveo's AI Profit Optimization Delivers Much Higher $
Others – Rank by Popularity
Text in description?
Historical CTR
Product A
Yes
2%
Product B
Yes
3%
COVEO – Ranks by Relevance and Profits
1:1 Relevance
Margin
Shipping Expense
Excess Inventory
Likelihood of Returns
Product available?
Brand $ Support
Other criteria...
Product A
92
66
25
44
25
Yes
75
...
Product B
94
60
30
65
30
No
55
...
Average customer experience and average profits
Dramatic improvement in customer experience and profitability
Coveo’s AI-enabled merchandising capability frees up merchandisers to focus on high-value actions rather than tedious fine-tuning tasks, maximizing profits.
Time spent on tedious fine-tuning tasks isn’t well spent. Think. Don’t tweak.
Enable merchandisers with AI
WITHOUT COVEO: Merchandisers spend the bulk of their time fixing problems, like correcting misspellings and word usage in product descriptions, as well as on boosting products such as seasonal items and excess inventory.
Easily configure campaigns by audience, region, visibility split, and time frame
Rapidly create and deploy campaigns for testing—without IT resources
Coveo empowers e-commerce retailers to test new ideas and optimization strategies, delighting customers and increasing revenue per visitor (RPV). Merchandisers can:
WITH COVEO: AI automates 90% of merchandisers’ low-value tasks, freeing them up to focus on high-value ideas and experimentation.
For example, seasonal products automatically rise to the top of product rankings—no need to identify individual products for boosting.
Gain insight into any kind of test based on cart promotions, personalized content, recommendation strategies, and more
CHALLENGES
E-commerce platform lacked machine learning
and required many manual rules
Minimal personalization capabilities
Lack of real-time inventory to inform customer purchases
Difficulty handling a complex catalog with attributes, dimensions, and store availability
RESULTS
25% lift in conversion rate with onsite search
23% increase in conversions with
Machine Learning result ranking
Scalable architecture across sites
Global footwear company
Success stories
Diamond jewelry company
CHALLENGES
Transform the e-commerce experience for their customers to align more closely with an intimate in-person experience and grow the channel
Remove purchase friction while serving different customer journeys
Scale small, agile team via automation
RESULTS
49% increase in average order value
31% decrease in bounce rate
Exponential increase in conversion rate
Ready to take your approach to ecommerce to the next level? Connect with Coveo here.
Sources: 1. Statista / 2. Dataportal / 3-4-7. McKinsey & Company / 5. Slideshare / 6. Salesforce / 8-9-10. Coveo research
with Coveo AI
without Coveo
of merchandisers’ low value tasks automated,
90%
vs 10%
