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Blue Martini Retail Provides Personalised Services in Physical Stores to
Increase Loyalty and Drive Revenue

BRACKNELL, UK (March 4, 2002) - Blue Martini Software, Inc. (NASDAQ: BLUE) today announced the release of Blue Martini Retail, the first comprehensive customer relationship management (CRM) solution for retailers. The new solution enables retailers to sell more profitably by delivering personalised marketing and service across every channel including physical stores, websites, e-mail and call centres. Blue Martini Retail creates a holistic profile of each shopper, delivers key insights about individual shopping patterns and preferences, and helps retailers to act on those insights to increase customer retention and lifetime value.

Blue Martini Retail applies the power of e-commerce personalisation beyond websites to interactions in the retail store via point of sale (POS) devices, signature capture devices, self-service kiosks and wireless devices. Central to the solution is the Customer Engine, which collects data from all channels, segments and scores customers with integrated analytics, and presents real-time, content-rich offers and information that are appropriate and compelling for each shopper. The Customer Engine serves as a common platform for the nine modular retail applications. This modular approach enables retailers to start immediately, demonstrate quick return on investment (ROI), and add synergistic applications over time.

"E-commerce re-introduced retailers to the profit potential of knowing their customer by name. Now, the same technologies behind e-commerce will let retailers differentiate themselves in the physical store with that same kind of personalised marketing and service," said Monte Zweben, chairman and CEO of Blue Martini Software. "To be effective, any CRM application, from gift registries to loyalty programs, must provide a consistent experience across all channels."

"Blue Martini Software is spot on with its new Retail CRM capabilities," said Simon Hawkes, e-commerce director at Debenhams. "When we deployed our e-commerce strategy it was important that it was part of our business rather than an add-on, and that we were able to generate loyalty to the whole Debenhams brand, rather than a single channel. With Blue Martini Retail we will be able to leverage our e-commerce investments for other CRM initiatives."

The nine applications that work in conjunction with the Customer Engine include:

* Real-time Offer Delivery presents compelling marketing offers and service that are personalised for every shopper in the store with full integration to POS devices, self-service devices like kiosks, and signature capture devices.

* Clienteling orchestrates high-touch relationships between associates and their clients. Associates can manage client lists, send event reminders or birthday greetings, record preferences and sizes, and view suggested cross-sells and up-sells.

* Loyalty Programs track customer transaction history and enable the delivery of incentives or personalised service that increases wallet share, loyalty and customer retention while facilitating permission-based direct marketing to registered members.

* Gift Registry is a multi-channel wish list that is synchronised between the store, website and call centre in real-time. Integration with wireless devices allows shoppers to scan-in desired items, viewing relevant information and cross-sells as they go.

* Market Research enables retailers to survey shoppers in the store or online to obtain feedback or discover trends on new products, promotions and advertising. For example, retailers can survey at the POS to calculate the website's impact on in-store purchases.

* Inventory Locator provides online visibility to store shelves. Both online visitors and retail associates can check the availability of product at other locations, opting to hold or ship merchandise.

* Campaign Management supports highly targeted e-mail and direct mail campaigns, and it allows retailers to track campaign results.

* Customer Service enables customer service representatives to take orders, edit profiles, provide status, process returns, and service requests using a web-based interface. It can suggest cross-sells and up-sells based on a customer's profile.

* E-Commerce provides a rich and compelling website environment for both taking orders and driving traffic to physical stores.

Blue Martini Retail integrates with leading merchandising, inventory management, fulfilment and supply chain management systems such as CommercialWare, Descartes, EXE Technologies, JDA, Manhatten Associates, The NSB Group, Retek and Yantra, as well as store systems from 360 Commerce, Chelsea, Cornell-Mayo, Fujitsu, IBM, NCR, Symbol, Triversity and Wincor Nixdorf. Blue Martini Software has had successful field integrations with each of these vendors.

"Leveraging the open-standards design of Blue Martini customer-facing applications, we were able to link our consumer site directly our Retek back-end retail logistics solution," said Filipe Nuno Santos, CEO of Modelo Continente and director of online initiatives for the Sonae group. "Our Blue Martini-powered site is populated with information directly from the inventory management systems in real time. This helps us be more competitive in fast moving markets and improve customer responsiveness and service-both in stores and on the web."

Pricing and Availability

Pricing for Blue Martini Retail will start at $85,000 per CPU, and it is shipping this month.

About Blue Martini Software

Blue Martini Software provides enterprise applications for marketing and selling profitably across all channels, including websites, wireless devices, email and physical stores. Blue Martini applications lower costs and increase revenue by automating business-to-business and consumer processes such as content and catalogue management, marketing, sales, channel enablement and customer service. Blue Martini Software serves global leaders in retail, manufacturing and consumer goods. Blue Martini Software can be reached at +44 (0) 1344 742 825 or

Note to editors: "Blue Martini" and "Blue Martini Software" are trademarks of Blue Martini Software, 2600 Campus Drive, San Mateo, CA 94403. Other product and company names may be the trademarks of their respective owners.

This news release regarding Blue Martini Software includes forward-looking statements that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. Such factors include, but are not limited to: delays in the development or release of new applications or application enhancements by Blue Martini Software: customisation, deployment and/or operational delays or errors associated with Blue Martini Software's applications or those of third parties; and Blue Martini Software's need to maintain and enhance business relationships with systems integrators and other parties;. Further details on these risks are set forth in Blue Martini Software's filings with the Securities and Exchange Commission ("SEC"), including its filing on Form 10-K for the year ended December 31, 2001. These filings are available on a website maintained by the SEC at These forward-looking statements are generally identified by words such as "expect," "anticipate," "will," "intend," "believe," "hope," "assume," "estimate," "plan," "should," "designed to" and other similar words and expressions. Blue Martini Software does not undertake an obligation to update forward-looking statements.


Naomi Green/Natasha Grant
The Weber Group Europe
Tel: 020 7240 6189

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