Shop Direct Group integrates sales channels with Teradata tool and scoops award

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UK retailer Shop Direct Group has been presented with the Best Enterprise Solution award for retail technology in Europe for its implementation of Teradata analytic data solutions by the EHI Retail Institute in Germany.

The recognition was made at EuroCIS 2013, Europe’s leading retail technology trade fair. 

“Shop Direct Group perfectly illustrates how retailers can significantly improve their businesses and compete in today’s environment, if they connect all marketing channels and make efficient use of their data,” said Volker Giessler, senior industry consultant.

“With 80 years of history in the retail industry, Shop Direct Group has its roots in traditional mail order retailing. But over recent years, Shop Direct has transformed from a catalogue-focused business into a truly world-class digital retailer. Today, the business, which incorporates brands such as Very.co.uk, Littlewoods.com and isme.com, generates more than 75% of its revenue online.”

For decades, Shop Direct Group managed huge data volumes on customer catalogue transactions, which were used to gain rich customer insight. But in recent years, online trading has added new complexity. In particular, the over-aggregation of data from a variety of different sources made it difficult to gain a detailed, 360-degree view of individual customer shopping interactions.

After implementing a new Teradata Data Warehouse Appliance, the retailer now loads near-real time individual-level browsing data delivered through Celebrus Technologies into the data warehouse platform, thereby integrating different sales channels. Shop Direct now gains a full understanding of every website visitor’s journey with access to highly granular data on every customer interaction, which enables improved customer service and more effective shopper engagement. It also provides great benefits to marketing, merchandising, finance and operational analysts within the business. In addition, time-critical data loaded in near-real time helps facilitate more accurate decision-making throughout the enterprise.

The initial proof of concept demonstrated customer retention and acquisition benefits worth 0.5% of annual sales – a significant improvement. Furthermore, payback of the initial investment for the project, which was originally expected to occur in the eleventh month, was achieved ahead of plan, in month seven, said Teradata. After 11 months, the effective cross-channel use of the browsing data had generated a benefit of several million dollars, the company said. Additionally, the solution helped to increase the incremental sales per customer email sent by 28% – while also reducing business costs by hundreds of thousands of dollars – through identifying highly online-focused customers and removing their catalogue support.

Shop Direct uses the Teradata Data Warehouse Appliance, a fully-integrated platform that’s purpose-built for data warehousing. It features the Teradata Database. Established in hundreds of customer sites around the world, its design is said to be optimised for deep-dive analytics. Its software-based, shared-nothing, parallel architecture delivers the toughest, most complex queries quickly, Teradata claims.

“We are pleased to collaborate with Shop Direct and share their excitement as they accelerate the value of their investment in Teradata, and have proven the success of a more active approach to data warehousing,” said Andreas Geissler, Germany country manager, Teradata.

”As more retail companies turn to Teradata, with its analytic platforms and the new Teradata Unified Data Architecture they will better capture, refine, and store detailed data to discover new insights.”

Teradata claims it is the first company to unify all forms of data into an architecture that enables business insights from across the enterprise.