Park n’ Shop is the largest grocery chain in Hong Kong with over 300 physical stores, an online delivery business, and several different retail and online brands within the Park n’ Shop family ranging from discount to high-end consumer staples, groceries, and home goods.
Park n’ Shop sought to better monetize their internal data spanning billions of individual customer purchases, increase customer loyalty, and grow their rapidly expanding online ordering and delivery business. Equipped with raw internal data and a well-established legacy database and IT resources, Park n’ Shop engaged Reboot AI to assist converting their raw data into realized business value.
Reboot AI Engagement
In collaboration with senior Park n’ Shop leaders, Reboot AI formulated a strategy to use internal and key external data to increase customer LTV through personalized promotions and predictive shopping carts which would know what customers needed to buy before they knew themselves.
With Reboot AI’s help, terabytes of internal data were augmented with key external data such as recent weather patterns and upcoming forecasts. With fully automated data collection, processing, and augmentation established, Park n’ Shop and Reboot AI were able to incorporate multiple custom designed machine learning algorithms to accurately predict i) which customer would be shopping for a given product on a given day, ii) the best products to bundle as a personalized upsell for each customer, and iii) how sensitive a specific customer would be to price promotions.
These insights enabled Park n’ Shop to fully optimize which products were offered to each customer and when to offer customers personalized promotions and rewards - maximizing customer loyalty and basket sizes, while minimizing customer churn and foregone revenue.
Immediately upon the completion of Reboot AI’s engagement, Park n’ Shops’ email campaign metrics saw a meteoric rise. Click through rates were up more than 7000%, while conversion rates saw a 3000% increase. The impact on bottom line revenues in the quarter post deployment was estimated to be in the US$ millions.
- 70x increase in Click Through Rates
- 30x increase in Conversion Rates
- 2.3K gigabites of data analysed
- 2.7B transactions analysed