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Exceeding Customer
Expectations - For the
Holidays and Beyond
© 2013 Pythian 1
- 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.
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 -
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
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
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
- PAGE 8 -
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
- PAGE 9 -
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
- PAGE 11 -
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
- PAGE 12 - the e-tailing group
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 - the e-tailing group
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
- PAGE 14 -
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
- PAGE 15 -
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
- PAGE 16 - the e-tailing group
Cross-channel integration courts omni-channel customer
EG100: PRODUCT LOOKUP: 42% EG100: IN-STORE PICKUP: 33%
e-tailing group Mystery
Shopping; 2012
- PAGE 18 -
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
- PAGE 19 -
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 -
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
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
- PAGE 22 - the e-tailing group
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
- PAGE 23 - the e-tailing group
Search Savvy
Getting shoppers to the right product fast is essential in today’s Google world
e-tailing group Mystery
Shopping; 2012
- PAGE 24 - the e-tailing group
User-generated content engages consumers
EG100: 91% EG100: 29%
e-tailing group Mystery
Shopping; 2012
- PAGE 25 - the e-tailing group
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
- PAGE 26 - the e-tailing group
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
- PAGE 27 - the e-tailing group
Details count starting with alternative views
EG100: 87%
e-tailing group Mystery
Shopping; 2012
- PAGE 28 - the e-tailing group
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
the e-tailing group - PAGE 29 -
WHY SITE PERFORMANCE
MATTERS AND ITS IMPACT ON
KPIS
- PAGE 30 -
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
- PAGE 31 -
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
- PAGE 34 -
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
- PAGE 35 -
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
- PAGE 36 -
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
- PAGE 37 -
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
- PAGE 38 -
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
- PAGE 40 -
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
- PAGE 41 -
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
- PAGE 42 -
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
- PAGE 43 -
the e-tailing group
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
- PAGE 44 - the e-tailing group
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
the e-tailing group - PAGE 45 -
CUSTOMER SERVICE
DIFFERENTIALS
Customer service will be a major factor in a customer’s overall
experience
- PAGE 46 -
the e-tailing group
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
- PAGE 47 -
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)
- PAGE 48 -
the e-tailing group
Service is a value proposition
Nordstrom: 12/11/2012 Email
the e-tailing group - PAGE 49 -
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
- PAGE 50 - the e-tailing group
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
the e-tailing group - PAGE 51 -
THE E-TAILING GROUP
773-975-7280
Exceeding Customer
Expectations with Data.
Samer Forzley, VP of Marketing
© 2013 Pythian 52
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:
Solving the conversion problem
• Payments
• Product reviews
• Site usability
• Performance
• Up time
• Personalization
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Personalization - BI
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Where BI data comes from?
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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?
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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?
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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….
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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…
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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
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
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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
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
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Thank You / Q&A
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Lauren Freedman
Samer Forzley, VP of Marketing