Challenges faced
The inability to add personalization capabilities to a search engine leads the retailer to develop a proprietary one from scratch.
Building a separate one leads to yet another integration between the two systems and keeping data in sync.
Personalization data is sometimes broken into higher-level segmentation (like east region, west region, etc.) instead of to individuals to accommodate it in the search system’s product document. This leads to a subpar personalized experience, as it is generalized with groups.
Conclusion
To summarize, here is what we learned today:
Top of funnel pages are very important for ecommerce retailers, as that is where customers spend most of their time browsing.
Most TOF pages for many ecommerce websites can be powered by a search engine.
The search system is one of the most critical components in an ecommerce website.
The effort needed to implement a good search system is quite large.
Even after a multi-phased approach of building the search system, the final product can still fall short in terms of personalization, tail-end queries, relevancy, or customer intent.
Although some retailers are able to build a good search system for their ecommerce website, not all of them may get the same success.
After years of development and ongoing fine-tuning of a complex search system, there are some areas that retailers still cannot get right.
Traditionally, retailers have chosen between a variety of search engine technologies, including:
Self-managed open-source search engines (Solr, Elastic)
Self-managed proprietary search engines (Endeca)
Fully managed hosted search engines (Algolia)
Google Cloud Retail Search is Google’s answer to implement search for retailers using the power of AI and solve for most of the shortcomings stated above.
It begins with relevancy based on intent, leverages personalization from the start, continuously learns and uses AI to build context from the most complex of queries, all while being fully managed.
Unlike other search solutions, retail search strives to improve revenue optimization through higher revenue per visit (RPV) by focusing on not just relevance but also for buyability and personalization.
Additionally, a recommendation service is offered alongside retail search, using the same data so retailers don’t have to manage two separate systems.