Download Redcats Group extends predictive analytics to all its brands

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Retail
Redcats Group extends
predictive analytics to all
its brands
Smart is...
Using predictive analytics to help
brands target customers more
effectively
From clothing to contemporary furnishings, the Redcats Group
distributes fashion and lifestyle products both online and in its stores
all over the world. It owns 17 European and American brands, of
which OneStopPlus, BrylaneHome, The Sportsman’s Guide, Daxon,
Vertbaudet, La Redoute and Cyrillus are among the best known.
Redcats Group wanted to provide its
brands with a common, user-friendly
predictive analytics tool that would be
able to operate in a Big Data environment
and help them optimise their marketing
strategies.
Focused on customer satisfaction, Redcats is investing heavily in the
marketing expertise of its teams. The exploitation of the very large
volume of data generated by the commercial activities of the brands –
whether in physical stores and online – is a major challenge.
The company created a solution that
enabled it to exploit its colossal customer
database using IBM SPSS® Modeler
software.
“To make this data rapidly available and to extract the maximum
potential from it, we needed to equip the marketing departments with
a real-time, user-friendly analysis tool,” explains Claire Fouquerand,
CRM and Innovation Director at Redcats.
From an initial implementation for around twenty users at
headquarters, IBM SPSS software has now been rolled out to Redcats’
French stores. These are acting as pilot sites before the group extends
the solution internationally.
Choosing IBM SPSS Modeler for its ease of use
The Redcats database – which includes information on 24 million
active customers worldwide – has been transformed into a single
“Big Data” repository, and some fifty users in France are now able to
access it. Previously, as Claire Fouquerand explains, this had not been
possible:
“Each brand used to have its own customer database, which was
analysed using Base SAS software. There was also a consolidated
database at group level that we analysed with IBM SPSS software.
After ten years of operation, this hybrid system was no longer adapted
to market realities. Redcats management decided to gather all the data
together in a single Big Data solution and give all our analysts and
statisticians access to it.”
Let’s build a smarter planet
Business Benefits
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Delivers greater responsiveness in
decision-making and more precise,
better targeted marketing campaigns.
Reduces data processing time by a
factor of 10.
Makes strategic data on purchase
history and customer satisfaction
available rapidly, and transforms it into
meaningful information.
Spreads predictive analytics best
practices throughout the group via an
increasingly web-oriented environment.
Provides a shared and user-friendly
tool which is designed to be rolled out
internationally.
Delivered full return on investment
within seven months.
Retail
Preference was given to IBM SPSS Modeler because of its ease of use,
its visual nature, its power and its functionalities compared to its cost.
There was also a technical rationale related to a form of compatibility
between the IBM SPSS software and Oracle, the Big Data management
system. Claire Fouquerand comments: “The users quickly grasped the
IBM SPSS software after just three days’ training per person.”
More refined and responsive marketing
strategies
Predictive analytics with IBM SPSS enables the Redcats Group to
refine its marketing strategies, to target customers more effectively, and
to be more responsive. The solution helps to answer a wide range of
questions, such as: what message should we send to which customer and
when? What offer should we suggest to them, and via which channel?
What is the probability that such a customer will place a new order?
Order history, purchasing behaviour, navigation data on websites,
demographics and other information within the customer service
department (such as complaints) are put under the microscope to
encourage customer loyalty and to achieve better results more quickly.
This data is used by the brands with regard to their own business, and
at group level where multi-brand studies are carried out.
“We are acting as a service provider for the brands,” explains Claire
Fouquerand. “For example, we help them optimise their marketing
methods and differentiate themselves when brand territories are
similar.”
Smarter Retail
Gaining insight into customer behaviour
Instrumented
Data is collected into a central database from multiple sources,
including mobile applications, online surveys, websites, search
engines and physical stores, keeping a running record of customer
activities and transactions across brands.
Interconnected
The solution is integrated with information systems such as
the CRM database. Predictive analysis software supports the
analytical process across brands, predicting customer behaviour
and driving targeted marketing campaigns.
Intelligent
By applying predictive analytics to the near-real-time stream of
customer data, the company can monitor customer tendencies
and detect patterns in behaviour. This make it possible to predict
how customers will act in the future, including what products
they might need and to which campaigns they might respond.
Let’s build a smarter planet
Retail
IBM SPSS supports the Redcats digital revolution
Solution Components
Software
•
IBM SPSS® Modeler
“We have built a
360-degree view of
customer satisfaction by
bringing together all our
marketing departments.
The IBM SPSS software
facilitates the sharing
of best practices between
brands and gives them
the means to dramatically
improve customer
relations.”
— Claire Fouquerand, CRM and Innovation
Director, Redcats Group
The implementation of a Big Data solution and the adoption of IBM
SPSS Modeler go hand-in-hand with Redcats’ desire to innovate and
to become a “web company”. The internet is at the heart of the group’s
efforts to create an increasingly user-friendly shopping experience
adapted to new consumer trends. As proof of the relevance of this
economic model, the group’s 70 merchant sites attract 54 million
unique visitors per month and generate more than 60 percent of annual
turnover.
In this context, IBM SPSS predictive analysis helps the Redcats Group
to offer the right product at the right time to the right customer. Claire
Fouquerand, whose responsibilities include developing customer
satisfaction on the Internet doesn’t want to leave anything to chance:
“We have built a 360-degree view of customer satisfaction by bringing
together all our marketing departments. The IBM SPSS software
facilitates the sharing of best practices between brands and gives them
the means to dramatically improve customer relations.”
About IBM Business Analytics
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Produced in France
June 2012
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