PhotoBox integrates predictive technology in its corporate strategy

Published on 06-Jul-2011

Validated on 02 Dec 2013

"We have been able to anticipate our industrial investments more effectively and be more efficient in their implementation." - Sébastien Rohart, General Manager Europe

Customer:
PhotoBox

Industry:
Consumer Products

Deployment country:
France

Solution:
BA - Business Analytics, BA - Predictive Analytics, Smarter Marketing, Smarter Planet, Business-to-Consumer

Smarter Planet:
Smarter Solutions for Retail

Overview

When a company of 350 people communicates with 11 million members, it needs extremely precise knowledge of customer profiles.

Business need:
To use predictive analysis tools to improve the effectiveness of marketing campaigns as well as management of the investment policy.

Solution:
PhotoBox group decided to move its business intelligence investments up a notch and look to IBM’s advanced analytical technologies and their predictive power to boost its decision making knowledge and allow a more intelligent approach.

Results:
• 16% increase in the number of new prospects taking up the welcome offer • An email open rate of 33% and a click-through rate of 35% • 14% rise in sales

Benefits:
• More intelligent marketing campaigns • Improved customer loyalty • 94% satisfied customers

Case Study

To read a French version of this case study, please click here.

When a company of 350 people communicates with 11 million members, it needs extremely precise knowledge of customer profiles. Offering an innovative service providing high quality prints of customers’ treasured memories, very competitive prices and a green policy supported by the CCIP (Paris Chamber of Commerce and Industry), PhotoBox, the European leader in digital photo printing and the French leader in personalised photo books, is already ahead of the field.

However, the group has no intention of stopping there. Its objective is to further improve its knowledge of the behaviour of customers and prospects in order to tailor its services or promotions ever-more subtly and closer to consumption profiles. Analytical technologies are therefore an essential requirement. Already a committed user of reporting tools, the PhotoBox group decided to move its business intelligence investments up a notch and look to IBM’s advanced analytical technologies and their predictive power to boost its decision making knowledge and allow a more intelligent approach.

Better targeted marketing campaigns

As well as segmenting the customer base, practically and relevantly identifying homogeneous groups of customers on the basis of purchasing behaviour, predictive technologies also pave the way for better designed marketing campaigns and more effective targeting. For example, analyses of historic data allow PhotoBox to identify customer defection according to a risk score, as well as consolidating matrices showing transitions from one product to another.

The system’s intelligence is therefore based on integrating data which is converted into knowledge and then aggregated to take informed decisions and determine new uses and campaigns. This process of qualifying customer preferences has increased the conversion rate by 14%.

Improved customer loyalty

With light and fast implementation, the team of data miners has direct access to data in the data warehouse for instant results. IBM SPSS technologies have helped the company to develop loyalty-building measures. With very few cancellations of newsletter subscriptions, just 0.6% since the introduction of IBM SPSS, PhotoBox is nurturing customer loyalty even more effectively. Test campaigns for promotional initiatives carried out on loyal customers are helping PhotoBox to measure defection rates. Comparing the different test campaigns allows PhotoBox to evaluate the effectiveness of a range of approaches to reduce the number of customers defecting to competitors.

François Le Lay, the group’s Business Intelligence Manager emphasises “Better targeting and better profiling of needs is helping PhotoBox to design more relevant email campaigns. For example, the number of new customers taking up welcome offers has increased by 16% and some newsletters have an open rate of 33% and a click-through rate of 35%.”

Better management of investment policy

Finally, as Sébastien Rohart, the group’s General Manager Europe, explains, predictive analysis is also helping PhotoBox to improve its management of investment policy: “We have been able to anticipate our industrial investments more effectively and be more efficient in their implementation.”

About IBM Business Analytics
IBM Business Analytics software delivers actionable insights decision-makers need to achieve better business performance. IBM offers a comprehensive, unified portfolio of business intelligence, predictive and advanced analytics, financial performance and strategy management, governance, risk and compliance and analytic applications.

With IBM software, companies can spot trends, patterns and anomalies, compare “what if” scenarios, predict potential threats and opportunities, identify and manage key business risks and plan, budget and forecast resources. With these deep analytic capabilities our customers around the world can better understand, anticipate and shape business outcomes.

For more information
For further information or to reach a representative please visit ibm.com/analytics.

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Products and services used

IBM products and services that were used in this case study.

Software:
SPSS Modeler

Legal Information

© Copyright IBM Corporation 2011 IBM Corporation Route 100 Somers, NY 10589 US Government Users Restricted Rights - Use, duplication of disclosure restricted by GSA ADP Schedule Contract with IBM Corp. Produced in the United States of America March 2011 All Rights Reserved IBM, the IBM logo, ibm.com, are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or TM), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at "Copyright and trademark information" at www.ibm.com/legal/copytrade.shtml. SPSS is a trademark of SPSS, Inc., an IBM Company, registered in many jurisdictions worldwide. Other company, product or service names may be trademarks or service marks of others. P26052