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Peerius recommendation raises Republic's average order value
20
Jan '10
UK-based fashion retailer Republic has experienced a 22% increase in average order value through the use of Peerius recommendation technology on their ecommerce site. Republic introduced the recommendation technology and rigorously tested its effectiveness in increasing sales and improving the customer's experience from July to September before signing a long term commercial deal with Peerius in October of this year.

Mark Kelly, Republic's e-Commerce Manager says, “We have been delighted with the results that we have experienced and we now find that 18% of all our orders contain a recommended product.

With Peerius, we were confident that we had the best performing product in the marketplace. In addition, because of their sector focus on apparel, we knew that their system was well attuned to the specifics of our industry sector.

We've found that customers that view recommended products spend nearly 22% more on average than those that don't and spend 65% longer on site. What's really encouraging is that the positive effects seem particularly acute on first-time visitors.

Our aim now is to ensure as many visitors as possible are seeing recommendations, so we plan to roll the technology out across the site and beyond, making use of the Peerius social search technology and personalised recommendations in emails.

Roger Brown, Peerius' chief executive says, “Peerius provides recommendations which are influenced not only by the way the user is currently browsing, but also takes into account, the past purchasing habits of that individual as well as purchasing patterns of similar consumers. It is the sophistication of the way that our algorithms combine these different data sets that really sets us apart from our competition. Peerius uses a hybrid approach which means we are not limited to one particular technical approach such as “collective behaviour” (e.g. Customers who bought X, often bought Y as well) or “collaborative filtering” (similar users tend to purchase Z), rather we use a complex mixture of systems logic depending on what we assess the customer's intention to be.”

Kelly says, “We were particularly delighted with how easy it was to implement. It took just 1 day to configure and 1 day to test and then we were up and running.”

Roger Brown, CEO of Peerius, says, “We are delighted to formally seal a long term relationship with Republic which further solidifies our position as market leader for recommendation software within the apparel sector. We are currently undergoing trials with a number of other leading apparel retailers and we will be making further announcements shortly. We have every reason to be confident because, to date, everyone who has trialled our system has gone on to become a customer.”

Further product enhancements include Peerius Email which allows retailers to send personalised product recommendations to their customers' inbox and Peerius Social Search where search results on a site are analysed to determine the items that are most likely to result in a purchase given a search phrase or keyword. This intelligence is then utilised to ensure that the best converting products are highly ranked for subsequent searches.

Peerius Limited

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