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Science-based 'nudges' bring benefits for retailers and customers

KPS and start-up behamics use AI for customer experience, conversion optimisation and sustainability

Munich, 19. January 2021. Management consultancy KPS AG and start-up behamics are pooling their expertise in the field of artificial intelligence in e-commerce. Together, they enable retailers to optimally be with their customers every step on the digital customer journey, increasing conversion rates in the online shop and operating more sustainably by successfully reducing returns. AI-supported forecasts and scientific findings from behavioural psychology are used for this purpose.

In online retail, optimising the conversion rate is key to achieving higher sales. In order for customers to decide to buy, it is crucial that the right information about products and services is displayed at the right time along the digital customer journey. This can be, for example, star ratings by other buyers, the award as 'bestseller' or information about the availability of the selected product.  

The start-up behamics, a spin-off of the renown University of St. Gallen, Switzerland, specialises in playing out purchase incentives (so-called 'nudges') to customers in online shops on the basis of behavioural psychology findings. An AI-based algorithm determines the ideal time for playing out an incentive. What is special about this is that the nudges are based on scientifically sound findings and only display true real-time data. 

Better customer experience, lower return rates

Such nudges can also help reducing the number of or avoiding product returns alltogether. For example, if the algorithm detects that the same jacket in two different sizes was placed in a shopper's shopping cart, it can proactively display a reference to size charts or assessments of fit by other users. The main aim is to optimise the respective message in terms of behavioural psychology in such a way that it convinces the customer in the respective situation to shop more consciously. If the customer orders only one jacket, transport costs and CO2 emissions for the return shipment are eliminated. At the same time, the customer has less effort, he feels well advised along the entire purchase route and is more satisfied overall: the best prerequisites for a long-term customer relationship.  

For the e-commerce company, optimising the conversion rate means higher turnover. Fewer returns save money and staff time and are also more environmentally friendly. 

Cooperation between KPS and behamics offers comprehensive service and advice

The cooperation of KPS and behamics is a perfect symbiosis of e-commerce process, implementation and development expertise combined with the smart technology provided by behamics. The new technology can be implemented easily, at low cost and can be tested within a few weeks. Comprehensive tracking of results and dashboards offer the greatest possible transparency and control. The package offer allows companies to test behamics' services risk-free.  

"We are very pleased to have found an experienced partner in KPS with a comprehensive portfolio offering in e-commerce and beyond," comments Dr. Thilo Pfrang, Co-Founder of behamics. "Together with KPS, we want to offer our customers fast end efficient solutions and to further expand the potential of the application." 
"The technology and corporate philosophy of behamics have completely convinced us. We are able to offer our customers real added value that pays off very quickly," explains Taisia Kann, Principal at KPS and expert in user experience. "The behamics solution perfectly complements our conversion optimization approach. Established testing optimizes usability and user experience on conversion routes, and behamics' personalized, science-based nudges enable a greatly improved shopping experience. This results in an optimal customer journey and at the same time more efficient processes, which in the end leads to lower costs in the supply chain."

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