Footasylum boosts personalisation with AI
Written by Peter Walker
Footasylum has seen a 28 per cent increase in email revenue from personalised marketing communications as a result of working with artificial intelligence (AI) company Peak.
The fashion and footwear retailer, which trades from over 65 stores across the UK, has also reported a 75 per cent reduction in cost per social click during a recent trial.
With years’ worth of untapped customer data, Footasylum approached Peak to help identify ways to drive revenues and growth using AI.
“Customers now expect high levels of personalisation at every single touchpoint.” Tom Makin, e-commerce and marketing director at Footasylum, explained. “With our product offering being so vast, delivering an experience relevant to each user is extremely challenging, however, Peak showed us how AI can be used to create a hyper-personalised experience for every single customer and that this, in turn, leads to greater customer loyalty and growth.”
Working with Peak, Footasylum has been able to push relevant product recommendations to those who are less-engaged with offers and provide customers with more of the products they are interested in.
Richard Potter, chief executive of Peak, said his firm’s research shows that retailers using AI are growing 30 per cent faster than those which aren’t.
The system sits at the heart of a business’ operations, acting as a centralised, intelligent business system processing data from any source and enabling it to become AI-driven. The cloud-based system has been adopted by several UK retailers to power automated predictions, decisions and actions to improve a business’ bottom line.
At the start of September, Footasylum reported that earnings expectations would be less than half of last year’s £12.5 million figure, due to lower gross margin and higher costs from investment in operations.
In its first announcement after listing on the London Stock Exchange’s AIM market in 2017, the retailer reported lower overall gross margin due to a higher amount of clearance activity in stores.