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Innovating the customer experience with smarter commerce versandhandelskongress 2009


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Speaker presentation on Innovating the customer experience with smarter commerce at the Versandhandelskongress 2009.

Speaker presentation on Innovating the customer experience with smarter commerce at the Versandhandelskongress 2009.

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  • 1. Innovating the Customer ExperienceHenrik von ScheelVice President,IBM Software Group © Copyright IBM Corporation 2009
  • 2. Delivering Smarter Commerce Today’s demanding customers  More knowledgeable  Active participants about products, costs, openly sharing and and price seeking consumer  More savvy about driven content technology and products/services  Proud of being an  Less loyal to any given individual and expects retail entity personalization and high customer service  Self-sufficient in every interaction and demands information to make smart decisions  Driven by three new currencies: time, value, and information Todays change — and even more so, tomorrows changes — will come from newly empowered consumers, who, by harnessing the tools that Web 2.0 technology affords them, can wield power and influence over retailers in a way never witnessed before – Gartner 20082 Source: IBM Institute for Business Value “Retailing in a World of Extremes” © 2009 IBM Corporation
  • 3. Delivering Smarter Commerce Technology is rapidly changing New Touch points New Interaction Models New Store Formats Innovation3 © 2009 IBM Corporation
  • 4. Delivering Smarter Commerce Delivering Smarter Commerce Errol Denger: Suppliers Fulfillment Data Back-end Legacy systems Resellers / Dealers POS Distributors B2B / Partners Retailers Kiosk Web B2B sites Customer procurement / Tele, mobile systems4 © 2009 IBM Corporation
  • 5. Delivering Smarter Commerce The European Market  European online revenue and demand has bucked the economic downturn. ↑ Growing broadband penetration ↑ Increasing consumer experience and comfort ↑ Increased confidence in online security ↑ Slight increase in European Online citizens ↑ Use of comparison sites is likely to increase as people seek low prices ↓ Macroeconomic confidence ↓ Consumer confidence ↓ Overall discretionary spending Sources: eMarketer, WSJ, Forrester5 © 2009 IBM Corporation
  • 6. Delivering Smarter Commerce Internet is mainstream in most European countries “How often do you go online?” (at least monthly) Netherlands 92% Sweden 86% UK 73% Germany 72% France 63% Spain 52% Three quarters of online European connect to the Internet everyday Italy 45% and spend on average over 10 hours a week browsing the Web EU-7 64% Base: 22,673 European Adults Source: Forrester’s European Technographics® Benchmark Survey, Q2 20086 © 2009 IBM Corporation
  • 7. Delivering Smarter Commerce The UK and Sweden are leading in adoption of online shopping. “Have you bought any products or services online in the past three months?” Germany and the UK UK 74% account for almost 60% of Europe’s Sweden 73% online shoppers 4.7m Netherlands 67% Germany 65% U 25m 8m France 56% 28m Spain 29% 16m Q2 2008 Italy 22% P LS V TLR 4.8m 5.6m EU-7 56% Base: 14,514 online European adults Source: European Technographics® Benchmark Survey, Q2 20087 © 2009 IBM Corporation
  • 8. Superior Shopping Experience 8
  • 9. Delivering Smarter Commerce Traditional Marketing View Traditional Demand Gen Commercials, Ads, etc Awareness Seek more info and determine personal needs Interest Consideration Browse/Research: Catalog, Web, Store, Discussions Purchase Purchase: Store, Catalog, Call9 © 2009 IBM Corporation
  • 10. Delivering Smarter Commerce New touch points and interaction models now define and fragment the customer journey10 © 2009 IBM Corporation
  • 11. Delivering Smarter Commerce Changing the way we market, build relationships, and deliver brand value Suppliers Fulfi llment Data Back-end Legacy systems Resellers / Deal ers POS Di stributors B2B / Partners Retailers Kiosk Web Customer procurement / B2B sites systems Tele, mobile11 © 2009 IBM Corporation
  • 12. Delivering Smarter Commerce Best Practices for Next Generation Marketing Successful brand experiences don’t happen by accident… they are carefully designed and executed What is your brand’s personality? Are your segments and personas actionable? Are you marketing across channels? –Marketing is cross channel: Web, Mobile, in-store, contact center Precision Marketing: • Experiences Are you responding to the right • + Conversations interactions? • + Relationships • = Affinity Test test test • …across all touch points Marketing budgets are shifting to interactive channels causing spend for interactive marketing categories to grow at 27% CAGR.12 © 2009 IBM Corporation
  • 13. Delivering Smarter Commerce Key Business and IT Strategies for Next 18 Months Source: RIS News, 200913 © 2009 IBM Corporation
  • 14. Delivering Smarter Commerce 80% of CEO’s believe 44% their brand provides of consumers a superior customer say the majority experience of their customer experiences are “bland” 8% of their customers agree Source: Bain & Company14 © 2009 IBM Corporation
  • 15. Delivering Smarter Commerce It’s an extension of the brand’s personality15 © 2009 IBM Corporation
  • 16. Delivering Smarter Commerce It’s highly personalized16 © 2009 IBM Corporation
  • 17. Delivering Smarter Commerce It’s Social17 © 2009 IBM Corporation
  • 18. Delivering Smarter Commerce It’s Social18 © 2009 IBM Corporation
  • 19. Delivering Smarter Commerce It’s Social19 © 2009 IBM Corporation
  • 20. Delivering Smarter Commerce It’s informative and personal20 © 2009 IBM Corporation
  • 21. Delivering Smarter Commerce It’s Innovative Building In-store Display Over the Web21 © 2009 IBM Corporation
  • 22. It drives action Experiences Rich B2B 22
  • 23. Delivering Smarter Commerce Best Practices for delivering a Superior Shopping Experiences  Embrace Web 2.0  Integrate Social Commerce  Extend the brand experience  Built on precision marketing providing targeted information and recommendations at key decision points throughout the purchase process (and across channels)23 © 2009 IBM Corporation
  • 24. Cross Channel Shopping 24
  • 25. Delivering Smarter Commerce Why cross channel retailing is more important than ever  The majority of online consumers are cross-channel Percentage of respondents who shoppers switched retailers by during cross – 53 % used the Internet to channel shopping experiences compare product features and prices 80% – 25 % did so from a mobile 70% device while in a store 62% – 1 in 10 sent text messages to 60% 52% % of Responses friends and family during 50% shopping trips 40% 37%  Connectivity will be a part of 30% 24% life 20% – Consumers will expect to 10% connect to anyone, at any 0% time, about anything, from Groceries App/Acc/Footwear Home Consumer Imp/DIY/Appliances Electronics anywhere  Superior operational model, especially in challenging Sources: IBM “2007 Was the Year of the ‘Omni Consumer’”; 2008 IBM Retail Multi-channel Study; Chart 1: n=978 UK respondents economic times25 © 2009 IBM Corporation
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  • 29. Delivering Smarter Commerce Worldwide mobile internet users are expected to grow by 191% from 2006 to 2011 to reach a “Billion” The millennial generation of “digital natives” are expected to drive up the demand for internet applications and e-commerce Worldwide Internet UsersUsers Mobile Mobile Internet 1200 By 2011, worldwide there will be about a billion users 1E 982.4 browsing internet over their 1000 to 201 6 2 00 mobile phone handsets: A om 800 th fr 757.1 191% growth over 2006 grow % 191 figures and a CAGR of 24% Millions 596.4 600 from 2006 to 2011 489.6 405.5 400 337.3 200 0 2006 2007E 2008E 2009E 2010E 2011E CAGR 2006-2011E : 24%Source: IBM IBV Research and Emarketer -29 © 2009 IBM Corporation
  • 30. Delivering Smarter Commerce Mobile internet usage will grow 39 percent in Western Europe in 2014 from 17 percent in 2008 At the end of 2009, mobile Internet penetration will reach 17 percent in Western Europe, the same level of adoption that PCs with Internet access had in 1999, which represents a critical mass.30 © 2009 IBM Corporation
  • 31. Delivering Smarter CommerceA Superior Shopping Experience now includes MobileCommerce as key touch point Messaging, alerts, promotions Provide personalized messages and (proximity, opt-in, loyalty) alerts to your customers: product specials, recalls, etc Customer id, personalized experience & offerings Demand Relationship Store Entry Generation Development Product or category Product level awareness & Affinity education Browsing In-store Multi-channelProduct customer customerinformation,product look-up, experience experience ProductIRC Browsing information, Consumer reviews Purchase Retail Customer Decision Integration Interactio Framework n PlatformCross-sell, up- Purchase Compare,sell, availability Decision Cross-sell/up- sell, availability Transact & Store locator Post Post- Transact -transaction transaction CCIS, Online In-store & online payment payment scenarios Warranty WISMO, Warranty services, services, digital digital receipt31 receipt © 2009 IBM Corporation
  • 32. Delivering Smarter Commerce Mobile Storefront “Certain customers were trying to Benefits access the website from a mobile device and weren’t able to perform all of the functions they wanted” Ravi Acharya, Director eCommerce at Sears Purchase Browsing Transact Decision32 © 2009 IBM Corporation
  • 33. Delivering Smarter CommerceSuperior brand experiences now include Mobile "Text me back with Rock, Paper or Scissors. I already know what Im throwing and if you beat me Ill add 100 S a v e 2 5 % o f f on e i t e m Moosejaw Points to your un t il M ar c h 1 2 t h . Ju st account now." mention coupon 95278 to t h e c a s h i e r . “The customer walks into the store and is encouraged to pull out their phone. Just like Mobile Campaign targeting when you walk into a museum loyal customers drove a and grab the headset and 69% opt-in rate resulting in player. The mobile device will 15% of net sales generated radically enhance the in-store by digital marketing during experience providing the same period consumer reviews, specs/stats, inventory status, And the buzz: and other key services.” I love that I can just walk in and get a book and always – Jeffrey Wolfe, COO have a coupon on hand now. Moosejaw Mountaineering Demand Relationship Demand Generation Development Generation33 © 2009 IBM Corporation
  • 34. Delivering Smarter Commerce Not to forget ROPPIS….. and role of SMS  “Thanks for your order. Your product is ready for pick-up at our XXX store. Please quote order reference 123456”  and many more Relationship Transact Development34 © 2009 IBM Corporation
  • 35. Delivering Smarter Commerce Halfords ‘Text and Reserve’  Car owner texts to Halfords a keyword, followed by reg. number ( “Headlamp Bulb R767 SBR”)  Vehicle model, engine size, body type etc established by Halfords, using registration lookup services  SMS message returned to the customer: – “Halfords recommends Halfords Super Brilliance Blue Bulb Single HBU4775BBH7, 802561, £22.99 for your PEUGEOT. Check stock in your nearest store by replying with your postcode.”  Customer sends postcode. Halfords assists further – “From Halfords. Your nearest store with product in stock is Redditch, 2.04 miles away. To reserve, reply YES to this message.”  Customer says ‘YES’. System processes request, sends reservation message to customer and to store warehouse system e.g. – "Halfords reservation ref 8601043751 – Order reserved at Redditch B98 0DE 01527 584488. Check for store opening hours.” Relationship Product Purchase Development Affinity Decision35 © 2009 IBM Corporation
  • 36. Delivering Smarter Commerce Best Practices in Cross Channel Commerce  Run all channels on the same platform to provide context and consistency from touch point to touch point – Web, Mobile, Contact Center, Kiosks  Support cross channel processes: Buy-Online Pickup in store  Mobile is early mainstream36 © 2009 IBM Corporation
  • 37. Business Innovation 37
  • 38. Delivering Smarter Commerce Operational Innovation Use drop shipping to reduce risk and cost effectively expand your portfolio38 © 2009 IBM Corporation
  • 39. Channel Innovation: Mazda hosts 700+ Dealer-specific Sites 700+ Mazda-branded Dealer SitesOEM Consumer 39
  • 40. Delivering Smarter Commerce Business Model Innovation: Ritz Interactive Extend your channel with strategic and affiliate partnerships40 © 2009 IBM Corporation
  • 41. Delivering Smarter Commerce Business Model Innovation: Sears Strategic Partnerships Arts Entertainment Music & Movies Books41 © 2009 IBM Corporation
  • 42. Delivering Smarter Commerce Incorporate Web Channel into strategic planning cycle Multivariate AB testing Consumer Content, Analysis and Mid-Cycle Assortment Shifts, Influencer Feedback Special CPFR, Influence Incentives Mechanisms Planograms Splash Screen Boomer Boomer Microsite Teen Teen Trends site Teen Microsite  Use the web and eCommerce to immediately identify new trends powering the next generation of micro-segmentation, responsive replenishment and mid- cycle assortment shifts – Target influencers, UGC, ID new segments  Responsive value chains42 © 2009 IBM Corporation
  • 43. Delivering Smarter Commerce Customer Interaction Platform Strategy Suppliers Fulfillment Data Back-end Legacy systems Resellers / Dealers POS Distributors B2B / Partners Retailers Kiosk Web B2B sites Customer procurement / Tele, mobile systems The WebSphere Commerce “Customer Interaction Platform”, enables companies to deliver a consistent, customer-centric experiences across multiple channels and touch points43 © 2009 IBM Corporation
  • 44. Delivering Smarter Commerce BACKUP44 © 2009 IBM Corporation
  • 45. Delivering Smarter Commerce Power Next Gen Interactions with Precision Marketing  Deliver automated, one-to-one merchandising and marketing based on shopper preference and behavior Triggers Actions  Empower marketers to build a dialogue with consumers by Mobile Social Promotions Mobile processing triggers and responding Commerce Precision with actions Marketing Engine Cross/Up Sell Point of Sale Order Browsing  Cross Channel Precision Marketing History Engine – Web, Mobile, Cross Channel Emaill Kiosk – Social Participation Personalization Search – Integrated with ecosystem – B2B “behavioral marketing” – Behavioral segmentation and personas45 © 2009 IBM Corporation
  • 46. Delivering Smarter Commerce Management Center for Business Users  Web activity – Control what displays in predefined e-Marketing Spots on the store pages  Dialog activity – Automate marketing actions based on the specific behavior of your customers over time46 © 2009 IBM Corporation
  • 47. Delivering Smarter Commerce SEO and Landing Page Optimization47 © 2009 IBM Corporation
  • 48. Delivering Smarter Commerce Cross Channel Dialog: Register and Order Customer Registers Places Order SMS Order Confirmation Thank you for your purchase. Your order # is 1372148 © 2009 IBM Corporation
  • 49. Delivering Smarter Commerce Cross Channel Dialog: Register and No Action Customer Registers Email Offer Wait one Thank you for your week registration. We’re49 running a special on ____ 2009 IBM Corporation ©
  • 50. Delivering Smarter Commerce Social Commerce: Reward Active Participation Change Banner $10 Off Next Order Add to Active Participant SegmentCustomer Writes 5 Reviews Send $10 Off SMS Coupon Thank you for your review. Receive $10 off next order 50 © 2009 IBM Corporation
  • 51. Delivering Smarter Commerce Optimize Cross Channel Interactions with Mobile Commerce  Mobile Store Model – Product Information / Availability – Order Status / Tracking – Store / Stock Locator – Shopping List – Mobile Marketing  Mobile Message Support (SMS)  Cross Channel Transactions – Mobile Transactions – Buy/Reserve on mobile, pickup in store  Integrated into Cross Channel Precision Marketing with support for Mobile triggers, actions51 © 2009 IBM Corporation
  • 52. Delivering Smarter Commerce Mobile Shopping Browse Catalog View Product Detail View Ratings & Reviews Compare Products52 © 2009 IBM Corporation
  • 53. Delivering Smarter Commerce Mobile Transaction Select Pickup Store & Search Products Add to Cart Checkout View Order Confirmation53 © 2009 IBM Corporation
  • 54. Delivering Smarter Commerce Optimize Cross Channel Processes  Buy Online and Pickup In-store (BOPIS) – Or Reserve Online and Pay/Pickup In- store  Endless Aisle – Buy out-of-stock items in-store and ship to home  Distributed Order Management (DOM) Integration – Store inventory visibility – Order transfer, inventory allocation, and status update54 © 2009 IBM Corporation
  • 55. Delivering Smarter Commerce Optimize theCustomer Experience55 © 2009 IBM Corporation
  • 56. Delivering Smarter Commerce Rich Customer Centric Experience with new Web 2.0 Store B2C Madison Store  New B2C and B2B Store Models  Merges both traditional Web 1.0 and 2.0  Integrated Social Commerce  New Web 2.0 Widgets B2B Elite Store  B2B Operational Support  Search engine optimization improvements  Performance Improvements56 © 2009 IBM Corporation
  • 57. Delivering Smarter Commerce New B2C Web 2.0 Store Scrolling e- marketing spot57 © 2009 IBM Corporation
  • 58. Delivering Smarter Commerce Enhanced Category Page, Quick Info and Cart Mini Shop CartFacetedSearch Quick Info58 © 2009 IBM Corporation
  • 59. Delivering Smarter Commerce Integrated Social Commerce Taps into his Facebook network of fellow Office Managers for their insight Oliver is shopping for an office espresso machine Asks Community if this is a good machine for office use59 © 2009 IBM Corporation
  • 60. Delivering Smarter Commerce Integrated Social Commerce  Product ratings & reviews via – Bazaarvoice API-level integration  Forums and blogs via – Lotus Connections and Pluck integration – Integrated Product and Category blogs – Social Profiles (Public user profile) – Photo and Video Gallery – Forum / threaded discussion support  Vendor-agnostic integration via WebSphere sMash applications60 © 2009 IBM Corporation