In the current highly competitive world of e-commerce, businesses are always looking for ways to improve their customers’ experience and boost sales.
In the past year, Nestlé Mexico successfully harnessed the power of conversational commerce to great effect: they now use WhatsApp as a direct channel to engage with store owners in real-time and deepen their customer relationships.
Today, WhatsApp is a highly profitable sales channel for Nestle. As an innovative company always seeking even better customer experiences, Nestle partnered with Yalo to pilot a new product recommendation model that would deliver even more personal and relevant products to their customers.
The Challenge
Nestlé Mexico wanted to find new ways to increase sales and improve customer experience in their already successful conversational commerce strategy. Simultaneously, Yalo was looking for volunteering customers who were willing to innovate on their current selling strategies, testing a new data-based product recommendation feature.
In pursuit of this shared objective, Yalo worked closely with Nestlé to understand their requirements, leading to an exploration of the potential advantages of a personalized sales approach. This strategy would leverage customer behavior and habit data to recommend additional products, tailored to each individual customer.
The Solution
Yalo's product recommendation model was a natural fit for Nestlé Mexico's conversational commerce strategy. The machine learning powered solution can smartly and automatically recommend products to customers based on historical data from the store and customer’s buying habits. The model is self-learning, so there was no implementation work required to enable it, and the testing began simply by enabling this functionality in Nestlé’s online store.
To test the effectiveness of the model, Yalo ran an A/B test with Nestlé Mexico’s customers for one full month. During the test, different hypotheses were tested, to prove which recommendation combination would fulfill the objective of increasing sales.
The first test consisted of analyzing the product affinity with the customer based on tangible consuming habits data, assigning an "affinity score" to each product which was personalized for each customer and would feed the recommendation in future buying situations.
- The first test consisted of analyzing the product affinity with the customer based on tangible consuming habits data, assigning an "affinity score" to each product which was personalized for each customer and would feed the recommendation in future buying situations.
- The second consisted on providing different recommendations based on pricings, so the algorithm would recommend products in similar prices to the ones already in the cart (cross-selling/regular) or higher prices (upselling) to test customer’s reaction.
The Results
Nestlé Mexico's success with Yalo's product recommendation model is a testament to the power of conversational commerce in driving revenue growth.
After a month-long testing, the model showed that the upselling strategy was the most effective, increasing the average ticket size by around 5.3%.
As a result, Product recommendation became a working functionality for Nestlé Mexico, which will continue to bring great results in the future and evolve by adapting to customer's buying habits.
The Benefits
By leveraging Yalo's technology and market proven expertise, businesses can optimize their conversational commerce strategies and achieve their business objectives with a solution that really understands them and fits their needs. The model enables businesses to automatically recommend personalized products to their customers, resulting in increased sales and a better customer experience. We are confident that businesses can start increasing their sales right now by implementing the right strategy in conversational commerce with Yalo.
Whether you are looking to increase sales or improve customer engagement, Yalo's product recommendation model can help you achieve your goals and stay ahead of the competition as it has helped Nestlé. Let us be your partners in success, and together, we can drive growth and achieve your business objectives.
