customer engagement in the digital era

Customer Engagement in the Digital Era IBM Commerce Enabling an Industry Leading Customer Experience

James Lovell European Retail Solu4ons Execu4ve @jameslovell in/jameslovell71

The digital channel brings challenges to your industry (and ours) The disruption of the digital channel brings unprecedented challenges to almost every industry based on the fast pace consumers adapt to the channel and the constant evolution of the supporting technology And while industries face constant changes, this time is different, this is not a trend, this is a change of paradigm.

But also brings bold opportuni?es

The flip side is that the channel also brings new sound tools to improve your business:

-  Increases our customer knowledge though analytics and social media.

-  Gives us the opportunity to provide (and control) a seamless experience across channels through a holistic view.

-  Allows us to have a 1 to 1 marketing strategy, tailoring our offering to the exact client needs.

A customer enters the shop

Customer’s presence is automatically noted The customer is

recognized as a VIP customer

The shop asks customer if he/she wishes to interact

Customer agrees to interact with shop

Shop assistants automatically informed

of the arrival

The shop assistant is informed of customer’s

decision

All devices in shop are alerted that a specific customer is

willing to interact

If the customer chooses not to

interact her browsing patterns and behavior's are

captured to improve in-store

experience

The Merging of Digital & Physical

Online Sales

Offline sales directly

generated by the online channel

Offline sales influenced by

the online channel

~5%+ Depending on vertical and execution

~ 10% Depending on retail structure, cross channel incentives and management focus

~ 40%+ Depending, up to a certain extent, on the cross channel awareness and the retail structure

~ 55%

Plan keeping in mind the real value of the channel!

In-Store

Online

Other

Digital and physical channels are merging driving revenue growth from all channels

By 2017 more than 50% of in store sales will be influenced by digital channels. % of purchases made

Are you able to measure digital influence?

“I need to be able to deliver relevant, snackable content across all elements of the customer journey, regardless of channel”

IBM Amplify, May 2015 David Walmsley Director, M&S.com

Ask for advice

Check adver4sing

Compare products online

Go to store

Learn about the product

Read reviews

Download the app

Check youtube video Check

Facebook Check at the offline

store

Browse the Site

Google the product

SHOP

Customer journeys can be complex and customers don’t think in silos…

Check adver4sing Go Direct Compare SHOP

Go to the Store

Check around Compare SHOP

Surf the web

See a product I

like Compare SHOP

However, most companies engage consumers in a silo’d fashion

Check adver4sing Go Direct Compare SHOP

Go to the Store

Check around Compare SHOP

Surf the web

See a product I

like Compare SHOP

The winners will be able ignore internal silos to engage with customers at any point of their journey

The era of Cognitive Commerce

14

What do I mean by Cogni?ve Commerce? “Understand customer intent to then use that insight to shape the customer experience and learn from the outcomes”

Ordered 2 coats online Size L & XL

Collected order from Store Returned one item later

Checked my emails later Advert for my new coat

= Wasted marke4ng spend

15

What do I mean by Cogni?ve Commerce?

John Lewis know: •  I live in Harrogate and my nearest JL store is York •  I am a male •  I’ve bought 2 rain overcoats and returned the size XL •  I’ve collected it from my local Waitrose store

This advert could have been op4mised based on what JL know about me: •  Products: Umbrella, Shoes, Trousers,

Hat, Scarf, Complete the Look •  Waitrose Harrogate Promo4on •  JL York Promo4on •  Experience Survey

16

Gain insight into customer behavior across every channel

With the benefits of choice and flexible fulfillment

In context with offers and content

Engage Fulfill

Insight

3 areas where IBM Commerce transforms the customer journey…

Understand customer intent

Take ac?on based on customer behavior

Op?mize order sourcing to improve the customer promise

INFUSE INTELLIGENCE Insight

Gain insight into customer behavior across every

channel

200+ offers available at any?me

BOOTS

18 million ac?ve customers

Between 40-‐60 possible offers per cardholder

15-‐20% incremental sales generated

Insight

Gain insight into customer behavior across every

channel

CUSTOMER EXPERIENCE

Create and execute personalised campaigns

Engage


MAKE IT PERSONAL

Manage product, content and offer delivery

Enable personalised discovery

6% Redemp?on Rate

Industry average 2%

Moving coupons into digital channels

HOMEBASE TILL RECEIPT COUPONS Engage


Fulfill


PERFECT FULFILLMENT

Streamline execu?on Enrich the customer

experience

Op?mize opera?ons

Enable the store

Fulfill


MARKS & SPENCER

New state of the art distribu?on centre

Click & collect available to any store Rolling out tablets to store associates RFID tagging all general merchandise to provide real-‐?me view of inventory

Consistent digital customer experience

Fulfill


MARKS & SPENCER

85 million items handled Goods inwards processing improved by 10x

Customer sa?sfac?on rose by 18% Inventory accuracy improved by 50%

13.8% digital sales growth Q4 2014

Stay away from digital spaghej in IT architecture and processes

IBM’s Commerce pre-‐integrated suite decreases over 4me your integra4on

effort

•  Market leading capabili4es for a digital shopping experience

•  Future-‐proof architecture that ensures low TCO

Insight

Engage

Fulfill

James Lovell Retail Solu4ons Execu4ve IBM Commerce, Europe [email protected] @jameslovell In/jameslovell71

customer engagement in the digital era

Technology