Ref: IMD-7-2129

Case study

Reference: IMD-7-2129

Order this case study

Retail Rocket: Personalizing the Online Shopping Experience

Benoit F. Leleux

By Professor Benoit F. LeleuxBenoit F. Leleux and Marc Chauvet

The case, based on extensive interviews with Retail Rocket's co-founders (Nikolay Khlebinsky and Andrey Chizh), several employees and one of the start-up's investors, documents the genesis and rapid growth of the company. Launched in 2012 in Moscow, Russia, Retail Rocket was a big data-based personalization platform for e-Commerce and omnichannel retail identifying the needs of customers based on their online behavior and, thanks to artificial intelligence, offering personalized product recommendations through the website, email and other marketing channels, increasing the conversion rate, average order value and retention rate of its clients. In effect, it makes available to small and mid-sized online firms the same website optimization functionalities associated with powerhouses such as Amazon or Yandex. Its value proposition included superior shopping-pattern prediction algorithms and value-based pricing using randomized A/B testing. What would it take to monetize and grow its exceptional IT competencies?

Learning Objective

  1. Capitalizing on big data analytics, developing top-quality algorithms and artificial intelligence tools to generate insights from consumers’ online shopping patterns
  2. Doing business in Russia and Eastern Europe
  3. Developing a unique value proposition in a contested marketplace
  4. Differentiating through the business model, in particular value-based pricing
SettingsEurope, Russia
Retail Rocket, Information Technology
2012-2020
TypeField Research
Copyright©IMD 2020
LanguageEnglish
Related materialTeaching note
Order this case study

Reference: IMD-7-2129

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre, UK Office

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Fax +44 (0)1234 751125
Email [email protected]

The Case Centre, US office

Babson College

Babson Park, Wellesley MA 02457, USA
Tel +1 781 239 5884
Fax +1 781 239 5885
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Copyright information

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact our Information Center for additional information on IMD publications

Case study

Reference: IMD-7-2129

Order this case study

Looking for something specific?

Keep reading

Back to top