Dynatrace > Case Studies > XXXLutz: Driving Rapid Growth and Competitive Advantage with Seamless Omnichannel Journeys

XXXLutz: Driving Rapid Growth and Competitive Advantage with Seamless Omnichannel Journeys

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Technology Category
  • Cybersecurity & Privacy - Identity & Authentication Management
  • Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries
  • Construction & Infrastructure
  • Retail
Applicable Functions
  • Procurement
Use Cases
  • Construction Management
  • Retail Store Automation
About The Customer
XXXLutz is Europe’s second largest furniture retailer with over 25,700 employees and a revenue of approximately €5.34 billion. The company operates over 370 stores and has a significant digital presence. The retailer is focused on delivering seamless omnichannel experiences to its customers, offering them the flexibility of how and where they buy. To support this strategy, XXXLutz established its digital branch several years ago, which has grown quickly and become a significant revenue contributor alongside its brick-and-mortar stores. The company is also focused on rapid expansion through brand acquisition.
The Challenge
XXXLutz, Europe’s second largest furniture retailer, was striving to deliver flawless omnichannel experiences to its customers. The retailer had established its digital branch several years ago, which had grown quickly and become a significant revenue contributor alongside its brick-and-mortar stores. However, with the rapid expansion and brand acquisition, the company had built up a complex and distributed technology ecosystem supporting front-end and back-end processes, including omni-channel customer journeys. The applications underpinning XXXLutz’s omnichannel customer experiences spanned multiple platforms and a multicloud and Kubernetes architecture. This complex stack, coupled with the retailer’s rapid growth, created silos across the organization, where different teams managed different applications and types of infrastructure with disparate tools. This fragmented approach made it difficult to get end-to-end visibility of customer journeys or understand how the systems supporting them were interconnected. Without this insight, it was challenging to identify the root-cause of issues in customer journeys, which impacted conversions and put XXXLutz’s revenue and customer loyalty at risk.
The Solution
XXXLutz needed a solution that offered observability across the entire technology stack, from its legacy on-premises infrastructure to its cloud platforms and the microservices layer. It needed a platform that could automatically consolidate monitoring data into a single view to eliminate the need for teams to manually stitch together multiple datasets, so they could find the root cause of issues instantly. After evaluating the market, XXXLutz selected Dynatrace as the solution that could best meet its needs. With business event data from Grail, XXXLutz could get an overview of the problems that impact customers during the order process, such as detecting multi-use of expired voucher codes, problems with payment providers, or issues with product availability. Dynatrace broke down silos between internal departments as well as third-party software providers by providing a holistic source of data-driven truth. Having a single intelligent dashboard rather than multiple tools reduced complexity to drive faster, data-driven decision making and innovation.
Operational Impact
  • The implementation of Dynatrace has led to significant operational improvements for XXXLutz. The platform has enabled faster transactions by providing an overview of the problems that impact customers during the order process. It has also improved collaboration by breaking down silos between internal departments and third-party software providers, providing a holistic source of data-driven truth. This has reduced complexity and driven faster, data-driven decision making and innovation. Furthermore, Dynatrace’s automation and AIOps capabilities have enhanced customer experiences by enabling teams to instantly identify the root-cause of an issue, and proactively optimize services before customers are impacted. This has led to better conversions and higher customer loyalty.
Quantitative Benefit
  • Checkout time reduced from ten seconds to three, improving conversions
  • Faster, more informed decisions due to consolidated monitoring data
  • Increased customer satisfaction and loyalty due to faster issue resolution

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