In our role as E-Commerce Merchandising Consultants at Gorillas, we identified a significant opportunity to enhance the online merchandising strategy. The challenge was to increase the Average Order Value (AOV) and improve customer conversion rates in a highly competitive online retail environment.

To address this, we led a data-driven analysis to identify products positively correlated with larger-than-average baskets and top-selling items. This analysis involved using linear regression to develop a correlation coefficient, providing us with a targeted list of items customers preferred to purchase alongside our most popular products, termed 'Strategic Basket Items' (SBIs).

These SBIs were strategically placed in newly created 'Trending Categories' on the website, prominently featured in areas where 45% of our sales conversions occurred, thereby enhancing visibility and accessibility for customers. The success was immediate, with these new Trending Categories accounting for 24% of revenue within two weeks.

Additionally, we conducted an in-depth study of customer purchasing data to identify items frequently bought in quantities greater than one. This insight led to the introduction of manufacturer bundle packs alongside single quantities, allowing for price segmentation and providing customers with more purchasing options.

A key part of our strategy was ensuring ease of finding popular items, reducing friction, and enhancing the customer shopping experience. Every decision within our online merchandising was focused on keeping the customer at the forefront of the process.

The results of these strategic changes were remarkable. Within just five months, the Average Order Value soared from $24 to $36, a significant increase exceeding initial expectations. Customer re-purchase rates increased, and revenue grew proportionately. Customer conversion rates also improved dramatically, rising from 52% to an impressive 75%.

This case study highlights the power of a data-driven, customer-centric approach to online merchandising. By understanding and catering to customer preferences and reducing friction in the shopping process, we significantly enhanced the customer experience, leading to increased sales and customer loyalty. This project at Gorillas stands as a testament to the impact that innovative merchandising strategies can have on e-commerce success and extends into the Brick-and-Mortar world as well.