Milan GmbH

Shopper behavior and preferences analyzed to the persona level, optimizing promotions and driving sales

Published on 17-Jan-2014

"The solution provides unexpected and valuable insights not only into customers, but also into how to optimize site design and product placement for increased sales." - Milan GmbH

Customer:
Milan GmbH

Industry:
Retail

Deployment country:
Germany

Solution:
Cloud Computing, Commerce Solutions, Mobile, Server Consolidation, SmartCloud - Solutions, Smarter Commerce, Smarter Marketing, Smarter Planet, Social Business for Customer Service, Social Business for Marketing

IBM Business Partner:
BLUETRADE GmbH , TIMETOACT Sof tware & Consulting GmbH

Overview

Milan GmbH, based in Berlin, is an online retailer that sells small and large appliances, televisions, multimedia accessories and other items. The volume of goods it offers fluctuates tremendously — from 2,000 to as many as 50,000 — depending on what and how much the company can buy and sell at a good price.

Business need:
The growth of the German online-only retailer Milan GmbH was hindered by an aging website-management system that lacked analytics, marketing tools and a way to identify and segment customer groups.

Solution:
The company overhauled its website with an e-commerce solution that captures and analyzes visitor activities and buying preferences, giving marketers 360-degree customer views.

Benefits:
The company anticipates increasing sales revenue by 50 percent by cross-selling more products and enhancing the shopping experience.

Case Study

Milan GmbH, based in Berlin, is an online retailer that sells small and large appliances, televisions, multimedia accessories and other items. The volume of goods it offers fluctuates tremendously — from 2,000 to as many as 50,000 — depending on what and how much the company can buy and sell at a good price.

The Opportunity
The growth of the German online-only retailer Milan GmbH was hindered by an aging website-management system that lacked analytics, marketing tools and a way to identify and segment customer groups. Marketers had limited insight into product preferences and buying behaviors, resulting in generic and mass-marketed promotional campaigns. Moreover, the software didn’t support product comparison features, new payment methods or an intuitive search engine, eroding sales and the customer shopping experience.

What Makes It Smarter
The company overhauled its website with an e-commerce solution that captures and analyzes visitor activities and buying preferences, giving marketers 360-degree customer views. The business uses this insight to segment customers and refine marketing campaigns, such as offering customers living in major cities discount coupons and those living in remote regions free shipping offers. The solution also automatically suggests supplementary products that enhance the products being purchased, such as a lens with a camera, helping boost sales.

Real Business Results
The company anticipates increasing sales revenue by 50 percent by cross-selling more products and enhancing the shopping experience. By offering more-relevant coupons to each customer, it realized a 5 percent campaign conversion rate compared to an industry average of 1 percent. It also expects to increase the average shopping basket value by recommending appropriate supplementary products at checkout time.

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

To learn more about Milan GmbH, visit www.milan-berlin.de.

Products and services used

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

Hardware:
System x: System x3650 M3

Software:
WebSphere Commerce Enterprise, IBM Digital Analytics

Legal Information

© Copyright IBM Corporation 2014 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America January 2014 IBM, the IBM logo, ibm.com and WebSphere 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.