Freedom Furniture Enhances Omnichannel Shopping with Coveo’s AI Platform

Table of Contents

1. Key Highlights
2. Introduction
3. The Omnichannel Strategy
4. Growth Through Technology
5. Technological Replatforming
6. Customer Experience Enhancement
7. Future Prospects
8. Conclusion
9. FAQ

Key Highlights

• Freedom Furniture, a major retailer in Australia and New Zealand, has implemented Coveo's AI Platform in 60 stores to enhance product discovery and the overall shopping experience.
• Initial results indicate a 15% increase in customer sessions and a 5.5% rise in average order value for users engaging with onsite search features.
• The retailer has significantly expanded its product range from 10,000 to 45,000 items in the past 18 months, prompting a reevaluation of its e-commerce technology to keep pace with evolving consumer expectations.

Introduction

In a retail landscape characterized by rapid technological advancements, the ability to seamlessly integrate physical and digital shopping experiences is critical. Recent figures suggest that retailers utilizing advanced AI capabilities report significant increases in customer interactions and sales. A prime example is Freedom Furniture, which has partnered with Coveo to roll out an AI-powered solution aimed at enhancing product discovery across its omnichannel platform. This initiative comes at a pivotal moment, as Freedom Furniture expands its product offerings and refines its e-commerce capabilities. The implications are significant not just for the retailer but for the entire retail sector, as businesses strive to meet increasingly sophisticated customer expectations.

The Omnichannel Strategy

Understanding Omnichannel Retail

Omnichannel retailing is a comprehensive approach that integrates various shopping channels—physical stores, online platforms, and mobile applications—into a coherent shopping experience. The evolution of consumer behavior has shifted care and consideration towards seamless interactions across these multiple touchpoints. Freedom Furniture’s decision to embrace this model is not just a response to competitive market dynamics but a proactive strategy to align with consumer demands.

The Coveo Partnership

Freedom Furniture's collaboration with Coveo exemplifies how retailers can leverage artificial intelligence to refine the customer journey. Coveo’s AI Platform is designed to provide tailored, hyper-personalized experiences by utilizing advanced algorithms that learn from consumer interactions. This partnership aims to facilitate more effective product discovery, helping customers navigate an increasingly complex catalog efficiently.

Growth Through Technology

Expanding Product Range

Over the past 18 months, Freedom Furniture has significantly enhanced its product offerings, scaling from a modest catalog of 10,000 items to an impressive 45,000. This exponential growth reflects the company’s ambition but also presents challenges—chief among them, how to effectively present such a vast array of options to customers.

As Paula Mitchell, Freedom's digital general manager, explains, “We believe in harnessing advanced digital technologies, including AI, to provide the best possible customer experience we can deliver, driving business growth as a result.” This sentiment underpins the functionality offered by Coveo. The platform is engineered to dynamically adjust to inventory changes, ensuring that customers receive the most relevant search results at all times.

The Impact of AI on Sales Performance

Freedom Furniture’s deployment of Coveo’s AI system has already yielded promising results. In the first 30 days post-implementation, the retailer reported a 15% increase in customer sessions. More tellingly, there has been a 5.5% improvement in average order value for those interacting with the onsite search feature. This data not only underscores the efficacy of the AI-enhanced user experience but also mirrors broader trends in retail behavior where enriched product discovery directly correlates with increased customer engagement and sales.

Technological Replatforming

The Shift to SAP Commerce Cloud

In 2020, Freedom Furniture replatformed its digital operations using SAP Commerce Cloud, a move that has profoundly shaped its e-commerce trajectory. Before this transition, online sales accounted for only 6% of revenues; however, this figure rose to 25% following the new platform’s implementation. By integrating a robust technology stack, Freedom Furniture positioned itself as a digital leader, willing to adapt to the complexities of online retail.

E-commerce Technology Stack

The replatforming to SAP Commerce Cloud was a strategic decision rooted in the need for enhanced scalability and flexibility. The cloud infrastructure allows for seamless updates and improvements, which are crucial as the company continues to expand its product range and strive for a superior shopping experience. With robust analytics and data-driven insights at their disposal, Freedom's marketing and digital teams can make informed decisions, ensuring that store layouts, online interfaces, and inventory management practices reflect customer priorities.

Customer Experience Enhancement

Prioritizing Hyper-Personalization

The customer experience at Freedom Furniture is further enhanced by the hyper-personalization capabilities of Coveo’s AI. By analyzing shopper behavior and preferences in real time, the platform offers tailored recommendations that resonate with individual users. This degree of personalization not only enriches the shopping experience but also fosters customer loyalty, encouraging repeat business.

For instance, a customer searching for a specific type of sofa can be presented with tailored options based on previous interactions and purchase history. Such strategic recommendations increase the likelihood of conversion as shoppers feel understood and valued.

Implications for the Retail Sector

Freedom Furniture's utilization of AI in enhancing omnichannel retail experiences is a harbinger for similar retailers who seek to innovate and stay competitive. Retailers across the globe are recognizing the necessity of adapting to changing consumer behavior and technological advancements, indicating a shift towards data-driven decision-making in inventory and marketing strategies.

Future Prospects

Continued Investment in AI

With the early successes of the AI integration, Freedom Furniture is poised to explore further enhancements in the realm of customer engagement. The company anticipates leveraging additional functionalities of Coveo’s AI platform, aiming to build upon the already established efficiencies. Future developments may include integrating augmented reality (AR) or virtual reality (VR) to allow customers to visualize products in their own spaces, further epitomizing the omnichannel experience.

Industry-Wide Changes

Moreover, the success of Freedom Furniture serves as a case study for best practices in e-commerce, illustrating the importance of an agile, customer-focused approach. As retailers globally pivot towards embracing digital technologies, companies will likely observe greater customer satisfaction and retention, ultimately fuelled by personalized shopping experiences that tap into the consumer psyche.

Conclusion

Freedom Furniture’s proactive approach to omnichannel retail, characterized by its strategic partnership with Coveo and the expansion of its e-commerce capabilities, exemplifies the vital role of technology in adapting to contemporary consumer expectations. The early results from the AI implementation showcase significant potential—not only for boosting customer engagement and satisfaction but also for steering business growth across retail landscapes. As the sector continues to evolve, the lessons learned from Freedom Furniture will undoubtedly resonate with retailers seeking to navigate the complexities of modern shopping experiences.

FAQ

What role does AI play in omnichannel retail?

AI enhances product discovery, personalization, and customer engagement across various channels, allowing retailers to provide tailored shopping experiences based on consumer behavior.

How has Freedom Furniture's product offering changed in recent years?

Freedom Furniture has expanded its catalog from 10,000 to 45,000 items in the past 18 months, which necessitated a reevaluation of their digital offerings and technologies.

What are the immediate results from the AI deployment at Freedom Furniture?

In the initial 30 days post-implementation of Coveo's AI Platform, Freedom Furniture reported a 15% increase in customer sessions and a 5.5% improvement in average order value for customers engaging with the onsite search.

How does the Coveo partnership benefit Freedom Furniture?

Coveo's AI technology provides intuitive, hyper-personalized shopping experiences which help to improve product discovery and ultimately drive customer loyalty and sales.

What are the broader implications of Freedom Furniture’s approach for other retailers?

Freedom Furniture's case exemplifies best practices in omnichannel strategies, indicating that investment in AI and technology can lead to significant improvements in customer engagement, satisfaction, and retention in the retail sector.