Operating past regulations in the German MLM market
MLM companies in Germany have to operate with strict adherence to GDPR and other consumer protection laws. Especially, ecommerce companies who use customer data to deliver personalized recommendations are accountable for any breach or related inconveniences caused to the customer. German consumers also expect transparency in products, promotions, and pricing.
One health and wellness company in the German MLM industry was running an ecommerce business with a large product range and distributor network. Customers could not easily find relevant products or complementary products related to their purchases. The website was generating traffic but users were browsing and leaving without making a purchase. The system could not make relevant product or add-on recommendations.
Distributors needed a system that can support sales through smart recommendations and tools that increase cart value without having to manually follow up each customer. The brand was compelled to look for a solution that can bring engagement and conversions among their distributor and customer base.
Personalizing the ecommerce experience with AI
When the company approached Epixel MLM Software, we set up a team of ecommerce experts to develop a solution that would offer a personalized ecommerce experience for users and increased revenue opportunities for the company.
Along with the standard ecommerce features, the platform also has features to implement personalized merchandising in the business.
AI-driven product recommendations
Apart from ecommerce website, the company could deliver personalized product recommendations across various customer touchpoints. The AI system analyzes customer behavior, shopping patterns, cart activity, device usage, location, and seasonal trends to recommend complementary products and subscriptions.
Company can set goals to increase AOV, customer engagement, or reduce cart abandonment rates, and the system automatically optimizes cross-sell and upsell offers, bundles, or subscriptions to help the company achieve these goals. The AI-powered ecommerce system also recommends products based on distributor level like enrollment kits and products that help them qualify ranks.
The system hides restricted products and moderates medical or income claims for regions with related regulations.
Automated cross-selling and upselling
The automated cross-selling and upselling system offers customers recommendations on different product pages, cart stages, and checkout. The platform analyzes purchasing behavior to suggest complementary wellness products, bundles, and frequently purchased product combos to make these recommendations that also increase AOV. The system also suggests upselling offers such as premium product variants, higher volume packs, and subscription options based on spending patterns of customers.
Every recommendation is aligned with the company’s commission structure to protect distributor earnings and improve ecommerce performance.
MLM compensation system
The system managed personalization of ecommerce with compensation requirements. Every cross-sell and upsell conversions were validated automatically against commission and rank eligibility and promotion policies before presenting it to the customers. The system also supported region-specific pricing, tax changes, and advanced promotion management without overlapping offers.
Real-time analytics dashboard
The analytics dashboard presents performance of each regional market with metrics such as engagement rate, conversions, revenue, and payouts for the company to track and compare. Each campaign and promotion can be set on the dashboard to be tracked by business admin. The dashboard also offers forecasts on AOV and product demands based on visitor behavior.
Distributors have a separate dashboard in their user portals which can be used to track personal sales, team sales, and customer activity. The dashboard can also be set to display only the preferred metrics distributors wish to track.
Compliance protection
MLM and ecommerce actions were governed by compliance features specific to Germany’s regulations. The system ensured that all promotions, product recommendations, and commission calculations correspond to the company’s compensation plan, consumer protection policies, and GDPR requirements.
The automated compliance management system scans and moderates all related processes such as promotions management and commissions payment. Customer data used for personalization was processed through consent management.
Results of performance-focused personalization
Personalized merchandising features improved ecommerce performance across important functional areas. The automated cross-sell and upsell feature increased basket size which in turn improved AOV for the brand. Relevant product recommendations made it easier for customers to discover products and explore complementary wellness solutions.
The system placed suggestions in critical decision making stages of the purchase, like product pages and checkout to improve conversion rates. Add-on and subscription offers reduced cart abandonment rates through enhanced purchase value.
Distributor performance improved with all recommendations aligned with the company’s commission structure. Their earnings also increased through increased ecommerce activities.
Challenges faced during development and implementation
We faced technical and operational challenges through the designing and implementation phase related to data, processes, and system integrations. Customer, ecommerce, and MLM data were scattered across separate systems. In order to create customer profiles and make relevant recommendations, the data had to be properly mapped and synced in real time.
Standard ecommerce recommendation engines do not account for compensation plans. We had to ensure that all cross-sell, upsell, and bundle recommendation complied with commission and rank rules.
The company required a highly automated recommendation system that also lets them prioritize products and promotions. The hybrid AI and rule-based framework required hours of careful architecture planning.
The recommendations had to be adapted based on user behavior. A/B tests and performance monitoring system helped optimize accuracy in recommendations and improvement in revenue.
Expected Results
Improved customer lifetime value
42%
Reduction in cart abandonment rates
38%
Increase in AOV
68%
Increase in repeat purchase rate
54%
Increase in subscription revenue
59%
Increase in product sales
62%
Improved customer lifetime value
42%
Reduction in cart abandonment rates
38%
Increase in AOV
68%
Increase in repeat purchase rate
54%
Increase in subscription revenue
59%
Increase in product sales
62%
Improve conversions and loyalty in your ecommerce MLM business with personalized merchandising on an AI-powered MLM Platform.
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