IBM Technoloogy Day 2013 - Smarter Commerce
 

IBM Technoloogy Day 2013 - Smarter Commerce

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IBM Technoloogy Day 2013 - Smarter Commerce IBM Technoloogy Day 2013 - Smarter Commerce Presentation Transcript

  • © 2013 IBM Corporation© 2013 IBM CorporationSmarter CommerceRedefining Business in the Age of theCustomerMarcel Kuster / Frederic Milnet
  • © 2013 IBM Corporation© 2013 IBM Corporation2Agenda• The empowered customer and the vision ofSmarter Commerce• Smarter Commerce and what it means to theChief Marketing Officer• Capabilities required for Next GenerationMarketing• Demo: Customer Experience Analytics inAction (IBM Tealeaf)
  • © 2013 IBM Corporation© 2013 IBM Corporation3Today’s “empowered customer” puts businesses to the test44%of companiesuse crowdsourcing fromcustomers4in 10Smart phoneusers search foran item in a store86%use multiplechannels4-5xmore thanaverage isspent by multi-channel buyers61%trust friends’reviews morethan experts’78%of consumerstrust peerrecommendations58%are more price-conscious todaythan they were ayear ago75%do notbelievecompaniestell the truthin ads80%of CEOs thinkthey deliver asuperiorcustomerexperience8%of theircustomersagree
  • © 2013 IBM Corporation© 2013 IBM Corporation4BuyAdaptiveprocurementand optimizedsupply chainMarketTargeted andpersonalizedmarketingacross allchannelsServiceAnticipatebehavior anddeliver flawlesscustomerserviceSellSeamlesscross-channelcustomerexperienceMarketBuyService SellAt IBM, we call the path forward Smarter Commerce placingthe customer at the center of your business
  • © 2013 IBM Corporation© 2013 IBM Corporation5Targeted and personalized marketing across allchannelsMarket
  • © 2013 IBM Corporation© 2013 IBM Corporation6Seamless cross-channel customer experienceSell
  • © 2013 IBM Corporation© 2013 IBM Corporation7Anticipate behavior and deliver flawless customer serviceA customer entersthe shopThe shop detectsthe customer The customer isrecognized as aVIPThe shop asks thecustomer if he/shewishes to interactCustomer agrees tointeract with shopThe shop informs theshop assistant that aVIP has arrivedThe shop assistant isinformed of customer’sneeds and decisionsAll devices in shop are alertedthat a specific customer iswilling to interact and allowpersonalized interactionsService
  • © 2013 IBM Corporation© 2013 IBM Corporation8Adaptive procurement and optimized supply chainBuy
  • © 2013 IBM Corporation© 2013 IBM Corporation9Smarter Commerce: Focus of todayProcurement/Sourcing/Supply Chain ManagementCustomer Service and Interaction/Case ManagementCross Channel Selling/Order Management & FulfillmentBuyCustomer Awareness & Analytics/Cross Channel MarketingMarketingPerformanceOptimizationCustomer ShoppingInsightPrice / PromotionOptimizationCross ChannelCampaignManagementDigital MarketingOptimizationMarketingIntegration &OptimizationCross ChannelConsumer InsightReal-timeMarketingCustomerAnalytics &SegmentationInteraction History& AttributionWeb & SocialAnalyticsCustomerExperienceManagementService Sell
  • © 2013 IBM Corporation© 2013 IBM Corporation10Agenda• The empowered customer and the vision ofSmarter Commerce• Smarter Commerce and what it means tothe Chief Marketing Officer• Capabilities required for Next GenerationMarketing• Demo: Customer Experience Analytics inAction (IBM Tealeaf)
  • © 2013 IBM Corporation© 2013 IBM Corporation11The majority of CMOs are underprepared for the factors thatwill impact the marketing of the future“From Stretched to Strengthened; Insights from the Global Chief Marketing Study”www.ibm.com/cmostudy
  • © 2013 IBM Corporation© 2013 IBM Corporation12How the job of the CMO will change:The 3 imperatives for a new professionDesigning your cultureand brand so theyare authentically one.Creating a system ofengagement thatmaximizes value creationat every touch.Understandingeach customer asan individual.
  • © 2013 IBM Corporation© 2013 IBM Corporation13Customer browses INGwebpages for asavings product …Customer browses INGwebpages for asavings product …… but does notcontinue the process… but does notcontinue the processCollecting information on individual web behaviour
  • © 2013 IBM Corporation© 2013 IBM Corporation14Customer leaves thebank website andbrowses thenewspaper pages.An ING savings adshows up, targeted atthis individualcustomer.The customer clickson the advertisementCustomer leaves thebank website andbrowses thenewspaper pages.An ING savings adshows up, targeted atthis individualcustomer.The customer clickson the advertisementRe-targeting based on web behaviour insights
  • © 2013 IBM Corporation© 2013 IBM Corporation15The customer startsfilling out theapplication formThe customer startsfilling out theapplication form… but then abandons theprocess… but then abandons theprocessAnd returns to the INGwebpagesAnd returns to the INGwebpagesMonitoring the user experience on the web
  • © 2013 IBM Corporation© 2013 IBM Corporation16A call center servicerepresentative calls thecustomer the day afterand offers to print outthe applicationdocument and send itover (remarketing)The customer agreesand completes theapplicationA call center servicerepresentative calls thecustomer the day afterand offers to print outthe applicationdocument and send itover (remarketing)The customer agreesand completes theapplicationUsing the customer behaviour insights in other channels tosupport the client (Re-Marketing)
  • © 2013 IBM Corporation© 2013 IBM Corporation17The customer receivesthe monthly newsletterThe customer receivesthe monthly newsletterThe newsletter ispersonalized and startswith a topic on savingsaccounts …The newsletter ispersonalized and startswith a topic on savingsaccounts …… and a call to action totransfer funds… and a call to action totransfer fundsA few weeks later, thecustomer still hasn’ttransferred fundsA few weeks later, thecustomer still hasn’ttransferred fundsUsage stimulation in the Email channel...
  • © 2013 IBM Corporation© 2013 IBM Corporation18A personalizedmessage is shown inthe service box, urgingthe customer totransfer funds.The customer decidesto transfers funds anddoes this with a fewclicksA personalizedmessage is shown inthe service box, urgingthe customer totransfer funds.The customer decidesto transfers funds anddoes this with a fewclicks… the customer goesto the secure part ofthe website… the customer goesto the secure part ofthe websiteA few days later …A few days later …...in the internet banking channel...Impact: banners that are triggeredbased on behavior of a customerhave up to 10x higher CTRImpact: banners that are triggeredbased on behavior of a customerhave up to 10x higher CTR
  • © 2013 IBM Corporation© 2013 IBM Corporation19A personalized offer pops –special bonus points for when thecustomer deposits more money.A personalized offer pops –special bonus points for when thecustomer deposits more money.A month later, there has been nofurther transfers of funds.The customer uses the mobileapp to make a paymentA month later, there has been nofurther transfers of funds.The customer uses the mobileapp to make a payment...in the Mobile App...
  • © 2013 IBM Corporation© 2013 IBM Corporation20ING posts a personalized offer forthis customer: the ‘bonus point’offerING posts a personalized offer forthis customer: the ‘bonus point’offerThe customer has liked the INGpage on facebookThe customer has liked the INGpage on facebook...and in the Social Media channel
  • © 2013 IBM Corporation© 2013 IBM Corporation21On the next day, the customervisits a branch.A warning message shows upon the branch screen – the agentoffers a increased savings rateand secures the customerOn the next day, the customervisits a branch.A warning message shows upon the branch screen – the agentoffers a increased savings rateand secures the customerA while later, the customer visitsthe website and looks at INGsinterest % on the savingsaccounts.Short after, the customer starts towithdraws funds from thesavings account.A while later, the customer visitsthe website and looks at INGsinterest % on the savingsaccounts.Short after, the customer starts towithdraws funds from thesavings account.Customer retention in the branch
  • © 2013 IBM Corporation© 2013 IBM Corporation22Underlying principles: A single marketing engine, providingoffers across all channels22InternetOpenhomepageOpenproductpagesSecurehomepageOpenLogoff pageSecurelandingpagesCall outboundBranchesE-mailCall inboundSept 2012Mail ATMInboundOutboundBanners atnon-ING domainsFase 4 ?Newin phase 4Sales Force
  • © 2013 IBM Corporation© 2013 IBM Corporation23Agenda• The empowered customer and the vision ofSmarter Commerce• Smarter Commerce and what it means to theChief Marketing Officer• Capabilities required for Next GenerationMarketing• Demo: Customer Experience Analytics inAction (IBM Tealeaf)
  • © 2013 IBM Corporation© 2013 IBM Corporation24Marketers must integrate all aspects of marketingEarnedmediaPROwnedmediaPrice,promotion,productmixadad
  • © 2013 IBM Corporation© 2013 IBM Corporation25completeUNDERSTANDINGof each customer1What makes this hard?EarnedmediaPROwnedmediaPrice,promotion,productmixadadMost marketers lack:
  • © 2013 IBM Corporation© 2013 IBM Corporation26completeUNDERSTANDINGof each customer1What makes this hard?EarnedmediaPROwnedmediaPrice,promotion,productmixadadMost marketers lack:platformto takecoordinatedACTION2
  • © 2013 IBM Corporation© 2013 IBM Corporation27IBM Enterprise Marketing Management (EMM) provides acomprehensive suite that improves and integrates fivecritical processes of marketingManagebudgets and processesand measure resultsDecideon the best actionor communicationDeliverengaging messagesand capture reactionsCollectdata that augmentseach customer profileAnalyzedata to findactionable insights
  • © 2013 IBM Corporation© 2013 IBM Corporation28The IBM solutions are helping marketing organizationsachieve a spectrum of business outcomesImproved customer value,loyalty and retention5-15% increase is typicalHigher onlinemarketing ROI15x-25x increase is typicalHigher campaign ROI15-30% increase is typicalIncreased response rates10-50% increase is typicalMore campaigns withthe same resources2-5x increase is typicalReduced cycle timefor marketing efforts40-80% reduction is typicalReduced marketing costs20-40% reduction is typicalLower customeracquisition costs25-75% reduction is typicalMore relevantand effectivemarketingMore efficientmarketing
  • © 2013 IBM Corporation© 2013 IBM Corporation29FOR WHO NEED TO IBM PROVIDESDigital MarketingOptimizationDigital marketersOrchestrate relevant digitalinteractions to attract and retain newvisitors and grow revenue throughoutthe customers lifecycleMarketing PerformanceOptimizationMarketing leadersand plannersModel and assess mix, and managemarketing operations to maximize ROIMerchandisingand sales plannersPrice, Promotion, andProduct Mix OptimizationMake price, promotion andproduct mix decisions that maximizeprofit and inventory utilizationCustomer ExperienceManagementeCommerce /OnlineprofessionalsTurn visitors into repeat customersand loyal advocates by improving thedigital experience of every customerCross-ChannelMarketing OptimizationCustomerrelationshipmarketersEngage customers in a one-to-onedialogue across channels to growrevenue throughout the customerslifecycleIBM EMM flexibly addresses the needs of specific usergroups
  • © 2013 IBM Corporation© 2013 IBM Corporation30Agenda• The empowered customer and the vision ofSmarter Commerce• Smarter Commerce and what it means to theChief Marketing Officer• Capabilities required for Next GenerationMarketing• Demo: Customer Experience Analytics inAction (IBM Tealeaf)
  • © 2013 IBM Corporation© 2013 IBM Corporation31Customer Experience Analytics92:1Companies typically spend $92to bring customers to their digitalecosystemBut only $1 to convertthem.
  • © 2013 IBM Corporation© 2013 IBM Corporation32The single most common questionexecutives ask about their onlinechannels is“Why don’t more shopperscomplete purchasetransactions?”“Why don’t more customers useour less expensive online help?““Why don’t readers clickmore deeply into our website?”“Why?”Why Tealeaf?
  • © 2013 IBM Corporation© 2013 IBM Corporation33DEMO
  • © 2013 IBM Corporation© 2013 IBM Corporation34Common Tealeaf Use Cases:• Provide moreproactive andinformedservice withvisibility intothecustomer’ssessionhistory.• Improvecustomerloyalty.• Convert acost centerteam into aprofit centerteam.Cross-sell /Up-sellCustomer Service• Increase firstcall resolutionrates.• Decreaseunnecessaryescalations.• Improvecustomersatisfaction.• Effectivelyresolvecustomerdisputes.• Createfeedback loopwith IT/Devvia Tealeaf’scommonlanguage.IssueResolution &Support• Find & fixproblemsmoreefficiently ~60% timereduction onaverage.• Prioritizeissues forresolutionbased onbusinessimpact.• Improve sitesuccess ratesby eliminatingsite obstacles.• Conduct fraudforensics.IT/DevelopmentProblemIdentification& ResolutioneBusinessImproveConversion Rates• Analyzecustomerbehavior toremove theobstaclespreventingtransactions.• Deflect costsfrom higher-cost channels(i.e., callcenter,branch, etc.)
  • © 2013 IBM Corporation© 2013 IBM Corporation35Payback in less than 3 MonthsResults Synthesized from 4 Customers:– Online Travel Agent– Leading Online Clothing, Shoes Retailer– Retailer of Automotive Accessories– Another Online Travel AgentThree-Year Risk Adjusted ResultsROI: 512%Payback Period: 2.6 monthsTotal Net Present Value: $7,633,214Source: A commissioned study by Forrester Consulting, “The Total EconomicImpact of Tealeaf’s Customer Behavior Analysis Suite.” July 2010Benefits Quantified in StudyIncreased Conversion Rate 3.5%Increased Average Order Value 0.5%Improved Retention Rate 1%Reduced Problem Resolution Time 60%Reduced Incidents (Project Avoidance) 10%Reduced Disputed/Fraudulent Chargebacks 0.05%Summary: 3-Year Risk-Adjusted ROI$(1,000,000)$-$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000Initial Year 1 Year 2 Year 3Reduction in chargeback transactionsReduction in IT costs for project avoidanceReduction in IT costs for problem resolutionIncremental revenue from improved retention rateIncremental revenue from increased order valueIncremental revenue from increased conversionTotal yearly costs for Tealeaf
  • © 2013 IBM Corporation© 2013 IBM Corporation36Empowering Customers across all Verticals
  • © 2013 IBM Corporation© 2013 IBM Corporation37Tealeaf UsabilityClick Heat MapDiscover where your visitorsclick on a page includingforms, links, images and textso you can optimize yourvisitor’s experience.Attention MapKnow where your users arespending most of their timefor a given page not just howfar they scrolled a page.Form Field AnalyticsOptimize each form increasingconversion rates and understandhow page and form conversion ratescompare, how long each field takesto complete and where users goafter completing.Link AnalyticsImprove conversion andengagement by identifying linksthat are clicked on more often.See how relative link placementcan affect your online goals
  • © 2013 IBM Corporation© 2013 IBM Corporation38http://www.ibmconnectedcustomer.com/deMarcel KusterSmarter CommerceLeader SwitzerlandIBM Switzerland Ltd.Vulkanstrasse 106P.O. BoxCH-8010 ZurichMobile +41 79 600 26 76marcel.kuster@ch.ibm.comwww.ibm.comFrédéric MilnetSmarter CommerceSeller RomandieIBM Switzerland Ltd.Chemin de Blandonnet,8CH-1214 VernierMobile +41 79 194 51 43frederic.milnet@ch.ibm.comwww.ibm.com