Malaysia’s large electronics retailer raked in 2.8x conversion rate for new smartphone product with Appier’s AIXON
Appier today announced the campaign results for a new smartphone product promoted by Senheng where AIXON, Appier’s customer data science platform, has contributed to a 2.8x conversion rate. In addition, AIXON delivered an AI-predicted customer list which generated revenue that went 12 times greater than a rule-based segmented list, demonstrating the prowess of artificial intelligence that worked at scale.
Senheng partnered with Appier to transform its approach to targeting its online and offline shoppers. With AI solutions designed to predict and generate precise lists of customer segments, Senheng was able to increase its conversion rates and revenue for its wide range of electronic product offerings. The lack of transaction data for promoting new products resulted in no previous transactions to use as reference to identify customers to target. The limited ability to generate a list of relevant customers to target was a challenge and needed to be transformed.
Appier’s AIXON unified volumes of online and offline data to create an AI model with auto-machine learning that could predict target customers without transaction data. Using a product similarity funnel, Appier leveraged data from similar products to the new smartphone, such as brand, price and category, to generate a list of customers for the client. This AI-generated list generated a conversion rate that was 2.8x that of the manually-selected list.
Appier’s AIXON solution took into account various parameters to predict segments of customers that would buy different products. These parameters included purchased categories, purchased brands, recency, membership, warranty and revenue. In the case of generating a user list for three distinct products – TV, fridge, and vacuum – that AI-predicted list resulted in a 30% increase in the open rate and CTR of EDMs, a 50% increase in CTR of SMS, and an overall increase of 12x in order values. These increases are all compared to the results of a rule-based segmented list.
Senheng implemented the BotBonnie solution since Mar 2022 to enrich the brand's first-party data and enhance the overall marketing performance. By analyzing conversational messages from multi-online channels, conducting semantic labeling and processing, Senheng can have a deeper understanding of customers' purchase intents, and seamlessly address customers' needs from offline to online to boost omnichannel sales and conversion rates. Data enrichment can also contribute to the learning capabilities of AI models and enable more reliable predictions of customer behavior and take personalized services to the next level.
“In Senheng, we are always dedicated to deliver the best shopping experience to our customers. With this goal in mind, we’ve worked with Appier closely to help the business adapt to customer data platform and AI technology so that we can understand each customer’s behavior and preferences, whether they shop online or offline,” said Wong Che Hoe, Senior Vice President of Senheng.
“Customer centricity and innovation are two important ethos for us at Appier. To be able to help our customers overcome their business challenges, empowering them with data and analytics to help with their business decision making and ultimately achieve outcomes like a 2.8x conversion rate, is extremely rewarding. We look forward to partnering with Senheng to help scale their customer experience in the future,” said Hong Chia How, Vice President of Enterprise at Appier.
About Senheng New Retail Berhad
Senheng is a Malaysia’s leading consumer electrical and electronics retailer. Founded in 1989, the Group has grown its retail network to over 100 physical stores across Peninsular and East Malaysia, and is supported by various online retail platforms. The Group’s stores carry more than 280 renowned consumer E&E brands, featuring a comprehensive range of digital gadgets, audio visuals, home appliances and related products. An early adopter of digitalization and business transformation, Senheng continues to deliver excellent customer satisfaction via its seamless New Retail Model. The Group has a growing customer base, with over 3 million PlusOne loyalty members to-date. Visit www.senheng.com for more information.
Appier is a software-as-a-service (SaaS) company that uses artificial intelligence (AI) to power business decision-making. Founded in 2012 with a vision of democratizing AI, Appier now has 17 offices across APAC, Europe and U.S., and is listed on the Tokyo Stock Exchange (Ticker number: 4180). Visit www.appier.com for more information.