How LCBO is Driving 2X Conversion Rates with AI Search

+58% click-through rate
+16 Search rank positions
2x Conversion rate with search
+3% Customer experience score

LCBO, a 97-year-old crown agency of the Ontario government, is one of the largest retailers and wholesalers of beverage alcohol, with annual sales exceeding $7 billion. They maintain an extensive network of over 1,000 locations and have a significant digital presence. Customers frequently utilize the online site to check inventory, browse, or research selections before visiting their local store, resulting in over 1 million weekly site visits. Therefore, delivering a compelling and seamless experience is crucial.

Manual Search Tuning

Problem: Manual search rules and lack of machine learning caused time-consuming searches and decreased satisfaction with over 34,000 products.

Solution: Coveo implementation significantly improved product ranking, shifting products 16 positions higher on search pages, streamlining customer searches and enhancing product discovery.

+16

Search rank positions

Lack of personalization

Problem: LCBO faced challenges in personalizing user experiences and utilizing loyalty data, resulting in suboptimal customer journeys.

Solution: By implementing Coveo, LCBO achieved a notable increase in relevancy and conversion rates, including a 58% rise in click-through rates, enhancing customer search experiences.

+58%

Click-through rate

BTS of a $7-billion retailer

LCBO (Liquor Control Board of Ontario), a $7-billion retailer, faced 3 key challenges:

Limited search capabilities and a 34,000-SKU catalog.
Restricted personalization for both anonymous and logged in visitors
Legacy, non-integrated systems that led to ineffective operations.

Vanda Provato, Chief Marketing and Digital Officer at LCBO, delves into the specific AI models and strategies they used to overcome these challenges and significantly drive business objectives.

It starts with creating relevancy because at the end of the day we want to connect people with things that are of interest to them, and for LCBO that directly ties back to our brand promise.

Vanda Provado

Chief Marketing & Digital Officer

Take a look inside

How LCBO adapted to evolving market dynamics and devised short and medium-term strategies to uphold their brand promise (Page 5)
Discover the challenges LCBO encountered and the innovative AI models implemented to tackle them head-on. (Page 6)
LCBO's tangible achievements following the integration of Coveo and the transformative impact on their key performance indicators. (Page 7-9)