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Customer Snapshot

Pioneering Modern Home Shopping Experiences and User-Oriented Digital Commerce

1st
home shopping network to have all products quality-inspected by a non-partisan group

HSE24 continually seeks to improve customers’ experiences, whether they interact with the retailer via the Web, mobile device, or the call center. With the SAP Audience Discovery and Targeting analytic application, part of the SAP Customer Engagement Intelligence solution, HSE24 leverages the SAP HANA platform to turn analytical insight into actionable information that can drive sales and reduce customer returns.

 

Company

Home Shopping Europe GmbH (HSE24)

Headquarters

Ismaning, Germany

Customer Website

www.hse24.de/

Revenue

€515 million (2012)

Number of Employees

~3,000

Implementation Partners

SAP Services

Line of Business

Service, Sales, Marketing

Industry

Wholesale Distribution, Retail

Featured Products

SAP Predictive Analysis, SAP Customer Engagement Intelligence

History

Watch, order, and unwrap.

 

  • 1995H.O.T. went on air in October as Germany's first television shopping station.
  • 1996Started offering live shopping shows, and expanded delivery to Austria. Home Shopping Network (HSN), one of the largest US teleshopping companies, acquires a share in the company.
  • 1998The company's online shop went live, combining TV, teletext, and online shopping.
  • 2000In June the number of active customers actually placing orders reached the one-million mark.
  • 2001All products received the German TÜV Technical Inspection stamp of quality. Home Shopping Europe became the first shopping channel to offer products checked for quality by this nonpartisan inspection institute.
  • 2004Introducing a new brand appearance, Home Shopping Europe became known as HSE24.
  • 2005HSE24 celebrated its 10th birthday and, on the occasion, published the first milestone manual on teleshopping together with Goldmedia Teleshopping in Germany.
  • 2009Financial newspaper Handelsblatt, St. Gallen University's Institute of Insurance Economics, and the consumer rating agency ServiceRating name HSE24 Germany's Most Customer-Oriented Service Provider 2009.
  • 2010With HSE24 mobile, comprising a smartphone and an associated prepaid card, HSE24 launched an additional sales platform via German mobile operator E-Plus for customers to experience one-touch shopping anytime, anywhere.
  • 2011HSE24 became available via tablet in addition to TV, online, and smartphones. Customers can access and order from the entire product portfolio of all three HSE24 channels by using the "HSE24 tablet" application.
  • 2012Home Shopping Europe GmbH achieved another record in sales and earnings during the fiscal year of 2011. Earnings increased by 7% to €470 million. Looking back at the past 5 years, the company can show an average annual growth in sales of 10%.
  • 2014The Market Research Forum and the German Society for Quality select HSE24 as one of, "Germany's Customer Champions for excellence in customer-relationship management, customer service, customer friendliness, and customer loyalty.”

Business Model

Shopping anytime, anywhere, and any way

Direct, live selling is about letting customers shop how, when, and where it best suits them. HSE24 leverages networked media to maximize their shopping convenience. As a modern mail-order company, HSE24 has a presence on multiple media platforms, including television, the Web, smartphones, tablets, and smart TV.

Success Strategy

Customers at the center of the HSE24 experience

Germany’s teleshopping pioneer seeks to keep customers at the center of the shopping experiences it creates. HSE24 accomplishes its goal by carefully managing its product range, providing entertaining discussions about trends, supporting networked shopping platforms, and by committing the company to service excellence.

The Challenge

Relevancy reduces returns

As a mail-order business, HSE24 ships more than 11.5 million parcels every year. Product returns hit the bottom line in a number of ways, including costs associated with restocking and reselling. By harnessing real-time data to create offers that are more meaningful to customers and meet their specific needs, HSE24 hopes to decrease its return rate. A decrease as low as 1% could yield a seven-digit euro savings.

 

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Empowering marketing in milliseconds

Enter SAP

Acquiring the full customer picture

HSE24 was already running the SAP Customer Relationship Management (SAP CRM) application to provide customers with best-in-class service across customer touch points and to deliver key sales and inventory information to the producers who steer the shows. The company also hopes to continue its growth through the effective use of new media, including mobile and social channels.

The SAP Experience

Increasing sales with powerful analytics

The SAP Services organization, including SAP’s Data Sciences Organization, has been critical to embedding analytics into HSE24’s operational processes. By implementing SAP Audience Discovery and Targeting, which is powered by SAP HANA, the teleshopping programmer can aggregate real-time customer data from multiple sources, enabling the delivery of personalized cross-sell and up-sell offers to each customer.

Running Better

Spotting the right trends for the right customers

HSE24 leverages the intuitive modeling and advanced data visualization in SAP Audience Discovery and Targeting to effectively segment large populations of customers quickly. Besides automating initiatives such as customized offers for unique segments and channels, marketers are able to spot trends and take appropriate measures to help reduce customer returns.

 

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Information into action

Benefits

Helping customers make the right purchase

HSE24 uses data to effectively influence the buying behavior of customers to avoid situations that lead to merchandise returns. Besides personalized advice on which products to buy, HSE24 can also persuade shoppers, for example, not to order more than one size of an item (so-called “choice orders”). The company estimates that reducing the return rate by as little as 1% could lead to a seven-digit euro savings on the bottom line.

Lessons Learned

Incentivizing customers to choose better

After analyzing customer data with SAP HANA, HSE24 found that customers who placed more choice orders and took longer to submit payment had higher-than-average return rates. This enabled the company to reduce these behaviors with better product descriptions and targeted messaging such as special offers to customers who reduce their return rates over a six month period.

Today

Real-time engagement for stronger relationships

Real-time customer engagement requires precise information delivered in a timely manner to everyone who needs it, including shopping show producers, call center representatives, and marketers. Customer data helps reinforce the relationships HSE24 works carefully to cultivate. It also helps drive business revenue and margin through excellent customer service.

 

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Giving customers relevant information

Journey Ahead

Interacting with precision

Consumers are expanding their shopping experiences to new devices and channels, including mobile apps and social media. HSE24 is preparing for this eventuality because people now form opinions about products and services well before they interact with the brand.

SAP software technologies are at the heart of the online retailer’s customer engagement strategy. HSE24 plans to transition its core sales and service modules in SAP CRM to SAP HANA and plans to add SAP Predictive Analysis software to optimize marketing campaigns by leveraging existing data for real-time predictive insights. Leveraging its Big Data will foster better customer understanding, enable personalized experiences, and improve the return on investment of campaigns.

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