Bygghemma.se automate their product exposure and increase overall profit by up to 12%

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Bygghemma (the DIY division of Bygghemma Group) is one of the largest DIY retailers in the Nordics. Since launching in 2006 the company has expanded to twelve online stores and fourteen physical stores in the Nordic region. Their business plan aims to market a wide range of DIY products to people who want to buy well-known brands at attractive prices.

Bygghemma.se has been an Apptus client since 2011. Using machine learning for product placement they have been able to A/B test different strategies where Apptus eSales automatically optimises product exposure for each strategy.

In 2017 they started testing the exposure strategy for profit. After approximately one month Bygghemmma realised that by using Apptus’ AI to optimise profit, the total profit peaked by up to 12%. Overall it produced an average increase of 6.2% in profit compared to previous revenue based strategies.

A unified solution increases organisational efficiency. Bygghemma usually works with sales driven campaigns, something previously handled manually by merchandisers. Today, thanks to Apptus eSales’ unified solution, Bygghemma can easily promote a site-wide campaign and give it an extra boost at the beginning and end which has led to an increase in outcome. So, instead of product teams manually doing the hard work, it is now automated, driven by Apptus eSales and AI.

The challenge

Quickly adapt to the trends. To be a retailer in the DIY sector with rapidly changing seasons is challenging. How can you present the right products to the customer throughout the year? One illustrative challenge is whether to present lawn mowers or snowblowers, both in the same product category, in November. It might snow in November but, depending on the weather you might need to mow the lawn.

Bygghemma has managed these challenges with manually set rules to adapt to many different factors. 

The solution

After switching to Apptus eSales, thorough tests were carried out. The results showed that machine learning can completely replace manual rules and perform better when entirely automated. The site now adjusts product exposure to the product most frequently browsed for at the time. So - If the weather suddenly changed and made customers browse for snow blowers, Apptus eSales picks it up and presents snowblowers rather than lawn mowers.
Moving to Apptus Cloud means great performance and availability with rapid time to market.
Bygghemma moved its hosting to Apptus Cloud during autumn 2017. A transition that was smooth, quick and made it possible to use new functionality such as site wide product exposure optimisation.

Mikael Olander, CEO at Bygghemma Group says: ”To create a campaign this quickly from idea to roll-out has always been a massive manual workload but now it is merely a case of getting the artwork for the banners done in time. Thanks to Apptus eSales and machine learning everything else is now done much faster.”

And - according to Olander, there is no loss of performance in the cloud:

“Our site ran like clockwork throughout Black Friday with 100% availability. We are very pleased that we took the decision to take the leap to Apptus Cloud!”

To create a campaign this quickly from idea to roll-out has always been a massive manual workload but now it is merely a case of getting the artwork for the banners done in time. Thanks to Apptus eSales and machine learning everything else is now done much faster.


MIKAEL OLANDER
CEO, BYGGHEMMA GROUP

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