FANCL Corporation Gains 360-Degree View of Customers across Multiple Sales Channels, More than Doubles Data Warehouse Processing Speeds
 
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FANCL Corporation Gains 360-Degree View of Customers across Multiple Sales Channels, More than Doubles Data Warehouse Processing Speeds

  • Oracle Customer:  FANCL Corporation
    Location:  Yokohama, Kanagawa Prefecture, Japan
    Industry:  Consumer Goods
    Employees:  721
    Annual Revenue:  $1 to $5 Billion

FANCL Corporation began operations in 1980 as a mail-order business selling preservative-free cosmetics, a field in which it was regarded as a pioneer. Since then, the company has expanded its product range to include skincare, health supplements, and nutritional products, such as green tea powder, kale powder, and brown rice powder. As its product range expanded, FANCL added two more sales channels—in addition to mail order—and its online shop. The company also sells its products in retailer stores, such as supermarkets and drug stores.

In 2010, FANCL began looking for ways to strengthen profitability and protect its market share in the face of changing business conditions. The company implemented Oracle Exadata Database Machine X2-2Oracle Business Intelligence Enterprise Edition, and Siebel Marketing. It has reduced the number of reports by three-quarters and increased the number of users performing marketing analysis to around 300―half the company’s total workforce.

 
Customer Differentiation Needed

A word from FANCL Corporation

  • “Since we deal in large quantities of customer and sales data, we evaluated high-performance applications based on factors, such as the price-to-performance ratio. Our first impression of Oracle Exadata Database Machine was how fast it was. We intuitively felt it was taking less than half the time to analyze the same quantities of data as before.” – Masaki Ikemori, Corporate Systems Group, Information Systems Division, Administration Headquarters, FANCL Corporation

In recent years, the number of companies offering health supplements, nutritional products, and preservative-free skincare and cosmetics has increased, resulting in fierce competition. According to Masaki Ikemori, corporate systems group, information systems division, administration headquarters, FANCL Corporation, the company needed a system that enabled visibility of customer details.

“Customers were not differentiated into specific groups, and it dawned on us that we were not offering an appropriate response to each individual customer,” he said. “We could only see how many customers we had, not what type of customers they were. For instance, we could send out a news magazine to tens of thousands of our customers, but the only key performance indicators we determined were the number of customers who read the magazine or who made purchases within a specific time frame. We couldn’t see the attributes of the customers, such as who they were and what was important to them.  

“We realized we needed a customer-based approach, whereby each customer is treated as an individual and approached in a personalized manner, along with a system that made such an approach possible.”

 
Greater Analysis Capabilities Required

 
Easy-to-Use Business Analysis System Used by Half the Company

 
360-Degree View of Customers

 
Oracle Exadata Database Machine Enables Faster Analysis

 
 

 
 

Challenges

  • Implement a user-friendly business analysis system that would provide staff with a 360-degree view of customers, including the sales channels they used
  • Provide staff with more detailed information about each customer, so they could be treated as individuals and approached in a personalized manner
  • Measure the effectiveness of marketing campaigns, such as product promotions or special offers, in depth, across customers, products, and sales channels
  • Ensure the platform supporting the data warehouse could process large amounts of customer and sales data, and support a high number of queries and concurrent users
  • Enable users to create ad hoc reports to reduce the administrative load on the Information Systems Division

Solutions

  • Developed marketing campaigns that are better targeted to specific customers by gaining a 360-degree view of customers, from what products they purchased, to which channels they used, and how much they spent
  • Reduced the number of reports by three-quarters—from 500 to 120—by creating a standard set of reports and accelerating information sharing across the organization
  • Eliminated the need to generate the same report for different users in different departments
  • Increased the number of users undertaking marketing analysis from 20 to 30, to around 300―half the company’s total workforce
  • More than doubled data warehouse processing speeds by increasing the efficiency of data extraction from the 1TB data warehouse
  • Cut the time required to process simple queries by more than half
  • Allowed users to create their own reports, lifting the burden on the Information Systems Division and making it possible to compile reports immediately if there is an issue or business opportunity in a particular product sector
  • Acquired new knowledge about the business by ensuring users can analyze product sales by customer and sales channel, such as whether they bought cosmetics via mail order and/or a health supplement from the online store
  • Enhanced the company’s ability to measure return on investment on various campaigns and rotate the marketing PDCA cycle, by standardizing the evaluation criteria across all sales channels
  • Ensured a smooth implementation by engaging Oracle Consulting to provide consulting services and high-quality training materials

Why Oracle

FANCL Corporation selected Oracle Exadata Database Machine after comparing several products. “Since we deal in large quantities of customer and sales data, we evaluated high-performance applications, based on factors such as the price-to-performance ratio,” said Ikemori. “Our first impression of Oracle Exadata Database Machine was how fast it was. We intuitively felt it was taking less than half the time to analyze the same quantities of data as before.”

Oracle Business Intelligence Enterprise Edition was chosen for its comprehensive analysis and report-producing functions. “Oracle Business Intelligence Enterprise Edition has outstanding operating features, making it easy to create reports,” said Watanabe.

Finally, the company selected Siebel Marketing as the software supported the optimization of marketing activities. “What particularly impressed us when we assessed Siebel Marketing was that we could use the system without having to interrupt our thought processes,” said Ikemori. “Various types of customer information could be retrieved and verified from lots of different viewpoints, and we particularly liked that it offered a 360-degree view of the customer.”

Implementation Process

FANCL Corporation started implementing Oracle Exadata Database Machine X2-2, Oracle Business Intelligence Enterprise Edition, and Siebel Marketing in June 2010 and went live in May 2011.

During the implementation process, Oracle provided consulting and training services to ensure FANCL Corporation experienced a smooth transition to the Oracle platform. “This was a project in which coordination with other systems was essential, and Oracle was active in helping us solve any integration issues,” said Ikemori.

Watanabe recalled that Oracle provided thorough support when the system was introduced to ensure users would be comfortable and able to use it: “We created our own training manual on the basis of materials provided by Oracle and incorporated our own terminology. It was a high-quality manual that enabled us to provide efficient training.”

During the preparation phase before the system was up and running, 70 or so key people from each division of FANCL Corporation were trained in its use and subsequently played a central role in helping people in their divisions become familiar with the system. Each person received around 10 hours of training.

“Because the system is so easy to use, its introduction went ahead extremely smoothly,” said Watanabe. “We received almost no questions from users about the system’s basic functions.”