Case Studies

Case Study: How BabyNeeds improved its Average Order Value with personalized product recommendations


Over the last years, the eCommerce environment has grown, but it has not been without its challenges. The CAC (Customer Acquisition Cost) has risen dramatically, and users signaled the need for more personalization throughout the buying cycle. That is why in such a competitive landscape, making use of marketing automation and AI-driven personalization tools is a must. 
 

About BabyNeeds

BabyNeeds is a Romanian online business, which caters to parents’ and babies’ necessities throughout the whole baby growth cycle and the prenatal period. The online store offers a wide range of products, divided into various categories suitable for every budget or need. The company had a 3.9 million euros turnover in 2021, with over 250k website visits monthly, and is one of the most important players in the Baby&Toddler sector in Romania, as well as a recognized Leader in the InsightOut Map 2022. BabyNeeds is running on the Avanticart eCommerce platform, which is natively supported by Aqurate.

The objectives

BabyNeeds decided to stay ahead of competitors by implementing AI-driven personalization tools. The company’s objective was to increase sales by raising the AOV (Average Order Value), without having to further invest in marketing efforts. Thus, BabyNeeds decided to use Aqurate’s personalized recommendations to achieve a higher turnover with less costs.

How it works

Aqurate helped gather sales and clicks data from the website, and input it into its state-of-the-art, recommendation engine. To facilitate the data gathering, Aqurate offers 1-click seamless integrations for a range of data sources.

The solution is contingent on analyzing and interpreting large volumes of customer behavior data (buying, clicking, adding to cart, etc.). It compares similar actions of different potential customers and predicts what a particular user is interested in.

The most relevant items for users are visible on the website through two native widgets, one showcasing substitute products and the other widget showing bundled items for better cross-sell results. Once the personalized recommendations are computed, the items are sent via API to be displayed in the widgets. They can also reach customers through other channels, such as email, native apps, and pop-ups.

“Aqurate Personalize helped us achieve an increase in our net revenue, owed to displaying the right product recommendations to each website visitor. Thus, online shoppers were presented with an online experience tailored to their tastes, which led them to spend more.”
Paul Mihalache, CEO BabyNeeds
 

The results

To adequately evaluate the impact of Aqurate Personalize, an A/B test was conducted for several weeks by distributing BabyNeeds’s website traffic equally, between the original version of the website, and the version using personalized product recommendations.

After looking at hundreds of thousands of sessions, the A/B test showed that the AOV rose significantly for sessions where users interacted with Aqurate’s recommendations. This translates to a net revenue increase of 13% for BabyNeeds.

“Aqurate Personalize allows for an easy and beneficial alternative for increasing the AOV and conversion rate on the website. This yields a higher ROI (return on investment) both moneywise and timewise, compared to using rule-based models or manually inserting recommendations. For BabyNeeds, the ROI was 70x, a result that we are very proud of.”
Vlad Marincas, CEO Aqurate

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