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Avail Behavioral Merchandising Increased Average Order Size at Pharmacy2U

Average order values increased by 12%

The right medicine for online growth

How Pharmacy2U, the UK’s largest online pharmacy, enhanced the customer experience, and boosted order values as well as conversion rates at the same time with behavioral merchandising.

The company

Founded in 1999 by Daniel Lee and Julian Harrison, Pharmacy2U pioneered the online pharmacy market. As a result of over a decade of strong growth, it is now the largest dedicated Internet and mail order pharmacy in the United Kingdom.

Today, Pharmacy2U offers its customers online access to thousands of medicines, health, and beauty products, fine fragrances and exclusive skincare ranges. Having worked together with the UK’s National Health Service (NHS) to develop the new electronic prescription system, the company also offers a quality NHS and Private prescription dispensing service that includes the ability to manage repeat private prescriptions online.

The challenge

Providing a personalized shopping experience is a vital element of online retail and proven to have a direct impact on sales. A recent YouGov poll found that 35 per cent of consumers would spend more online if retailers offered better customer care or advice. Pharmacy2U is no exception – “Buying pharmaceutical goods tends to be a personal experience,” says Daniel Lee, managing director of Pharmacy2U. However, in a market where several million consumers now regularly buy pharmaceutical products online, a highly automated solution for providing that personalized shopping experience was required.

With an inventory of several thousands of lines, Pharmacy2U also looked for ways to present only the most relevant items to shoppers online, whether they were searching for a certain product, or simply shopping the cosmetics and fragrances section. This was particularly important to the retailer, which strives to make it as convenient as possible for consumers to get the medicines and personal care products they need.

For achieving the maximum return on its investment in technology, the company also wanted a partner that understood both the retail environment in general, and the requirements of their specific niche. “As our product lines differ to those of the average retailer, achieving personalization throughout the purchasing process has always been our aim,” said Daniel Lee.

The solution

After a thorough search of the market for relevant technologies and solutions, Pharmacy2U chose a merchandising platform from Avail Intelligence. “It was a straightforward choice to make when it came to choosing a merchandising solution that could deliver,” says Daniel Lee, managing director at Pharmacy2U.

Avail’s platform was easily set up to deliver personalized product recommendations on both product pages, for cross-selling and upselling purposes, and at the checkout, in order to drive average order values by offering pharmacy customers the convenience of adding e.g. various cosmetics or fragrances to their order.

Powered by actual shopper data, Avail’s recommendations are automatically generated. At the same time, Avail’s Control Panel lets Pharmacy2U control in detail which products are recommended and when, e.g. to avoid recommending sensitive products.

Both during launch and afterwards, the company benefited from Avail’s experience in online retail merchandising, which had been an important factor in their vendor selection. “When we coupled the technology with the company’s proven heritage in online retail, we realized we had found the perfect partner for our needs,” says Daniel Lee.

Results

“Avail’s technology is now helping us to treat every site visitor as an individual, just as you’d expect when visiting a traditional pharmacy,” says Daniel Lee, managing director at Pharmacy2U.

As expected, customers are already responding to the tailored experience offered on the site and Pharmacy2U has seen an increase in average order values by 12 per cent, from using Avail Behavioral Merchandising. The company is now expanding their use of recommendations to partner sites it operates, such as its high-profile online partnership with retail giant ASDA.

Further information is available at http://www.avail.net and http://www.pharmacy2u.co.uk.

“Avail was a straightforward choice to make when it came to choosing a merchandising solution that could deliver.” Daniel Lee, managing director at Pharmacy2U

+12% increase in average order values

On the product page, recommendations for complimentary products are now automatically generated based on shopper behavior. At the checkout, timely and targeted recommendations for products that may also be of interest, based on cart contents.

What is Behavioral Merchandising?

All about Behavioral Merchandising. How and why does it work?

Behavioral merchandising is the art and science of using customer behavior to place, promote and display products in order to maximize retail sales revenue. In an online retail context, examples includes using data on where visitors come from, what they search for, what they click on and what they buy, to drive as relevant product promotions to each visitor at every point of interaction as possible.

Behavioral merchandising offers a personalized shopping experience for visitors that is highly relevant, trustworthy, and that adapts to changing customer preferences automatically. The automation aspect also means it offers retailers an opportunity to cut costs of manual merchandising, while at the same time achieving better results. The ultimate rationale for BEM lies of course in the superior contribution to financial success that it brings to retailers in comparison to the other available approaches to merchandising. Studies have shown that measured as revenue-per-visitor (i.e., the combined contribution to conversion rate and average order value) the contribution of BEM is up to 300% greater than the contribution that a segmented merchandising approach will give.

SUMMARY - Product recommendations and personalization helped Pharmacy2U increase their average order size. Here is how Pharmacy2U, the UK’s largest online pharmacy, enhanced the customer experience, and boosted order values as well as conversion rates at the same time with behavioral merchandising.

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