Tesco are one of the UK’s largest growing retail operations, and launching their broad and varying product range online, has experienced unprecedented success. In addition to this, recent months have seen the retail giant roll out its online grocery home shopping business to more than 50 cities overseas, and growth in all markets – including the UK – has reportedly been strong.
So how have they done it? “This performance,” said Tesco chief executive Philip Clarke, “was driven by a further improvement in our food business in-store and a strong contribution from online, which included our biggest ever week for internet sales, a successful first Christmas for Grocery Click & Collect and a better performance for Tesco Direct, our online general merchandise business.” With a strong amount of online focus and competition fierce, Tesco needed to ensure their online retail offer was performing at optimum levels. With a need and desire to offer the Tesco customer a user friendly yet sales enhancing experience online, Tesco turned to Locayta to help optimise their online retail offer with their Product Recommendation technology.
Locayta’s Product Recommendations
Tesco.com turned to Locayta’s Product Recommendations to help enhance their average basket order values and conversion rates. The technology works by generating highly relevant and personalised product suggestions which are placed alongside the browsing pages and product detail view pages. Product Recommendations are widely known as one of the most impactful and effective online merchandising tools in the market, but Locayta’s technology is unique in offering an extremely high level of relevancy and personalisation. They achieve this by working in real time and use intelligent behavioural merchandising algorithms to harness collective information based on the user behaviour on Tesco’s site. This information is then used to make relevant and personal product recommendations to the Tesco customer, benefiting both the Tesco online customer, and Tesco as a business.
Mark Wakeley, Change Manager at Tesco Clothing commented, “Until we launched with Locayta our systems just couldn’t achieve what we needed to do. The ability to control product and accessory recommendations makes sure that customers have fast, convenient access to the products they are looking for, ultimately increasing conversion rates and order values. We’re now moving to the full Locayta system. Freestyle Merchandising is easy to use and you receive full support”. He added, ”We’ve experienced some staff turnover in the past year and Locayta have been quick to respond to the training needs of new people. They take the time to meet with us once a week to look at potential new advances that will tighten our performance further.”