SELGROS Saves Distribution Costs for Advertising Materials
Company Size
1,000+
Region
- Europe
Country
- Germany
Product
- Blue Yonder’s algorithm
- Blue Yonder’s causality model
Tech Stack
- Data Analysis
- Automation
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Revenue Growth
Technology Category
- Analytics & Modeling - Predictive Analytics
Applicable Industries
- Retail
Applicable Functions
- Sales & Marketing
Use Cases
- Predictive Replenishment
Services
- Data Science Services
About The Customer
SELGROS is a wholesale company based in Germany. The company had a manual process of deciding which customer should receive a catalog, which was done using segmentation and decision trees. This process was not only time-consuming but also inefficient as it did not consider all the elements that influence customer spending. As a result, the company acknowledged that its marketing budget was not being used efficiently. The company sought a solution to automate the process, reduce advertising costs, and improve customer targeting.
The Challenge
SELGROS, a wholesale company, was facing a challenge with its advertising strategy. Every two weeks, the company would mail up to one million brochures to its customers. The decision on which customer should receive a catalog was a manual process using segmentation and decision trees. This process was not only time-consuming but also inefficient as it did not consider all the elements that influence customer spending. As a result, the company acknowledged that its marketing budget was not being used efficiently. SELGROS sought a solution to automate the process, reduce advertising costs, and improve customer targeting.
The Solution
SELGROS collaborated with Blue Yonder, a JDA company, to automate the process of customer targeting. Blue Yonder analyzed five years of individual customer purchasing history and developed forecasts for purchasing probability and shopping cart size at the customer level with and without advertising material. The results delivered an optimal customer selection. Before each catalog mail-out, SELGROS now receives a recommendation from Blue Yonder and automates it into the campaign process. For the automation of operational decisions, Blue Yonder uses their own causality model, which extracts information from the data revealing the effects of promotions on individual customers’ purchasing decisions. This way, only those customers whose purchasing decisions are positively influenced by advertising material receive brochures.
Operational Impact
Quantitative Benefit
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