Case Study: Segment of One in Consumer Durables Retail

Consumer durables is a domain that offers especially rich rewards from n=1 personalization (aka. hyper-personalization, aka. Segment of One). Here’s an example. . .

A top audio equipment brand we work with has a strong commitment to hyper-personalization across channels. As a result of those efforts, they reported an 81% increase in e-commerce sales and a 35% increase revenue from AI-driven targeting, in addition to significant improvements in CRM outcomes, related to CDP-powered journeys.

A top consumer-electronics brand we work with has been able to personalize discovery across its store, its search function, and its recommendations (“You Might Also Like”), among other avenues – achieving AI-driven recommendations at scale of over 100 million customers.

And a top consumer durables brand we work with was able to modernize its e-commerce platform and its mobile app, improving features and overall user experience, leading to significant improvements in customer retention, and significant lift in topline sales.

The technology that fueled all this is SOLUS.ai which was a first mover, and is currently a market leader in the AI-First category of customer engagement software. Notably, SOLUS has been able to implement the aspirational goal of Segment of One – acting as a system of intelligence that sits between users’ existing data sources and their existing engagement channels, generating individual customer-level nudges that combine recommendations, propensity scores, and stacked models, rather than relying on broad segments or static rules.

In the consumer durables category, smarter messaging leads to a 30 to 45% increase in accessory and complementary product sales vs. segment-led efforts. And purchase conversion improves by 25 to 35%, even for brands with very sophisticated technology in place already. And this higher conversion rate (including more effective cross-sell), drives 20 to 30x ROI (incremental revenue vs. cost of SOLUS), so the solution pays for itself in the first 30-60 days.

Consequently, several of the world’s leading durables brands now use SOLUS, including Singer, Bose and Apple. Consumer durables brands that have adopted SOLUS range in size from 25,000 to over 100 million customers. In each case, SOLUS acts as the core intelligence system, driving all CRM and loyalty efforts, enabled by downstream integrations to each brand’s preferred systems that orchestrate email, SMS, app, website and communication within physical stores.

One key use case for Segment of One in consumer durables is cross-sell and upsell, where n=1 level insight does a very effective job of identifying customers most likely to purchase complementary products, accessories or higher-value variants. Another key use is customer lifecycle management – automated always-on nudges from product research, to purchase completion, to cross sell, to extended warranty, as well as offers and recommendations for future upgrades. SOLUS is also frequently used in this segment for category expansion, driving more effective penetration across product categories – replacing other methods that underperform vs. Segment of One.

So if you’re responsible for CRM or loyalty in consumer durables or similar categories, then feel free to get in touch, and let’s do a test!

AI Master Group is a B2B channel partner for SOLUS. Full implementation takes one week.