Increased Sales and Improved Profitability with the Help of AI

Vinoteket Image
Johan Liljebjörn
4 min read

We had the opportunity to sit down with Kristian Kull, the Marketing and Sales Manager of Vinoteket, where we discussed wine and e-commerce. Kristian shares his extensive experience at Vinoteket and how they have transitioned from being an “analog” company to becoming a pure e-commerce entity with a data-driven mindset.

"Sift Lab's individualized AI product recommendations generated in the first dispatch of our automation “monthly wine tip” in Rule 200,000 SEK in sales through better personalization."
Kristian Kull
Market & Sales Manager, Vinoteket

Hello Kristian, give us the elevator pitch, who are you at Vinoteket?
Vinoteket is an online wine shop, offering carefully selected wines from around the world by our sommeliers, and we always provide fast home delivery. We want more people to have the chance to explore the world of wine. To experience what lies beyond the routinely purchased bag-in-box for the weekend. Feel free to check out and explore our range and try the service. We simply deliver greater wine experiences to everyone!

How do you work today to create a better experience for the customer?
We do this by offering the best possible service. Customers can always reach our customer service via email, chat, and phone, and knowledgeable wine advisors are on hand. This means that we not only quickly solve problems that may arise with, for example, deliveries but also provide tips and advice on wines, which our customers greatly appreciate.

Sift Lab also means a lot here as the value for our customers lies in our data and we can now smoothly use the data to create a better customer experience.

Exciting! Can you elaborate a bit more on how you work with your data?
Now, for example, through Sift Lab's platform, we can get a better understanding of our customers and what type of customer segments (Personas) we have. Where there are challenges and who are our best customers, etc. This is because Sift Lab automatically syncs all our data in real-time to their AI platform. With Sift Lab, we also have a direct connection to our marketing automation system Rule. This enables us to create better personalization in our email and SMS marketing through our data in Sift Lab's platform and their AI. But also through Meta as a marketing channel with better personalization through segmentation on our internal data, which also gives better effect on Facebook and Instagram.

Fun! What challenges did you have before you discovered our platform?
The biggest challenge was to use our data effectively to better understand our customers and work with personalization. We have a very good structure for our data, but it's always difficult to know where to start, and especially before, there was no way to visualize insights and analyses. All KPIs were manually extracted from SQL via the IT department, and we crunched everything in Excel on different numbers in the business.

Now with Sift Lab, we get all insights and analyses visualized in the platform and can directly take action on things with the help of AI, such as extracting and acting on a customer segment directly to Rule.Before, we spent a lot of time on manual segmentation of customers for our campaigns, with Sift Lab we now avoid the manual process and can with a “press of a button” extract a segment through Sift Lab's AI and automatically send to Rule for activation of the campaigns via Email and SMS as channels. But also to Meta to acquire customers cheaper and drive more revenue based on target groups developed in Sift Lab on our transaction data.

"Sift Lab enables us to save a lot of time by removing previous manual work and automating it, making us 10x more productive across the entire organization with Sift Lab.”Kristian Kull, Marketing and Sales Manager at Vinoteket

Why did you choose Sift Lab in combination with Rule, and what are the biggest differences now compared to before?
At Vinoteket, we chose Sift Lab to be able to use our data more effectively to primarily increase profitability with existing customers. The advantage of Sift Lab and Rule is that there is a clear integration and good cooperation, which makes it easier in our work to deal with offers to our existing customers via email and SMS as channels. With Sift Lab, we now have a better understanding of our customer base with the help of better analysis and customer insights, and we are well on our way to increasing sales by 6% on our annual revenue through better personalization. This through Sift Lab's AI segmentation and automated individualized product recommendations. We also save a lot of time in working with customer segmentation since we avoid manual work because Sift Lab's AI does it automatically and syncs the segments directly to Rule for activation.

What are the biggest problems that Sift Lab solves for you?
The biggest problem Sift Lab solves is to give us the opportunity in a simplified way to get the maximum value out of our data, visualize insights from the data, and automate our marketing through their AI segmentation and personalization in all channels. The result is a lot of saved time and increased sales through better relevance in communication with our customers.

Besides what you already mentioned. What results and other values has Sift Lab helped you achieve?
A great value is the time we save in our work with segmentation and customer analysis, with Sift Lab we can work automated with the help of Data+AI. Time is money for us as we are a tight organization with a lot to do. Then of course it's a great advantage that it also creates much better results too.To give an example, our first email automation via Rule with Sift Lab's AI recommendations generated 200,000 SEK in sales. This through better personalization as we can now automate and let Sift Lab's AI choose which products should be recommended at the individual level.We now also have a much higher opening rate on our emails, now around a high 48% and clicks at 4.75%. Compared to the average for regular emails which is around 1% in clicks.We also see great potential with SMS as a channel and fine statistics. There the CTR is up to 31% with Sift Lab's target groups, compared to around 23% with our manual segments we create ourselves and which take us more time to produce. SMS is a very important channel for us with good ROI, but here it is also extra important to offer the right things to the customer so they have a good experience."Sift Lab's individualized AI product recommendations generated in the first dispatch of our automation “monthly wine tip” in Rule 200,000 SEK in sales through better personalization.”Kristian Kull, Marketing and Sales Manager at Vinoteket

How will you use Sift Lab in the future to create a better customer experience?
There are three things we are focusing on now with Sift Lab in addition to what we have talked about:

1. AI product recommendations on our newly launched website. There we are up and running now with recommendations on different surfaces such as the landing page, category and product pages, checkout, wine region pages. We are testing in full now, and even with a beta version to use Sift Lab's intelligence in the search.

2. We have developed a first draft of a dashboard for customer service and our wine advisors, so they too can be data-driven in their decisions to recommend the right wines to our customers based on desires from character, matching with food, and more.

3. AI segmentation against Meta to increase our sales at a lower cost. We are currently testing this with our performance marketing agency with positive results.

What is the big difference now compared to before you used Sift Lab?
The fact that we can now effectively use our data to create a better customer experience, which we see leads to more satisfied customers and increased sales. We save a lot of time and can work faster forward in all parts of the organization with a focus on growing with profitability.

One last important question. What are your top 3 wine tips right now?

The best summer rosé! New vintage of the world's best Prosecco!In my opinion, the best wine for grilling this year!

"Sift Lab saves us so much time by removing the work we used to do manually and automating it. We are now 10x more productive throughout our organization."
Kristian Kull
Market & Sales Manager, Vinoteket
Johan Liljebjörn
CCO, Sift Lab

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