Senshukai, using data for deeper insights.

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1 Senshukai, using data for deeper insights. Retail company uses insight from Adobe Marketing Cloud to provide customers with better recommendations and online experiences. We have always worked with data, but Adobe Marketing Cloud enables us to use the data to become an online shop that provides customers with superior recommendations. Atsushi Sori, E-commerce Strategy Team, E-commerce Strategy Department, Sales Planning Division, Senshukai Co., Ltd. SOLUTION Adobe Analytics and Adobe Target solutions within Adobe Marketing Cloud RESULTS DESIGN INSIGHTS Improved sales by testing websites and optimizing designs based on quantifiable data ACCURATE ATTRIBUTION Accurately attributed sales to featured articles, helping staff optimize articles for greater sales RECOMMENDATIONS Targeted customers with relevant banner ads tailored to specific interests based on profile data and website interactions DATA ACCESS Provided hundreds of employees with access to data analytics through the easy-to-use Adobe Analytics dashboard

2 Senshukai Co., Ltd. Established in 1955 Employees: 1,800 Osaka, Japan CHALLENGES Provide more employees with unobstructed access to data analytics Reduce time and effort spent analyzing complex data Accurately attribute sales to channels and campaigns Creating products for women Senshukai describes itself as a company that delivers smiles and happiness to women. Since the company was founded 60 years ago, the company has developed products and services that focus on female consumers. This is particularly true for the company s core business brand, Belle Maison, an established retail brand selling women s fashion, cosmetics, furniture, household items, maternity wear, sweets, and more. About 70% of the products in our catalogue are original products developed in-house, says Keiichi Mitsumoto, Sales Analysis Team, Sales Strategy Department, Sales Planning Division, Senshukai Co., Ltd. Since the middle of the 1990s, we ve experienced rapid growth and the number of our customers now exceeds 3.84 million people annually. Belle Maison sells products through its mail-order catalog, online shop, and brick-and-mortar stores. Of these three channels, the online shop is increasingly vital to Senshukai s business, making up about 60% of the Belle Maison sales. Senshukai gathers a wide variety of data from the Belle Maison online shop, but the company decided that it needed an environment that could use the data more effectively and contribute to further business growth. The company has long gathered and analyzed data from its online channel, but the IT environment was not accessible to all. Only trained IT specialists could extract data from the core systems and data warehouse. People who wanted data analysis would make a request to the IT team, which would analyze data and create reports. Even though we had a rich IT environment, employees could not freely use the data, says Atsushi Sori, E-commerce Strategy Team, E-commerce Strategy Department, Sales Planning Division, Senshukai Co., Ltd. For example, the sales management system could not calculate sales by channel. Even if we knew the total sales of the product, we could not quickly understand what percentage of sales came from the online shop. Extracting that data required knowledge, time, and manpower. We had more and more people focused on analytics, and demand for their services continued to grow. In addition to data that could only be extracted with difficulty, there were other types of data and analysis that were simply unavailable to Senshukai. For example, the online shop periodically posts featured articles that highlight certain products, such as seasonal clothing, to increase sales. Although the recommended products are linked in the article, they are still available through their regular product pages. Senshukai could view total sales for a product, but it had no way of determining how many customers were influenced by the featured article. We could make an educated guess and plug sales into a formula to calculate the estimated contribution of the featured article, but we questioned the accuracy and quality of this data, says Mitsumoto.

3 Widespread analysis and targeting with Adobe Marketing Cloud To improve data accessibility and accuracy, Senshukai decided to deploy the Adobe Analytics and Adobe Target solutions within Adobe Marketing Cloud. Adobe Analytics is a solution that helps calculate and analyze visitor actions across websites and other digital channels. Advanced dashboards and reports summarize information such as the number of page views, number of banner clicks, and path that a visitor takes through the site. We particularly liked how easy the Adobe Analytics dashboard was to view and use, says Mitsumoto. With such an intuitive dashboard, we felt that most any employee could learn to use the data without relying on specialists. Adobe Target handles AB testing and targeting based on information gathered about a visitor. We ve always tried to target customers with the best possible recommendations, says Mitsumoto. Most mail-order businesses put all of their products into one giant catalog, but our strategy involves creating multiple catalogs based on different types of customers or products. By implementing Adobe Target, we can refine our targeting even further for online customers. We particularly liked how easy the Adobe Analytics dashboard was to view and use. With such an intuitive dashboard, we felt that most any employee could learn to use the data without relying on specialists. Keiichi Mitsumoto, Sales Analysis Team, Sales Strategy Department, Sales Planning Division, Senshukai Co., Ltd. With Adobe Target, Senshukai uses AB testing to compare multiple design patterns when redesigning the look or navigation of the website. For online shops, even the position of buttons and banners can greatly affect sales. Designs that make it easy for consumers to browse and shop are key to increasing profits. At Senshukai, designers work daily to improve website designs, but previously the designs were chosen based on hunches about which design was better. Using Adobe Target, designers can use reliable data to determine which design choices result in higher sales. Currently, about 300 employees at Senshukai use Adobe Marketing Cloud. However, the company expects the number of users to grow. Becaus Adobe Marketing Cloud is easy to use, the hurdles are lower for employees who want to leverage data to optimize websites, improve positioning, and increase sales. Recommending products to new mothers Using Adobe Target, Senshukai can establish effective online targeting strategies. The company changes banner images for the Belle Maison online shop for customers who may be pregnant or have recently given birth. Purchasing patterns change dramatically when women are pregnant, and again when they give birth, says Sori. By looking at the type of clothing that a shopper favors, for example, we can conclude that a customer might be pregnant and show her banners for baby products.

4 Customers may provide information to Senshukai directly by entering their child s due date or birthday in their profile, but with Adobe Target, Senshukai can also leverage information such as a customer s browsing or purchase history. Senshukai even targets banners based on whether the baby is likely to be a boy or a girl. We are exploring many types of recommendations based on the customer s location or purchase history, says Sori. With Adobe Target, we can easily create new targeting strategies. We have always worked with data, but Adobe Marketing Cloud enables us to use the data to become an online shop that provides customers with superior recommendations. Attributing featured sales Using Adobe Analytics, Senshukai can use customer interactions, such as page views and banner clicks, to accurately attribute the impact of featured articles to online sales. Previously, we could only calculate data based on the last month s total sales, says Sori. Now, employees can view the up-to-date sales totals while sitting at their computer. Based on that data, we can adjust how we position products and guide customers through the website. Now, employees can view the up-to-date sales totals while sitting at their computer. Based on that data, we can adjust how we position products and guide customers through the website. Atsushi Sori, E-commerce Strategy Team, E-commerce Strategy Department, Sales Planning Division, Senshukai Co., Ltd. The team in charge of writing features also uses analysis of the impact and trends for featured articles to develop more effective articles. Changing designs to improve sales Using tests, Adobe Target has contributed to improvements in the online shop. Recently, we decided to test how we displayed product information, says Sori. Each product page displays product information, including product details, reviews, and several types of product recommendations. Our existing design displayed all of the product information as a single scrolling page. Customers simply scrolled down to see the information that they needed. We compared this existing design with a new design that divided information into expandable tabs based on the type of product information. Customers could click on the tab to expand it and read more, says Sori. Customers who wanted to read about the product in detail needed to click several times. Using an AB test in Adobe Target, we compared the two designs and discovered that customers preferred the new expandable design. The reason was page length. With the existing design, each page becomes much longer. Therefore, customers rarely saw recommendations at the bottom of the page for coordinating products or other products in the same category.

5 By comparison, the new design makes it much easier for customers to view recommendations, which encouraged customers to continue shopping and increased total sales. We assumed that customers wanted to know everything about the product. Moreover, we wanted to tell them all about our products. The insight we gained from Adobe Target was a revelation for us, says Mitsumoto. Senshukai is establishing a test and verification process that will be applied to almost all site improvements. At first, employees were wary of investing twice the time and cost to do two designs for each test. However, employees began to see the benefits of using clear, quantifiable data to demonstrate that improvements are effective, leading to increased adoption of Adobe Target. SOLUTION AT A GLANCE Adobe Marketing Cloud, including the Adobe Analytics and Adobe Target solutions. Capabilities used included: Marketing reports & analytics AB testing Adobe Consulting For more information Adobe Systems Incorporated 345 Park Avenue San Jose, CA USA Sharing results throughout the company With the success of Adobe Marketing Cloud, Senshukai is creating internal structures that make it easier to share results and expand data usage. At Senshukai, departments are divided by product category. It is the job of Sori and the E-commerce Strategy Team to provide cross-departmental support using data. Previously, every website data request was handled individually, but Adobe Target now makes it possible to share targeting campaigns across departments. The E-commerce Strategy Team developed standard order sheets that departments can use to record the goals and type of targeting. After running the targeting campaign, the team holds a meeting to share results and publishes results internally. Anyone in any department can learn about the results of previous tests. We also the entire company when we start new targeting campaigns, says Sori. We believe that when employees see how other departments are challenging themselves, they start thinking about what they can do in their department. It also means that when departments are considering new tests or targeting campaigns, they can look for similar examples and use those results to improve upon the current plan. They might even decide to cancel the campaign if it is too similar to previous plans. Practical advice and support Expert advice from Adobe consultants also greatly contributed to the implementation of Adobe Marketing Cloud. We had monthly meetings with Adobe to share our latest efforts, questions, and issues, says Mitsumoto. The Adobe consultants gave us a great deal of practical advice based on their years of experience. They were a vital part of promoting our use of data. From the beginning, Senshukai recognized the importance of data, but with Adobe Marketing Cloud, a data-driven culture has steadily permeated all levels of Senshukai for a deeper relationship with data. Adobe has accompanied Senshukai every step of the way and will continue to provide valuable support. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners Adobe Systems Incorporated. All rights reserved. 9/15

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