Dutch retailer uses Cloud for merchandising

Speed-reading

  • Wehkamp needed to improve its online retail services and use big data and analytics to provide their mostly young customers with a personalised and tailored online shopping experience, as well as improve profitability. 
  • The results of using cloud services for digital analytics, customer experience management and email campaigning speak a language any shareholder can understand: a 271% higher sales-per-send ration for marketing emails, including a 68% higher click-through rate.
  • Wehkamp now expects to achieve similar benefits in its merchandising functions with the addition of the markdown optimisation tool. 
 
Full story
Headquartered in Zwolle, Netherlands, Wehkamp served more than 122 million visitors in 2012 and sold over 15.6 million products. According to the retailer, more than half of its customer base comprises people aged 35 or younger. Its IT team relies on big data and analytics to provide their young customers with a personalised and tailored online shopping experience.
 
Business Requirements
  • Improving the management of online fashion retail, which typically involves a high percentage of returns due to customers ordering multiple sizes or colours. This affects the remaining inventory and needs factoring into the markdown process to make better decisions.
  • Dealing with end-of-season sales of fashion merchandise, by being able to plan its clearance pricing and markdowns to sell the remaining inventory and make room for next season’s merchandise. 
  • Additional capabilities from specialised cloud services on top of the digital analytics, cross-channel marketing and customer experience management tools that Wehkamp already uses. 
Solution provider: IBM's Smarter Commerce initiative – which includes software and services for an enterprise’s commercial activities such as selling and buying.
 
Benefits
  • A cloud-based platform helps the retailer put its customers at the centre of its planning strategies, from managing markdown prices, delivering email campaigns or improving the online experience. 
  • Using big data and predictive analytics to streamline the marketing and merchandising processes, proving that customisation and informed planning are the best way to meet customer needs. 
  • Conducting marketing campaigns based on a holistic approach that provides customers with the right product, at the right price and through the right online experience. 
  • Making improved decisions on the depth and timing of its markdowns, ensuring it meets inventory, profit and revenue objectives. 
  • Maximising profitability and improving inventory productivity for items in the clearance section.
  • Wehkamp has improved its yield from marketing activities by using cloud services for digital analytics, customer experience management and email campaigning. The retailer has seen a 271% higher sales-per-send ration for marketing emails, including a 68% higher click-through rate. The retailer helps to achieve similar benefits in its merchandising functions with the addition of the markdown optimisation tool. 

 

Links: Wehkamp, Netherlands, IBM Cloud
Disclaimer: The purpose of this article is to show how businesses are benefitting from the cloud and help other firms identify similar requirements. Any reference to the cloud provider or customer does not constitute an endorsement. 
 

 

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