Acoustic > Case Studies > KDDI Boosts Conversion Rates with Acoustic's Personalized Product Recommendations

KDDI Boosts Conversion Rates with Acoustic's Personalized Product Recommendations

Technology Category

Networks & Connectivity - Cellular
Sensors - Acoustic Sensors

Applicable Industries

E-Commerce
Telecommunications

Applicable Functions

Quality Assurance
Sales & Marketing

Use Cases

Experimentation Automation
Predictive Maintenance

Services

System Integration
Testing & Certification

About The Customer

KDDI Corporation is a leading telecommunications operator in Japan. The company offers mobile cellular services, ISP network services, and long-distance and international voice and data communications services under the 'au' brand. KDDI also operates an eCommerce website, au Online Shop, which offers mobile phones and related goods. In 2019, KDDI had revenue of 5,080.4 billion yen (USD 48.585 billion) and a total workforce of almost 45,000. The company was looking to grow its online shop business and needed to increase its conversion rate.

The Challenge

KDDI Corporation, a leading Japanese telecommunications operator, was facing challenges with its eCommerce website, au Online Shop. The company was struggling to increase the conversion rate and was unable to identify problems with specific pages. The existing analytics tools only provided abandonment rate data on a page-by-page basis, making it difficult to pinpoint issues. KDDI was also relying on heuristic evaluations to resolve these issues, which was not efficient or effective. The company wanted to offer a personalized shopping experience to its customers, similar to the recommendations and purchase history data displayed on major e-commerce sites like Amazon and Rakuten. They were looking for a solution that could provide personalized product recommendations to their online shop visitors.

The Solution

KDDI chose Acoustic as their solution provider due to its cost-effectiveness, superior function, and quality service. The company started using Acoustic Experience Analytics (Tealeaf) which dramatically improved the au Online Shop's conversion rate. KDDI had developed a recommendation engine that could predict what phone model a user might be interested in, based on their current model. Acoustic Personalization was used to effectively implement this online. KDDI now uses four Acoustic products: Personalization, Content, Journey Analytics, and Exchange. The implementation process was not prolonged and required only minor modifications to the existing online shop infrastructure. The Acoustic team provided quick and effective solutions to problems encountered during the implementation process.

Operational Impact

The implementation of Acoustic's solutions resulted in a significant increase in KDDI's conversion rates. The personalized product recommendations generated by KDDI's recommendation engine are now displayed at the top of the au Online Shop home page, leading to a higher conversion rate for visitors who click through these recommendations. The company has also been able to display recommendations for mobile phone accessories using the personalization algorithm, increasing the visibility of certain items that would not come up unless a customer searched for them specifically. This has led to an increase in the number of click-throughs and purchases by customers who show an interest in these products. The implementation of Acoustic's solutions has been highly cost-effective for KDDI.

Quantitative Benefit

Dramatic improvement in the conversion rate of the au Online Shop after implementing Acoustic Experience Analytics (Tealeaf).
The implementation process of Acoustic products took just four to five months.
Increased number of click-throughs and purchases due to personalized product recommendations.