Hong Kong Department Stores

Published on 12-Nov-2012

Customer:
Hong Kong Department Stores

Industry:
Retail

Deployment country:
Finland

Solution:
Cloud Computing, EMM - Digital Marketing Optimization, Express, SmartCloud - Solutions, Smarter Commerce, Smarter Marketing, Smarter Planet

Smarter Planet:
Smarter Solutions for Retail

IBM Business Partner:
Descom Oy , Heiler Software AG, Bazaarvoice

Overview

Oy Hong Kong Import Ltd owns and operates 24 Hong Kong Department Stores in the southern part of Finland. The stores sell general merchandise at discounted prices in many different product categories. Total sales of the group are estimated to reach EUR120 million in the financial year ending February 2012. The group currently employs over 650 employees.

Business need:
Hong Kong Department Stores wanted to boost customer engagement by creating online stores that targeted specific consumer groups. The company launched an online store to sell fishing equipment, establishing the store as a reliable source for those seeking high-quality gear and expert product reviews and advice. However, the organization needed a scientific approach for analyzing user behavior to enhance its marketing efforts.

Solution:
Hong Kong Department Stores uses a cloud-based web analytics solution to capture the near-real-time activity of each visitor. Based on behavior patterns, the company develops targeted marketing campaigns to capitalize on factors that impact the conversion from shopper to customer. For example, a favorable product review is a key element that leads a shopper to make a purchase. With this insight, the company can launch an email campaign to send customers personalized messages inviting them to review recently purchased products and recommend related products they may be interested in.

Benefits:
Achieved a 250 percent higher conversion rate with customer-generated product reviews Boosted online fishing equipment sales with relevant product offers, outselling its largest physical store but also increasing fishing equipment sales in its physical stores Enhanced customer loyalty by orchestrating a rich shopping experience with reliable reviews and relevant product recommendations

Case Study

Oy Hong Kong Import Ltd owns and operates 24 Hong Kong Department Stores in the southern part of Finland. The stores sell general merchandise at discounted prices in many different product categories. Total sales of the group are estimated to reach EUR120 million in the financial year ending February 2012. The group currently employs over 650 employees.

The Opportunity
Hong Kong Department Stores wanted to boost customer engagement by creating online stores that targeted specific consumer groups. The company launched an online store to sell fishing equipment, establishing the store as a reliable source for those seeking high-quality gear and expert product reviews and advice. However, the organization needed a scientific approach for analyzing user behavior to enhance its marketing efforts.

What Makes It Smarter
Hong Kong Department Stores is taking a scientific approach to uncovering the factors that impact its online shoppers. The company uses a powerful cloud-based web analytics solution to capture the near-real-time activity of every visitor, gaining an aggregate view of shopper behavior and discovering certain patterns. Based on behavior patterns, the company develops targeted marketing campaigns to capitalize on key factors that significantly impact the conversion from shopper to customer. For example, the solution revealed that a favorable product review is a key element that leads a shopper to make a purchase. Based on this insight, Hong Kong Department Stores can launch an email campaign to send customers personalized messages inviting them to write reviews of recently purchased products such as fly-fishing rods and recommending related products they may be interested in such as brands of fishing lures that have excellent customer reviews.

Real Business Results
· Achieved a 250 percent higher conversion rate with customer-generated product reviews
· Boosted online fishing equipment sales with relevant product offers, outselling its largest physical store but also increasing fishing equipment sales in its physical stores
· Enhanced customer loyalty by orchestrating a rich shopping experience with reliable reviews and relevant product recommendations

Products and services used

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

Software:
WebSphere Commerce Enterprise, IBM Digital Analytics, IBM LIVEmail, IBM Product Recommendations

Legal Information

© Copyright IBM Corporation 2012 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States September 2012 IBM, the IBM logo, ibm.com, Coremetrics and WebSphere are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. A current list of IBM trademarks is available on the Web at ibm.com/legal/copytrade.shtml This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data and client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.