BSI: Teradata Case of the Retail Tweeters

Summary

Rizzio Fashions struggles to track fast-changing trends, but their CMO Martina believes social media can improve product launches and revenue. BSI is brought in to analyze sentiment and viral marketing. Using social media analytics, the team identifies key influencers, adjusts pricing in real time, and increases sales for hot products like the Trentino handbag. A trial marketing campaign for the Florentino perfume also leads to significant sales. The experiment proves that social media monitoring can drive profits, and Martina's efforts show measurable financial impact, impressing Rizzio's CEO, Georgie.

Takeaways

• 😀 The CEO of Rizzio, Georgie, is struggling to track fast-changing fashion trends, especially through social media.
• 📱 Martina, the CMO, believes social media drives fashion decisions and can improve product introductions, forecasts, and revenue.
• 💡 Martina convinces Georgie to run a social media trial to prove its strategic value.
• 📊 BSI helps Rizzio use sentiment analytics to track buzz around products, using it to influence pricing and inventory.
• 💼 Rizzio’s competitors are already leveraging social media platforms like Facebook and Twitter for buzz marketing.
• 📉 Negative buzz leads to price reductions and inventory clearance, while positive buzz leads to price increases and higher demand.
• 🕵️‍♂️ Cody identifies key influencers among Rizzio’s customer base, calling them 'fashion fluencers,' who can drive significant purchase behavior.
• 👑 A single influencer can cause a ripple effect, with her purchases influencing those in her network to buy the same products.
• 📧 Email campaigns targeted at influencers for new products (like Florentino perfume) resulted in social media activity and increased purchases.
• 📱 The team presents the results in an executive dashboard, showing the financial impact of the campaign, including $72,000 from a handbag and $27,000 in savings from clearing cosmetics.

Q & A

What is the main challenge Georgie, the CEO of Rizzio Fashions, is facing?

Georgie is having trouble tracking fast-turning trends that competitors are leveraging through social media.

Why does Martina, the CMO, believe social media is crucial for business strategy?

Martina believes that digital conversations on social media now drive fashion decisions, which can improve product introductions, forecasts, and revenue.

How does Martina plan to prove the business value of social media to Georgie?

Martina convinces Georgie to conduct a trial, using sentiment analytics and viral marketing strategies to measure the impact of social media on sales and product success.

What technology does the team use to analyze trends and viral marketing?

The team uses sentiment analytics to track buzz about new products and identify trendsetters to influence via viral marketing.

What does Matt's role in the team involve?

Matt's role involves tapping into online buzz about Rizzio’s products, correlating sentiment analytics with sales reports, and adjusting pricing based on real-time chatter.

How did the team respond to negative sentiment about Rizzio’s cosmetics?

After detecting bad buzz around Rizzio’s cosmetics, the team lowered the price, cleared out the inventory, and chose not to replenish the product.

What strategy did Cody use to promote the Florentino perfume?

Cody targeted high-influence customers known as 'fashion fluencers' by sending them emails offering free samples and tracking their social media activities, such as forwarding emails and tweeting.

What was the result of Cody’s campaign with the 'fashion fluencers'?

120 out of 4,200 fashion influencers signed up for the Florentino perfume offer, resulting in an average of 8 to 10 purchases per influencer’s network.

What measurable financial impact did social media analytics have on Rizzio's business?

The analytics-driven campaign generated an additional $72,000 in revenue from the Trentino handbags and saved $27,000 by managing the Abruzzo cosmetics more effectively.

How did the team visualize the results for the CEO, Georgie?

The team presented the results through an executive dashboard on an iPad, which included a live Twitter feed showing customer conversations driving product purchases.