PARCO Proves Personalization Pays

Personalize to Win

PARCO Boosts Engagement, Sales & CLTV

Japanese retailer PARCO Co. Ltd. 3,000 stores are using omnichannel personalization to fuel a retail marketing juggernaut. By combining data from its successful mobile app with information ranging from IoT data to Web browsing habits to weather info, the company is getting dramatic increases in retail sales and projected customer lifetime value (CLV). And Arm Treasure Data makes it flexible, easy and fast to create and update accurate customer profiles in real-time--for better targeting, segmentation and customer journeys.

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THE RESULTS

35%

Increase in store visits

25%

Purchase rate with an increase in store traffic

8%

Increase in repeat store visits

Challenge

Smartphone use is skyrocketing and eCommerce continues to flourish in Japan in the era of at-your-fingertips shopping convenience. But, Naotaka Hayashi, executive officer for the Group ICT Strategy Office of PARCO, isn’t worried. PARCO uses data to drive customers to stores, and to support sales staff as they help customers and close sales.

What we need to do is to understand the strength of shop staff, who can offer consultation to customers, and then take the sales interaction to the next stage. In the coming AI era, creative work will survive. Customer service is, by nature, creative work that makes the customer happy.

Hayashi and his team support the 3,000 retailers operating in its shopping centers nationwide. With an eye to the future and the need for more data to fuel their customer engagement plans, the team at PARCO needed a way to empower customer service and marketing with deep, actionable shopper insights.

Solution

The PARCO team introduced an official shopping app, “POCKET PARCO,” which gave them more customer behavior data to help discover untapped opportunities for personalization and engagement. Arm Treasure Data ingests POCKET PARCO data—along with IoT data from shopping center weather and geofencing sensors—for real-time analysis and activation through the app.

Customers also play “store-walking” games on the app that lead them to visit stores they might like, and social media data is also used to help determine customer preferences. The effort has yielded invaluable insights, such as that customers who clip a particular shop blog article had a 35% higher tendency to visit that shop, and 25% of customers who received a store push promotion for a sale made a purchase. These actionable insights—and many others like them—have led to increased sales and CLV.

“I do not think that eCommerce and physical stores conflict with each other. We have embarked on a journey to find a way to use digital data in our physical stores to increase customer engagement.”

Naotaka Hayashi, Executive Officer for the Group ICT Strategy Office of PARCO

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