Retail Rocket: Personalizing the online shopping experience
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, e-mail 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?
- Capitalizing on big data analytics, developing top-quality algorithms and artificial intelligence tools to generate insights from consumers’ online shopping patterns
- Doing business in Russia and Eastern Europe
- Developing a unique value proposition in a contested marketplace
- Differentiating through the business model, in particular value-based pricing
Retail Rocket, Information Technology, eCommerce, Information Technology
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