Data to Dollars: Driving Retail Revenue with AI & Analytics

METHOD 4 : MACHINE LEARNING & AI

3X UPSELL + 2X CROSS-SELL INCREASES REVENUE IN 6 MONTHS

CHALLENGE This business recognized that its overly complex ecommerce marketplace created decision fatigue on the customer journey, requiring a new approach to connect customers with the products they need—when and where they choose to purchase. Specifically, the team wanted to use AI and machine learning to help customers find the right add-on products for increased upsell and cross-sell revenue. SOLUTION 1. Deployed purchase propensity machine learning models to identify audience segments most-likely to purchase specific products, including proprietary “build- instead-of-buy” machine learning models. 2. Conducted a market basket analysis—a data mining technique that analyzes customer behavior to identify links between products purchased in sequence to increase opportunity strength for cross-sell and upsell conversions. 3. Leveraged the right AI and machine learning models to more quickly connect buyers with the products they needed, in addition to the most associated add-on products.

UPSELL 325 %

CROSS-SELL 200 %

RESULTS • Upsell conversions tripled revenue in six months. • Cross-sell conversions doubled revenue in the same timeframe.

Data to Dollars

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