7 Traits of Highly Effective Digital Commerce Organizations

7 Traits of Highly Effective Digital Commerce OrgsSameer KhanIBM ExperienceOne

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Agenda

Commerce Technology Spending

The 7 Traits of Highly Effective Digital Commerce Organizations

Conclusion and Next Steps

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Who is today’s empowered consumer?

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Digital ChannelsTechnologySpending

Online retail continues to gain momentum!

Executive summary & research methodology

Source: Forrester – Commerce Technology Investment and Platform Trends - 2014

1 Commerce Technology Spending

• Commerce technology spending is up across the board.

• Retailers are significantly bolstering their capital investment programs.

• 85% will increase their spend on commerce technology in 2015.

• Commerce technology is mainstream and innovating.

• 72% of e-Business softwaredecision-makers believe commerce platforms have matured.

• 41% believe commerce platform vendors are driving innovation in their product suites.

• Corporations are increasingly incorporating Big Data, SaaS and Mobile for digital commerce.

• Emerging channels are intertwining customer touch points interchangeably.

• Customers will use any and all channels in tandem to help them accomplish their shopping objectives.

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Digital Commerce Sales Expect to Increase by 61% by 2018

Executive summary & research methodology

Source: Forrester – Commerce Technology Investment and Platform Trends - 2014

1 Commerce Technology Spending

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Agenda

Commerce Technology Spending1


Conclusion and Next Steps4

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Who is today’s empowered consumer?2

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Influences“Communities of We”

Attitudes “Era of Open Minded”

Consumers expectations are formed by a myriad of factors

Expectations“Be loyal to me”

Technology“Everything is Known”

2 Who is today’s empowered consumer?

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…and Consumers are highly always connected

84% have easy access to information…

high expectations… and are fickle.

92%

5 Minutes 70%

of smartphone userscheck an app as soon

as they wake up

of consumers research online and seek opinionsvia earned media beforea purchase

of consumers have stopped doing business with a brand following a poor customer experience

the response time users expect from a company once they have

contacted it via social media

Always connected Easy access to information

High expectations Fickle

*Source: Econsultancy - 2013

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Agenda

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Who is today’s empowered consumer? 2

Commerce Technology Spending

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7 Traits Big Data Multichannel marketing Social Media Analytics Digital Experience Data Integration Real time Analytics Personalization

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Big Data

3 The 7 Traits of Highly Effective Digital Commerce Organizations

Big Data ExplorationFind, visualize, and understand all big data for improved decision making

Enhanced 360o Viewof the CustomerView all internal and external information sources to know everything about your customers

Operations AnalysisAnalyze a variety of machine data for improved business results

Data Warehouse ModernizationModernize the data warehouse with new technology: in-memory, stream computing, Hadoop, appliances, while building confidence in all data

Security Intelligence ExtensionLower risk, detect fraud and monitor cyber security in real-time

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The ChallengeStart Today is based on the corporate vision “Making the world cool, bring smiles across the world” and operates Japan’s biggest fashion site, Zozotown. Zozotown struggled with how to decipher massive amounts of data to deliver personalized messages to its consumers.

Case Study

The SolutionZozotown’s customer-centric focus company used IBM Netezza® and IBM Digital Analytics® to rapidly analyze massive amounts of data, letting them create personalized messages for each of their 3.8 million customers.

The ResultsZozotown’s 3.8M personalized messages resulted in a five fold increase in email open rate, and conversion rate improvement of nearly 1000%. In addition website sales went up 54.2%.

▲54%Digital Sales

Zozotown

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Digital world…few years ago


Website

Search

*Source: Google Image

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Digital world…today is Multichannel


Website

Search

Tablet

Smart Phone App

Game Console

Social Network

Twitter client


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Successful Retail Organizations Understand Their Customers…


…Across all Touch points


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Case Study

The ChallengeTo win and retain customers, Orvis (a large retailer) must maximize the impact of its clients marketing spend as well as understand every step of a long and complex customer journey through online and offline touch-points.


The solutionA data-driven lifecycle-measurement strategy, backed by cloud-based IBM Campaign (Unica), delivers key metrics on customer acquisition and retention direct to decision-makers on mobile devices.

The benefitDigital Marketers are able to connect the dots from multichannel analysis. By analyzing the data from two or more streams the users know everything about the customer as efficiently and effectively as one can. Orvis team was able to save customer communication cost by 40%

▼40%Comm. Cost

Orvis

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Social Media Analytics


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Case Study


The ChallengeAmici di Via Della Spiga - though the members of this association of fashion retailers each had a social media presence with many followers, their online efforts were not leading to significant business results. To drive sales in new markets while maintaining their critical brand identities, these retailers needed a solution to capture online interactions and transform the data into usable market insight.

The solutionA comprehensive social media analysis uncovered insight about consumer perceptions of these brands online. Key fashion topics were used to search and extract postings from message boards, blogs, news and social networks, then analyzed for trends that predict consumer behavior, e.g. Brands that incorporated themes of environmental sustainability enjoyed a 60% increase in reputation while promotional methods such as celebrity endorsements showed no significant impact on revenue.

The benefitBy analyzing the social conversations around fashion for a full year, the IBM team recognized a variety of key concepts that influence brand perceptions and purchase decisions, e.g. A brand whose products incorporated a theme of environmentally sustainability lead to increased sales. Associazone Amici Via della Spiga can now target specific demographics and optimize capital spend on promotional efforts.

Amici di Della Spiga

▲60%Social Reputation

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Digital Experience


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Case Study


The ChallengeTo boost customer loyalty, American Eagle Outfitters (operates more than 1000 stores in North America and ships to 77 countries world wide) wanted to ensure that it could deliver high-quality shopping experiences on every digital channel.

The solutionThe company implemented IBM® Tealeaf® solutions, enabling its analytics team to identify and eliminate sticking points along the customer journey.

The benefitAmerican Eagle Outfitters can now implement improvements to its digital channels based on real-world customer behavior – increasing customer satisfaction and nurturing loyalty.

American Eagle

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Data Integration


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Search for all customers that struggled from the home page

IBM Digital Analytics

IBM Tealeaf

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Identify impact on conversion rates

or discover trends &

anomalies

Drill down to understand why

Why are there low conversions from the home page?

IBM Digital Analytics1

View Individual Customer Experiences

to Understand Why

IBM Tealeaf2

IBM Digital Analytics & IBM Tealeaf Integration:

1

Enables rich new ad-hoc analysis: segment by any attribute of the experience without tags


Continued

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Case Study


The ChallengeThe online store for Dutch consumers Wehkamp sold approximately 17.2M products from their online shopping. The website receives over 129M visits annually and ships 7.1M packages in the Netherlands. The company wanted to 1. Improve customer experience, 2. Recover lost revenue, 3. Solve technical problems and 4. Reduce Fraud.

Website Visits: >129 MProducts Sold: 17.2 MPackages Delivered: 7.1 MSales – RFS Holding: $590 M----------------------------------------------------->180,000 Different Articles150,000 Reviews98% Brand Awareness72% Female Buyers51% New Customers < 35 years

The solutionIBM Digital Analytics and IBM Tealeaf transforms the way customers experience information captured, stored and analyzed. The integrated solution helped Welkamp.nl understand and improve their customer experience by combining the qualitative and quantitative interaction data.

The benefitCustomer experience – a 10% improvement in conversation for a specific segment. Recovered lost revenue - $40K in sales. Technical fix – solved problems and saved millions in cart revenue. Reduced fraud – twice as much fraud detected and prevented.

▲10%Conversion

$40KLost sales

Wehkamp

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Old Time Analytics is Colorless and Slow


*Source: IBM Watson Analytics

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Analytics Must Operate at the Speed of Light



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Case Study


The ChallengeIn the fast-paced travel industry, Amadeus Germany’s quarterly forecasts and annual planning processes were no longer adequate for immediately identifying risks and opportunities.

The solutionAmadeus introduced rolling forecasts based on IBM® Cognos® TM1® Web. Planning data and reports are updated on a rolling basis, and key indicators and targets can be checked in real time.

The benefitEarly warning system enables timely action. Increases personal accountability. Encourages dialogue between finance and the business. Makes forecasting cheaper, more accurate, and less labor-intensive.

Amadeus

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Personalizing Shopping Experience


*Source: IBM PCI

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Case Study


The ChallengeKoçtaş is Turkey’s leading home improvement retailer. To boost average order value (AOV) on it’s e-commerce channel, Koçtaş wanted to capitalize on upsell opportunities. Delivering personalized product recommendations for every customer was the answer – but how?

The solutionWorking with IBM Business Partner Tani, Koçtaş deployed IBM ExperienceOne solutions. The company can now deliver tailored product recommendations automatically, both online and in its email campaigns.

The benefitBy personalizing and enhancing the customer experience based on real-world insights into online behavior, Koçtaş increased upsell conversion by 120 percent and cut cart abandonment by percent.

▲120%Upsell Conversion

Koçtaş

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AgendaCommerce Technology Spending1



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Who is today’s empowered consumer? 2

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5 Conclusion

Resources:IBM Big Data Hubhttp://www.ibmbigdatahub.comWatsonAnalytics.comBigDataUniversity.com

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