Case Study on Up-selling and cross selling in retail
Product cross selling basically means the action or practice of selling an additional product or service to an existing customer.
We use Artificial Intelligence in determining what are the best determinants to predict if a person will purchase a
certain product given s/he had purchased product A?
We use Business Intelligence in determining Which segment of customer (and segment based on what) gives us the highest profitability?
The e-commerce platform wanted to launch a new product and had been asking about the segment of customers that are most likely to buy the new product with other products priced between $18 to $25 and how do these segments react to a discount in the new product.
Rosebay and its partners, Corgi AI implemented a cutting edge data driven business
intelligence and AI driven recommendation system which helps e-commerce companies make
rapid, evidence driven decisions on Customer Segmentation and Product insights.
In addition the AI based techniques helps e-commerce companies predict customer behaviour and its impact on its inventory.
We were able to achieve tremendous results for this problem with the help of AI.
1. We were able to analyze customer behaviour and figure out that if a segment of customer buys Product 1, they were 90% likely to buy Product 2 as well.
2. This discovery resulted in 19% increase in sales of the new launched product.