Interview • 19.12.2018

Real-time personalization: “A ten percent sales increase is possible“

Interview on individualized user experience with Gregor Wolf, Managing Director of Evergage GmbH

"Customers who bought this washing machine also bought these socks." Customers don’t want to see bad recommendations like this one when they shop online. But how can retailers suggest items that are more relevant to customers?

We asked Gregor Wolf, Managing Director of Evergage GmbH. He helps retailers to increase their revenue with personalized offers that are generated in real time.

Gregor Wolf; Copyright: Evergage
Gregor Wolf, Managing Director of Evergage GmbH
Source: Evergage GmbH

Mr. Wolf, your website promises "1-to-1 Personalization". What does that mean?

1-to-1 personalization refers to a personalized user experience. We try to duplicate the personal offline shopping experience. For example, you enter a store and the sales assistant knows that Ms. Müller is female, ca. 30 years old, and favors a certain style. If you are a regular shopper at this store, the salesperson will someday greet you by saying, “Hey Julia, I have new items from your favorite designer!” We are unable to offer this type of personal service in online retail but we try to use the customer’s purchase history and situative behaviour and address his/her unique needs with personalized offers. This is meant to give all customers a fully personalized shopping experience.

Personalization software is not new to the market. What makes your solution stand out from the crowd?

Up to now, personalization has mainly been played out in segmented form, i.e. to analytically or rule-based target groups. Evergage's goal is to provide each individual user with an individual brand experience. For example, we can determine the likelihood that a user will shop in a session or not. If the user needs an impulse because he is still undecided, we can address him on the website or in the app in real time and offer him a purchase booster, such as a voucher.

You can also use us to make the search on the website more relevant to customers. If the customer searches for shoes and was interested in sneakers during a past visit to the site, he or she will be shown sneaker options. Other searches would display all types of shoes and not deliver a personalized result. In essence, the way we use the collected and individualized data and instantly display it in real-time is what makes our software so unique.

What are some other personalization options?

Many of us are familiar with Amazon’s personalization strategy: a customer buys a cell phone, adds it to his/her shopping cart and instantly receives recommendations for cell phone accessories. This personalized recommendation is based on the product that has been purchased. However, when personalising a product, we take the user as a starting point and suggest, for example, that he should buy a T-shirt from a brand that he looked at intensively in the past. This is much more relevant for users and increases overall conversion and sales.

Here is another example: one customer has brand affinity for LEVIS, another customer prefers Converse. The system makes different recommendations to these two customers, even though they both are interested in jeans. Now we add another parameter: one of these customers tends to spend more money on items than the other. The system notices and adapts, making an even more accurate and personalized recommendation. This happens within milliseconds and subsequently in real-time, meaning you can immediately respond to the customer’s behavior.

Does this pay off?

Definitely. Personalized product recommendations allow us to increase conversion rates by 40 to 60 percent.

How does an Open-Time Newsletter work – is it a real-time newsletter?

Open-time e-mails essentially function like a "traditional" newsletter that is sent regularly. They show products and categories and usually also have a category for product recommendations. The algorithm determines the best product recommendations for the respective user and also recognizes, among other things, whether a product is no longer in stock and replaces it in the newsletter with another relevant one.

So-called trigger mails are sent for a single user context, for example the one that is sent in the event of a shopping basket abort. New and innovative is that we trigger emails with Evergage if the user has viewed products intensively without buying them. An email is then sent to the customer with additional information about the product they have just viewed.

What are the benefits of a personalized website for retailers and customers?

We try to come as close as possible to the target figure of a well-informed specialist retailer in the retail store. The user should be treated individually in order to display only the most relevant products and content. Studies by several consulting companies, such as the Boston Consulting Group and Forrester, show that this can increase sales in the shop by up to ten percent.

Interview: Maxim Abramov, iXtenso – Magazine for Retailers

related articles:

popular articles:

Thumbnail-Photo: EuroCIS 2019: from the trade fair to the points of sale...
27.11.2018   #digitization #POS Solutions

EuroCIS 2019: from the trade fair to the points of sale

Analogue and digital elements merge in physical retail

Many digital tools presented at EuroCIS over the past few years, have become indispensable to retail today. Which in-store media asserted themselves and what is so special about them? And, beyond this, which tools and technologies have great ...

Thumbnail-Photo: First-hand packaging technology
01.02.2019   #event #packaging

First-hand packaging technology

LogiMAT 2019 in Stuttgart

In response to new regulations, packaging industry exhibitors at the 17th LogiMAT are showcasing new developments and innovations in machine technology, methods for reducing the use of traditional materials, and brand-new materials.As people become ...

Thumbnail-Photo: Allgeier’s Retail Solution of the Future
03.01.2019   #video cameras #self-checkout systems

Allgeier’s Retail Solution of the Future

The IoT BoxX - a pop-up store fully integrated into SAP

Like hardly any other industry, the retail sector is being exposed to the challenges of technological change. On the one hand, important market shares were lost to online trading, and on the other hand, the online stores are now blazing their trail ...

Thumbnail-Photo: retail trends: focus Retail Technology
12.02.2019   #mobile shopping #digital marketing

retail trends: focus "Retail Technology"

Omnichannel commerce, mobile shopping, seamless checkout – technology trends 2019

Would you like to find out about the latest retail technologies and hold something tangible in your hands at the same time?We'll be happy to send you a copy of our print edition retail trends: with the focus on "Retail Technology" ...

Thumbnail-Photo: Pioneering spirit in online retail: participation is welcomed...
27.02.2019   #online trading #food delivery service

Pioneering spirit in online retail: participation is welcomed

The startup company myEnso from Bremen shows how an online supermarket can be successful

Modern pioneers: At myEnso, customers have a say in the store’s product selection. The online store continues to evolve with its customers and focuses on quality, sustainability and an innovative spirit.We spoke with Isabella Henrichs and ...

Thumbnail-Photo: Robots in retail: producer and salesperson all-in-one at the fully...
15.03.2019   #artificial intelligence #personalization

Robots in retail: producer and salesperson all-in-one at the fully automated kiosk

Interview with Matthias Krinke, Managing Director of pi4_robotics GmbH

At Berlin’s shopping mall Bikini Berlin, we meet the robot “Gisela”. The robot’s designer Matthias Krinke sat down with us and explained what she can do and revealed what the retail industry can expect from her and her ...

Thumbnail-Photo: Using digital data to drive brick-and-mortar retail success...
31.01.2019   #brick and mortar retail #data analysis

Using digital data to drive brick-and-mortar retail success

Advanced Outlet Analytics

When it comes to using and analyzing relevant data, brick-and-mortar retail lags behind its online competition. While e-commerce retailers use detailed data from web analytics, CRM, and Google searches to analyze user behavior and generate ...

Thumbnail-Photo: APG Cash Drawer announces hire of connectivity product manager...
08.03.2019   #cashpoints, cash register, cash desk #POS Solutions

APG Cash Drawer announces hire of connectivity product manager

They make addition to product management team to expand its product portfolio

APG Cash Drawer, a fast-growing global manufacturer of cash management solutions, announced today the addition of Ron Stephenson to the position of Connectivity Product Manager. In his role, Ron will spearhead the company’s mobility, interface ...

Thumbnail-Photo: Trend 2019: The digitization of the stationary retail trade...
29.11.2018   #digitization #omnichannel

Trend 2019: The digitization of the stationary retail trade

From retail to omnichannel business model

For stationary retailers, it is no longer enough to think individually about e-commerce or other digital strategies. Instead, the focus is on networking online, mobile and offline channels and implementing a multichannel strategy, the so-called ...

Supplier

AURES Technologies GmbH
AURES Technologies GmbH
Maisacherstr. 118
82256 Fürstenfeldbruck
POSIFLEX GmbH
POSIFLEX GmbH
Flinger Broich 203
40235 Düsseldorf
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
SES-imagotag Deutschland GmbH
SES-imagotag Deutschland GmbH
Bundesstraße 16
77955 Ettenheim
ROQQIO Commerce Solutions GmbH
ROQQIO Commerce Solutions GmbH
Harburger Schloßstraße 28
21079 Hamburg
Elo Touch Solutions NV
Elo Touch Solutions NV
Kolonel Begaultlaan 1C11
3012 Leuven
Intenta GmbH
Intenta GmbH
Ahornstraße 55
09112 Chemnitz
MobiMedia AG
MobiMedia AG
Rottpark 24
84347 Pfarrkirchen