ibm commerce: the power of cognitive commerce for retailers
TRANSCRIPT
The Power of Cognitive Commerce for Retailers and CPG Manufacturers May 27, 2016
2 © 2015 IBM
What has changed in theWorld of Retail
Customers are more connected, more empowered and demand satisfaction
Seamless customer interactions are sought across all channels
Fulfillment models are beingtransformed with on-demand options
3 © 2015 IBM
of companies say they have or are close to having a holistic view of their customers
of consumers say their favorite retailer understands them
Source: The Consumer Conversation – eConsultancy Report
4 Source: The Consumer Conversation – eConsultancy Report
…WHAT CUSTOMERS SAY
of brands are satisfied with their ability to resolve conflicts with customers
of consumers who had a significant customer service issue in the last twelve months say that the company resolved their conflict "very effectively."
WHAT BRANDS THINK…
Satisfaction gap exists as well …
© 2015 IBM
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Retailers must now leverage brand advocates as the new strategic advantage
91% of consumers say they like to share views
about their brand experience with other
consumers
81% received advice through a social site about an upcoming
purchase
74% found it influential in their
buying decision
91% of mobile users keep their phone within one meter’s reach 24/7
150 is the average times a mobile user checks their device each day
37% of consumers say they post comments about retailers once or more a week
Sources: Yahoo/BBDP Survey, Bloomberg Businessweek Survey,IBM IBV Study, Morgan Stanley Research
There has been a massive change in how people engage with brands…
© 2016 IBM6
As leaders we need to embrace all the information that allows us to understand customers and serve them better
Expectations are high …
© 2015 IBM7
I want to … use virtual reality to design and remodel
my kitchen, then have it delivered and installed while on a weekend getaway…
take delivery of fresh grocery – farm to table – and track the source and route it took…
have local health and wealth advisors accessible to me who are as knowledgeable
as the best advisors in NY and London…
have make custom made clothes from your
local retailer to exact measurements with the material of your preference ready for you…
8 © 2015 IBM8
• Deliver a contextual shopping experience
• Build intelligent merchandising, fulfillment and supply operations
• Drive informed and efficient operations
A winning retail strategy
© 2016 IBM9
Deliver in the moment Align past, present and future
dispositions
Anticipate intent Understand behavior and
emotional influences
Earn trust and loyalty
In every interaction across all channels
Many leading brands are differentiate through customer engagement…
Perfect TimingThe right experience, delivered at just the right moment.
Predictive CapabilityUnderstanding what individuals really want, before they even know it.Cognitive Power
Ability to see patterns and make unlikely connections, beyond human imagination.
Infinite DataAccess to an endless universe of information and possibilities.
© 2016 IBM10
We help forward-thinking leaders make better decisions, drive insight to action, and deliver rapid innovation by capitalizing on these areas …
For marketers…the ability to create personalized, meaningful customer experiences, infused by analytics.
For e-commerce professionals…the ability to perfect all aspects of the customer’s interaction through customer and experience insights.
For supply chain leaders…the ability to orchestrate complex systems, processes and partners, to deliver flawlessly.
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To engage with customers, not at them
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Customer Analytics
Marketing
eCommerce & Merchandising
Digital Experience
IBM Interactive
Customer engagement solutions from IBM help you understand and adapt instantly to what customers are saying and doing – so you can deliver the kinds of experiences and offerings they want before they even know they want them.
© 2016 IBM13
And, to have value chains that are seamless and strong
B2B Integration
Procurement
Payments
IBM Managed Services
Partner and supplier engagement solutions from IBM help you establish and manage closely linked value chains enabling seamless and secure collaboration, enhanced transparency and new levels of agility for you and your trading partners.
© 2016 IBM14
Marketing
Engage customers inrelevant and rewarding experiences that makes them ask for more.
OrvisOrvis uses IBM Marketing Solutions to employ powerful flowchart logic, segmented offers, offer assignment, and channel selection.
88%
2yrsreduction in digital andnon-digital campaignand reporting costs
record profitsafter solutionimplementation 40
%
reduction in emailcosts versus prioroutsourced solution
© 2015 IBM15
© 2016 IBM16
Deliver a differentiated brand experience across channels and show customers how much they matter to you.
eCommerce and Merchandising
© 2016 IBM17
hhgreggCaptures sales in real-time to deliver a consistent experience across all channels -- all powered by IBM eCommerce solutions.
Of traffic from mobile devices
Enables mobile and desktop customers to execute product purchases25% Seamles
s
© 2016 IBM18
Customer Analytics
Really knowhow your customers are feeling and what they need to serve them better.
19 © 2015 IBM
FreshDirectFreshDirect is using IBM Customer Analytics and IBM Marketing solutions to drive campaigns that are personalized with the best offers based on customer insights.
40%Lift in order rates with new customers 10X
Increase in transaction rates from cart abandonment communications
© 2016 IBM20
Digital Experience
© 2016 IBM21
Clear ReturnsDrives profitability for retailers - all powered by IBM eCommerce, IBM Customer Analytics, and IBM Digital Experience
650k
USD savings identified for UK fashion retailer by removing the top 10% of frequently returned items 30%
USD estimated impact of returns for the UK e-commerce sector
© 2016 IBM
B2B Integration
Improve information flows across all business relationships to be more responsive.
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Bonnie PlantsBonnie Plants is using IBM B2B Integration solutions to collaborate and engage with partners and suppliers with real-time visibility into inventory, enabling them to anticipate needs of an individual store.
Of their business occurs in 3 monthsfrom March to May
USD realized growth by reducing costs and increasing reliability of their B2B operations10-20M 70%
© 2016 IBM24
Payments
Ensure customer trustby quickly and securely processing payments.
JCC Payment SystemsJCC Payment Systems is using IBM Payments solutions to deliver SEPA transaction processing as a service to creditors and banks across Cyprus.
SEPA 250 K
Transaction processing to creditors and banks – enriching its service offering and driving growth
SEPA Direct Debits processed daily at peak times
© 2015 IBM25
26 © 2016 IBM
Industry Expertise
Experience design and digital consultancy using disruptive thinking, visioning workshops, and cross-industry expertise
IBM IX pioneered new apps on the Apple watch for Nationwide, Citi and Japan Airlines
IBM is a leader in digital transformation consulting and SI services-IDC MarketScape 2016
25 Global Design Studios
World class design and digital transformation services
© 2016 IBM27
Open Ecosystem
Ready for IBM CommercePre-built integrations that deliver value faster with complimentary capabilities.
IBM Universal Behavior Exchange For a key set of Business Partners who create and leverage a vast pool of behavioral data.
Plus…A comprehensive set of resellers, system integrators, complimentary solution providers as well as digital marketing agencies and marketing service providers.
Investing to deliver better customer experiences…
IBM Commerce delivers nearly 15x ROI for every dollar spent
28 © 2015 IBM
50% of IBM Retail Solutions transacted over 50% more online sales than the next closest retail solution provider
2/3of business transactions for the US retail sector are conducted on mainframes
5 of the top 6 retailers globally use IBM Retail capabilities and solutions
#1 The IBM e-commerce platform has been ranked #1 by top industry analysts for 15 consecutive years
70of the top 100 global retailers are powered by IBM retail solutions
MoreTop 500online retailer sales are powered by IBM Retail Solutions than any other platform provider
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Why choose IBM Commerce?
Powered by Watson
Experience DesignDesign based on a deep understanding of our users
Cognitive PowerAbility to see patterns and make unlikely connections
Industry ExpertiseScale with speed by developing asset-based industry solutions
Open EcosystemData exchanged to develop personalized customer experiences
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