MonotaRO Co., Ltd.

Robust analytics and reporting lead to a better understanding of customer needs and improved sales

Published on 19-Nov-2013

"When a retailer can connect customers with the products they want and need at a good price, sales go up. Automated campaign management and analytics give the company the ability to do just that." - MonotaRO Co., Ltd.

Customer:
MonotaRO Co., Ltd.

Industry:
Retail

Deployment country:
Japan

Solution:
Cloud Computing, EMM - Cross-channel Marketing Optimization, EMM - Digital Marketing Optimization, Mobile, SmartCloud - Services, SmartCloud - Solutions, Smarter Commerce, Smarter Marketing, Smarter Planet

IBM Business Partner:
Information, Services International — Dentsu, Ltd, transcosmos, Inc.

Overview

Established in October 2000, MonotaRO Co., Ltd. is an online shopping site based in Osaka, Japan, that sells industrial tools and other materials used in workshops and factories. A joint venture between Sumitomo Corporation and Grainger International Inc., it sells approximately 1.5 million items, including consumable goods for manufacturing, car repair and construction; exchangeable parts for factories; maintenance tools; tires; footwear and other construction; and office supplies.

Business need:
The company needed a more efficient and robust campaign solution.

Solution:
MonotaRO, an online retailer of industrial tools and construction supplies, implemented a solution that helps manage and analyze all of its online marketing campaigns.

Benefits:
The IBM solution helped double site member count in only three years, boost sales and increase sales of more profitable items.

Case Study

Established in October 2000, MonotaRO Co., Ltd. is an online shopping site based in Osaka, Japan, that sells industrial tools and other materials used in workshops and factories. A joint venture between Sumitomo Corporation and Grainger International Inc., it sells approximately 1.5 million items, including consumable goods for manufacturing, car repair and construction; exchangeable parts for factories; maintenance tools; tires; footwear and other construction; and office supplies. MonotaRO not only sells discount products online, but it also actively pursues direct distribution of foreign products as well as development of its own private-label brand goods.

The Opportunity
In the online retail industry, a large and varied inventory, a busy site and a huge volume of site visitors and customers are all good things. However, real business growth happens when a retail company can connect website visitors to the products they need and nurture customer relationships. MonotaRO, an online retailer in Japan, had a large site membership and good sales but knew that manually analyzing customer data and managing marketing campaigns not only constrained the number of campaigns it could run, but also limited insight into customer needs. The company needed a more efficient and robust campaign solution.

What Makes It Smarter
Is a marketing campaign automation and analytics solution worth the price? MonotaRO, an online retailer of industrial tools and construction supplies, implemented a solution that helps manage and analyze all of its online marketing campaigns. With a way to look at customer purchase records, abandoned shopping carts, site visits, call center inquiries and other historical data, the company can create several small, highly targeted campaigns aimed at specific customer segments.

The organization also uses its newfound analytical insight to recommend products to customers, including higher-profit private-label products in place of national brands. The result? Sales exploded, increasing 100 percent in just three years. During the same timeframe, the retail site more than doubled its membership, going from 350,000 members to more than 750,000 subscribers. Money well spent, indeed.

Real Business Results
• Doubled site member count in only three years, from 350,000 members to more than 750,000 subscribers
• Boosted sales by 100 percent in three years
• Increased sales of more profitable items with the ability to promote private-label products effectively over national brands

For More Information
Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com.

To learn more about MonotaRO Co., Ltd., at visit www.monotaro.com.

Products and services used

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

Software:
IBM Campaign

Service:
GTS Integrated Technology Services

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America November 2013 IBM, the IBM logo, ibm.com, Coremetrics and Global Technology Services 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 performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary. 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.