Subject category:
Entrepreneurship
Published by:
International Institute for Management Development (IMD)
Version: 23.12.2020
Length: 16 pages
Data source: Field research
Abstract
The case, based on extensive interviews with Retail Rocket's co-founders (Nikolay Khlebinsky and Andrey Chizh), several employees and one of the start-up's investors, documents the genesis and rapid growth of the company. Launched in 2012 in Moscow, Russia, Retail Rocket was a big data-based personalization platform for e-Commerce and omnichannel retail identifying the needs of customers based on their online behavior and, thanks to artificial intelligence, offering personalized product recommendations through the website, email and other marketing channels, increasing the conversion rate, average order value and retention rate of its clients. In effect, it makes available to small and mid-sized online firms the same website optimization functionalities associated with powerhouses such as Amazon or Yandex. Its value proposition included superior shopping-pattern prediction algorithms and value-based pricing using randomized A/B testing. What would it take to monetize and grow its exceptional IT competencies?
Time period
The events covered by this case took place in 2012-2020.Geographical setting
Region:
Europe
Country:
Russia
Featured company
Retail Rocket
Industry:
Information technology
About
Abstract
The case, based on extensive interviews with Retail Rocket's co-founders (Nikolay Khlebinsky and Andrey Chizh), several employees and one of the start-up's investors, documents the genesis and rapid growth of the company. Launched in 2012 in Moscow, Russia, Retail Rocket was a big data-based personalization platform for e-Commerce and omnichannel retail identifying the needs of customers based on their online behavior and, thanks to artificial intelligence, offering personalized product recommendations through the website, email and other marketing channels, increasing the conversion rate, average order value and retention rate of its clients. In effect, it makes available to small and mid-sized online firms the same website optimization functionalities associated with powerhouses such as Amazon or Yandex. Its value proposition included superior shopping-pattern prediction algorithms and value-based pricing using randomized A/B testing. What would it take to monetize and grow its exceptional IT competencies?
Settings
Time period
The events covered by this case took place in 2012-2020.Geographical setting
Region:
Europe
Country:
Russia
Featured company
Retail Rocket
Industry:
Information technology