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Macy's boosts Web sales, email marketing with predictive analytics

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Macy's (NYSE: M) has implemented new technology into its e-commerce website that will help the company better understand customer buying behavior and optimize email and website marketing campaigns.

The retailer has partnered with SAP InfiniteInsight to design a new system that provides predictive analytics for its online business. The technology will help Macy's understand the likelihood of customers spending on the Web in a certain product category.

The technology has been in effect for the past three months, during which Macy's has seen an eight to 12 percent increase in online sales. This has been achieved with the help of more targeted emails to registered users and visitors to the macys.com website.

SAP InfiniteInsight replaces the classic model creation process, which is manual, repetitive and prone to human error. Macy's is now able to build 20 predictive models in a few weeks, 15 times the productivity of the previous solution.

This helps Macy's further its omnichannel initiatives, building out online capabilities as sales continue to shift to digital platforms. E-commerce sales in 30 retail categories will reach $294 billion in 2014 alone and $414 billion by 2018, according to Forrester Research's latest online retail forecast.

Macy's has already made significant investments in brick-and-mortar stores and fulfillment centers to accommodate a growth in e-commerce. In March, Macy's said it was planning to extend click-and-collect to 675 stores by the end of spring. The retailer rolled out its in-store pick-up program to 500 Macy's stores and 36 Bloomingdale's stores last fall.

Macy's, in December, also revealed plans to spend more than $170 million to construct a new 1.3 million-square-foot direct-to-consumer fulfillment center in Oklahoma. The facility is being built to support the retailer's online sales and get more goods to e-commerce customers, particularly in the central and southern regions of the United States. The facility should be up and running by April 2015, with the first orders shipping in summer 2015.

For more:
-See this SAP Insight press release

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