[Cas réel] The recipes of ETAM, a group that outperforms thanks to Digital and Artificial Intelligence
Few retailers in France speak at conferences and deliver figures. Last week at the Salon Big Data Paris, Gregory Sanquer, CIO of the Etam Group and Jonathan attali, E-Commerce and Innovations Director of Etam.com, took part in the game of questions of Laurent Letourmy, CEO Ysance, one of the central partners in Data transformation at Etam.
Etam succeeds in the feat of being both a century-old grande dame, essential to our French landscape – not a commercial street, not a shopping center without an Etam – AND the craftsman of Lingerie catwalks the sexiest, with some of the most beautiful models in the world, including Constance Jablonski.
The Etam Group is made up of 4 brands (Etam, 1.2. 3., Undiz and the new Livy brand), 15,000 talents present in 52 countries, 4,000 points of sale worldwide, including 1,100 in Europe, for a Turnover of 1.3 billion euros.
Etam is also a powerful Loyalty Program (65% of turnover is achieved with registered customers, a figure that climbs to 80% for ready-to-wear) but that the Group Management, aware of a system designed in the 90s, wanted to revitalize by adopting the only strategy that is valid in 2018: use Online to generate sales in stores. And vice versa.
Beyond the simple Loyalty Program, here is how, Grégoire Sanquer, for the DSI Etam, and Jonathan Attali, for the Digital department of Etam, worked together to achieve what today constitutes one of the greatest successes of a true Retail Data-Driven on and off.
[Vidéo] Watch the entire conference HERE.
My Etam : the limits of an online offline unsynchronized Loyalty Program
Etam started its Loyalty Program in the 90s. With the explosion of digital practices and demand, the system has come up against its own limits over the years: a lot of perfectly tidy data, but in silos therefore virtually unusable.
- A classic Loyalty Program no longer builds loyalty. It is the customer experience that now builds loyalty
- The customer experience goes through knowledge and knowledge goes through data
- Data is also a business subject since it is at the service of the customer.
THE SOLUTION CHOSEN BY ETAM
To do this, it was necessary to synchronize the customer databases in real time for all the brands of the Etam group. In 2016, Etam chose to create a Datahub platform that can process information in real time and without data loss, knowing that Etam must orchestrate more than 100,000 creations and modifications of customer records per day via different applications.
INGREDIENTS TO DISCOVER INNOVATIVE USE CASES
The 5 ingredients, according to Jonathan Attali, E-Commerce and Innovations Director of Etam:
- Be in startup mode – No more projects that take 2 years to come out. The pilot must be live in one or two months
- Agile IT – This is the case in the Etam Group
- A logicTest and Learn – Jonathan Attali is not afraid to say that it may be necessary ” make a mistake once, twice, … ten times, until you identify the “nugget” scenariothat we will be able to decline quickly (Plug and Play), and without noticing at the deployment level that an infrastructure is missing ”.
- Don’t do technique for the sake of technique – Always ask the question: “What does this bring to the client?” “
IT’s response – Grégoire Sanquer, DSI Etam
- Agile IT. If the word “agile” may seem overused these days, Grégoire Sanquer gives a very concrete application. With Etam, we are in retail, in Fashion. We have to go fast. Etam, which works with a lot of startups, has therefore created with its partner Ysance a Datahub and a Datalake in which all the data is logged and synchronized in real time.
It is difficult to innovate quickly with traditional processes. Grégoire Sanquer does not quote anyone, but he nevertheless points out that “ the 3,500 man-day projects to review the IS and CRM are just not possible anymore. We are obliged to make plans for 3-4 months maximum “.
In terms of hosting, Etam has chosen the Platform-as-a-Service Amazon Web Service solution. Amazon at Etam? ” Of course Amazon is a partner who also sells lingerie but we see them as partners. And if Etam ever opens in the United States, we will need Amazon »Says Grégoire Sanquer.
CHOOSING A FLEXIBLE ARCHITECTURE
A DMP TO GO FAST, BUT NOT JUST A DMP
- 1re step – Bring together the online and offline customer journey (profile matching).
The DMP was connected to the online part in a day or two.
” With this matching profile, Etam generates around 2 billion touch points – Did the customer receive an email, did she click, saw a campaign?, etc – and all this information is available to business teams »Explains Jonathan Attali.
Without further ado (before going to solicit IT again to obtain new data) the Digital team was able to use the 30 days that followed to immediately set up use cases. Go quickly into the concrete without waiting for months, or even years. ” For 1 month, we were able to identify and implement the possible use cases with the data we had. We were very quickly operational »Explains Jonathan Attali.
- Not just a DMP, a real platform – Beyond the DMP, the platform put in place made it possible to connect everything: stores, customer service, online and the entire group by means of bricks to be activated.
- The move to the cloud and automated marketing – Jonathan Attali explains:
” Before, it took 17 screens to find out what “Sophie did at Etam, a store purchase, opened an email, dematerialized purchase, etc. “. Today thanks to Ysance and the choices made by IT, the receipts of the 450 stores, if we stick to France, go up in less than 10 minutes. In other words, in less than 10 minutes, we can measure the in-store effects of a marketing operation with the receipts.“
- Understanding what is in base
Jonathan Attali explains: “ It is first of all a collection of data, before passing the algorithm. With our 2 billion touchpoint, we know when the customer came into the store, when she created her Loyalty account, when she bought, what she bought, what she saw before, the email that she received. ” she received, the email she opened, in short we have an exhaustive view of Customer Relations “.
EXAMPLE OF A CAMPAIGN
“Up to 55% open rate of our personalized email campaigns to AI”
Jonathan Attali, E-Commerce and Innovations Director of Etam.com
Etam tested a campaign full of common sense on paper, but not achievable without the Ysance Datahub and Datalake:
- February 20, 2018, end of winter sales and lots of stocks on extreme underwear sizes. Etam was able to release a segment of both Retail and Digital buyers in 5 minutes, the corresponding audience on Facebook, tested it on the spot and, reinforced by the good feedback from the test, Etam sent the Email campaign on same evening.
So in half a day, this very simple use case was put together. The open rate of certain emails, for certain types, can reach up to 55%. Never seen before with classic email campaigns. ” Furthermore », Specifies Grégoire Sanquer« we were able to measure that this specific campaign worked better in-store than on the web “. However, a customer in store is free to be tempted by other purchases …
“DIGITALIZING STORES, IS IT USEFUL? “
However, let’s not believe that the Etam group is immune to questions asked internally about the benefit of reconciling the Online and Store route, and this “E-commerce which would compete with stores”. No doubt that Laurent Milchior, the charismatic co-manager of the Etam family group, knows how to convince all of its teams, but nevertheless 3 figures, without appeal, allow measure the contribution of digital to store sales:
- A client visits on average 4 to 5 times the website in the two preceding weeks a 100% store purchase. ” Digital is not a competitor, it also transforms a store visit»Explains Jonathan Attali.
- A customer who buys on 2 channels – store and digital – buys 3X more than a single-channel customer
- She spends three times as much each time on both channels.
TIPS TO GET STARTED
Finally, Jonathan Attali and Grégoire Sanquer gave their advice for, in the words of Laurent Letourmy, “to jump into the world of data”:
- A general engine management. This is the case at Etam.
- Test & Learn logic
- Don’t wait until you have the perfect tool to get started
- Have the mindset, that is to say ” curiosity about the numbers we are going to release ”.
- The most important is indeed to prioritize : ” Make a choice among all the use cases that can be set up ”.
3 major projects in 2018:
- Complete the infrastructure with your partner Ysance
- Evangelize the teams. Make people understand that data is not only digital, it is used every day in the various departments of the group. Two examples among others: it is now possible to say
- in front of the Purchasing teams: who bought a particular product last year
- in front of the CRM teams: what data allows them to review the Loyalty Program (moreover MyEtam is evolving and will become Etam Connect April 3)
- Add the Artificial Intelligence layer
Etam is in the process of deploying Stories Manager, the artificial intelligence engine that allows a retailer to manage its marketing like so many “stories” that will culminate in a purchase, online or in store. Etam uses it for its various Business Teams. Examples:
- Digital Team> Detect almost in real time the products that are on the increase in sales in stores, and immediately inform the Digital since ” if an article works in a store, it could a priori work well on the web»Explains Jonathan Attali.
- Activation team> Activate intentionists – or not activate them, ” because it is not because a customer has opened an email that she is going to buy, sometimes you have to know not to activate, not to send the email“.
Stories Managerare very fast feedback and experimentation loops that allow everyone to join the group. But by remaining master at home. Laurent Letourmy is very clear on this point: “ AI is a step up to the customer relationship level. You have to start by collecting data, and owning the data. Retailers must own the intellectual property of their artificial intelligence. It’s their data, their customer experiences and their artificial intelligence “.
[Vidéo] Watch the entire conference here.
The correspondant :
Laurence Faguer is a marketer and entrepreneur “go-between” France and USA, founder of Customer Insight.
At the request of French companies, she identifies in person innovations in Digital, Mobile and Retail in the United States, before they are known in France, then helps them to successfully transpose these successful strategies in the US
Laurence is US expert for FrenchWeb who resumes from time to time the publication of articles on her blog.