Kaffee Partner perks up sales revenues and customer loyalty

Improved insight into customers drives more effective marketing campaigns

Published on 23-Jan-2014

"Thanks to IBM Cognos Business Intelligence, we no longer invest money and resources in inefficient marketing campaigns, and we have increased our revenues from product sales without employing additional staff." - Markus Sindermann, Head of IT, Kaffee Partner

Customer:
Kaffee Partner

Industry:
Consumer Products, Retail

Deployment country:
Germany

Solution:
Cognos Business Intelligence, BA - Business Analytics, BA - Business Intelligence, Big Data, Big Data & Analytics, Big Data & Analytics: Customers, Customer Relationship Management, Data Warehouse, Enterprise Resource Planning, Small & Medium Business

Smarter Planet:
Smarter Solutions for Retail

IBM Business Partner:
SIEVERS GROUP

Overview

Kaffee Partner develops coffee systems, which have won multiple awards for their design and functionality, and complementary accessories. The company offers its products to more than 70,000 corporate customers as part of an end-to-end service, and operates across Germany and in Austria.

Business need:
Kaffee Partner wanted to optimize its sales and marketing activities, both to better serve existing customers and to attract new ones. Without deeper insights into buyer behavior, the company risked missing valuable opportunities to turn more prospects into customers and grow revenues.

Solution:
By analyzing detailed information about its customers and their purchasing habits, Kaffee Partner has succeeded in tailoring product offers to better match individual buyers’ demands.

Results:
In the past, Kaffee Partner spent two hours per week compiling sales and marketing data; now the company can generate the same figures automatically and distribute the insights to the relevant staff via email. In the past, staff used to spend about one hour of work every single day daily report on telephone conversations: by automating this, the company has saved about 2.5 days of work every month. Cuts time taken to perform analyses by one day each month.

Benefits:
Increases average annual revenues of certain types of products such as cocoa and coffee. Cuts time taken to perform analyses by one day each month. Boosts the efficiency of advertising campaigns using targeted marketing.

Case Study

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

Smarter Retail - Creating more successful marketing campaigns

Instrumented
The solution consolidates data from various sources, including ERP applications and the telephone system, to enable detailed analyses across all data sets and dimensions.

Interconnected
The solution automates data integration by combining and aggregating information to streamline analytics processes and provide up-to-date performance figures for sales and marketing staff.

Intelligent
More sophisticated advertising campaigns created using targeted marketing achieve higher conversion rates, cut marketing costs and boost revenues from product sales.

Kaffee Partner develops coffee systems, which have won multiple awards for their design and functionality, and complementary accessories. The company offers its products to more than 70,000 corporate customers as part of an end-to-end service, and operates across Germany and in Austria.

With business growing at a rate of up to 10 percent annually, Kaffee Partner was looking for ways to interact with an expanding customer base more efficiently. Call center staff were spending more time on the phone with existing clients without being able to increase revenues, and were potentially missing bigger sales opportunities with new prospects.

Kaffee Partner wanted to ensure that the time and effort invested in customer service paid off, and began looking for ways to identify new sales opportunities. By capturing data on customers and their buying behavior, and using it to create tailored marketing campaigns designed to appeal to target markets, the company hoped to improve conversion rates and boost sales.

Gaining valuable insights from data on customers
Kaffee Partner selected a solution based on IBM® Cognos® Business Intelligence and the SNC/Control solution from IBM Business Partner SIEVERS GROUP. The new solution collects data from the company’s ERP applications and telephone system, and creates a rich store of data on customer interactions in a data warehouse.

Kaffee Partner implemented the solution with the help of SIEVERS GROUP. Using IBM Cognos Business Intelligence 10 software to tap into information in its data warehouse, the company gains valuable insight into its customers and business in near-real-time. The information, which is presented in a graphical user dashboard, enables Kaffee Partner to support efficient decision-making and improved sales management.

Improved access to high-quality information
Fast access to detailed business data has convinced marketing and sales teams of the importance of gathering high-quality information, creating a “dynamic circle”: the more value users obtain from the new analytics solution, the more motivated they are to collect detailed information and log it in the ERP system.

For example, Kaffee Partner has begun to track how customers react to offers delivered via different sales channels such as email, post or phone. This information will enable the marketing team to make sure that it always chooses the best channel for each customer to maximize the success of promotional activities.

The company has already developed more than 100 new analyses, replacing a number of time-consuming spreadsheet-based processes. Marketing teams can now explore and analyze data independently without relying on support from the IT department. This speeds up the implementation of marketing campaigns and cuts administration costs. In the past, Kaffee Partner spent two hours per week compiling sales and marketing data; now the company can generate the same figures automatically and distribute the insights to the relevant staff via email.

Dagmar Watty, Head of Direct Marketing at Kaffee Partner, states, “With the IBM Cognos solution, mission-critical business insights are always available when we need them. There is no delay if someone is ill or on holiday; the reports are consistent and up-to-date. Every morning at nine o’clock the reports are sent to the relevant staff via email, so they have the data on hand in time for their first meeting of the day.”

Boosting employee productivity
Today, a central team in Kaffee Partner’s marketing department performs analyses for the entire company, freeing other departments from manually compiling overviews.

The biggest impact has been on call-center staff, who each used to spend about two hours a month creating sales performance reports. The new analytics system has replaced these manual reports with automated daily updates. This enables continuous performance monitoring, helping phone agents to boost their sales figures and freeing managers from hours of wrangling with multiple spreadsheets.

Markus Sindermann, Head of IT at Kaffee Partner notes, “With IBM Cognos Business Intelligence we can easily combine data from the telephone system with ERP data – something that was simply not possible before. In the past, the daily report on telephone conversations alone required about one hour of work every single day: by automating this, we have saved about 2.5 days of work every month.”

Boosting the efficiency and profitability of marketing campaigns
Kaffee Partner uses the IBM Cognos solution to combine customer information, sales data and marketing insights to develop targeted marketing campaigns. For example, teams can find out which companies buy which coffees, what prices they are prepared to pay, and which promotional offers are most likely to tempt them to buy more. By analyzing customers’ purchasing patterns, such as the recent increase in the uptake of fair trade products and coffee produced using environmentally-friendly methods, Kaffee Partner can target product promotions more accurately, eliminating wasted sales efforts and enabling the company to achieve much higher sales conversion rates than ever before.

Dagmar Watty says, “IBM Cognos Business Intelligence gives us all the tools we need to understand our customers better. The solution also enables us to monitor and analyze our marketing campaigns more effectively, so that we can achieve a significantly greater chance of success. This new ability definitely gives us a competitive advantage, because it provides new business opportunities. Using this information has already resulted in improved business-to-business partnerships with many of our clients.”

Markus Sindermann concludes, “Thanks to IBM Cognos Business Intelligence, we no longer invest money and resources in inefficient marketing campaigns, and we have increased product sales revenues without employing additional staff. In the future, we plan to use the solution from IBM and IBM Business Partner SIEVERS GROUP to further exploit the opportunities that predictive analytics can offer in terms of further improving our marketing activities and customer service.”

About SIEVERS GROUP
SIEVERS GROUP is a company with around 270 employees that specializes in providing its customers with comprehensive IT and communications solutions. One of the firm’s key skills is quickly and effectively preparing and analyzing data from business intelligence and CRM systems. Experienced IT and business consultants as well as a sophisticated approach to project management complete the company’s well-rounded offering.

To learn more about products, services and solutions from SIEVERS GROUP, please visit: www.sievers-group.com

About IBM Business Analytics
IBM Business Analytics software delivers data-driven insights that help organizations work smarter and outperform their peers. This comprehensive portfolio includes solutions for business intelligence, predictive analytics and decision management, performance management, and risk management.

Business Analytics solutions enable companies to identify and visualize trends and patterns in areas, such as customer analytics, that can have a profound effect on business performance. They can compare scenarios, anticipate potential threats and opportunities, better plan, budget and forecast resources, balance risks against expected returns and work to meet regulatory requirements. By making analytics widely available, organizations can align tactical and strategic decision-making to achieve business goals.

For more information
For further information please visit ibm.com/business-analytics

Products and services used

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

Software:
Cognos Business Intelligence

Legal Information

© Copyright IBM Corporation 2014. IBM Deutschland GmbH, IBM-Allee 1, 71139 Ehningen. Deutschland. ibm.com/de. IBM Österreich, Obere Donaustrasse 95, 1020 Wien. ibm.com/at. IBM Schweiz, Vulkanstrasse 106, 8010 Zürich. ibm.com/ch. Produced in Germany. January 2014. IBM, the IBM Logo, ibm.com, Let’s Build A Smarter Planet, Smarter Planet and Cognos 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.