Homeplus Online Enhances 'Personalized Recommendations' to Better Understand Customer Preferences

Big Data-Based AI Utilization
Customized Proposals for Each Customer Characteristic

Homeplus Online announced on the 30th that it will enhance AI-powered personalized recommendations to differentiate customer experience.

Homeplus Online Application (App) [Photo by Homeplus].

Since introducing customized delivery that allows customers to receive ordered products at their desired time, Homeplus has recorded an average annual growth rate of over 20% in the past four years. The company plans to strengthen the method of recommending products that reflect customer preferences through the advancement of personalized recommendation services.

Unlike general open markets, the online grocery shopping specialized platform has a low proportion of single product purchases and a high proportion of multiple product purchases, so it is targeting AI-based personalized recommendations accordingly. During the pilot operation period in July, when the advanced personalized recommendations were applied, the number of clicks on 'recommended products viewed together by other customers' increased by 33%, and sales rose by 24%.

Homeplus explained that it updated the recommendation algorithm based on customer big data to recommend products better suited to customer preferences and enhanced customer shopping convenience through multi-step personalized recommendations during the purchasing process. For example, when purchasing cereal, related products such as milk and bananas, which go well together, are recommended simultaneously.

As a result of suggesting personalized recommended products to customers who abandoned their carts, the purchase conversion rate (CR) increased by 3 percentage points.

Homeplus stated, "We are continuously striving to improve customer convenience by adding features such as real-time display of available purchase quantities per product and display of quantities added to the cart based on customer feedback," and added, "In the future, we will also add 'AI recommended product reviews' to provide practical help for customer shopping."

This content was produced with the assistance of AI translation services.