Co-op taps Algolia tech as online grocery demand booms

UK food retailer Co-operative Group (aka the Co-op) has implemented Algolia technology to help handle Covid-19 pandemic driven online demand.

By using the latter’s Search & Discovery platform, Co-op enables shoppers to make purchases online that are delivered to their homes with quick commerce options including same-day delivery or a Click and Collect service for in-store pick-up.

By introducing this new approach and implementing Algolia Recommend, the retailer says that it increased conversion rates by 39%, saw 45% growth in customer orders as additional items were added to shopping baskets, and improved overall customer experience.

“Like many businesses, Covid-19 forced us to reevaluate our online presence and build an expanded digital infrastructure coupled with an innovative delivery system,” says Gareth Cottiss, E-commerce Development Manager at Co-op Food.

“Working with Algolia allowed us to improve and scale the online customer experience quickly.”

“Importantly, it enabled us to serve a wide array of customers’ needs through our e-commerce platform, as well as operate more efficiently with our partners, such as Deliveroo and Amazon, who offered same-day, hyper-local, immediate delivery on top of our own store-pick-up.”

The pandemic created another problem – retailers across the country experienced supply chain issues and product shortages.

It was critical that Co-op only offered items that were available in local stores. With Algolia’s fast indexing and hyper-localisation capability, it was able to instantly update its website and provide an accurate search experience.

Cottiss comments: “Additionally, we were able to further fine-tune consumers’ search experience using Algolia’s artificial intelligence powered Dynamic Re-Ranking ensuring we serve up the most relevant search results for our customers.”

“We also use Algolia Recommend to further boost engagement through AI powered carousels that feature relevant content for online shoppers to discover new items or special offers.”

“The retail industry has been reshaped by a number of factors, including the rise of e-commerce and omnichannel, changing customer behaviour and hyper-personalisation, and growing supply chain complexity,” says Bernadette Nixon, CEO at Algolia.

“Worse, consumers are becoming more connected, less loyal, more informed, and ultimately channel agnostic, all of which were exacerbated by the pandemic.”

“The Algolia Search and Discovery platform provides a robust tech foundation that boosts performance across the board. Co-op can offer reliable, personalised offerings that are optimised using advanced analytics and which can be updated in real-time and supported by attractive digital content.”

“Additionally, they are able to seamlessly integrate their online and offline channels with smart digital services that significantly improve their customers’ experience.”