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MediaMarkt Spain masters personalization experience delivery

Europe’s largest retailer for consumer electronics achieves 14% uplift in revenue per user after employing personalized approach in Spanish Market
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Being a data-driven organization, MediaMarkt launched a Global Control Group consisting of 5% of their online traffic, excluding it from all Dynamic Yield experiences. By doing so, MediaMarkt ensured effective measurement of the true impact of all experiences launched as well as calculations of the returns on their investments:
14%
Overall uplift in revenue per user from all personalized experiences rolled out to the majority of MediaMarkt’s traffic, including personalized dynamic content, recommendations, and more.
54%
Increase in cart additions and 31% increase in purchase rate from Social Proof messaging launched on all Product Pages

Introduction

As the largest consumer electronics retailer in Europe, MediaMarkt boasts over €22 billion in transactions, €2.4 billion of which are generated annually from their online stores. With such a high volume of activity, MediaMarkt sought to merge all of their data – from both their offline and online sources – in order to better understand and manage the customer experience. To this end, MediaMarkt worked employed Dynamic Yield as its system for data management and holistic experience delivery. Launching over a dozen of personalization use cases, MediaMarkt ultimately saw a whopping 14% uplift in revenue per user and an overall reduction to their total cost of ownership.

MediaMarkt logo
“When I joined MediaMarkt, we had a very diverse set of tools that were used for different purposes: testing, recommendations, messaging, cart recovery, and more. Most of these tools lacked import and export capabilities, making them impossible to connect. Since we started our collaboration with Dynamic Yield at the end of 2017, we’ve reduced the total cost of ownership, and we enjoy a lot of new and valuable functionality that we hadn’t had before enabling us to launch and test campaigns on a weekly basis leading to a true customer centered online shopping experience.”
David Geisen, Chief Digital Officer, MediaMarkt Iberia
The Challenge section thumbnail

The Challenge

As one of Europe’s largest established retailers, MediaMarkt rode the digital revolution wave with great success, leading to both offline and online prevalence across the continent. In scaling operations, this brought upon a few distinct challenges, for which MediaMarkt turned to Dynamic Yield to:

  • Establish a personalization program
  • Implement an agile war room for rapid ideation and deployment of high-impact personalization use cases
  • Connect transactional data from offline physical stores with online websites and apps
  • Reduce vendor bloat from too many point solutions and systems that do not communicate
  • Minimize over-reliance on IT and development that was hindering the execution of marketing and content activities
  • Leverage real-time product popularity and scarcity data to further expedite and promote sales of popular products

Execution

To address the above challenges, MediaMarkt embarked upon the following initiatives:
1. Connected data points

With custom integrations made possible by Dynamic Yield’s open architecture design, MediaMarkt was able to gather, merge, and analyze customer data in one place. In doing so, MediaMarkt could then target their customers with personalized content on their website and app.

The merged data consisted of the following:
• Real-time reactive browse data based on customers’ navigation patterns, device usage, and source
• Modeled data produced by MediaMarkt’s internal data science teams, based on user attributes and defined personas to calculate CLV, churn probability, and more

2. Onboarded more customers to MediaMarkt’s loyalty programs
In recognizing that capturing email addresses is the first step towards building loyalty among customers and driving repeat purchases, MediaMarkt launched a fully personalized Newsletter Signup modal. While different messages were tested among MediaMarkt’s main segments, each audience received personalized backdrops, based on gender, location, and more.

Onboarded more customers to MediaMarkt’s loyalty programs

3. Added Social Proof messaging to Product Detail Page
To offload fast-selling products even faster, MediaMarkt displayed messages on product detail pages indicating how many were sold in the past 48 hours. By driving a sense of urgency among its customers, MediaMarkt dramatically increased the rate of cart additions and conversions.
Added Social Proof messaging to Product Detail Page
4. Personalized recommendations across the entire user flow
MediaMarkt used Dynamic Yield’s recommendation engine to implement affinity-based and contextually-dynamic product recommendations across their Homepage, Category pages, and Product pages. Visitors to MediaMarkt’s Homepage were exposed to several recommendation widgets, exhibiting personalized recommendations from a variety of product categories:
Personalized recommendations across the entire user flow
Each widget on MediaMarkt’s Homepage, as seen above, automatically recommends a different selection of products based on the corresponding strategy: “Recommended for you”, “Recommended in Category” and “Featured Products”
5. Targeted and personalized recommendations based on customer intent
In addition to the strategy above, MediaMarkt iterated on every instance of their product recommendations and tested different combinations and fusions of recommendation strategies, allowing machine learning to take control and yield the best results for each visitor:
Targeted and personalized recommendations based on customer intent
Targeted and personalized recommendations based on customer intent
ABOUT MEDIAMARKT
In terms of revenue, sales area and headcount, the MediaMarktSaturn Retail Group is Europe’s leading consumer electronics retailer and provider of related services. The integrated online and fixed-location offerings reach millions of customers every day. The company includes the brands MediaMarkt and Saturn, which comprehensively network their more than 1,000 fixed-location stores with online sales platforms. MediaMarktSaturn Retail Group generated total sales of about €22 billion and is a subsidiary of CECONOMY AG and has approximately 65,000 employees.

The Key Takeaway

Large corporations that have traversed the digital revolution are in need of solutions that can merge their traditional approaches with more innovative techniques through the use of modern technology. Only in doing so can they continue to thrive as omnipresent entities, cultivating deep and journey-aware relationships with their customers. By using Dynamic Yield’s powerful technology to consolidate their data, create personalized experiences, and measure customer activity, MediaMarkt overcame challenges presented by the highly connected world we live in and are exhibiting double-digit growth.

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