Grupo Herval Improves Web Store Conversion Rate by 85% with Flexible and Scalable Web Commerce Solution
 
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Grupo Herval Improves Web Store Conversion Rate by 85% with Flexible and Scalable Web Commerce Solution

  • Oracle Customer:  Grupo Herval
    Location:  Rio Grande do Sul, Brazil
    Industry:  Retail
    Employees:  5,000

Founded in 1959, Grupo Herval began operations as a lumber company in southern Brazil. Over the years, it has continued to diversify its operations, brands, and product groups. Today, the group has 11 companies operating in more than 20 sectors, including industries, such as retail (such as Taqi, with more 130 stores throughout the country), distribution, wholesale, furniture, chemical, construction, technology, transportation, and financial services.

To achieve the company’s 300% projected growth target, Grupo Herval looked to expand its presence through Taqi Stores’ online sales. It began to invest in digital media, search engine optimization (SEO) and social networks. However, its legacy platform did not provide the flexibility and scalability needed to support promotional activities. It also did not support conversion rate monitoring (monitoring the ratio of Website visits that result in online sales) or assessment tools or allow configurations.

The company chose Oracle ATG Web Commerce as its new e-commerce management system. The results were immediate and measurable. For example, in the first month after going live, the company nearly doubled its online conversion rate and reduced its cart abandonment rate.

Grupo Herval also used Oracle Real Application Clusters to support the company’s enterprise resource planning (ERP) environment, benefitting from higher availability and processing speed, as well as greater scalability and security.

 
 

 
 

Challenges

A word from Grupo Herval

  • “In just over a month using Oracle ATG Web Commerce, we nearly doubled the conversion rate on our retail Website and recorded a revenue increase, when compared to the same month in the previous year.” – James Rocha, Chief Information Officer, Grupo Herval

  • Reduce Web store shopping cart abandonment and increase sales conversion rate to achieve the company’s ambitious 300% growth goal over the next 24 months
  • Create a more secure, scalable, and high-performing environment to support all operations and ensure data accuracy and integrity for online sales of electronics and home products available on the Taqi Website

Solutions

  • Implemented Oracle ATG Web Commerce and raised the company’s Web store sales conversion rate by 85%, increasing the site’s revenue
  • Streamlined the checkout process―which previously required seven or eight screens―to just a few clicks, creating a better shopping experience and reducing the shopping cart abandonment rate
  • Improved marketing and sales promotion effectiveness for Taqi’s electronics and home products, thanks to the ability to configure business rules and create personalized offers and Website displays for specific customer groups
  • Created a multistore platform through Oracle ATG Web Commerce, making it possible to use the same IT infrastructure for various Grupo Herval brands, thereby optimizing resources and investments
  • Improved scalability to support growing business units with a robust platform that is aligned with e-commerce best practices
  • Expanded information processing capacity for the company’s ERP systems and improved reliability, thanks to Oracle Database with Real Application Clusters

Why Oracle

“Several factors drove our selection of Oracle ATG Web Commerce solutions. First, the platform delivers native integration with social networks. We also can use the same platform for multiple Web stores or various interfaces in the same Website. This is important for a company that has more than 20 different businesses. This platform also offers tremendous flexibility that enables us to configure offers for our customers, driving higher conversion rates,” said James Rocha, chief information officer, Grupo Herval.

Implementation Process

“The migration went very smoothly. At no time did the site go offline nor were the company’s operations affected. One month after going live with Oracle ATG Web Commerce, the platform was totally stable and functioning perfectly,” Rocha said.

Partner

“As the first customer in Brazil to purchase Oracle ATG Web Commerce following Oracle’s acquisition of the company, the Compasso team demonstrated high levels of professionalism and knowledge to move the initiative through to completion, on time and on budget. We are experiencing amazing results with the new platform,” Rocha said.