We were able to systematically manage products through OMNICOMMERCE solutions and enhance online shopping experience through Visual Recommendations.
- THE HYUNDAI, PIC -
Problems the company wanted to solve
- Continue offline store customers’ shopping experience online.
- Improve the relevance of similar item recommendations.
Results after integrating the ‘Visual Recommendations’
- The accuracy of similar item recommendations improved from 50% to 95%
- The CTR has increased by 75% after improving the recommendation engine.
Amidst the fashion e-commerce boom, one of the three largest department store chains in South Korea, The Hyundai, needed a competitive edge as they looked to transition to the digital space. The brand was attempting to digitally transform their in-person department stores by bringing all of their retail shops online.
Point 1. Similar item recommendation accuracy improved from 50% to 95%.
Product recommendation is a common strategy to capture customers for fashion e-commerce, and the most important aspect of this functionality is relevance. The Hyundai, who has transitioned the offline department store shopping experience to online has not reaped good results due to inaccurate metadata and the low-quality recommendation engine they were using previously. However, with “Visual Recommendations’ within OMNICOMMERCE, they were able to increase the accuracy of product recommendations.
- Improved accuracy with high-quality recommendation engine
As a result of using a high-quality recommendation engine that recommends appropriate products at the right time, The Hyundai’s similar product recommendation accuracy improved from only 50% to 95%.
Point 2. Improved errors on related product data.
If the relevance of the recommended similar items is low, the suggestion may lead to churn rather than a purchase. The Hyundai was experiencing a high dropout rate due to inaccurate product recommendations during its online transformation. The ‘Visual Recommendations’ solution of OMNICOMMERCE has reduced the number of errors and helped optimizing the online transition.
- Problem diagnosis by OMNICOMMERCE, our AI expert.
The Hyundai was having difficulties optimizing the online experience during the offline to online transition due to inaccurate product recommendations. The analysis of OMNICOMMERCE shows that the biggest reason was due to errors in product attributes and related product data, and a problem with the recommendation engine.
- Improvement in product recommendation errors through 3-week PoC.
The ‘Visual Recommendations’ solution has resolved the errors in related product data and recommended products. They optimized the product recommendation function and improved the shopping experience with a highly accurate recommendation engine.
Point 3. 75% Increase in website CTR
The Hyundai has integrated the ‘Visual Recommendations” solution to provide highly accurate and appropriate similar item recommendations and improved the overall online shopping experience. The CTR has increased by 75% because the recommended products satisfied the customers’ tastes, and as a result, they were able to provide a seamless continuation of customers’ shopping journeys.
