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CLIENT CASE STUDY

Dairy Company: Digital transformation triples conversion rate

Integrated digital platform across brands and channels also improves marketing return on investment and lowers marketing costs by 10%.

Overview


The dairy collaborated with Accenture to gain a better understanding of its consumers—and a bigger slice of the Chinese dairy market—with integrated e-commerce services and digital store capabilities. Accenture helped design and develop two integrated platforms and created new fulfillment options that give consumers a consistent shopping experience regardless of channel. The system processes all online and mobile orders from customers or sales assistants in store. It can gather this data—such as buying frequency, products purchased and delivery method—in reports to get a 360-degree view of the customer. Precision marketing activities, enabled with analytics, have lowered marketing costs by 10 percent and are helping to increase returns. Thanks to its powerful new capabilities, the company has achieved an e-commerce conversion rate that is nearly triple the dairy industry average.

Opportunity

China has a diverse e-commerce landscape, where many consumer brands have store fronts on digital malls like JD and Tmall, as well as brand and e-commerce sites. The dairy company wanted to better understand consumers’ needs and feed this information into business innovation. In addition, its brand sites were independently managed, with limited communication and interactivity among them, leading to inefficient promotions. And it had no way of capturing consumer information from brick-and-mortar retailers and distributors. The company collaborated with Accenture on integrated e-commerce services and digital store capabilities to deliver a smooth, personalized customer experience and coordinate marketing activities across channels.

Solution

Accenture designed and deployed two integrated platforms. One, implemented with Avanade, is based on Sitecore and hosted on MS Azure cloud. It consolidates all digital marketing content, loyalty membership applications and member data across brands from company websites and social media to coordinate promotional activities. Orders—even from third-party sites like Tmall and brick-and-mortar stores—flow through a second connected online-to-offline (O2O) e-commerce platform based on SAP hybris. The O2O platform compiles data from the entire customer journey and feeds it into the promotions platform. New fulfillment options on the company’s e-commerce websites include click and collect and personal inventory management of the customer’s goods held in store for pick up. Sales assistants at 300 brick-and-mortar stores use iPads to check stock and save the sale. Mobile features, such as 2D scans, help in-store shoppers find product information and transfer offline users to online interaction.

Results

Thanks to more targeted promotions, the company has achieved an e-commerce conversion rate that is almost triple the dairy industry average. Precision marketing activities lowered marketing costs by 10 percent, and are helping to increase return on investment. Since the system processes all online and mobile orders from customers or sales assistants in store, the company can gather this data—such as buying frequency, products purchased and delivery method—in reports to get a 360-degree view of the customer.

Robust analytics, embedded in the platform, derives actionable customer insights that can be used for more effective cross-selling and up-selling across brands, segments and channels. Consumers now enjoy more fulfillment options and a consistent shopping experience, regardless of channel. The company’s robust analytics capabilities will enable it to capture an even bigger slice of the growing dairy market in China.