Next Best Product Recommendation

The Challenge

Retail companies are consistently challenged to anticipate their customers’ ever-changing needs and offer them relevant products at the right time, the right place and the right price. All this needs to be executed in real-time for the best customer experience, to decrease costs and increase supply chain efficiencies. This challenge is traditionally handled through recommendation on “products frequently bought together” or “customers who bought this item also bought Y”. These recommendations might work generally for a customer cluster but not for every unique customer.

About the Company

The Solution

iTuring’s Auto ML/AI addresses this complex problem by sifting through enormous amount of data across multiple channels, browsing/shopping behaviour, demographics, and other attributes to understand “customer intent”. Based on that it offers personalized next best logical product recommendation at the individual customer level. Additionally, iTuring’s models can also predict the customer’s sensitivity to price, thereby ensuring that you offer the right price at which they are willing to buy.

A leading education media retail client used iTuring to build “Next Best Product Recommendation” algorithm to increase product sales and drive Customer Lifetime Value. The recommendation was integrated to their Dynamics 360 CRM to drive decisions at the operational level through personalized recommendations on the website, email communications and direct mail.

Business consumed the model recommendations to realize an 18% increase in product sales, increased campaign engagement, higher loyalty (lower attrition) and therefore higher customer lifetime value. One of the unexpected benefits of this approach was the increase in engagement and value of lower-tier customers.

Highlights

Impact

Revenue

0 % ↑

Model Development Time

0 hrs

Product Penetration

0 % ↑

Why CyborgIntell

Not only does iTuring predict customers who are highly likely to buy products but also helped identify need and intent of customers to buy a product. Further, iTuring’s Integrated AI helped implement the next best logical product offered based on the customer’s propensity, need and intent to buy a product. This allows business users to better understand their customers buying behaviour and pattern to apply right discount levels and rebates to drive sales.

Next Best Product Recommendation