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Sotka: Optimising sales with artificial intelligence-based content personalisation

We helped Sotka optimise sales and enhance customer experience with AI-based product and content personalisation.

Marko Saarinen

Head of Marketing Science

The challenge

In order to improve customer experience, Sotka wanted to automate their product recommendation process and offer customers an effortless way to find relevant products.

The solution

Manually generated product recommendations were replaced by an automated AI-based solution that decreased manual work and helps Sotka to provide highly relevant personalised product recommendations.

Marketing Science

About the customer

Sotka is part of Indoor Group Ltd. that manages two furniture chain stores, Sotka and Asko, in Finland and Estonia. In addition to almost 100 physical stores, the group does online sales in both countries.

Visit Sotka's web site
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Increased sales

The new automated recommendations are generating 370 % more revenue (revenue per impression) compared to the old recommendations.

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Improved conversion

The conversion rates have increased by 280 %.

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Improved relevance of recommendations

The new personalised recommendations are clicked 200 % more often (CTR) than the original recommendations.

The challenge

Sotka manages a large portfolio of products, which means that updating the product catalogue, stock and campaigns on a regular basis requires a lot of time. As the furniture industry is vastly competitive, Sotka and other retailers need to find effective ways to optimise sales and operations and improve their customer experience.

Generating product recommendations for customers is a central part of Sotka’s campaigns. These recommendations were earlier generated manually, but in order to provide a more customer-specific offering, Sotka wanted to implement an automated solution.

By utilising Artificial Intelligence and data-driven marketing we have been getting excellent results with our customers, both in improving customer experience and increasing sales.

Hannu Arvelo

Head of Omni Experience, CEM, Tieto

In today’s online retail environment great customer experience is a key differentiator and relevant products and content need to be easily available to the customer. Online customers are demanding and savvy and even minor difficulties in user experience can cause them to click away. When traditional category navigation and scrolling through a vast number of products may result in lost customers and conversions, AI-based product recommendations help customers find relevant products faster. This further optimises the whole purchase process.

The solution

To tackle these challenges, an automated personalised recommendation solution was taken into use. The solution is based on Kibo’s individualisation solution and it provides personalised product and content recommendation throughout the web site for each user based on their behaviour and context.

With the new automated solution Sotka can offer their customers an effortless way to find products that are relevant to them and at the same time optimise their sales. Although the earlier recommendations were also based on data, they were not personalised nor based on algorithms.

The new solution offers a fast, effective and personalised way of generating and scaling recommendations as it uses a special algorithm that determines and decides the most suitable placement and type of recommendation.

Tieto has been able to help us create an automated, data-driven process of highly relevant product placement throughout the site. This has improved our click-through and conversion rates by 150 %.

Jani Paananen

Ecommerce Manager, Indoor Group / Sotka

From push to serve

Nowadays companies have access to a big amount of customer data through which they can gain a better understanding of customer needs and behaviour. Moreover, today’s technologies enable companies to harness the power of this data to build next generation customer experiences.

Data-driven marketing in a powerful tool for creating value to customers and Sotka’s automation solution is one example of how marketing can be turned into an integral part of the whole service experience. When marketing is well-targeted in the form of product and content recommendations and customers experience it meaningful, marketing becomes a service that makes the customer’s life easier or provides a unique experience. With the new solution Sotka can provide their customers a more personalised online experience through spot-on product recommendations.

Together with Tieto we have been able to continuously develop Sotka’s data-driven digital customer experience and boost our sales.

Jani Paananen

Ecommerce Manager, Indoor Group / Sotka

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