Redcats Group extends predictive analytics to all its brands

Published on 25-Jun-2012

Validated on 02 Dec 2013

"We have built a 360-degree view of customer satisfaction by bringing together all our marketing departments. The IBM SPSS software facilitates the sharing of best practices between brands and gives them the means to dramatically improve customer relations." - Claire Fouquerand, CRM and Innovation Director, Redcats Group

Customer:
Redcats Group

Industry:
Retail

Deployment country:
France

Solution:
Big Data, BA - Business Analytics, Digital Media, BA - Predictive Analytics, Social Business for Customer Service, Social Business for Marketing, Social Business for Sales

Overview

From clothing to contemporary furnishings, the Redcats Group distributes fashion and lifestyle products both online and in its stores all over the world. It owns 17 European and American brands, of which OneStopPlus, BrylaneHome, The Sportsman’s Guide, Daxon, Vertbaudet, La Redoute and Cyrillus are among the best known.

Business need:
Redcats Group wanted to provide its brands with a common, user-friendly predictive analytics tool that would be able to operate in a Big Data environment and help them optimise their marketing strategies.

Solution:
The company created a solution that enabled it to exploit its colossal customer database using IBM SPSS® Modeler software.

Results:
Reduces data processing time by a factor of 10.

Benefits:
Delivers greater responsiveness in decision-making and more precise, better targeted marketing campaigns. Makes strategic data on purchase history and customer satisfaction available rapidly, and transforms it into meaningful information. Spreads predictive analytics best practices throughout the group via an increasingly web-oriented environment. Provides a shared and user-friendly tool which is designed to be rolled out internationally. Delivered full return on investment within seven months.

Case Study

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

From clothing to contemporary furnishings, the Redcats Group distributes fashion and lifestyle products both online and in its stores all over the world. It owns 17 European and American brands, of which OneStopPlus, BrylaneHome, The Sportsman’s Guide, Daxon, Vertbaudet, La Redoute and Cyrillus are among the best known.

Focused on customer satisfaction, Redcats is investing heavily in the marketing expertise of its teams. The exploitation of the very large volume of data generated by the commercial activities of the brands – whether in physical stores and online – is a major challenge.

“To make this data rapidly available and to extract the maximum potential from it, we needed to equip the marketing departments with a real-time, user-friendly analysis tool,” explains Claire Fouquerand, CRM and Innovation Director at Redcats.

From an initial implementation for around twenty users at headquarters, IBM SPSS software has now been rolled out to Redcats’ French stores. These are acting as pilot sites before the group extends the solution internationally.

Choosing IBM SPSS Modeler for its ease of use

The Redcats database – which includes information on 24 million active customers worldwide – has been transformed into a single “Big Data” repository, and some fifty users in France are now able to access it. Previously, as Claire Fouquerand explains, this had not been possible:

“Each brand used to have its own customer database, which was analysed using Base SAS software. There was also a consolidated database at group level that we analysed with IBM SPSS software. After ten years of operation, this hybrid system was no longer adapted to market realities. Redcats management decided to gather all the data together in a single Big Data solution and give all our analysts and statisticians access to it.”

Preference was given to IBM SPSS Modeler because of its ease of use, its visual nature, its power and its functionalities compared to its cost. There was also a technical rationale related to a form of compatibility between the IBM SPSS software and Oracle, the Big Data management system. Claire Fouquerand comments: “The users quickly grasped the IBM SPSS software after just three days’ training per person.”

More refined and responsive marketing strategies

Predictive analytics with IBM SPSS enables the Redcats Group to refine its marketing strategies, to target customers more effectively, and to be more responsive. The solution helps to answer a wide range of questions, such as: what message should we send to which customer and when? What offer should we suggest to them, and via which channel? What is the probability that such a customer will place a new order?

Order history, purchasing behaviour, navigation data on websites, demographics and other information within the customer service department (such as complaints) are put under the microscope to encourage customer loyalty and to achieve better results more quickly. This data is used by the brands with regard to their own business, and at group level where multi-brand studies are carried out.

“We are acting as a service provider for the brands,” explains Claire Fouquerand. “For example, we help them optimise their marketing methods and differentiate themselves when brand territories are similar.”

IBM SPSS supports the Redcats digital revolution

The implementation of a Big Data solution and the adoption of IBM SPSS Modeler go hand-in-hand with Redcats’ desire to innovate and to become a “web company”. The internet is at the heart of the group’s efforts to create an increasingly user-friendly shopping experience adapted to new consumer trends. As proof of the relevance of this economic model, the group’s 70 merchant sites attract 54 million unique visitors per month and generate more than 60 percent of annual turnover.

In this context, IBM SPSS predictive analysis helps the Redcats Group to offer the right product at the right time to the right customer. Claire Fouquerand, whose responsibilities include developing customer satisfaction on the Internet doesn’t want to leave anything to chance: “We have built a 360-degree view of customer satisfaction by bringing together all our marketing departments. The IBM SPSS software facilitates the sharing of best practices between brands and gives them the means to dramatically improve customer relations.”

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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 2012. Compagnie IBM France, 17, avenue de l’Europe, 92275 BOIS COLOMBES CEDEX. Produced in France. June 2012. IBM, the IBM logo, ibm.com, Let’s Build A Smarter Planet, Smarter Planet, the planet icons and SPSS are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. A current list of other IBM trademarks is available on the Web at “Copyright and trademark information” at: ibm.com/legal/copytrade.shtml. References in this publication to IBM products, programs or services do not imply that IBM intends to make these available in all countries in which IBM operates. Any reference to an IBM product, program or service is not intended to imply that only IBM’s product, program or service may be used. Any functionally equivalent product, program or service may be used instead. All customer examples cited represent how some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions. IBM hardware products are manufactured from new parts, or new and used parts. In some cases, the hardware product may not be new and may have been previously installed. Regardless, IBM warranty terms apply. This publication is for general guidance only. Photographs may show design models.