Strengthening Personalized Recommendations Since Last Month's Launch
Enhancing User Experience with 'Loyal Customer Expansion' and 'Store Discovery'
Brand Store Loyal Customers Increase by 382%
NAVER (NAVER) announced on April 24 that its AI-powered shopping app, 'Naver Plus Store,' which was launched last month, has driven an increase in transaction volume for brand stores. This growth is attributed to improvements in the quality and speed of Naver Delivery, which has led to a rise in loyal customers.
Naver Plus Store is a shopping app based on the AI engine HyperCLOVA X and personalized recommendation technology. By analyzing user preferences and shopping context, the app recommends different benefits and products to each user. User-tailored promotions, coupons, and notifications of special benefits for loyal customers are actively displayed, which has improved the matching rate between sellers and loyal users. The more actively a user explores the app as a heavy shopper, the more sophisticated the recommendations become.
Sellers are also actively working to secure loyal customers and conduct marketing through the store app. Currently, 30% of brand stores are issuing first-purchase coupons, and 20% of brand stores are also utilizing repurchase coupons that enhance benefits for loyal customers. In particular, the cumulative number of subscribers to 'Lounge Membership,' a self-managed membership service operated by each brand store to manage and communicate with loyal customers, increased by 382% year-on-year as of March, when the app was launched.
Loyal customer marketing is translating into tangible business growth for sellers. In March, the average transaction volume for brand stores increased by 33% compared to the same period last year. Binggrae exclusively launched its new product 'Royal Choco' for Lounge Membership subscribers, timed with the launch of the Naver Plus Store app, and strengthened its loyal customer marketing through discount events and special merchandise. As a result, transaction volume during the two weeks immediately after the app launch doubled compared to the same period before the launch. Daejoo Petfood, which has mainly operated in feed manufacturing and B2B transactions, also saw its transaction volume during the third and fourth weeks of March increase by more than 31 times year-on-year, thanks to active participation in promotions and targeted CRM marketing strategies after the app launch.
The transaction volume of 'Naver Delivery,' which underwent rebranding alongside the launch of the shopping app, also grew significantly. After the app launch, transaction volume approximately doubled compared to the same period last year. Naver Delivery offers services such as same-day delivery, next-day delivery, and scheduled delivery. For Naver Plus Membership subscribers, it provides free shipping on orders over 10,000 won and one free exchange or return per order. Starting May 1, Naver will launch a promotion to cap the Naver Delivery solution fee at 5,000 won per order, aiming to help sellers enhance their delivery competitiveness.
Choi Soo-yeon, CEO of Naver, stated, "The initial service performance and growth rate have exceeded our internal targets and are progressing smoothly," adding, "We will strengthen our investment to further advance our technology and service capabilities, so that we can create an ecosystem where sellers and users grow together."
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