Sonno, a Malaysian sleep retailer, approached us with the goal of enhancing conversion rates and AOV. They also sought a solution to effectively showcase their significantly expanded product range, which had grown to 100 SKUs. With no streamlined display method in place, customers were left with the inconvenience of having to call in to inquire about current promotions
At Sonno, our comprehensive analysis of customer needs, purchasing patterns, and behaviors unveiled a notable trend: customers prefer streamlined shopping experiences and are less inclined to spend extensive time examining individual products. Instead, they seek simplicity by viewing items A, B, and C, adding them directly to their cart, and completing their purchase promptly. Additionally, our examination of support requests highlighted that customers frequently inquire about promotions during off-season sales. Armed with this insight, the idea of introducing bundle offers was born.
The increasing number of Sonno products, which had already surpassed 100 SKUs, posed a significant challenge as manual management became impractical. Consequently, the decision was made to leverage an application to address this issue. Taking into consideration the partner's preferences for a tool tailored to their needs and seamlessly integrated with their inventory system, we carefully selected an app that not only met all requirements but also seamlessly complemented their theme
The subsequent step involved leveraging data derived from the analysis of customer purchasing patterns. During this phase, we identified which products were frequently bought together. For instance, a mattress often accompanies a set of bed linen or a pillow is commonly paired with a bolster. Armed with this knowledge, we fine-tuned bundle configurations and pricing strategies to optimize the average customer expenditure per transaction. By aligning product offerings with customer preferences, we were able to enhance the shopping experience.
As previously noted, Sonno encountered challenges in managing inventory levels due to its extensive product range. By analyzing which bundled items are popular, Sonno gained valuable insights into product demand. This data informs inventory management decisions. They prioritized stocking popular bundled items and potentially clear out slow-moving inventory by incorporating them into less popular bundles. This data-driven approach helped Sonno optimize their inventory for maximum efficiency and profitability.
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