ibm technoloogy day 2013 - smarter commerce

© 2013 IBM Corporation© 2013 IBM Corporation

Smarter CommerceRedefining Business in the Age of the Customer Marcel Kuster / Frederic Milnet

© 2013 IBM Corporation© 2013 IBM Corporation2

Agenda

• The empowered customer and the vision of

Smarter Commerce

• Smarter Commerce and what it means to the Chief Marketing Officer

• Capabilities required for Next Generation Marketing

• Demo: Customer Experience Analytics in Action (IBM Tealeaf)


Today’s “empowered customer” puts businesses to the test

44% of companies

use crowd

sourcing from

customers

4 in 10Smart phone

users search for

an item in a store

86%use multiple

channels

4-5xmore than

average is

spent by multi-

channel buyers

61%trust friends’

reviews more

than experts’

78%of consumers

trust peer

recommendations

58%are more price-

conscious today

than they were a

year ago

75%do not

believe

companies

tell the truth

in ads

80%of CEOs think

they deliver a

superior

customer

experience

8%of their

customers

agree


Buy

Adaptive

procurement

and optimized

supply chain

Market

Targeted and

personalized

marketing

across all

channels

ServiceAnticipate

behavior and

deliver flawless

customer

service

Sell

Seamless

cross-channel

customer

experience

MarketBuy

Service Sell

At IBM, we call the path forward Smarter Commerce placing the customer at the center of your business


Targeted and personalized marketing across all channels

Market


Seamless cross-channel customer experience

Sell


Anticipate behavior and deliver flawless customer service

A customer enters the shop

The shop detects the customer The customer is

recognized as a VIP

The shop asks the customer if he/she wishes to interact

Customer agrees to interact with shop

The shop informs the shop assistant that a

VIP has arrived

The shop assistant is informed of customer’s needs and decisions

All devices in shop are alerted that a specific customer is willing to interact and allow personalized interactions

Service


Adaptive procurement and optimized supply chain

Buy


Smarter Commerce: Focus of today

Procurement/Sourcing/Supply Chain Management

Customer Service and Interaction/Case Management

Cross Channel Selling/Order Management & Fulfillment

Buy

Customer Awareness & Analytics/Cross Channel Marketing

Marketing Performance

Optimization

Customer Shopping Insight

Price / Promotion

Optimization

Cross Channel

Campaign Management

Digital Marketing

Optimization

Marketing

Integration & Optimization

Cross Channel Consumer Insight

Real-time

Marketing

Customer Analytics &

Segmentation

Interaction History & Attribution

Web & Social

Analytics

Customer Experience

Management

Service Sell


Agenda

• The empowered customer and the vision of Smarter Commerce

• Smarter Commerce and what it means to

the Chief Marketing Officer




The majority of CMOs are underprepared for the factors that will impact the marketing of the future

“From Stretched to Strengthened; Insights from the Global Chief Marketing Study”www.ibm.com/cmostudy


How the job of the CMO will change:The 3 imperatives for a new profession

Designing your culture and brand so they are authentically one.

Creating a system of engagement that maximizes value creation at every touch.

Understanding each customer as an individual.


Customer browses ING webpages for a savings product …

Customer browses ING webpages for a savings product …

… but does not

continue the process

… but does not

continue the process

Collecting information on individual web behaviour


Customer leaves the bank website and browses the newspaper pages.

An ING savings ad shows up, targeted at this individual

customer.

The customer clicks on the advertisement

Customer leaves the bank website and browses the newspaper pages.

An ING savings ad shows up, targeted at this individual

customer.

The customer clicks on the advertisement

Re-targeting based on web behaviour insights


The customer starts filling out the application form

The customer starts filling out the application form

… but then abandons the process

… but then abandons the process

And returns to the ING webpages

And returns to the ING webpages

Monitoring the user experience on the web


A call center service representative calls the customer the day after and offers to print out the application document and send it over (remarketing)

The customer agrees and completes the application

A call center service representative calls the customer the day after and offers to print out the application document and send it over (remarketing)

The customer agrees and completes the application

Using the customer behaviour insights in other channels to support the client (Re-Marketing)


The customer receives the monthly newsletter

The customer receives the monthly newsletter

The newsletter is personalized and starts with a topic on savings accounts …

The newsletter is personalized and starts with a topic on savings accounts …

… and a call to action to transfer funds

… and a call to action to transfer funds

A few weeks later, the customer still hasn’t transferred funds

A few weeks later, the customer still hasn’t transferred funds

Usage stimulation in the Email channel...


A personalized message is shown in the service box, urging the customer to transfer funds.The customer decides to transfers funds and does this with a few clicks

A personalized message is shown in the service box, urging the customer to transfer funds.The customer decides to transfers funds and does this with a few clicks

… the customer goes to the secure part of the website

… the customer goes to the secure part of the website

A few days later …A few days later …

...in the internet banking channel...

Impact: banners that are triggered based on behavior of a customer have up to 10x higher CTR

Impact: banners that are triggered based on behavior of a customer have up to 10x higher CTR


A personalized offer pops –special bonus points for when the customer deposits more money.

A personalized offer pops –special bonus points for when the customer deposits more money.

A month later, there has been no further transfers of funds.The customer uses the mobile app to make a payment

A month later, there has been no further transfers of funds.The customer uses the mobile app to make a payment

...in the Mobile App...


ING posts a personalized offer for this customer: the ‘bonus point’offer

ING posts a personalized offer for this customer: the ‘bonus point’offer

The customer has liked the ING page on facebook

The customer has liked the ING page on facebook

...and in the Social Media channel


On the next day, the customer visits a branch.A warning message shows up on the branch screen – the agent offers a increased savings rate and secures the customer

On the next day, the customer visits a branch.A warning message shows up on the branch screen – the agent offers a increased savings rate and secures the customer

A while later, the customer visits the website and looks at INGs interest % on the savings accounts.Short after, the customer starts to withdraws funds from the savings account.

A while later, the customer visits the website and looks at INGs interest % on the savings accounts.Short after, the customer starts to withdraws funds from the savings account.

Customer retention in the branch


Underlying principles: A single marketing engine, providing offers across all channels

22

Internet

Open

homepage

Open

productpages

Secure

homepage

Open

Logoff page

Secure

landingpagesCall outbound

Branches

E-mail

Call inbound

Sept 2012Mail ATM

Inb

ou

nd

Ou

tbo

und

Banners at

non-ING domains

Fase 4 ?

New

in phase 4

Sales Force


Agenda



• Capabilities required for Next Generation

Marketing



Marketers must integrate all aspects of marketing

Earned

media

PR

Owned

media

Price, promotion,

product mix

ad

ad


complete

UNDERSTANDING

of each customer

1

What makes this hard?

Earned

media

PR

Owned

media

Price, promotion,

product mix

ad

ad

Most marketers lack:


complete

UNDERSTANDING

of each customer

1

What makes this hard?

Earned

media

PR

Owned

media

Price, promotion,

product mix

ad

ad

Most marketers lack:

platform

to take

coordinated

ACTION

2


IBM Enterprise Marketing Management (EMM) provides a comprehensive suite that improves and integrates five critical processes of marketing

Managebudgets and processes

and measure results

Decideon the best action or communication

Deliverengaging messages and capture reactions

Collectdata that augments

each customer profile

Analyzedata to find

actionable insights


The IBM solutions are helping marketing organizations achieve a spectrum of business outcomes

Improved customer value, loyalty and retention

5-15% increase is typical

Higher online marketing ROI

15x-25x increase is typical

Higher campaign ROI


Increased response rates


More campaigns with the same resources

2-5x increase is typical

Reduced cycle time for marketing efforts

40-80% reduction is typical

Reduced marketing costs


Lower customer acquisition costs


More relevant

and effectivemarketing

More efficient

marketing


FOR WHO NEED TO IBM PROVIDES

Digital Marketing Optimization

Digital marketers

Orchestrate relevant digital interactions to attract and retain new visitors and grow revenue throughout

the customer's lifecycle

Marketing Performance Optimization

Marketing leaders and planners

Model and assess mix, and manage marketing operations to maximize ROI

Merchandising and sales planners

Price, Promotion, and Product Mix Optimization

Make price, promotion and product mix decisions that maximize

profit and inventory utilization

Customer Experience Management

eCommerce / Online

professionals

Turn visitors into repeat customers and loyal advocates by improving the digital experience of every customer

Cross-Channel Marketing Optimization

Customer relationship marketers

Engage customers in a one-to-one dialogue across channels to grow

revenue throughout the customer's lifecycle

IBM EMM flexibly addresses the needs of specific user groups


Agenda




• Demo: Customer Experience Analytics in

Action (IBM Tealeaf)


Customer Experience Analytics

92:1

Companies typically spend $92 to bring customers to their digital

ecosystem

But only $1 to convert them.


The single most common question executives ask about their online channels is

“Why don’t more shoppers complete purchase transactions?”

“Why don’t more customers use our less expensive online help?“

“Why don’t readers click more deeply into our web site?”

“Why?”

Why Tealeaf?


DEMO


Common Tealeaf Use Cases:

• Provide more proactive and informed service with visibility into the customer’s session history.

• Improve customer loyalty.

• Convert a cost center team into a profit center team.

Cross-sell / Up-sell

Customer Service

• Increase first call resolution rates.

• Decrease unnecessary escalations.

• Improve customer satisfaction.

• Effectively resolve customer disputes.

• Create feedback loop with IT/Dev via Tealeaf’s common language.

Issue Resolution & Support

• Find & fix problems more efficiently ~ 60% time reduction on average.

• Prioritize issues for resolution based on business impact.

• Improve site success rates by eliminating site obstacles.

• Conduct fraud forensics.

IT/Development

Problem Identification & Resolution

eBusiness

Improve Conversion Rates

• Analyze customer behavior to remove the obstacles preventing transactions.

• Deflect costs from higher-cost channels (i.e., call center, branch, etc.)


Payback in less than 3 Months� Results Synthesized from 4 Customers:

– Online Travel Agent

– Leading Online Clothing, Shoes Retailer

– Retailer of Automotive Accessories

– Another Online Travel Agent

Three-Year Risk Adjusted Results

ROI: 512%

Payback Period: 2.6 months

Total Net Present Value: $7,633,214

Source: A commissioned study by Forrester Consulting, “The Total Economic Impact of Tealeaf’s Customer Behavior Analysis Suite.” July 2010

Benefits Quantified in Study

Increased Conversion Rate 3.5%

Increased Average Order Value 0.5%

Improved Retention Rate 1%

Reduced Problem Resolution Time 60%

Reduced Incidents (Project Avoidance) 10%

Reduced Disputed/Fraudulent Chargebacks 0.05%

Summary: 3-Year Risk-Adjusted ROI

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Initial Year 1 Year 2 Year 3

Reduction in chargeback transactions

Reduction in IT costs for project avoidance

Reduction in IT costs for problem resolution

Incremental revenue from improved retention rate

Incremental revenue from increased order value

Incremental revenue from increased conversion

Total yearly costs for Tealeaf


Empowering Customers across all Verticals


Tealeaf Usability

Click Heat MapDiscover where your visitors click on a page including forms, links, images and text so you can optimize your visitor’s experience.

Attention MapKnow where your users are spending most of their time for a given page not just how far they scrolled a page.

Form Field AnalyticsOptimize each form increasing conversion rates and understand how page and form conversion rates compare, how long each field takes to complete and where users go after completing.

Link AnalyticsImprove conversion and engagement by identifying links that are clicked on more often. See how relative link placement can affect your online goals


http://www.ibmconnectedcustomer.com/de

Marcel Kuster

Smarter Commerce Leader Switzerland

IBM Switzerland Ltd.Vulkanstrasse 106P.O. BoxCH-8010 Zurich

Mobile +41 79 600 26 [email protected]

Frédéric Milnet

Smarter Commerce Seller Romandie

IBM Switzerland Ltd.Chemin de Blandonnet,8CH-1214 Vernier

Mobile +41 79 194 51 [email protected]

ibm technoloogy day 2013 - smarter commerce

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