Cabela's Expands Teradata System to Examine Customer Behavior and Improve Service
April 18, 2008
Teradata Corporation, a provider of enterprise data warehousing, announced that Cabela’s Inc., a direct marketer and specialty retailer of outdoor merchandise, is expanding its Teradata system to enable more extensive analysis of data pertaining to customer behavior. This move is expected to support Cabela’s initiatives to provide more precise and personal service to its millions of customers.
To address critical needs and provide strategic and tactical business insight, the Teradata system integrates data from Cabela stores, catalog and online operations. The retailer uses a variety of software tools running on Teradata to continuously improve merchandising and marketing analysis across its large and growing customer base.
“Cabela’s is focused on developing the tools and analytical capabilities necessary to take the vast amount of multi-channel data available and turn it into actionable insights,” said Corey Bergstrom, director of analytics at Cabela’s, in a Thursday statement.
Bergstrom continued: “The current partnership with Teradata has positioned Cabela’s to provide more dynamic information to more areas of the company – and we feel this expanded partnership will provide even more flexibility in terms of data availability and ultimately, insights that can be leveraged to better take care of our customers.”
This expansion at Cabela’s also includes the addition of a Teradata financial services data model for improved visibility into financial performance drivers and management.
The data model establishes relevant connections pertaining to individual customers, spending details, economic data, region, store locations, promotional events and types of business impact.
As a result, Cabela’s will be able to accelerate insight for analytical questions, including the impact of certain promotional events on customer spending, correlations to payment details, customer profitability and detailed analysis of sales to merchandise, assortment and selling channel.
“Retailers that compete on analytics such as Cabela’s use Teradata analytical intelligence tools for smart, fast answers to complex business questions,” said Ed Dupee, vice president, retail global industry solutions, Teradata, in Thursday’s statement. “Retailers explore point-of-sale details and inventory data to scout for new opportunities to reduce costs, raise revenue, improve marketing and build stronger customer relationships. Getting the best answer to the right database inquiry can be worth millions of dollars.”
Dupree also noted that analytics provide competitive advantage in many ways, such as by revealing opportunities and risks in product bundling and affinity, market basket analysis transactional information and supply chain data.
Cabela’s uses Teradata Warehouse Miner and SAS tools in the Teradata environment. The result is what Dupree referred to this solution as a “powerful combination.”
“For example, retailers may find that they can personalize credit card statements with relevant product offers that are highly targeted to individual customers or segments – across a base of millions,” Dupee said. “When you factor in cross-sell opportunities to the proposition, the possibilities become economically exciting.”
Operating in the retail industry, Cabela’s is in a competitive environment that makes it more difficult to capture the attention of the consumer. This retailer must be doing something right as they are able to not only capture this attention, but also charge premium prices for their merchandise.
The expansion of the Teradata system will enable Cabela’s to not only heighten their knowledge of consumer behavior, but also allow the company to design their strategies around the most effective methods for driving revenue. In doing so, the company can continue to grow, while also sustaining a strong customer base.
Susan J. Campbell is a contributing editor for ContactCenterSolutions and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.