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Revolutionizing Shopping: AI at Freedom Furniture
In an era where e-commerce is king, Freedom Furniture, an Australian homewares retailer, is on a mission to modernize its brand and better serve a younger audience. Under the guidance of Paula Mitchell, the digital general manager, Freedom Furniture is leveraging artificial intelligence (AI) to transform its on-site search capabilities, product recommendations, and overall merchandising strategy.
The Digital Transformation Journey
Freedom Furniture’s journey began as its leadership recognized that their digital presence was lacking. With an expansion that saw an influx of 40,000 stock-keeping units (SKUs) through a new marketplace model, the company was confronted with the need for a more dynamic search functionality. “Our catalog has totally exploded,” Mitchell explains, highlighting challenges in product enrichment and discoverability.
Addressing the Challenges
The retailer was dealing with slow search results that did not adapt to user intent, making it difficult for customers to find products. The existing merchandising strategy was heavy-handed, with team members often dictating search results rather than letting data drive product visibility. Mitchell aimed for a more customer-centric approach to enhance the shopping experience and improve overall conversion rates.
Choosing Coveo for Intelligent Search
To tackle these obstacles, Freedom Furniture partnered with Coveo, an AI-driven search and recommendations provider. The integration process took about three months, and the results were immediate and promising. With Coveo now indexing its extensive product catalog, the search functionality became quicker and more intuitive. This on-site search improvement has led to a significant boost in the average order value (AOV)—up by 5.5% compared to last year.
Boosting Engagement with AI Technology
The implementation of Coveo has transformed the way customers interact with Freedom Furniture’s online catalog. Initial visits to the website provide customers with a diverse array of products tailored to their interests, making it easier for them to explore options. As shoppers delve deeper into the site, Coveo’s AI system dynamically adjusts recommendations based on their past interactions. Furthermore, the amount of customers engaging with the search box has increased by 15% year over year.
Strategic Adaptation and Future Prospects
Mitchell’s team has also developed internal guidelines to weigh various factors, such as brand and price margins when determining product visibility. These adjustments enhance the algorithm's efficiency while maintaining an element of control for the merchandising team. Looking ahead, Mitchell plans to incorporate generative AI for even greater personalization, strengthening Freedom Furniture's connection with a burgeoning customer demographic aged 25 and older.
Final Thoughts on the Digital Transformation
Freedom Furniture’s successful integration of AI technologies not only modernizes its search capabilities but also aligns with broader retail trends favoring omnichannel and personalized shopping experiences. For dealerships, GMs, and fixed operations directors looking to capitalize on digital innovation, Freedom Furniture serves as an inspiring example of how AI-driven solutions can enhance customer interactions and drive sales growth.
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