:::

【2021 Application Example】 Watsons Introduces Insider AI Technology Platform to Strengthen Customer Experience and Enhance Conversion Rates

Watsons Taiwan, holding the leading position in physical chain drugstores in Taiwan, has continued to expand its digital transformation. Since establishing Watsons' online store in 2014, apart from actively developing the e-commerce market, the company has significantly enhanced the online and offline (O+O) omni-channel consumer experience by integrating Insider AI technology. This integration utilizes extensive in-store sales data, consumer behavior analytics, and AI-driven personalized recommendations delivered at optimal times to increase conversion rates.

O+O Online Plus Offline Boosts Customer Conversion Rate, Driving Business Growth

Watsons Group, a global retail giant, has been deeply rooted in Taiwan for the past 30 years specializing in retail, store operation SOPs, and retail supply chain optimizations. However, managing an e-commerce platform only began a few years ago. Unlike the commonly discussed 'O2O' (online to offline) in retail, Watsons adopts 'O+O', which is offline plus online. Currently, about 20% of customers who order at Watsons' online store choose to pick up their goods at physical stores. Proper service at these stores acts as a catalyst for converting online-originated customers into additional in-store revenues.

According to statistics, Watsons has nearly 6 million members with a substantial volume of transactions in physical retail outlets. However, with over 1.2 million active app users and nearly 3 million app downloads, the level of member activation is still lacking. By utilizing AI technology for data integration, such as providing optimized product recommendations through AI, Watsons could significantly enhance its customer conversion rate from offline to online consumption or guide online customers to in-store purchases, thereby driving business growth.

Homepage Personalized Recommendation Module: Recommended for You

▲ Homepage Personalized Recommendation Module: Recommended for You

Originally, Watsons used the e-commerce solution Hybris from the global system integrator SAP, which was more geared towards simple display and sales, lacking sufficient technical resources to handle enhancing the consumer experience.

Insider is a marketing technology (martech) company with offices in 25 cities globally, including a professional consultancy team in Taiwan that provides localized digital solutions. Committed to optimizing digital marketing effectiveness with technology, Insider helps brands drive digital growth and is a partner to many domestic and global enterprises including Watsons, Carrefour, IKEA, Lenovo, Adidas, Sinyi Realty, and Singapore Airlines. Insider has shown outstanding performance in improving customer conversion rates, repurchase rates, and advertising ROI through AI technology.

Watsons introduced Insider's AI algorithms primarily for enhancing customer experience, using AI's personalized and integrated marketing modules to elevate the customer interaction and improve e-commerce conversion rates. Additionally, AI functionalities search for the right customers, expanding new customer groups and providing a superior shopping experience.

Page-specific Discount Code Copy Feature Recommended Based on Customer Behavior

▲ Page-specific Discount Code Copy Feature Recommended Based on Customer Behavior

Insider has developed various technological modules that can be applied in different customer scenarios to enhance conversion rates. Currently, Watsons' e-commerce website/APP utilizes different Insider modules, with some parts also tailored based on Watsons' unique attributes such as necessities repurchase, app navigation, and scratch card discounts, designing conversion kits or personalized recommendation modules for specific customer situations within Watsons.

Introduction of Web/APP Personalized Recommendation and Conversion Module Kits Effectively Increases Conversion Rates by 10%

Watsons has already introduced the first four of the planned modules, with a full rollout of all five modules expected by 2021, aiming to enhance both online and offline cross-sales and thereby comprehensively improve Watsons’ overall e-commerce and retail performance. 1. Web Recommendation/Conversion Suit 2. App Recommendation/Conversion Suit 3. InStory for eCommerce 4. Mobile App Template Store 5. Insider Architect

Watsons has currently implemented the AT module, with completion expected by the end of 2021.

▲ Watsons has currently implemented the AT module, with completion expected by the end of 2021.

Since partnering with Insider in 2020, Watsons has introduced Web/APP personalized recommendation and conversion module kits, effectively increasing transaction conversion rates by an average of over 10%, with ROAS (Return on Ad Spend) averaging over 10. Watsons also hopes to integrate POS sales records into Insider's CDP (Customer Data Platform) to achieve a more optimized O+O interaction mechanism and complete an all-channel consumer experience.

By combining Insider's AI technology, Watsons' self-operated official website, supplemented by extensive in-store sales data and member consumer behaviors, along with AI's personalized recommendations delivered at optimal points, the technology will significantly boost consumer transactions online and interactive opportunities in-store. Utilizing new technologies in the competitive e-commerce sector allows Watsons to maintain a unique leadership position in the beauty/health category in the consumers' minds.

「Translated content is generated by ChatGPT and is for reference only. Translation date:2024-05-19」

Recommend Cases

【解決方案】佐翼科技無人機導入高爾夫球場域 可節省一半人力
Droxo Tech Applies Drones in Golf Courses to Reduce Manpower by Half

For most golf courses, the operations and management is a headache "Golf courses are selling turf and need to be properly taken care of," a golf course manager bluntly pointed out Facing the market pain points of labor shortage, aging population and high cost, the use of AI drones for pesticide spraying and pest control will reduce labor costs by more than half and greatly improve the overall operational efficiency At noon in early summer, an AI drone is slowly taking off at the Taipei Golf Club in Taoyuan Its main task is to test AI drone fertilizing and pesticide spraying on the golf course In fact, drones of Droxo Tech, the company performing this task, are widely used for fertilization, pesticide spraying, and pest and disease control for rice, bananas, and tea trees For golf courses with turfs that often cover tens to hundreds of hectares, AI drones are needed to assist in turf maintenance Data collection, development of pesticide spraying AI models, and multispectral image analysis and testing will be carried out in the current stage In the future, large-scale technology implementation and verification will be carried out to set an example for applying drones to golf courses Using AI drones to fertilize and spray pesticides can reduce the manpower required by half The traditional way of maintaining the turf in golf courses is to carry spray buckets or drive spraying vehicles to spray areas one by one "Domestic golf courses began to plant ultra-dwarf Bermuda grass in 2001 This grass species prefers a cool climate and is not suitable for Taiwan's hot and humid weather" Droxo Techrsquos CEO further pointed out that to prevent turf from pests and diseases, pesticide spraying is necessary For an 18-hole golf course, it is equivalent to spraying pesticides once a week, and the T-ground and fairways are sprayed every two months For golf courses, spraying pesticides is time-consuming and labor-intensive It is important to note that large-scale spraying will increase the risk of personnel poisoning and increase the amount of pesticide used Benefits of applying agricultural drones to golf courses According to Droxo Techrsquos research, golf course pests include Spodoptera litura, which comes out at night to look for food, so pesticide spraying must be carried out in the evening According to the traditional method, pesticide spraying requires two vehicles and three personnel for a total of 45 hours If AI drones are used for fertilizing and pesticide spraying, it only takes one operator to spray 08 hectares of land in 20 minutes, saving about two-thirds of the manpower and reducing operating costs by about 30 Using AI drones to fertilize and spray pesticides on golf courses can reduce the manpower required by half In addition to the significant benefits of using agricultural drones for golf course turf maintenance, Droxo Tech also specially introduced AI multispectral image recognition for NDVI Normalized Difference Vegetation Index analysis "The so-called multispectral is to direct light with different wavelengths on the turf, and the reflected images are collected for analysis" Droxo Tech CEO Liu continued to explain that each plant absorbs light with different wavelengths, so multispectral imaging can determine the growth status of grass species At the same time, combined with AI image recognition, the distribution of pests and diseases can be accurately detected, and the amount of pesticide used is determined on this basis Cross-domain collaboration to build a multi-source turf image databasenbsp Using AI multispectral image recognition technology, Droxo Tech will collect visible light, multispectral, thermal images, and hyperspectral images to establish a multi-source turf image database to fully understand the growth cycle of Bermuda grass Droxo Tech has accumulated rich experience in agricultural AI drone pesticide spraying , but there are still many problems that need to be overcome to implement AI solutions in golf courses For example, it is necessary to establish a new pesticide spraying model and test flight methods, especially the application of multispectral image recognition PoC is not difficult, but actual implementation requires more test evidence, repeated inferences, and collaboration with plant experts This part must rely on the cross-domain integration of legal entities such as the Institute for Information Technology III, gathering more fields for verification, and creating a paradigm before it can be more widely adopted by golf courses There are not many international cases on the application of AI drones in golf courses During the verification process, it is not yet known whether it can be quickly copied to the next golf course However, Droxo Tech CEO Liu believes that through cross-domain collaboration, clearly defining the problems and listing them one by one, supply and demand parties can reach a consensus, propose solutions to each problem, and seek cooperation with internal and external resources Only then will we be able to gradually achieve the goal of making golf courses smarter and smoothly assist the industry with transformation Zuoyi Technology's CEO, Liu Junlin 「Translated content is generated by ChatGPT and is for reference only Translation date:2024-05-19」

【導入案例】AI嘛會煮咖啡 無人烘豆機靠AI 精準設點與培養忠實客群
AI Can Make Coffee! Autonomous Coffee Roasters Relying on AI for Precise Location Setting and Cultivating Loyal Customers

Have you had your morning coffee yet Over the past decade, Taiwan has gradually formed a coffee drinking culture With the advancement of AI technology, autonomous coffee roasters can now rely on AI for precise location setting while also cultivating a loyal customer base Let's see how this is done According to the International Coffee Organization ICO, Taiwanese consume approximately 285 billion cups of coffee annually, with the coffee market in Taiwan estimated at 80 billion TWD, growing about 20 each year In recent years, the 'drinking coffee' culture in Taiwan has become synonymous with popularity, with coffee being the most frequently chosen daily beverage by 65 of the population Coffee enthusiasts, particularly the more avid ones, are willing to pay more for coffee beans that suit their tastes An increasing number of unmanned drink kiosks have also begun to appear in the Taiwanese beverage market Unmanned coffee beverage shops face difficulties in expanding quickly, primarily due to two major issues one is the appropriateness of customer flow and machine placement locations which still rely on manual analysis the second is penetrating the market of mid to high-end coffee lovers accurately AI resolves two major challenges for autonomous coffee roasters suitable placement and cultivating a loyal customer base To tackle these issues and help autonomous coffee roasters quickly break into the market, Raysharp Electronics intends to implement AI for people flow counting analysis and unfamiliar face recognition These technologies aim to calculate the crowd size at potential roaster locations and classify consumers by gender and age for more precise market analysis They also provide multiple choices for the roasting of raw coffee beans, offering a more customized service tailored to the needs and tastes of professional coffee aficionados with a pack of 'high-quality roasted beans' Since 2018, the rise of unmanned stores has been mainly due to owners wanting to reduce persistently rising rent and personnel costs However, the initial assessment of store locations still requires hourly labor expenses for manual estimation of customer flow, leading to possible miscalculations of both on-site consumers and passerby traffic These inaccuracies may prevent precise real-time analysis of customer flow, or even misguided estimations of operational efficacy after a trial run, thus missing the optimal timing for loss-preventing location retraction Raysharp Electronics introduces autonomous coffee roasters equipped with AI-based people counting analysis and facial recognition Raysharp Electronics combines AI people counting analysis and facial recognition with the coffee trend known as 'black gold', addressing the preferences of numerous coffee connoisseurs in Taiwan who enjoy personally selecting coffee beans at bulk stores and frequenting high-quality grinding cafes or chain coffee shops A new concept for the first autonomous coffee roaster offering choices based on the origin, variety, and roasting methods of coffee beans has emerged AI coffee roasters enhance customer loyalty and materials management efficiency by 20 For the advanced development of autonomous coffee roasters, Raysharp Electronics engineers have equipped the AI NVIDIA development platform on the basis of TCNNFacenet Through AI, tens of thousands of images related to gender and age are used for sample training, allowing even first-time coffee roasting customers to be easily classified using unfamiliar face recognition This gains consumer trust, enhances willingness to use, and allows for recording purchase information and future product recommendations, leading to consumer purchase behavior analysis This information helps owners tailor future material preparation based on consumer preferences for different coffee beans, reducing raw material transportation and storage issues, and improving material management efficiency by 20 Moreover, by placing these autonomous coffee roasters in high-traffic areas, owners can use cameras to capture the crowd and assess whether the machine location has an adequate customer base, quickly analyzing whether to reposition the machines, and more easily targeting the best locations for middle and high-end coffee lovers The unmanned coffee roaster features a professional roasting mode interface, providing options based on the origin and variety of coffee beans, their roasting methods light, medium, deep, and related temperature, wind speed, and timing settings If improvement needs arise during the process, engineers can adjust firmware parameters and also assist in integration with the owner's ordering system Staff members briefly describe the operation of the autonomous coffee roaster 'Black Gold' penetrates deeper into coffee shops, science parks, and commercial buildings through AI This autonomous coffee roaster targets coffee connoisseurs and can be placed in middle to high-end coffee shops to roast more customized coffee beans than those available in bulk stores Upon completing a batch of coffee beans, it immediately provides them to professional technicians within the coffee shops for grinding and manual brewing The remaining roasted beans can also be taken home for brewing and enjoyment It also adds value to coffee shops by better understanding consumer preferences for coffee beans and launching more customer-attracting drink promotions and appropriate inventory management In addition to coffee shops, the autonomous coffee roaster can also utilize AI-based people counting analysis to precisely set up near scientific parks and commercial buildings, offering high-quality coffee beans for office brewing to internal employees with high coffee consumption needs Furthermore, implementing a physical membership system can initiate coffee bean purchase promotions or periodic payment incentives, thus attracting new clients and cultivating existing customer loyalty and retention The operation interface of the smart autonomous coffee roaster「Translated content is generated by ChatGPT and is for reference only Translation date:2024-05-19」

【導入案例】挺進智慧物流50 新竹物流醫材配送班表超高效率
Advancing to Smart Logistics 5.0: Hsinchu Logistics Delivers Medical Materials with Ultra-High Efficiency

After incorporating AI technology, traditional logistics companies have seen significant improvements in transportation efficiency and reductions in transportation costs, especially in the transfer of medical materials which involves timely service and rights of hospitals and patients The implementation of intelligent logistics can save medical material businesses the cost of constructing GDP warehouses and other expenses up to millions A major domestic logistics leader, Hsinchu Transport HCT, owns a fleet of 3,500 vehicles and a storage area of 60,000 square meters, providing customized logistics solutions including logistics, commerce, finance, information, distribution, storage, and processing The company handles up to 580,000 parcels per day, with a maximum capacity reaching 900,000 parcels, making the enhancement of transshipment efficiency crucial for HCT Medical materials transportation at hospitals need optimization of current operational processes and enhancements in systematization and intelligence Especially the transportation of hospital medical materials, which encounters various challenges Medical materials suppliers need to cater to varying customer product demands, temperature requirements, and delivery times through multiple logistics providers This highly depends on the experience and careful control of operations staff Whether it is the product shipment or actual logistics process, each step must be interconnected Any human errors can impact the service timing and rights of the hospitals and patients Thus, all concerned businesses, along with the government and hospitals, are working to optimize current operational processes and elevate the level of systematization, automation, and intelligence to minimize service errors and cost losses HCT's distribution process prior to AI implementation Currently, with the government's push for standardized platform operations on the demand side of hospitals, supply-side businesses collaborate through data coordination to improve the accuracy and efficiency of product shipments, enhancing operational quality and management benefits at the demand side At the same time, some businesses are also investing in the standardization and systematization of internal operational processes, thus enhancing operational efficiency and quality In the freight logistics sector, logistics companies' warehouse staff need to expend labor to control different logistics shipment operations If they often receive emergency task notifications for shipments to medical facilities, they usually depend on small regional logistics providers to provide customized delivery services Although this improves delivery times, it does not allow for integrated informational services The new GDP regulations for medical materials require suppliers to undergo GDP compliance certification Therefore, Hsinchu Transport, assisted by the Ministry of Economic Affairs' AI coaching program, not only extends existing logistics services compliant with GDP regulations but will also use data integration and optimized AI technologies to help medical material businesses streamline and improve their logistics operations Complex logistics issues are solved using the Simulated Annealing SA algorithm To meet the 'Good Distribution Practices for Medical Devices,' Hsinchu Transport is not only actively introducing new logistics vehicles but will also implement artificial intelligence-based mathematical optimization technologies to assist in intelligent scheduling at nationwide business points and transshipment stations They aim to optimize the routing of medical materials between business points or regions thereby enhancing efficiency in the distribution process Currently, during the transshipment process of medical materials at Hsinchu Transport, detachable tractor heads and containers are used Each business point and transshipment station differ in location design and staffing, impacting the throughput per unit of time Furthermore, daily cargo conditions size, destination vary, and due to these fluctuating and distinct demands, the deployment of tractor heads and containers changes accordingly Under these circumstances, Hsinchu Transport relies on past experiences to schedule departures at each satellite depot and adjusts daily according to the cargo needs Due to the reliance on empirical scheduling, it is often difficult to consider all variables and considerations, leaving room for improvement in the current departure schedules The cargo delivery planning inherently constitutes an NP-Hard problem, difficult to solve with traditional analytical methods Hsinchu Transport, in collaboration with Singular Infinity, utilizes the Simulated Annealing SA algorithm to find solutions The new logistic service introduced by Hsinchu Transport is 'GDP Container Shift Planning' This planning involves estimating future volumes of medical materials between stations and scheduling container truck shifts accordingly, ensuring timely and quality delivery of medical materials while maximizing operational benefits and reducing travel distances Hsinchu Transport introduces AI-optimized shift planning, constructing the most efficient route from its origin to destination Hsinchu Transport introduces 'Optimized Shift Planning' service, reducing transportation costs by 5 The introduction method involves using cloud software services Hsinchu Transport regularly inputs 'Interchange Item Tables' from station to station into the 'Optimized Shift Planning' service After setting the algorithm parameters, a GDP container shift schedule is generated At the same time, developing a Hsinchu Transport medical material scheduling system allows Hsinchu Transport's medical transport units to compile suitable schedules through the Interchange Item Tables Under the same level of service, it's estimated that this can reduce transportation costs by 5, saving medical material businesses millions in construction costs for GDP warehouses and distribution Due to its requirements for sanitation, temperature, and its fragility, the transportation and transshipment of medical materials should be minimized to reduce exposure and risk However, logistics efficiency and costs must still be considered AI designs the most efficient route for each cargo from its origin to destination, effectively completing daily transportation tasks In response to the future high development demand of industrial logistics, distribution and transshipment AI optimization will be a key issue Through this project, a dedicated project promotion organization will be established, staffed with AI technology, IT, and process domain talents After accumulating implementation experience, the application of AI will gradually expand, comprehensively optimizing and transforming Hsinchu Transport's operational system, and partnering with AIOT and various AI domain partners to accelerate and expand the achievement of benefits「Translated content is generated by ChatGPT and is for reference only Translation date:2024-05-19」