Epsilon

Delivering a revolutionary marketing platform that drives customer loyalty

Published on 27-Dec-2011

Validated on 07 Oct 2013

"We value our partnership with Netezza. They have taken us through the evolution of the data warehouse appliance and truly have demonstrated to us a revolutionary technology beyond our expectations through Netezza’s speed, flexibility and the time to insight the platform offers." - Chris Harrison, Chief Technology Officer, Epsilon

Customer:
Epsilon

Industry:
Media & Entertainment

Deployment country:
United States

Solution:
Data Warehouse, Information Infrastructure

Overview

Epsilon needed a data warehouse platform and database partner that would support large and growing data volumes. The IBM Netezza data warehouse appliance easily met Epsilon’s criteria for performance, support and value and has helped the company execute five-to-seven times more campaigns per week for one client and improve customer retention—increasing revenues by 20 percent.

Business need:
Improve services offerings by • supporting clients’ need for high-performance analytics on large data volumes

Solution:
A purpose-built, high-performance data warehouse appliance that makes advanced analytics on very large data volumes simpler, faster and more accessible

Benefits:
Increased customer retention equating to 20 percent higher revenues; five to seven times more campaigns executed per week for one client

Case Study

In 2002, Epsilon – an Alliance Data company that provides clients with industry-leading strategic consulting, database and loyalty technology, proprietary data, predictive modeling and a full range of creative and interactive services – teamed with Netezza, now part of IBM. Epsilon was in the market for a data warehouse platform and database partner that would help it improve its service offerings by supporting large and growing data volumes while also providing the following benefits:

  • Excellent campaign and analysis performance
  • Extract, transform, load (ETL) and extract, load, transform (ELT) processing flexibility
  • Ease of support
  • Superior cost/performance ratio to its clients

The IBM Netezza data warehouse appliance easily met Epsilon’s criteria. Performance for very large database operations validated on Epsilon premises were anywhere from five to 50 times faster than operations on comparable platforms.

Success over the long haul
Today, Epsilon runs on about 30 IBM Netezza data warehouse appliances – including multiple racks of the IBM Netezza 1000 and IBM Netezza 100 products – which equate to more than a petabyte of spinning disk. The speed and flexibility is unstoppable. As Edgar Denny, director of technology, Epsilon, stated, “We would not be able to do what we are doing without Netezza at the center, nor would our customers.”

The IBM Netezza data warehouse appliance helps Epsilon secure new business, maintain and retain customers, and help its clients leverage industry-leading technology while decreasing their costs. When discussing the evolution of Netezza’s product, Mike Coakley, Epsilon’s vice president of technology stated, “In the seven years that we’ve been working together, the Netezza appliance has consistently demonstrated performance, stability, and revolutionary technology. With Netezza, Epsilon is charting new ground – the technology allows us to leap frog the competition to support clients with large data warehousing needs at a valuable price/performance ratio. That’s why we’ve stayed with Netezza over the long haul.”

The speed and flexibility of the IBM Netezza data warehouse appliance allow Epsilon’s customers to easily test out new ideas and to learn immediately what works and what doesn’t. “The speed at which we can execute queries for segmentation and targeting is dramatic, and the amount of data we can now use is in some cases four to five times greater than what our clients formally used. The ability to use more data allows for better targeting and segmenting, and the speed at which we can look at all the data makes the whole process viable. These benefits have enabled our clients to achieve up to a 20 percent increase in revenue. This would be impossible without Netezza,” stated an account team member of Epsilon.

How can a data warehouse appliance drive customer retention that equates to 20 percent higher revenues?
Through the IBM Netezza data warehouse appliance’s unique ability to rapidly churn through complex analytics over massive data volumes, clients can ask iterative questions at the speed of thought, resulting in campaigns and customer loyalty programs that are precisely targeted and highly effective. Clients can execute a higher number of campaigns to a pinpointed audience instead of broadcasting a generic message to a large prospect base. This results in lower marketing costs, since campaign dollars are not being spent marketing to disinterested audiences. Meanwhile, they achieve higher return on investment (ROI) from each campaign because the message is customized to meet its audience’s specific needs, thus eliciting higher response.

For example, one of Epsilon’s clients was executing six marketing campaigns per week, but wanted to develop three custom built programs. By moving that client’s analytics to the IBM Netezza data warehouse appliance, the company has been able to increase the number of campaigns it can launch while delivering more targeted messages to focused audiences. This client now executes 150 campaigns per month – that’s five to seven times the volume in a single week that it could run before. The client has realized greater productivity with larger data sets and more campaigns since deploying the IBM Netezza data warehouse appliance, and it can track the ROI of each individual segment. None of this would have been possible before the IBM Netezza data warehouse appliance.

Brad Terrell, IBM Vice President and General Manager, Digital Media stated, “Successful firms understand the value of taking a holistic view of their audience – collecting, integrating and analyzing long-term historical data in order to maximize targeting precision and deliver relevant content and advertising. Running these complex analyses quickly is vital to increasing revenues and staying ahead of the competition. But even running basic year-over-year analyses of raw log files can take hours or days to process with traditional technology. Instead of spending time making data warehouses run efficiently, IBM Netezza users deploy purpose-built data warehouse appliances that solve business problems.”

Chris Harrison, Epsilon’s chief technology officer, stated “We value our partnership with Netezza. They have taken us through the evolution of the data warehouse appliances and truly have demonstrated to us a revolutionary technology beyond our expectations through Netezza’s speed, flexibility and the full interactive experience the platform offers. With Netezza, it’s always about price to performance. Netezza continuously opens the door for new opportunities at Epsilon.”

Solution components
  • IBM Netezza 1000
  • IBM Netezza 100
  • IBM Netezza Analytics
  • IBM Netezza Performance Server
  • IBM Netezza Mantra
  • IBM Information Server
  • IBM Unica

About Epsilon
Epsilon is a leading marketing services firm. Services include strategic consulting, database and loyalty technology, proprietary data, predictive modeling and a full range of creative and interactive services including brand and promotional development, web design, email deployment, search engine optimization and direct mail production. In addition, Epsilon is the world’s largest permission-based email marketer. Epsilon is an Alliance Data company. For more information, visit www.epsilon.com or call 1.800.309.0505.

About IBM Netezza data warehouse appliances
IBM Netezza data warehouse appliances revolutionized data warehousing and advanced analytics by integrating database, server and storage into a single, easy-to-manage appliance that requires minimal set-up and ongoing administration while producing faster and more consistent analytic performance. The IBM Netezza data warehouse appliance family simplifies business analytics dramatically by consolidating all analytic activity in the appliance, right where the data resides, for industry-leading performance. Visit ibm.com/software/data/netezza to see how our family of data warehouse appliances eliminates complexity at every step and helps you drive true business value for your organization. For the latest data warehouse and advanced analytics blogs, videos and more, please visit: thinking.netezza.com.

About IBM Data Warehousing and Analytics Solutions
IBM provides the broadest and most comprehensive portfolio of data warehousing, information management and business analytic software, hardware and solutions to help customers maximize the value of their information assets and discover new insights to make better and faster decisions and optimize their business outcomes.

For more information
To learn more about the IBM Data Warehousing and Analytics Solutions, please contact your IBM sales representative or IBM Business Partner or visit: ibm.com/software/data/netezza.

Products and services used

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

Software:
IBM Netezza Analytics, IBM Netezza Performance Server, IBM Netezza 100, IBM Netezza 1000

Legal Information

© Copyright IBM Corporation 2011 IBM Corporation Software Group Route 100 Somers, NY 10589 U.S.A. Produced in the United States of America December 2011 IBM, the IBM logo, ibm.com and Netezza 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 ™), 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 ibm.com/legal/copytrade.shtml Other company, product and service names may be trademarks or service marks of others.