The first store decathlon opened in 1976 in Lille (). Ten years later, stores with their name began to appear on German streets, but it was not until 1992 that Decathlon opened its first store in Spain, on the occasion of the Barcelona Olympics. A few years later, in 2013, he opened your online store in the Netherlandsand three years later, his website won the award for “Best online sports store”. As of 2018, the Leading sporting goods retailer has more than 1,000 stores around the world, from China to Lebanon and from India to , always standing out for the strong development of their private label.
However, and given that everything good also has a againstthe company has reached -to date- such high levels of consumption and variety, that users can present difficulties in navigating through such a large online store. The product range of Decathlon Netherlands It covers 54 sports and thousands of items, so from the inside they realized that by simplifying the customer buying process, they could increase the number of orders and revenue. And so, they sought the experience of the tool to optimize the purchase process of their users.
This is how Decathlon Holland managed to increase its income by 10.7% with Retail Rocket.
Talk about Retail Rocket is to refer to a higher level, and implements it in online stores in real time. In addition, it offers eCommerce solutions for personalize the website and the channel .
Retail Rocket provides more than 20 self-learning mechanisms to personalize the user’s shopping experience. Using advanced technology, it manages to detect the needs and interests of users in the online store by analyzing their behavior in real time. The added advantage of the tool is that it allows showing a certain product offer at a key moment, when the consumer will be more inclined to consume, which will achieve increase key indicators performance of the online store.
In this article, we will see how the leading sporting goods retailer managed to increase conversion by 5.2%, average order value by 5.2% and revenue by 10.7% after adding personalized product recommendations. on the Decathlon.nl website.
How Decathlon.nl applied personalized recommendations
In order to find out any statistically significant changes in the and identify which mechanism would work best for the online store, Retail Rocket implemented different algorithms on the Decathlon.nl product pages and compared them using a . All Decathlon.nl customers were randomly divided into five groups:
1. Similar products
Based on the properties of the product (price, brand, category…) and on the behavior of other customers (what they also saw or bought). Similar products are identified by the most similar or most matching products that a user is looking at in real time.
2. Related Products
In this case, the related products are complementary products based on the user’s profile and the content of the cart, through the history and the purchases that, little by little, are made.
3. Similar products shown above and related products below
That is, two blocks divided as follows:
4. Related products shown above and similar products below.
Likewise, divided into two blocks:
5. Control group
A who were not shown personalized recommendations on the product page.
A/B test results
The recommendation blocks were tested on all Decathlon Netherlands product pages for 18 days, analyzing more than 120,000 unique users.
All algorithms tested had a positive effect on the revenue generated by Decathlon.nl compared to the control group. The most effective was combination of two blocks with related (above) and similar (below) products. This managed to increase the conversion by 5.2%, with a statistical significance of 94.4%. It also led to a 5.2% increase in average order value. The accumulated result of these increases boosted revenues by 10.7%.
After implementing the algorithms and personalizing the user’s shopping experience, the statements of Martijn Sprangers, from the brand’s Marketing department, were clear: “RetailRocket is helping us so that our sports users can find the most relevant items for them and their sport. This is in addition to our goal: to make sports accessible to the majority. This was the missing piece in the puzzle and in the purchase process of our users. The first results proved to be very promising and the implementation was easy«
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