Clas Ohlson gains great results with validated personalized customer journeys with SAP Hybris and Frosmo
- Continuous and fast front-end development
- Smart product recommendations
- AI-powered multi-armed bandit for data-driven decisions
Clas Ohlson celebrated their 100th anniversary in 2018, which makes them one of the oldest online stores in Sweden. When it comes to online retailing, Clas Ohlson considers itself a startup despite being one of the strongest retail brands in the Nordics and their long history with brick and mortar stores.
It shouldn’t come as a surprise then that they’re heavily invested in figuring out the ideal online customer journeys on their way to create flexible and inspiring shopping experiences.
Continuous and fast development
To meet customer expectations, continuous development of the front end is needed. Clas Ohlson uses SAP Hybris, which was tailored to meet their business requirements eight years ago. Back then, the online store was built to show what products were on the stock and the focus was to get people to buy from the store after browsing the products online.
The ecommerce platform was also custom-made so it was inflexible with too many code dependencies to other systems. The front-end development started to lag and it could no longer match the modern online retail experiences that customers expected.
Clas Ohlson wanted to partner up with a company who could help them with the continuous development of the front end and offer a vast variety of features to create optimized and personalized customer journeys.
“Fast time-to-market is essential in a fast-paced ecommerce business. With Frosmo, all the changes to the front end can be implemented around 30% faster,” says Deneb Pettersson, Online Operations Manager, Clas Ohlson.
Smart product recommendations
When many of your products are similar, it’s essential to help customers pick the right product for their needs. Frosmo helps you enrich the product data so that when a customer tells a bit more about their requirements, the store can recommend the right product or selection of products.
Recommendations bring value to the customers. On the front page of Clas Ohlson’s webshop, the Frosmo Platform is used to show the most viewed and most bought products. When buying a product, there are many different ways of recommending other products to accompany the initial item of interest. For example, if you buy a robot lawn mower, your recommendations will show the right add-ons for your lawn mower such as cables and tools to complement the product; extras such as a storage unit, accessories; and finally, what others have bought with the lawn mower.
With add-ons, upselling, and recommendations, Clas Ohlson sees an 8% increase in average order value and 27% increase in bought articles.
Experimenting is key
Sometimes, the most challenging part of running an ecommerce business is to get people to work together and agree to the changes in the front end. Thus, experimenting is the key to gather data that shows what should be developed next. And because there’s evidence that backs up the decision, it’ll be a direction that everyone can agree on.
Clas Ohlson uses AI-powered multi-armed bandit to optimize the most promising product recommendations in different markets.
Small changes might turn out to be big revenue generators. That’s the reason why testing is essential. Clas Ohlson grew conversions by 13%, session value by 14%, and visit durations by 16%, just by adding a sticky bar with the search to the navigation.
Focusing on services
In the future, Deneb sees the company moving towards offering more services. Customers buy products to get something done and Clas Ohlson wants their customers to achieve what they set out to do, whether that’s installing a TV on the wall or connecting the lamp to the ceiling. Renting equipment is also an upcoming trend where people no longer want to own all the tools and equipment themselves but would rather rent them from a trustworthy place.
To create winning user experiences, it’s the details that matter. Having a solution that enables experimentation with such details will prove to be invaluable. It’s the key to continuous development and the perfect way to turn a good SAP Hybris site into a great one.
Want to know how Frosmo can help you with your SAP Hybris website?
Watch the 21-min recorded presentation where Deneb Pettersson from Clas Ohlson talks about how to create superior experiences with SAP Hybris and the Frosmo Platform.
Read more about how multi-armed bandit optimization makes testing faster and smarter with machine learning.