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Kiddicare is an online nursery and baby equipment supplier, owned by UK-based Morrisons. It used to focus its business development efforts primarily on new customer

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Kiddicare is an online nursery and baby equipment supplier, owned by UK-based Morrisons. It used to focus its business development efforts primarily on new customer acquisition on the assumption that building a larger customer base would boost online sales. The addition of analytics software to its existing e-commerce infrastructure, however, enabled Kiddicare to create a business intelligence (BI) capability and refocus efforts on retaining existing customers and increasing repeat business. After mining the newly available data, Kiddicare found that it was more valuable to focus on driving repeat business, improving customer retention, and increasing the value of individual orders. Most of the renewed focus was placed on communication and marketing efforts targeted at existing customers. Managers were able to analyze customer behavior, in part because of the large volume of information they had collected about their customers. Through such analyses, Kiddicare found that 98% of its customers would recommend its services to others, and that less than 10% of its revenue came from repeat customers. Managers set to work on programs to leverage their current customers through incentive-driven programs, identifying new sources of revenue, and more personalized communications. Within a few months of implementation, Kiddicare had achieved an increase of almost 50% of the size of each order, while customer retention and repeat business reached an all-time high. Kiddicare adapted its e-mail, web, kiosk, and mobile marketing strategies using the information it discovered through the implementation of the analytics software. In all, the company achieved a boost of more than 20% in sales, within just a four-month period. 1) What was the business problem for Kiddicare before the implementation of the business intelligence system? Describe the business problem and analyze it. 2) What are the business processes that the business intelligence system supports for Kiddicare? 3) What data do you think would be important to be used for analysis in arriving at the conclusion in the Kiddicare case? This question helps you to rethink the data that is required for input for the business intelligence system. 4) What were the impacts of the business intelligence system on Kiddicare? 5) What revenue model does Kiddicare use? 6) What analytical tool does Kiddicare use

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