How Makro Achieved 25% uplift in AOV Using Recommendations and Web Push

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About MAKRO

Makro has evolved in the retail space from a stalwart warehouse chain to offering customers a convenient online shopping hub. Makro offers food, the latest electronics, houseware, camping, outdoor equipment, and spirits. 

Currently, there are 22 Makro stores in South Africa, bringing convenience and affordability to local households and businesses. With the eCommerce addition to their digital offering, customers can now enjoy Makro’s deals and value-added services across more locations.

Executive Summary

Makro realized the value and potential that Insider’s platform offered around delivering individualized engagement and personalizing their content. Makro was confident that these features would be key in driving their goals and optimizing key metrics across the funnel.

Makro was primarily concerned about the lack of dedicated IT efforts. They wanted a tool that was easy to implement and start using without too much development and IT effort. This was a maiden step for Marko – focusing on growth marketing – and they wanted to evaluate if this strategy could work for Makro’s business model.

Makro’s tech stack was a traditional one that did not have a growth platform tech-stack capabilities. Insider’s integration gave Makro a complete rehaul of their tech stack and transformed their digital capabilities.

Creating upsell opportunities to target low AOV

Makro observed low AOVs on their website and wanted a highly engaging solution to deliver personalized experiences that would motivate their customers to add more checkout items and improve each customer’s average order value (AOV).

Having understood the objectives and desired goals, Insider recommended implementing cart-page recommendations that would target each user based on their unique purchasing preference, showing related items and most frequently bought together items. 

This helped to optimize the engagement on the cart page (checkout page), and Makro observed a 17% uplift in AOV and a CR uplift of 25% compared to the control group.

Improving product discovery with the help of ‘viewed together’ algorithms on the product discovery page

Makro wanted to optimize the recommendation experience, as this is vital to every eCommerce platform. The lack of a robust recommendation strategy resulted in a weak product discovery experience for customers. The CR from product page to cart page was low and low session duration and low pages per session.

Considering these challenges, Insider recommended showing ‘viewed together‘ product recommendations on each product page, giving users more related products to engage with and choose from. This significantly improved the product discovery experience onsite.

These recommendations targeting improved product discovery helped Makro realize an overall CR uplift of 15%. A 60% CR uplift was observed among users who clicked on these recommendations compared to the control group (who did not receive these recommendations).

Looking Ahead

Up ahead, Makro will look to explore more of Insider’s AI-powered predictive technology like Predictive Audiences (PA). This technology uses predictive segmentation to ensure the right audiences are targeted with the relevant ads to ensure more accurate targeting and greater return on ad spend (ROAS).

Makro will continue to optimize and refine the tools they are already using with Insider — working together with Insider’s growth consultants can further customize each campaign to improve user experiences.

Higher engagement, more accurate targeting, and greater flexibility

Insider’s tech stack is truly remarkable in terms of how each feature is optimized to drive results and improve a key funnel metric. We’ve seen great results with our onsite engagement and conversion metrics. Using tools such as contextualized recommendations on our product and homepage and dynamic web push notifications targeted at improving conversions and user retention on our website, we’ve been able to up our onsite strategy. We will continue to grow with Insider as they are assisting our eCommerce business quite well.

Matthew Avramit
eCommerce sales Manager – Makro