From Vision to Reality: Expediting the Journey Towards 1 Million AEON Mobile App Members

Addressing roadblocks with Cloud

Maintaining the application in an on-premises environment while meeting data security, monitoring, and scalability requirements was costly, reaching USD 3,000 to USD 4,000 each month, on average. Moreover, disparate service standards in developing core business applications have resulted in disjointed processes and isolated compartments, creating challenges in delivering seamless user experiences. The AEON mobile app was also susceptible to slowdowns during peak periods. To add fuel to the fire, marketers found it difficult to extract valuable insights from the back-end, with a risk of the application malfunctioning as a result of overload. AEON soon realized that scaling the application hinged on the underlying architecture, and its old framework was no longer cutting it.

"Deploying infrastructure and network components on-premises with reserved hardware capacity has long posed challenges for AEON. We had to undergo lengthy hardware procurement cycles and grapple with infrastructure maintenance issues,” said Takenori Nagashima, Managing Director, AEON Stores. “The alignment of our application architecture with business needs and customer expectations is key to cultivating a loyal network of members on our app, and we are keen to harness the potential of a resilient cloud platform.” 

Taking the leap

Amid scalability, data security, and functionality issues, AEON decided to leverage Microsoft Azure to enhance its cloud infrastructure. The move is consistent with its decision to unify service standards and consolidate front-end and back-end operations, including infrastructure, database management, network, DevOp, and disaster recovery, among others.

Since implementing Azure in October 2022, AEON has realized improvements in operations, promotional capabilities, and app features. In November 2022, it rolled out a new AEON mobile app with a more intuitive user interface to deliver better online shopping experiences. The new AEON mobile app enabled front liners to shift from using paper forms for membership enrollment, reducing their workload. New features – including a user-friendly promotion button , an online shopping cart and home delivery function – have played a pivotal role in expanding AEON's membership base, which has grown from 290,000 to 480,000 as of June 2023.

The agility to add coupons, e-Stamp and promotional offerings has enabled AEON to drive customer loyalty and improve omnichannel sales performance. With advanced capabilities for distributing tailored coupons and incentives to specific customer segments, AEON was able to better personalize its e-membership program.  

Empowering users for agility and innovation 

Before implementing Azure, front liners and IT department were often overwhelmed with the checkout process and manual operations procedures to adjust server capacity, especially during periods before and after AEON's sales events – Thanksgiving Day on the 2nd and 22nd of each month and Super Day every Wednesday. With Azure, AEON has streamlined operations by integrating home delivery and self-pick-up services. The reduced workload has allowed frontline staff to focus on customer care during peak periods.

The agility to add coupons, e-Stamp and promotional offerings has enabled AEON to drive customer loyalty and improve omnichannel sales performance. With advanced capabilities for distributing tailored coupons and incentives to specific customer segments, AEON was able to better personalize its e-membership program.

Azure has also revitalized AEON's campaigns, making it more convenient for members to participate in charities and redeem electronic coupons through the AEON mobile app. The “Happy Yellow Ticket" online voting function in the revamped AEON mobile app, for instance, gives customers the option to donate 1% of the total transaction value to their preferred non-profit organization when they shop on the 11th of each month.

AKS Microservices spares AEON's internal teams from having to manually adjust server capacity or allocate additional resources to handle increased usage volume in the CRM system. Specific functions are dynamically scaled on demand for better flexibility. Given smoother operations and less risk of recurring overloads during promotional periods, AEON is both able to improve user experience and reduce stress on internal teams. Microsoft Azure Monitor also provides consumer insights into spending and product preferences, which help shape AEON’s e-retail marketing strategies.

“Data is the engine powering AEON’s digital storefront and e-membership program. Customer insights generated by Microsoft Azure enable our marketing team to better identify specific customer segments in our coupon distribution strategy to propel membership growth,” said Takenori.

Achieving more with Azure

As AEON forges ahead in the new age of engagement, Microsoft Azure will continue to play a critical role in delivering rich customer analytics and insights and boosting productivity across the customer value chain. With a vision of integrating current services with AEON Credit and an ambitious target of reaching one million members by end-2023, AEON will be banking on Azure to deliver immersive member experiences and support employees’ back- and front-end capabilities.

“Mobile applications have become integral to retail experiences in the digital era. By fortifying the digital foundation, we empower companies such as AEON to Achieve more with Azure as they unlock customer engagement opportunities and create unparalleled value for shoppers,” said Winnie Chu, Azure Migration Lead, Microsoft Greater China Region.

Contact us today to discover how Microsoft Azure revitalizes mobile app experiences and empowers organizations with better personalization, streamlined back-end & front-end operations, and data-driven decision-making.