Luxottica anticipates 10 percent improvement in marketing effectiveness

Analytics appliance from IBM Business Partner Aginity helps personalize campaigns

Published on 18-Sep-2013

"With the Customer Intelligence Appliance and PureData System for Analytics platform, Luxottica is a learning organization, connecting to customer data across multiple channels and improving marketing initiatives from campaign to campaign." - Ted Westerheide, chief architect, Aginity LLC

Customer:
Luxottica

Industry:
Retail

Deployment country:
United States

Solution:
Big Data, Big Data & Analytics, Big Data & Analytics: Customers, Smarter Planet

IBM Business Partner:
Aginity, LLC.

Overview

Based in Mason, Ohio, Luxottica Retail North America (Luxottica) is a wholly owned retail arm of Milan-based Luxottica Group S.p.A, the world’s largest designer, manufacturer, distributer and seller of luxury and sports eyewear.

Business need:
Luxottica needed to analyze historical data pertaining to more than 100 million customers to increase marketing effectiveness.

Solution:
The company deployed advanced analytics technology from IBM Business Partner Aginity LLC, built on an IBM® PureData™ System for Analytics appliance, to create a 360-degree view of customers.

Benefits:
By identifying the highest-value customers and creating individualized marketing campaigns, Luxottica anticipates a 10 percent boost in marketing effectiveness.

Case Study

Based in Mason, Ohio, Luxottica Retail North America (Luxottica) is a wholly owned retail arm of Milan-based Luxottica Group S.p.A, the world’s largest designer, manufacturer, distributer and seller of luxury and sports eyewear. Employing more than 65,000 people worldwide, the company reported net sales of EUR6.2 billion in 2011.

Disconnected customer data
Nearly 100 million customers purchase eight house brands from Luxottica through the company’s numerous websites and retail chain stores. The data captured from those interactions constitutes a massive trove of potential product, marketing, sales and customer intelligence.

Luxottica, however, outsourced both data storage and promotional campaign development and management, leading to a disconnect between data analytics and marketing execution. The outsource model hampered access to current, actionable data, limiting its marketing value and the analytic value of the IBM PureData System for Analytics appliance that Luxottica used for a small segment of its business.

Luxottica’s competitive posture and strategic growth initiatives were compromised for lack of an individualized view of its customers and an inability to act decisively and consistently on the different types of information generated by each retail channel. Luxottica needed to be able to exploit all data regardless of source or which internal or external application it resided on. Likewise, the company’s marketing team wanted more control over promotional campaigns, including the capacity to gauge campaign effectiveness.

Fine-tuned marketing
To integrate all data from its multiple internal and external application sources and gain visibility into its customers, Luxottica deployed the Customer Intelligence Appliance (CIA) from IBM Business Partner Aginity LLC.

CIA is an integrated set of adaptable software, hardware and embedded analytics built on the IBM PureData System for Analytics solution. The combined technologies help Luxottica highly segment customer behavior and provide a platform and smart database for marketing execution systems, such as campaign management, e-mail services and other forms of direct marketing.

The IBM and Aginity platform provides Luxottica with unprecedented visibility into a class of customer that is of particular interest to the company: the omni-channel customer. This customer purchases merchandise both online and in-store and tends to shop and spend more than web-only or in-store customers.

“We’ve equipped their team with tools to gain a 360-degree view of their most profitable sales channel, the omni-channel customers, and individualize the way they market to them,” says Ted Westerheide, chief architect for Aginity. “With the Customer Intelligence Appliance and PureData System for Analytics platform, Luxottica is a learning organization, connecting to customer data across multiple channels and improving marketing initiatives from campaign to campaign.”

Benefits
· Anticipates a 10 percent improvement in marketing effectiveness
· Identifies the highest-value customers out of nearly 100 million
· Targets individual customers based on unique preferences and histories

For more information
To learn more about the IBM PureData System for Analytics appliance, please contact your IBM marketing representative or IBM Business Partner, or visit the following website: ibm.com/software/data/puredata/analytics.

Products and services used

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

Software:
PureData System for Analytics (powered by Netezza technology)

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America June 2013 IBM, the IBM logo, ibm.com and IBM PureData are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.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 client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. It is the user’s responsibility to evaluate and verify the operation of any other products or programs with IBM products and programs. 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.