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From Now To Next

IKEA

Challenge

IKEA wanted to go deeper in its understanding of customer’s shopping behaviour. Rather than targeting people based on where they had been, they wanted to predict what they might want to buy next. Our solution created a 25% rise in revenue for the bedroom department.
From Now To Next

Solution

We worked with IKEA’s Bedroom department to home in on one step in the customer journey: the next category in which they were most likely to buy.

Deploying an algorithm based on machine learning, we were able to calculate purchase intent based on online and offline behavioural data. This calculation provided us with the customer’s probability to purchase in any given category for a 30-day period.

After visiting a specific category, we were not only able to learn that people who bought an item in the Decoration and Living Room departments were more likely to buy in the Bedroom department but could drill down to the probability that they would purchase Bedroom furniture after visiting the Decoration category.

Results

25% increase in revenue in the Bedroom department
83% increase in visits to Bedroom department
22% longer view times

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