Businesspublished

Williams-Sonoma Says Olive Users Convert at 3× the Normal Rate

Company-reported results tie its shopping assistants to higher-value customer interactions, but the disclosed conversion figures do not isolate the assistants’ causal effect.

By 2 min read
Williams-Sonoma Says Olive Users Convert at 3× the Normal Rate
Williams-Sonoma Says Olive Users Convert at 3× the Normal Rate

Listen to this story

The audio brief

About 1:35
0:001:35
Read transcript
Williams-Sonoma says shoppers who engage with its Olive assistant convert at three times the retailer’s normal rate. Revenue associated with Olive has also climbed 620 percent since January, while engagement has jumped 700 percent. Those are striking commercial signals, but they come with an important limitation: the disclosed figures compare people who used Olive with a normal conversion rate. They do not show that Olive itself caused the additional purchases. Sameer Hassan, Williams-Sonoma’s chief technology and digital officer, shared the figures during the company’s second-quarter earnings call. The retailer reported $1.96 billion in quarterly revenue, up 6.7 percent from a year earlier. It also said personalized ecommerce visits generate about nine times the revenue of an average visit, compared with roughly twice the revenue last year. A separate assistant, Pottery Barn’s Otto, is being judged on a different job. More than 70 percent of its early interactions were resolved without a human handoff. Otto can help coordinate furnishings across a room, handle details such as rug size and outdoor-material durability, and book a design consultation or connect shoppers with a designer. That is a service-automation measure, not a sales-conversion measure. The broader referral picture is different again: Adobe says visitors arriving through AI referrals convert 54 percent better than visitors from other sources. The key constraint is measurement. Retailers still need to separate who AI brings in, what an assistant helps complete, and what it actually causes.

Story brief

3 key points

Williams-Sonoma’s second-quarter update provides an early commercial read on in-site AI assistants: Olive engagement rose 700% and associated revenue 620% since January, while engaged shoppers converted at three times the company’s normal rate. The figures come from the retailer and do not establish that Olive caused the lift. Pottery Barn’s Otto shows a different outcome, resolving over 70% of early interactions...

  1. 01

    Williams-Sonoma reported $1.96 billion in Q2 net revenue, up 6.7% year over year.

  2. 02

    Olive-associated revenue rose 620% since January; engagement increased 700%.

  3. 03

    Olive’s conversion comparison is company-reported and does not isolate causal impact.

Retail AI assistants are meant to move beyond answering product questions and toward revenue or completed service. Williams-Sonoma says Olive users convert at three times the normal rate, while revenue tied to the shopping assistant has risen 620% since January. The figures are a strong company-reported sales signal, but they do not isolate Olive’s causal effect on conversion.

Sameer Hassan, Williams-Sonoma’s chief technology and digital officer, gave the figures on the company’s second-quarter earnings call. The company also said engagement with Olive increased 700% since January. Separately, it said personalized ecommerce visits generate roughly nine times the revenue of an average visit, compared with roughly two times in the prior year.

Sales association versus service resolution

Olive’s conversion figure measures purchasing among shoppers who engage with the assistant against a normal rate. Pottery Barn’s newer Otto assistant is being measured differently: more than 70% of its early interactions were resolved without a human handoff, according to Hassan. The two results show different outcomes—purchasing and automated service resolution—rather than directly comparable performance measures.

What Otto is designed to do

  • Coordinate furnishings across a room, including matching items such as a sofa and rug.
  • Account for details including rug sizing and outdoor-material durability.
  • Book a design consultation or route a shopper to a designer when needed.

A retailer result within a broader referral pattern

The assistant metrics arrived with second-quarter net revenue of $1.96 billion, up 6.7% year over year. Adobe has reported a related, but distinct, result: shoppers arriving at retail sites through AI referrals convert 54% better than shoppers arriving from other sources. AI referrals bring people to a retailer, while Olive and Otto operate within the retailer’s own shopping experience.

Sources

  1. pymnts.comWilliams-Sonoma’s AI Assistant Triples Shopper Purchases | PYMNTS.com