Bygghemma Group increasing its investment in artificial intelligence
The Nordic region’s largest listed retail group, Bygghemma Group, is increasing its investment in artificial intelligence to manage the 400,000 products, 120 million visits and 1.7 million orders its webstores process annually.
“By continuing to strengthen and invest in our AI initiatives and optimising how the most relevant products are displayed, we can create a better customer experience and satisfy our ambition to increase growth and profitability,” says Adam Schatz, CFO at Bygghemma Group.
Maximising sales in limited screen space
Displaying a product catalogue on a webstore can be described as the art of choosing and presenting products and content in a way that best uses screen space. Since screen space is limited, its use needs to be optimised.
“Every page in our webstores consists of several retail areas, and each area displays a product range according to a specific strategy. The goal is to maximise relevance for the user while meeting business targets for the stores, which can be profitability as well as volume,” says Adam Schatz.
AI optimises for relevance and ambitious business targets
The AI solution developed for Bygghemma Group, delivered by Apptus, decides which areas are to be used to construct different pages of Bygghemma Group’s sites. By analysing user behaviour, the solution can automatically sort and optimise search results, categories, recommendations and product lists according to what is most relevant for the visitor at the moment.
The AI solution also helps maximise current business goals - conversion, revenue, profit margins - through optimal sorting and relevance. Business goals can be changed, for example to a revenue-based strategy in conjunction with pay day, when customers are more interested in quality products, and then after half a month changed back to profit margins.
In this example, grills are automatically displayed at the top because the grilling season has just started. In the winter, stoves and ovens were highest up. The grill listed first ended up there because it contributes the most to Bygghemma’s business goal.
Increased efficiency and sales
Historically, considerable resources have been used to manually decide and display products. With an automated solution that learns based on user behaviour, Bygghemma Group can both supply personalised, relevant product suggestions and free up time for the product team.
“Thanks to AI, we have already freed up more time for creative activities like campaigns and enriching product and information presentations. Through the current initiative, we expect to further improve the customer experience and have the ambition to thereby contribute to increased sales and better margins,” concludes Adam Schatz.
For additional information, contact:
Adam Schatz, CFO, firstname.lastname@example.org, +46 709 32 43 00
Michael Mokhberi, CEO, email@example.com, +46 701 66 41 02
This information was submitted for publication, through the agency of the contact persons set out above, at 8:00 a.m. CEST on 3 June 2019.
About Bygghemma Group
Bygghemma Group is the leading online supplier of home improvement products in the Nordic region. We offer our customers a broad product range at attractive prices, with convenient home delivery. We conduct operations in two segments: DIY and Home Furnishing. DIY comprises sales of products from well-known brands for homes and gardens, and Home Furnishing comprises sales of furniture and home decor, mainly under proprietary brands. Bygghemma Group includes a wide range of webstores, such as www.bygghemma.se, www.trademax.se, www.chilli.se and www.furniturebox.se. Bygghemma Group had sales of approximately SEK 5 billion in 2018, has its head office in Malmö and is listed on Nasdaq Stockholm Mid Cap.
About Apptus Technologies
Apptus offers e-commerce AI and business goal-driven systems that optimise webstore product display. Our automated solutions use machine learning and behaviour data in search functions, categories, ranking of product lists and product recommendations to deliver relevant and personalised offers that improve the customer experience, increase sales and streamline work.