Direct Wine Conducts Differentiated Marketing Based on IBM SPSS Modeler

Enterprise Background

Direct Wine was founded in Bordeaux in 1969. After years of continuous development, Direct Wine is not only the world’s first company to sell wine online, but also the globally largest brand of “home delivery service for wine”. Direct Wines provides service for more than 1,000,000 customers in the UK, Europe, Australia and the United States. It receives more than 2,300,000 orders by phone call every year, with the annual turnover reaching £220 million. As a result, Direct Wines is now the world's largest wine delivery company.


Challenges

At the early stage of development, Direct Wine constructed a dedicated database system, and delivered the information of products and promotions to each customer via Email. With the continuous development, it began to classify customers instead of sending mail to each customer. However, the customers were just classified roughly at that time, and the database system encountered with many challenges, such as failure of getting useful information, and the time-consuming issue. With the rapid increase in the number of members, the original system couldn’t handle the Emails sent out, which has reached 500,000 items per month now.

Direct Wine established the online sales platform in 1999. It was expected to accurately classify the customers and understand their preferences and needs based on their purchasing behavior for the purpose of product and service marketing. In this way, it cannot only increase the customer value, but also increase the customer loyalty. Besides the introduction of products and services, the online sales platform of Direct Wine also provides customers with a good channel for interaction, which has the advantages of multiple functions and little restriction. However, it requires a friendly analysis tool to process and integrate the customer information. Using such analysis tool, the non-statistical users could learn the customer preferences and needs, so as to promote their products and services effectively.


Solution

Direct Wine uses IBM SPSS Modeler software to resolve the above issues. It allows the enterprise to classify the customers accurately, learn the customer preferences and needs for the purpose of marketing related products and services. Moreover, it helps the enterprise plan promotions for higher sales volume, so as to maximize the profits.

IBM SPSS Modeler software is capable of mining useful information from the enterprise data, processing large amounts of data quickly. It has a variety of analysis results, such as: identifying the possible customer groups based on the characteristics of visitors; learning customer preferences and needs, so as to determine the product portfolios; finding out the groups with higher customer value to promote the appropriate products and services, so as to increase profits. The IBM SPSS Modeler software includes options for different statistical analysis methods and an interface for the conversion tool, which can also save the syntax to achieve higher efficiency for repetitive data processing. With IBM SPSS Modeler software, Direct Wine has solved a series of problems.


Benefits

  • IBM SPSS Modeler software is capable of processing large amounts of data, and performing analysis very fast. Thus, the enterprise could spend more time on strategy planning, so as to quickly work out the optimal sales strategies based on the market needs.
  • IBM SPSS Modeler software could analyze the customer preferences and needs. Besides emails, it also contacts customers in other means. Moreover, through good interaction with customers, it helps to develop customer value and bring loyal and longer-term customers.
  • IBM SPSS Modeler software can classify the customer characteristics, so the salesperson may recommend different products and services for different customers. Moreover, they have great confidence in the results of these recommendations.


Relevant Cases:

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  4. Raiffeisen Bank International AG – RBI Adopts IBM SPSS Modeler Software Solution
  5. InSites Consulting Corp. Establishes the Sentiment Dictionary Based on IBM SPSS Modeler

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