How OTTO Utilizes Big Data to Deliver Personalized Experiences

OTTO is one of Europe’s most successful e-commerce companies and Germany’s biggest online retailer. In the past financial year, 6.6 million customers ordered online from OTTO.

Like virtually every other retailer with an online presence, OTTO competes against Amazon for customers and mindshare. To hold their own, they knew they needed to use and analyze data to know their customers better and to sharpen their pricing strategy for bidding on onsite ads.

Struggling with silos of data

OTTO’s previous IT architecture, however, made that difficult because it consisted of a large Teradata database and many silos of data. OTTO decided to standardize on Talend and built a completely new data lake on a Cloudera cluster, with Talend acting as the bridge between the new data lake — which stores data from the OTTO website and from partner websites — and the company’s 250TB Exasol database.  

“Talend helps enable our strategy to get closer to the shoppers who come to our website, understand the market, and get ideas for promoting product purchases” – Michael van Ryswyk, Product Owner, Brain Real-Time

Talend also gave OTTO the option to use the Continuous Integration/ Continuous Delivery (CI/CD) process from their partner cimt ag, which none of the competing solutions did. Using CI/CD in conjunction with Talend, OTTO can continuously integrate data sources and continuously develop and deliver new, small upgrades, updates, and applications.

Sharpening pricing strategy and stock

Developing software using this CI/CD methodology makes it possible to respond to requests from business units in hours instead of weeks.

Complying with new GDPR requirements, OTTO is developing 360-degree customer profiles and gaining visibility into what products a customer is currently searching for on the company site. In addition, OTTO is using machine learning that relies on integrated customer data and product descriptions and photos to make suggestions to customers.

Download the full case study here. 

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