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Case Study

Leading Swedish retailer increase their value per search by 9.8% using Loop54

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Retail Chain

"Webhallen always strives to improve the customer experience and with Loop54 as a partner for search we can create an even better user experience online resulting in an increase in revenue, but most importantly resulting in higher relevance leading to more satisfied customers"

Fredrik Lindblad,
CMO and Head of Online, Webhallen

About Webhallen

Webhallen Sverige was founded in 1999 in a small apartment in central Stockholm and has within a short amount of time grown to become one of Sweden’s leading retailers within hardware, consumer electronics, gadgets, and games.

Always focused on thinking big and making life easier for their customers, Webhallen was one of the first online stores in Sweden that showed their stock balance on their website as well as offering an innovative click and collect shopping experience. Webhallen also was the first bigger Swedish player accepting the crypto currency bitcoin for payments.

Today Webhallen has 20 physical stores spanning from Malmö to Uppsala, as well as their online store and sales via mail order. In 2019, they had an annual revenue of 2.1 billion Swedish Crowns.

Despite their growth, Webhallen are holding on to their roots as tech and gaming enthusiasts, to use their passion and knowledge to help customers make the right decisions.

Background

The Swedish consumer electronics market is a highly competitive environment with tight margins. In addition to competition from big national, Nordic and international hybrid players that run both physical and eCommerce stores in Sweden, Webhallen is also facing fierce competition from online-only stores both from Sweden and abroad.

Even though eCommerce has been the core of Webhallen’s business from the start, continuous improvements and investments in the customers experience are essential to stay competitive in an industry were online sales are seeing the biggest growth.

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Challenge

Before Loop54, Webhallen used Elasticsearch to power their search function. While this solution gave them great flexibility in customizing the search experience on their site, it also demanded a lot of resources to fine-tune the results. Ultimately, manually maintaining the high level of relevancy in search results became too time-consuming, and Webhallen started looking for a less hands-on solution.

Part of the challenge was to find a solution that could handle the complexity of Webhallen’s product catalogue with over 20 000 products. The new solution also had to support Webhallen’s instant search function that shows a dropdown list with direct product results for the search, including information on price and stock balance. This was especially appreciated by in-store staff that also used the website search when looking up products.

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Why Loop54?

Webhallen had invested considerable time in fine-tuning their previous search solution. For them to bring in a new search partner, the following criteria had to be met:

  • Customer experience – the results have to show increased relevancy and help the customers find what they are looking for more easily
  • Automation – the solution had to provide a high level of automation, while still giving the possibility to influence the results through boost & bury rules
  • Increased revenue – proof that a better search experience leads to higher conversion rates

Loop54 also had an advantage over Webhallen’s previous solution by being designed specifically for eCommerce:

  • Personalisation – true 1-to-1 personalisation showing results tailored to customer preferences and session intent.
  • Related Results – an exclusive feature that lists an extra set of search results which contain similar products relevant to the search query, even if they don’t contain the exact word the user searched for.

The results

Webhallen ran an a/b test against their existing solution to be able to assess the effect of Loop54’s search. During the test, Loop54 could increase the session value for customers that used search with 8% as well as increasing the value per search by 9.8%.

In addition to the increase in revenues, Loop54 also made a difference for the customer experience. The amount of results viewed per search decreased by 20%, indicating that customers were faster able to find what they were looking for.

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Webhallen always strive to improve the customer experience and with Loop54 as a partner for search we can create an even better user experience online resulting in an increase in revenue, but most importantly resulting in higher relevance leading to more satisfied customers.”

Fredrik Lindblad,
CMO and Head of Online, Webhallen

Loop54 offers true personalised on-site product search

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Shoppers expect the same level of relevance and personalisation online as they experience in-store. Powered by Machine Learning and built exclusively for eCommerce, Loop54 delivers that exceptional online shopping experience.

  • Automated: Automatically learns words and merchandises search and category listings
  • Relevant: Interprets search intent to deliver truly relevant results
  • Personalised: Sorts results according to popularity and personal taste

Request a demo today!