Watsons Achieves 65% Conversion Rate Uplift Through a Personalized eStore backed by Al

About Watsons

Watsons is Asia’s leading health and beauty retailer, currently operates over 7,200 stores and more than 1,500 pharmacies, in 13 Asian and European markets, including Mainland China, Hong Kong, Taiwan, Macau, Singapore, Thailand, Malaysia, Philippines, Vietnam, and Indonesia. Watsons continually sets standards in the health, wellness and beauty market, providing personalized advice and counseling in on top of its market-leading product range, that make customers LOOK GOOD, FEEL GREAT every day. Since 2009, Watsons has been the No. 1 pharmacy/drugstore brand in Asia, According to Campaign Asia-Pacific “Asia’s Top 1.000 Brands” Online Study 2018 of over 8,000 respondents across 14 markets in Asia Pacific region.

How Watsons was able to target the right products to the right customers – and saw a +62% conversion rate uplift, using Insider’s AI-Smart Recommender)

75% of today’s digital- savvy customers expect a personalised shopping experience. eCommerce is riding the wave of tech growth in the healthcare sector. The rise of consumer demands for healthcare supplies has increased online eCommerce initiatives across platforms including desktop web and mobile app. Watsons aims to enhance and personalize its customers’ digital experience to drive growth. The partnership with Insider has opened the door for a tightly woven, highly targeted user experience for Watsons customers across all its channels, including Mobile Application.

The brand is now better equipped to foster creative innovation through smart recommendations, personalization, and web push features that boost conversions and drive incremental revenue.

Let’s take a closer look at the AI-powered product recommendations on the Watsons website

Insider analyzed Watsons online website and mobile app, mapped out each stage of the purchase funnel, and used insights from historical sessions data, to identify several key areas that contributed to the high volume exits and low add-to-cart rates.

Watson’s Homepage

Implemented AI-powered Smart Recommender that shows relevant products on Watsons’ homepage based on what similar users have liked on the site

+62% Conversion Rate Average Uplift

Watson’s Product Page

Used AI on Watson’s Product Page to promote the hottest products that are often viewed together, to increase the number of items added to carts.

+109% Click-Through Rate Average Uplift

Watson’s Cart Page

Encouraged visitors on Watson’s Cart Page to add items to their carts on the checkout page by showing products that are often purchased together.

+48% Conversion Rate Uplift (Malaysia)

Watson’s 404/ Zero Search Results Page

When visitors on Watson’s website get to any invalid or search error page and couldn’t find what they were looking for, AI personalized product recommendations were used to keep them engaged.

+144% Conversion Rate Uplift

The AI-powered hyper personalized campaign allowed Watsons to implement online merchandising strategies swiftly and reduced the human effort required to put together a pre-defined customer journey. More importantly, this resulted in an overall +7% conversion uplift and +7% average order value uplift on the Watsons website and mobile apps, in the period between Nov 2019 to Nov 2020.  

These recommendation features also helped extend the product discovery journey of customers. Users who interacted with personalization recommendations browsed 3x longer per session than average.

The ROI of this campaign has far exceeded initial expectations for the brand. With the personalization capabilities and tools in place, Watsons is confident to move forward in driving customer acquisition as part of its online and offline growth strategy, taking the partnership with Insider to a global scale.

“Insider is not just a vendor but our partner. Our three year relationship has marked a significant milestone and it is worthy to highlight their efforts in taking our AI digital transformation – across eight different regions in APAC – to new heights. With a proactive attitude, that is driven by attention to detail, the team is able to understand our core business goals by tailoring AI personalization, smart recommendation and web push. This helped our online conversions to +7%. I look forward to taking our partnership global.”

Freda Ng

Chief Digital Officer

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