How Olímpica Increased Sales and Loyalty with AI

Olímpica, one of Colombia’s leading companies in the retail sector, has positioned itself in the commercialization of mass-consumption products. Its commitment to innovation and customer service has made it a benchmark in the market, promoting its digital transformation to adapt to current trends.

What Was Our Challenge?

Olímpica faced the challenge of revitalizing its digital marketing strategy to increase loyalty through personalization and avoid an increase in customer churn rate. This was essential for Olímpicas’s digital positioning and competitiveness in an increasingly e-commerce and user-experience-oriented environment. 

To increase sales, improve customer retention, and optimize user experience, Olímpica sought Pragma’s and AWS’s help to strengthen its digital strategy and maintain its market position.

How Did We Solve It?

To address Olímpica’s challenges, Pragma implemented an innovative two-phase solution, leveraging the power of AWS services to transform its digital strategy and enhance customer experience.

Phase 1: Amazon Personalize Integration

In this first stage, Amazon Personalize was deployed at strategic points on the website, such as the home page, the product detail page, and the checkout process. This tool allowed real-time recommendations based on user behavior, resulting in a more personalized shopping experience. In doing so, Olímpica increased sales conversion at critical moments of the purchase process.

Phase 2: Generative AI-powered Copy Creation 

AWS generative AI was incorporated in the second phase to automatically create personalized product descriptions. These descriptions align with the available recommendations and inventory, improving user relevance and connection. This capacity optimizes customer experience, enhances cross-selling, and increases loyalty.

Essential AWS Services in the Solution:

• Amazon Bedrock:

  Provided the basis for integrating AI-driven functions, using pre-trained models for personalized recommendations and predictive analytics.

• Amazon Personalize:

  Offers recommendations for personalized products and adapted customer experiences, improving commitment and conversion rates.

• Amazon DynamoDB:

  A scalable NoSQL database that manages real-time product catalogs and user data.

• Amazon API Gateway:

  Facilitates the management and safe exposure of APIs, connecting microservices in the solution.

• AWS Lambda:

  Runs serverless functions to process backend data and logic, automatically scaling up according to demand.

• Amazon S3:

  Scalably stores assets such as product images and user data, ensuring high availability.

• Amazon Kinesis:

  A real-time data streaming service that collects and analyzes large volumes of data, improving decision-making.

• AWS SAM:

  Simplifies deploying and managing serverless applications, Lambda features, and other AWS resources. 

This comprehensive solution not only solved Olímpica’s challenges but also laid a solid foundation for its future growth in the digital world with Pragma and AWS.

Great Results, Real Impacts

• Increased PDP sales by 100 %
• Reduced churn rate by 15 %
• NPS-tailored user experience of 8.21, 2 additional points
• Daily personalized PDP copy by category X Inventory X Recommendation
• Elimination of the manual copy creation effort
• Increased crossed sales by 51 %

Business Impact: A 100 % increase in PDP sales and a 15 % reduction in churn rate underscore a clear revenue and customer retention improvement. Automating personalized daily copies has eliminated manual effort, optimized resources, and boosted crossed sales by 51 %. Additionally, inventory management has become more efficient.

User impact:  Personalized experience has significantly improved. With an NPS of 8.21 (2 additional points), customers now enjoy a more relevant and fluid experience, which results in greater satisfaction and loyalty.

Start date: 01/06/2024
Project in progress