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Datasource Consulting helped this major sporting goods retailer to better understand their customer loyalty and generate an expected ROI of 361% on their BI initiative.

Introduction

This major sporting goods retailer has annual revenue over $1B with over 470 stores in 45 states. However, recent competition eroded their margins. They needed a better understanding of their customers’ behavior was necessary to remain competitive. They decided that it was time for a comprehensive program centered on the customer. This included a customer loyalty program, targeted marketing initiatives, and customer analytics.

Business Focus

Spurred by competitive pressure, this major sporting goods retailer resolved to implement a customer loyalty program. The goal was to drive capabilities such as:

  • Increase the number of customers that return to shop within 2 weeks
  • Ability to track key customer behavior metrics and correlate them to specific marketing campaigns
  • Save money and increase response rate with more intelligent targeted marketing campaigns

To make the program effective and achieve the desired goals, robust data integration and analytics were necessary. The project was approved with an anticipated ROI of 361% in 2013.

Datasource Solution

As a long-term strategic partner, Datasource Consulting had previously helped this customer establish a reliable and extensible Data Architecture. This enabled Datasource Consulting to hit the ground running. Datasource worked with both technical and business teams and integrated seamlessly within the customer’s Agile development environment.

Datasource Consulting quickly established a team of two (2) data architects and four (4) ETL developers to collaborate directly with the client. The retail business intelligence project was broken up into two project releases:

• Customer loyalty data integration
• Customer data model implementation

These releases were staggered so activity could occur in parallel to reduce the overall project timeline.

The first release involved integrating information across internal and external source systems including: iSeries (POS system), Agilone, FirstEdge, Loyalty Labs, and RevTrax. XML was the default communication method used to exchange information between these systems. Connections into each system were established and a consistent set of data standards established how the data would be transformed.

The second release, which was staggered slightly after the first, focused on providing an architected target environment that would support customer loyalty analytics as well as feed the campaign management application for targeted marketing. The Teradata Retail Logical Data Model was used as a starting point and tailored to the specific needs of the customer. ETL processes were created to batch load the data model. In addition, data structures and their corresponding ETL processes were created to feed the campaign management application (Aprimo).

The technology stack for the project included: iSeries (Point of Sale), Oracle (transactional database), Teradata (dimensional database), Informatica (ETL), Protegrity (Data Security), Teradata Retail Logical Data Model, MicroStrategy (reporting and analytics), and Teradata Aprimo (campaign management)

The Results

By seamlessly integrating into the project team, Datasource Consulting was able to collaborate with the customer and other vendors to successfully drive the overall project to completion. The project was a huge success, and it empowered the customer to:

  • Integrate customer information across a range of source systems, and provide a means for customer-centric analytics
  • Launch the customer’s first loyalty program in June 2012
  • Save marketing funds by running and tracking targeted and informed direct marketing campaigns to encourage return customers
  • Capture and track key campaign activity details that were previously lost

Based on the hard work of all involved, this customer now has a Customer Loyalty Program based on a data architecture that is supportable, flexible, and scalable.

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