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Exceeding Customer Expectations - For the Holidays and Beyond © 2013 Pythian 1

Exceeding Customer Expectations - For the Holidays and Beyond€¦ · the e-tailing group - PAGE 3 - 16 years e-commerce consulting Author, It’s Just Shopping 50+ years traditional

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Page 1: Exceeding Customer Expectations - For the Holidays and Beyond€¦ · the e-tailing group - PAGE 3 - 16 years e-commerce consulting Author, It’s Just Shopping 50+ years traditional

Exceeding Customer

Expectations - For the

Holidays and Beyond

© 2013 Pythian 1

Page 2: Exceeding Customer Expectations - For the Holidays and Beyond€¦ · the e-tailing group - PAGE 3 - 16 years e-commerce consulting Author, It’s Just Shopping 50+ years traditional

- PAGE 2 -

the e-tailing group

About Lauren

Lauren founded the e-tailing group in 1993 after an extensive career as a

department/specialty store buyer and under her guidance the e-tailing group has evolved

to be one of the premier e-commerce consultancies.

The e-tailing group advises retailers on merchandising, strategy and customer

experience best practices while simultaneously developing thought leadership and go-to-

market strategies for top technology companies.

Page 3: Exceeding Customer Expectations - For the Holidays and Beyond€¦ · the e-tailing group - PAGE 3 - 16 years e-commerce consulting Author, It’s Just Shopping 50+ years traditional

the e-tailing group - PAGE 3 -

16 years e-commerce consulting

Author, It’s Just Shopping

50+ years traditional retail and catalog

experience

Fortune 500 client projects ranging

from strategic planning, merchandising,

marketing, to technology development

and messaging

Cross-category projects spanning

specialty retail to department stores

Proprietary research studies on

mystery shopping, merchandising,

mobile and consumer behavior

The Voice of Cross-Channel

Merchandising

Straight talk from “in-the-trenches”

online merchandising experts

Page 4: Exceeding Customer Expectations - For the Holidays and Beyond€¦ · the e-tailing group - PAGE 3 - 16 years e-commerce consulting Author, It’s Just Shopping 50+ years traditional

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the e-tailing group

Topics d’ Jour

• Current holiday forecasts

• Heightened omni-channel expectations

• Winning merchandising best practices

• Why site performance matters and its impact on KPIs

• The importance of big data

• Customer service differentials

Page 5: Exceeding Customer Expectations - For the Holidays and Beyond€¦ · the e-tailing group - PAGE 3 - 16 years e-commerce consulting Author, It’s Just Shopping 50+ years traditional

the e-tailing group - PAGE 5 -

HOLIDAY FORECASTS

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the e-tailing group - PAGE 6 -

The Performance #’s

• Total retail sales, which include e-commerce

sales, reached $4.4 trillion in 2012 where

Internet Retailer estimates that e-commerce

accounted for 7.6% of total retail sales during

the year, up from 6.8% a year earlier.

• U.S. e-commerce sales totaled $225.5 billion

last year, up 15.8% from $194.7 billion in 2011

(U.S. Commerce Department)

• The average daily time spent online reached 3

hours, 7 minutes last year, up from just less than

3 hours in 2011

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the e-tailing group - PAGE 7 -

Growth still projected for the majority of retailers with

40% in the 6-15% range

Q46

3%

1%

4%

10%

40%

16%

20%

6%

1%

1%

7%

14%

31%

23%

14%

9%

-6% to -20%

-1% to -5%

Flat

+1% to 5%

+6% to 15%

+16% to 25%

+26% to 50%

> 51%

Compared to 2012, how do you anticipate your Internet revenues will change in 2013?

2013

2012

E-tailing group 2013

Merchant Survey

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the e-tailing group

60% of retailers also forecast holiday growth over 10%

Almost 1-in-4 expect 21%+ increases

Q1

5%

9%

12%

14%

23%

15%

12%

10%

Down

Flat

+1% to +5%

+6% to +10%

+11% to +15%

+16% to +20%

+21% to +30%

More than 31%

Q. How do you expect your overall online sales to change during the 2013 holiday?

2013 e-tailing group/Baynote Holiday

Survey based on 77 retailers

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the e-tailing group

Retailers are cautiously optimistic, promotion-minded

and believe they will make their numbers

% Merchants who Strongly/Somewhat Agree on the upcoming holiday season

We’re cautiously

optimistic that it will

be a strong holiday

season-

80%

The holidays will

be promotion-

centric-

73%

The holidays will

start out slowly but

eventually gather

momentum and

we’ll make plan-

53%

It’s going to be a

strong online

holiday season-

52%

2013 e-tailing group/Baynote Holiday

Survey based on 77 retailers

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the e-tailing group - PAGE 10 -

HEIGHTENED OMNI-CHANNEL

EXPECTATIONS

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the e-tailing group

What Consumers Seek from an Omni-Channel Experience

• Consistency Across Channels

• Efficiency in the Path to Purchase

• Unified Customer Profile Access

• Personalized Shopping Experiences

• Inventory Availability Information

• Ability to Reserve Product for In-store Pickup

• Fast Delivery Regardless of Channel

• Exemplary Customer Service Regardless of Channel

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The ability to better research products & discern the best price

coupled with convenience is core to Internet-preferred shopping

experience

81%

81%

77%

67%

67%

57%

55%

51%

43%

42%

37%

34%

I prefer to shop on the Internet because I can better research theproducts I buy

I prefer to shop on the Internet as it allows me to more easilycomparison shop

I prefer to shop on the Internet as it is more convenient

I prefer to shop in physical stores because I can touch and feel theproduct

I prefer to shop on the Internet because it is less expensive

I prefer to shop in physical stores because I don’t like to pay shipping and handling

I prefer to shop on the Internet but like to return unwanted productsto the physical store

I typically need to accomplish my shopping using multiple channels

I have no channel preference and only care about getting the lowestprice

I have no channel preference and only care about what’s most convenient at any given time

I prefer to shop in physical stores because I enjoy the storeshopping experience

I prefer to shop in physical stores because they are more convenient

When choosing a location or way to shop, in which to make a purchase, please rank your agreement with each of the following statements.

Top-2 Strongly/Somewhat Agree

Q22

Local/e-tailing group 2012 Path

to Purchase Survey based on

1026 consumers

Page 13: Exceeding Customer Expectations - For the Holidays and Beyond€¦ · the e-tailing group - PAGE 3 - 16 years e-commerce consulting Author, It’s Just Shopping 50+ years traditional

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Product quality, free shipping and

convenient returns matter most to shoppers

56%

49%

35%

33%

30%

26%

24%

24%

12%

10%

The quality of a product

Shipping must be free

Easy return options

Reviews/what others are saying about a product

Being able to see visual details

Being able to find what I’m looking for quickly

Shipping/pick-up options and convenience

Easy checkout process

Finding special sizes or products

Discovering products I did not already know about

In addition to price, which factors of your online shopping experience matter to you the most? Select the top three.

Q18

Oracle/e-tailing group 2012

Connected Customer research based

on 1033 consumers

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the e-tailing group

Only 1-in-4 retailers are able to deliver a seamless

shopping experience today

25%

21%

15%

23%

3%

13%

15%

22%

27%

19%

3%

14%

Already have seamless shopping experience in place

This year

Next year

Not currently planned

Will always remain separate or siloed

Don’t know

What is your time frame for delivering a seamless shopping experience (channels are well integrated for shoppers) across sales channels

(Internet/website, email, mobile, store, catalog, TV, social)?

2013

2012

Q39 E-tailing group 2013

Merchant Survey

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the e-tailing group

Merchants work to improve cross-channel integration

83%

73%

69%

68%

65%

62%

55%

41%

38%

24%

23%

Branding is consistently deployed across channels

Inventory is shared and similar across channels

Marketing and advertising programs are led by one team

Promotions are consistently marketed across channels

IT directives are headed by one individual across theorganization

Management has a strategic cross-channel lens

Merchandising is a singularly focused initiative that setsdirection for the entire company

Benchmark and KPIs are in place to measure cross-channelinfluencers and performance

Cross-channel compensation structures are in place

Offer in-store pickup

Finding product in-store via product locators is in place

Rate your level of agreement with each of the following statements relative to your company’s current integration of cross-channel initiatives

(strongly agree to strongly disagree). Top-2 Strongly/Somewhat Agree

Q40 E-tailing group 2013

Merchant Survey

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Cross-channel integration courts omni-channel customer

EG100: PRODUCT LOOKUP: 42% EG100: IN-STORE PICKUP: 33%

e-tailing group Mystery

Shopping; 2012

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the e-tailing group - PAGE 17 -

WINNING MERCHANDISING

BEST PRACTICES

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the e-tailing group

Key indicators all trending upward indicating strong growth

year-over-year

87%

80%

70%

61%

44%

Revenue

Traffic to Site

Conversion

Average Order Size

Units per Order

Over the course of the past year (2012), how have the following key metrics been tracking? Top-2 Significantly/Somewhat Increased

Q14 e-tailing group 2013

Merchant Survey

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the e-tailing group

Conversion rates fixed in the 1-3% range

6%

46%

24%

13%

6%

0%

5%

0-under 1%

1.0% -2.9%

3.0% - 4.9%

5.0% - 7.9%

8.0% - 20.0%

Greater than 20%

Don't know

What kinds of conversion rates are you seeing on your site?

Q15 e-tailing group 2013

Merchant Survey

Page 20: Exceeding Customer Expectations - For the Holidays and Beyond€¦ · the e-tailing group - PAGE 3 - 16 years e-commerce consulting Author, It’s Just Shopping 50+ years traditional

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the e-tailing group

Email remains formidable with onsite search,

merchandising and redesigns topping planned initiatives

84%

74%

73%

70%

68%

64%

63%

59%

51%

44%

44%

42%

37%

35%

32%

31%

30%

28%

More targeted email programs

Adding or improving onsite search including navigation and…

Enhanced onsite merchandising features

Site redesign/Upgrades

Content development

Videos

Cross-sells/Up-sells

Personalization/Customization

Adding customer-generated content (including reviews)

Overhauling shopping cart

Blogs

Product enhancement tools/Rich media

Gifting features

mCommerce site

mCommerce upgrade

Interactive tools (virtual models, configurators)

Mobile applications

Big data

What initiatives are you planning to improve website and cross-channel performance? Check all that apply.

Q42 E-tailing group 2013

Merchant Survey

Page 21: Exceeding Customer Expectations - For the Holidays and Beyond€¦ · the e-tailing group - PAGE 3 - 16 years e-commerce consulting Author, It’s Just Shopping 50+ years traditional

the e-tailing group - PAGE 21 -

The most valuable features from an ROI perspective (top-3) ranking 4.5/5 + include keyword search (4.60),

product ratings/reviews (4.57), email (4.55) and conditional free shipping (4.50)

Merchant Merchandising Priorities

e-tailing group

Merchant

Survey; 2013

Keyword Search 4.60 Faceted navigation 4.20 Quick View 3.66

Product Ratings/Reviews 4.57 Search Landing pages 4.20 Sharing via social network 3.61

Email as a merchandising tool 4.55 Top rated 4.16 Gift center/gift suggestions 3.58

Free shipping-conditional 4.50 Category content 4.11 Ask % Answer/Q&A 3.56

Alternative views 4.44 Up-sells 4.10 In-store product locator 3.54

Seasonal promotions 4.38 Video 4.07 Mobile applications 3.52

What’s new 4.29 Alternative or deferred

payment

3.93 Facebook page 3.52

Mobile commerce 4.27 Limited-hour

promotions

3.84 In-store pickup and/or

returns

3.51

Exclusives 4.26 Interactive tools 3.83 PInterest 3.50

Free shipping-unconditional 4.26 Live chat 3.80 “Like” on Facebook 3.46

Sales/specials/outlet 4.25 Incentives to buy 3.72 Wish lists 3.32

Advanced search 4.24 Frequent buyer

programs

3.70 Blogs 3.31

Cross-sells 4.24 Gift certificates/cards 3.70 Social log-in 3.29

Zoom 4.23 Gift certificates/cards 3.68 Proactive chat 3.23

Coupons/rebates 4.23 Recently viewed 3.65 As advertised/as seen on 3.23

Top sellers 4.22 Shop by outfit/ 3.63 Twitter marketing 2.91

Color change 4.21 Fcommerce 2.73

RATING AVERAGE LEGEND

5-POINT SCALE

5 Very Important 4 Somewhat Important 3 Neutral Value 2 Somewhat Unimportant 1 Not at All Important

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The Merchants

the e-tailing group 100 4Q12

1-800 Flowers Build.com GNC Newegg Staples

Abt Electronics Cabela’s Godiva Nike Sundance

Amazon Carter's Golfsmith Nordstrom Sunglass Hut

American Eagle Outfitters Chico's Harry & David Office Depot Target

American Girl Clinique Hayneedle Oriental Trading The Home Depot

Ann Taylor Coach HP Home and Home Office Orvis The Men’s Wearhouse

Apple Crate & Barrel HSN Overstock Things Remembered

Ashford.com Crutchfield J.Crew Petco Tiffany & Co.

Asos Dell JCPenney PetSmart Title 9

Aveda Dick’s Sporting Goods Jo-Ann Fabrics & Crafts Pottery Barn Tory Burch

B&H Photo Discovery Channel King Arthur Flour QVC Toys ‘R Us

Ballard Designs Disney.com Kohl’s Ralph Lauren Tumi

Bare Escentuals DSW Shoes L.L.Bean REI Under Armour

Barnes & Noble eBags Lands’ End Room & Board Urban Outfitters

Bath & Body Works Foot Locker Lane Bryant Ross-Simons Victoria’s Secret

Bed Bath & Beyond Frontgate Lego Saks Fifth Avenue Walgreens

Belk GameStop Lowe's Sears Wal-Mart

Best Buy Gap Macy's Sephora Williams-Sonoma

Blue Nile Garnet Hill Moosejaw Shop NBC Wine.com

Brookstone Giggle Neiman Marcus Shop PBS Zappos

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Search Savvy

Getting shoppers to the right product fast is essential in today’s Google world

e-tailing group Mystery

Shopping; 2012

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User-generated content engages consumers

EG100: 91% EG100: 29%

e-tailing group Mystery

Shopping; 2012

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Free shipping is the perennial favorite

UNCONDITIONAL: EG 100: 19% CONDITIONAL: EG100: 57%

Oracle/e-tailing group 2012

Connected Customer research

based on 1033 consumers

64% leave a website because shipping charges are too high

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Customers expect a comprehensive product page experience

from imagery through content and social dynamics

ESSENTIAL (>50%) MERCHANT CHOICE (33-49%) SOCIAL (<33%)

Quality of the image-75% Peer ratings and reviews-47%View product in a room setting-

32%

Ability to see selected product in

color of choice-68%View product on a model-45% Q/A-32%

Alternative views of selected

item-66%Live help-39% Email-a-friend-20%

Zoom-61% Video of the product in use-37% Share button-19%

Product guides-54% Product recommendations-37% Like button-16%

Product comparisons-52% Product demonstrations-37% Pinterest-15%

When viewing a merchant’s product page online, how important is the following

information when selecting and ultimately purchasing a product? Top-2 Critical/Very Important

Q14-Q16

Oracle/e-tailing group 2012

Connected Customer based on

1033 consumers

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Details count starting with alternative views

EG100: 87%

e-tailing group Mystery

Shopping; 2012

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Video vaults in importance

EG100: PRODUCT PAGE: 79% EG100: CATEGORY PAGE: 40%

Profit-minded retailers should take note that 44% strongly/somewhat agree that

they purchase more product after viewing a related video

Invodo/e-tailing group 2013 Consumer

Video Survey based on 1073 consumers

e-tailing group Mystery

Shopping; 2012

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the e-tailing group - PAGE 29 -

WHY SITE PERFORMANCE

MATTERS AND ITS IMPACT ON

KPIS

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the e-tailing group

Time is $

• Amazon loses 1% of sales for every 100ms it takes their

site to load. Amazon employee Greg Linden in a presentation titled Make Data Useful

• Shopzilla reduced their loading time from 7 seconds to 2.

This performance boost resulted in a 25% increase in

page views and a 9.5% increase in revenue. As reported by Phil

Dixon at the Velocity conference

• Mozilla shaved 2.2 seconds off their landing pages and

increased download conversions by 15.4%, generating

millions of additional Firefox downloads every year. As

reported on the Mozilla blog in a post titled Firefox & Page Load Speed

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the e-tailing group

Speed affects conversion in a big way

Visitors who experience an average 1 second load time convert 2X

those who receive a 4 second load time

Torbit

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the e-tailing group

Slow sites cost retailers big bucks

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the e-tailing group - PAGE 33 -

THE IMPORTANCE OF BIG

DATA

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the e-tailing group

Analytics evaluation directs site redesigns in hopes of

delivering a more profitable bottom-line

95%

87%

85%

84%

84%

81%

77%

74%

69%

66%

62%

48%

93%

79%

78%

81%

76%

71%

76%

64%

62%

62%

54%

44%

Analytics evaluation to see what works

Site redesign or enhancements that improve the customer experienceand navigation

Making it easier to find products with enhanced onsite searchrelevance, sort options, and/or landing page optimization

Pricing or promotional strategies from free shipping to private salesdirected to current customers

Email that utilizes an array of tactics sent on pre-establishedfrequency

A/B, multi-variate or other usability testing

The “right” in-stock assortment

Rich media or related tools (zoom, alternative views, audio, video,etc.) that engender consumer confidence

Personalization strategies including placement of up-sells/cross-sells

Editorial content, expert reviews, user-generated content, and/or other helpful tools to position your site as a “go-to” expert

Elevated brand differentiation

Social media elevation

Please rate your top merchandising and navigational tactics for customer retention from being most important to your strategy to the least important.

Top-2 Most/Somewhat Important

2013

2012

Q12

e-tailing group 2013

Merchant Survey

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the e-tailing group

Data is still not in a position to successfully market to

customers and prospects

48%

45%

40%

34%

33%

31%

27%

27%

25%

20%

Existing data allows us to effectively segment our customers

We currently utilize our customer data on a fairly frequent basisto impact marketing initiatives (daily/weekly)

Our customer information is robust

We work with 3rd party vendors to build dashboards tomanipulate data for segmentation and marketing purposes

Current data is delivered in a digestible format

Our data is very accessible for both associates and seniormanagement

Our data allows us to tie real-time customer information intofuture marketing initiatives

We have processes in place to use data smartly to personalizethe shopping experience onsite and via email

We currently receive a 360-degree view of the customer

Our current internal resources are sufficient to effectivelyinterpret and act on existing data

When thinking about your ability to access the right data to successfully market to customers and prospects, please indicate your level of agreement on the following

aspects. Top-2 Strongly/Somewhat Agree

Q16 e-tailing group 2013

Merchant Survey

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the e-tailing group

Significant increases seen in improving KPIs, mobile, global and web

initiatives

99%

97%

96%

95%

95%

93%

91%

85%

85%

82%

76%

76%

73%

72%

70%

62%

59%

43%

38%

95%

99%

93%

93%

92%

92%

90%

78%

81%

79%

70%

63%

75%

65%

66%

58%

62%

31%

29%

Customer experience

Customer acquisition

Customer retention

Profitability

Customer service

Drive qualified traffic to site

Branding

Improve KPIs

Data/Content improvement

Onsite merchandising

Process improvement

Mobile initiatives

Resources

Testing

Technology and systems initiatives

Social marketing strategies

Multi-channel integration

Global web initiatives

Replatforming

Rate the importance of these initiatives to your strategic goals. (Top-2 Very/Somewhat Important)

2013 2012

Data nears the top of critical initiatives with customer

experience, acquisition, retention and profitability

Q2

e-tailing group 2013

Merchant Survey

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the e-tailing group

SEO/ SEM along with eCommerce platform upgrades see

significant investment in anticipation of the holiday season

Answer Options Significant Limited No

Investment N/A

SEO/SEM 46% 46% 6% 2%

ECommerce platform upgrades 43% 38% 15% 4%

Mobile enhancement (e.g. apps, mcommerce, in-store, SMS, QR codes, payment methods) 32% 50% 14% 4%

Retargeting/advertising 31% 59% 10% 0%

Logistical improvements (faster fulfillment, more delivery choices) 26% 53% 18% 3%

Testing 23% 64% 12% 1%

Cart abandonment strategies 19% 64% 14% 3%

Big data capture, retrieval and analytics capabilities 18% 50% 27% 5%

Social (e.g. Facebook, Twitter, Pinterest, social listening tools, blogs) 17% 62% 20% 1%

Paper catalog 16% 25% 35% 24%

Alternative payment methods (e.g. digital wallets, bit coin, touchless mobile-to-mobile

transactions, etc.) 10% 24% 57% 9%

Cross-channel logistics (e.g. in-store pickup, check in-store product availability, e-receipts) 7% 34% 29% 30%

Mobile, retargeting and testing are also top-of-mind for retailers

Q5

Q. Please note your level of TECHNOLOGY investment in 2013

from no investment to significant investment. If a particular feature

or upgrade does not apply to your business, please select N/A.

2013 e-tailing group/Baynote Holiday

Survey based on 77 retailers

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the e-tailing group

The time is now to act on Big Data

• Retailers face unprecedented volumes of data heightened by cross-channel

information and adoption of new devices and channels

• In 2013 retailers will spend nearly $2B on business intelligence and $9.4B on

infrastructure where databases and analytics see much overdue investment (Andrew

Brust)

• Cross-channel insights can be leveraged to understand consumer browse and buy

behavior allowing retailers to customize experiences including real-time discounts,

offers and assortments

• Personalization gleaned from big data can support ROI boosting customer

performance aiding in finding the most profitable customers

• 59% of retailers identified a lack of consumer insights as their top data-related pain

point (Aberdeen)

• Companies that incorporated data and analytics into their operations show 5-6%

higher productivity rates higher than those of their peers (Forbes report on academic

research)

Moore’s Law of Marketing-The aggregate amount of data available to

retailers doubles every 2 years

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PERSONALIZATION

PERFORMS

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the e-tailing group

PPR’s are populated by 1 in 2 retailers on websites and

email with 1 in 3 retargeting and leveraging email alerts

56%

51%

45%

39%

27%

25%

5%

5%

Your website

Email newsletters/email alerts

Retargeting display ads (short-term)

Email alerts for cart and site abandonment

None of the above

Direct mail (postcards, direct mail)

Long-term targeting ads (up to 18 months after sitevisit)

Mobile ads

Where do you engage shoppers with personalized product recommendations on your site and beyond? Check all that apply.

Q26 E-tailing group 2013

Merchant Survey

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the e-tailing group

1-10% revenue lift most often seen

24%

16%

3%

25%

32%

1 - 10%

11 - 25%

26%+

Don't know

Don't personalize

What is the cumulative revenue lift you are able to achieve from all your personalization programs?

Q28 E-tailing group 2013

Merchant Survey

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the e-tailing group

Testing strategies are top-of-mind where retailers take

a group vs. an individual bent to personalization

68%

61%

58%

44%

34%

22%

20%

We will test a range of strategies to understand which performwell and fit best with our brand

Our view of personalization is centered on segmentation ofshopping groups or types rather than a true one-to-one vision

We are very deliberate in our personalization strategies, ensuring that we don’t degrade our brand in any way

We are very deliberate in our personalization strategies, ensuring that we don’t offend our customers in any way

We are pursuing a one-to-one personalization strategy

We allow consumers to self-profile their behavior type(fashionista, soccer mom, traditional, etc.) which we then target

accordingly

We will pursue personalization but will request our customers’ permission before employing strategies

Thinking about the potential and pitfalls of personalization, please indicate your level of agreement with each of the following statements.

Top-2 Completely/Somewhat Agree

Q29 E-tailing group 2013

Merchant Survey

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Triggered shopping cart abandonment emails, short-term

retargeting seeing success among 1-in-2 retailers

61%

49%

46%

45%

41%

39%

39%

29%

22%

Triggered shopping cart abandonment emails

Short-term retargeting (show similar products in a banneradvertisement on a popular website)

Direct Mail

Personalized product recommendations on the productpage

Personalized product recommendations via email

Recently viewed product

Personalized product recommendations in the shoppingcart

Home page personalized based on past browse and buybehavior

Longer-term (up to 18 mths post site visit) customerlifecycle personalization (seasonal purchasing, preferred

categories, etc.)

Given the array of personalization tactics available to you, how would you describe the success of each tactic from an ROI perspective?

Top-2 Very/Somewhat Successful

Q25 E-tailing group 2013

Merchant Survey

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Personalization from product page to cart performs

PRODUCT PAGE: EG100: 99% SHOPPING CART: EG100: 79%

44% of consumers value personalized shopping experiences

MyBuys/e-tailing group

Personalization Survey based

on 1008 consumers

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CUSTOMER SERVICE

DIFFERENTIALS

Customer service will be a major factor in a customer’s overall

experience

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Exemplary customer service becomes more paramount to

retention while retailers also streamline checkout:

92%

90%

89%

87%

86%

85%

78%

73%

71%

59%

52%

51%

42%

41%

31%

86%

80%

90%

88%

80%

72%

65%

68%

54%

57%

53%

44%

40%

32%

24%

Exemplary customer service

Streamlined checkout

Search engine marketing

Targeted and/or segmented email marketing campaigns

Faster site load time

Strategies to minimize cart abandonment (onsite,…

"My Account" features

Faster fulfillment/shipping to the customer

Retargeting/display ad

Inventory stock status notification

Alternative payment methods

Live chat

Frequent shopper programs

Store Locator

Proactive chat

Please rate your top marketing and customer service tactics for customer retention from being the most important to your strategy to being the least important.

Top-2 Most/Somewhat Important

2013

2012

Q13

E-tailing group 2013

Merchant Survey

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the e-tailing group

Being Okay at Service is no Longer Acceptable

• 75% of the time, customers will move to another

communication channel if they are unsatisfied with an

earlier contact method (Kana)

• 71% say valuing their time is the most important thing a

company can do to provide good service (Kana)

• 60% of respondents said the strategic goals of service

and experience were well aligned at their company

(Kana)

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the e-tailing group

Service is a value proposition

Nordstrom: 12/11/2012 Email

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Exemplary customer service becomes more paramount to

retention

Q13 e-tailing group 2013

Merchant Survey

92% surveyed retailers rank Customer Service most/somewhat

important as the # 1 customer retention vehicle

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Customer Service: Food-for-Thought

• The goal as a company is to have customer service that is not just the best but legendary.--Sam Walton, Founder of Wal-Mart

• Well done is better than well said.--Benjamin Franklin

• Good service is good business.--Siebel Ad

• You’ll never have a product or price advantage again. They can be easily duplicated, but a strong customer service culture can’t be copied.--Jerry Fritz

• In the world of Internet Customer Service, it’s important to remember your competitor is only one mouse click away.--Doug Warner

• Customer service is not a department, it’s everyone’s job.--Anonymous

• We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.--Jeff Bezos, CEO of Amazon.com

• Customer service is just a day in, day out ongoing, never ending, unremitting, persevering, compassionate, type of activity.--Leon Gorman, CEO of L.L.Bean

• There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.--Sam Walton, Founder of Wal-Mart

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the e-tailing group - PAGE 51 -

THE E-TAILING GROUP

773-975-7280

[email protected]

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Exceeding Customer

Expectations with Data.

Samer Forzley, VP of Marketing

© 2013 Pythian 52

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Who is Pythian? • The global leader in

managed data service

• 16+ years in business

• 180+ global brands

• 10000+ systems under

management

• Top Talent:

– Only recruit top 5%

– Most Oracle ACE

certifications

– Only Cloudera Big Data

Champion/ ACE Director

in the world

– 12 Hadoop Certified experts

– Microsoft MVPs

– And more...

© 2013 Pythian 53

A few of our retail customers:

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Solving the conversion problem

• Payments

• Product reviews

• Site usability

• Performance

• Up time

• Personalization

© 2013 Pythian 54

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Personalization - BI

© 2013 Pythian 55

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© 2013 Pythian 56

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Where BI data comes from?

© 2013 Pythian 57

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Personalization - Big Data

• Questions Big Data can help

answer:

– Why did the customer buy this can of

beans?

• Do they want organic food?

• Was it on sale?

• Do they like the taste?

• Was it recommended?

– Was this the customers first choice,

or last?

– What really goes with beans?

© 2013 Pythian 58

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Spilling the beans

• Unstructured internal data

– Can help us look at shopping patterns

– At product description

– Site search

– Etc…

• So why did the customer buy

Amy’s refried beans?

– Because it contains no wheat.

– Is this a pattern?

© 2013 Pythian 59

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Better customer experience through

data

• If we now know the customer has a gluten free

diet, then:

– When they repeat shop with us we can feature gluten

free products first.

– We should recommend related items that are gluten

free.

– We should also recommend gluten free recipes.

– Etc….

© 2013 Pythian 60

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Unstructured External Data

• Big Data:

– Start with internal structured data

– Add internal unstructured data

– Sprinkle some external unstructured data

• External unstructured data can enhance the

customer experience

– Social media

– Weather

– Seasonality

– Etc…

© 2013 Pythian 61

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Where to start •Social media analytics

•Social CRM

•Brand monitoring

•Sentiment analysis

•Marketing campaign optimization

•Customer experience management

•CRM next best action

•Customer churn mitigation

•Loyalty & promotions analysis

•Behavioral analytics

•Influencer analysis

•Ad placement optimization

•Security incident and

• event management

•Anti-fraud detection & prevention

•Financial risk analysis

•Supply chain optimization

•Defect tracking

•Device monitoring

•Root cause analysis

•IT log analysis

•Event analytics

•Network analytics

•BI

•DW

•ETL

•Advanced analytics

•Data science

•Content optimization

•Compliance monitoring

Forrester

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Big Lessons Learned

• Ask the questions first

• Selecting the wrong technology is very

costly

• Reuse blue-print solutions when possible

but most solutions are still very unique

• Most Big Data deployments require an

orchestration of many technologies and

tools

• Big Data requires breaking traditional

silos

• Finding expert skilled resources is a

challenge

© 2013 Pythian 63

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Pythian Big Data Service Offering

• Big Data project execution

– Requirements gathering

– Proof of concept

– Architecture

– Implementation

– Operational support

• Big Data service counter

• Patterns based

– Match business need to Big Data implementation

pattern

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Next Steps

• Visit www.pythian.com/resources to download

our Big Data white paper

• Contact us for advice on planning, architecting,

and deploying big data projects

• Engage Pythian in a Big Data Architecture

Workshop

© 2013 Pythian 65

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Thank You / Q&A

© 2013 Pythian 66

Lauren Freedman

[email protected]

Samer Forzley, VP of Marketing

[email protected]