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Sybase IQ and InfiniteInsight® are indispensable now to our business. 

Hideki Ichikawa
IT Systems Development Manager, IT Department

HMV Increases Revenue 140% with Personalized Product Recommendations

Challenges

  • The existing in-house system required a vast amount of processing time and was a burden on operational costs.
  • HMV Japan was looking for new strategies to dramatically grow revenue.
  • Sending campaign information uniformly to all customers was not ideal, since customers would start treating emails as spam and the percentage of opened emails would drop.
  • To develop predictive models providing millions of product recommendations and analyzing marketing campaigns. Needed to know its customers’ preferences, optimize the messages according to those preferences, and only send pertinent information to each customer.
  • The company also had to aggregate data from inventory servers, online sales (order and shipping) databases, store POS databases and other master databases.
  • Needed to achieve high-speed queries as part of aggregation processing, and decrease the overall maintenance burden.
  • Couldn’t run effective evaluations.

Solutions

  • A local system integrator proposed a solution combining InfiniteInsight®, RTmetrics, and Sybase IQ, which HMV accepted because it offered both the right functionality and low cost they needed.
  • The recommendation system leveraging InfiniteInsight®, analyzes customer click streams in near real-time, examines which products match the customer’s preferences, and then provides customized recommendations. 

Results

  • Sybase IQ and InfiniteInsight® enable HMV to predict customer purchase preferences by integrating and analyzing in-store, e-Commerce and website browsing data.
  • Processing that used to take over 20 hours is now done in about four hours.
  • Can complete queries on 60M items of data and over 2M registered customers in about 30 seconds.
  • Reduced data loading time by 75% accelerating data availability.
  • Lower maintenance burden and associated costs.
  • Overall performance has increased by about 40%.
  • The percentage of mobile device emails being opened rose to over 70% and even PC emails were being read over 50% of the time.
  • Purchasing rates grew 3-15 times, and per transaction revenue grew 1.5-3 times.
  • 140% increase in 1st year revenue.

 

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Industry: Retail, e-Business
Size: Medium
Region: APAC