Allegro Boosts Online Click-Through Rates by 500 Percent with Web Analysis
The Allegro Group is headquartered in Posnan, Poland, and is considered the largest non-eBay online marketplace in the world. Allegro, which currently offers over 75 proprietary Web sites in 11 European countries around the world, hosts over 15 million products, and generates over 500 million page views per day. The challenge it faced was how to match the right offer to the right customer while still being able to support the extraordinary amount of data it held.
Problem
In today’s marketplace, buyers have a wide variety of retail, catalog, and online options for buying their goods and services. Allegro is an e-marketplace with over 20 million customers who themselves buy from a network of over 30 thousand professional retail sellers using the Allegro network of e-commerce and auction sites. Allegro had been supporting its internal recommendation engine solely by applying rules provided by its re-sellers.
The challenge was for Allegro to increase its income and gross merchandise volume from its current network, as measured by two key performance indicators.
• Click-Through Rates (CTR): The number of clicks on a product ad divided by the number of times the product is displayed.
• Conversion Rates: The number of completed sales transactions of a product divided by the number of customers receiving the product ad.
Solution
The online retail industry has evolved into the premier channel for personalized product recommendations. To succeed in this increasingly competitive