Digital Shopper Relevancy - Dreamforce

All-Channel
Experience
Being Relevant to Digital Shoppers
in Retail and Consumer Goods

DREAMFORCE 2012

Agenda

 Digital Shopper Relevancy
Profiting from the All-Channel Experience

Kees Jacobs, Capgemini
Brian Girouard, Capgemini
 Capgemini Client Example: Cycle 30
A Telco provider going eRetail
Wendy Gonzalez, Cycle 30

 Social Media Engagement
“Acquire to Inspire”
Rohit Kapoor, Capgemini
 How to be Relevant ?
The Myth of All Channels
Kees Jacobs, Capgemini
Brian Girouard, Capgemini
Digital Shopper Relevancy | July 2012

© 2012 Capgemini. All rights reserved. 2

Digital Shopper Relevancy
Profiting from the All-Channel Experience

Digital Shoppers* Weave In and Out of Multiple Channels
During the “All-Channel Shopping Journey”

Shoppers are no longer loyal to an individual channel but rather to an experience across all channels
(*) shoppers who use one or more digital channels in one or more phases of their journey



10 Years + 34,000 Consumers + 18 Countries =
Countless Insights Into Shopping Behavior

Consumer Relevancy 2002 Future Consumer 2007 Digital Shopper Relevancy

16,000 Consumers 2,000 Consumers 16,000 Consumers
9 Countries 4 Countries 16 Countries



16,000 Consumers in 16 Countries

Sweden Finland

UK
Russia
France Germany
Canada

USA Spain
Italy Turkey China

Mexico
India

Brazil

Australia

The Objective: To understand how a range of channels and devices are used and valued by shoppers
during the All-Channel Shopping Journey



Looking at the Different Dimensions of Digital Shopping Behavior

Shopping
Journey
Phase

Market Digital
Maturity Channels

6 distinct segments
of digital shoppers
with specific behavior
and preferences
in their digital
shopping journeys

Product
Category
Shopper
Demographics
Attitudes &
Expectations



Segment 1: Techno-Shy Shoppers

1
Techno-Shy Shoppers
Passive attitude to technology
Digital channels not important
Only little recent online shopping
Prefer personal contact

Bought online during last six months



Segment 2: Value Seekers

2
Value Seekers
Price-Sensitive,
Looking for best deals
Fashion & Personal Healthcare
More women than men




Segment 3: Occasional Online Shoppers

3
Occasional Online
Shoppers
Fewer online transactions
Use digital for choosing & tracking
Better educated, majority > 45 yrs




Segment 4: Rational Online Shoppers

4
Rational Online Shoppers
2nd most active segment
Know what they want
Fashion & Electronics
Less interested in social & mobile




Segment 5: Digital Shopaholics

5
Digital Shopaholics
Highest rate of online purchases
Heavy use of digital thru Journey
Social, share opinions
Expect fully integrated experience
Men, working full time, educated




Segment 6: Social Digital Shoppers

6
Social Digital Shoppers
Frequently shop online, but
purchase < avg in most categories
Social media, smartphones,
identification are important
Young & from developing markets




Developing Countries Have a High-Degree of Digital-Savvy
Shoppers
Dominant in
developing
markets

43% are
“Digital
Savvy”

Smallest
segment, but
relatively big in
Spain, France &
Germany

Value



The Internet Remains the Most Important Enabler of the
All-Channel Shopping Journey

Internet sites 3.90

E-mail (such as newsletters, offers) 3.57

In-store technology (such as kiosks) 3.32

Social media 3.02

Smartphones (specific apps) 2.87

Phone (via call center) 2.79

1 2 3 4 5

Source: Capgemini
Ranked on a scale of 1 to 5 where 1 = not at all important and 5 = extremely important

Separating hype from reality is critical for social media and smartphone apps



Women are More Engaged Than Men When Using Digital
Channels. They are More Interested In:

Receiving personalized offers and recommendations; this is the case
across all countries

Receiving inspirational content through digital channels (such as “how-
to” videos)

Finding out about new products in blogs, receiving messages and offers
from retailers based on location, and in participating in online
communities provided by retailers.

Using digital devices inside the physical store to order products that are
not available in the store.

Comparing different products before making the final purchasing decision
and being offered visual aids to help them choose the most suitable
product.
Source: Capgemini, Digital Shopper Relevancy, 2012



Digital Channels Likely Increase the Amount Spent In Stores for
50%+ of Digital Shoppers

I am likely to spend more at the physical store if I have used digital I am likely to spend more with a retailer if their services are available at
channels to research products before going to the store any time via any channel

The Social Digital Shopper The Social Digital Shopper

The Digital Shop-a-Holic
The Digital Shopaholic The Digital Shopaholic
The Digital Shop-a-Holic

The Value Seeker
The Convenience-Seeker The Convenience-Seeker
The Value Seeker

The Occasional Online Shopper The Occasional Online Shopper

The Rational Online Shopper The Rational Online Shopper

The Techno-Shy The Techno-Shy

1,0 2,0 3,0 4,0 5,0 1,0 2,0 3,0 4,0 5,0

Over half of consumers are likely to spend more money in physical store, if they have used
digital channels to research products beforehand.
1=strongly disagree, 5= strongly agree



Most Digital Shoppers Expect Major Changes in All-Channel
Experience In Future

Half of all consumers expect that by 2020 I expect that by 2020 most physical retail stores will just be showrooms to select and
order product, and the delivery will be done separately at my convenience
most physical retail stores will just be
showrooms to select and order product
"The Social Digital Shopper"
“The Digital Shopaholic”
The Digital Shop-a-Holic"
“The Value Seeker”
"The Convenience-Seeker"
"The Occasional Online Shopper"
"The Rational Online Shopper"
Roughly 80 % of Social Digital Shoppers and
Digital Shopaholics expect to see fully The Techno-Shy"
transformed role of physical stores by 2020 0% 20% 40% 60% 80% 100%

Positive indication Neutral indication Negative indication

I expect my favorite retailers to provide seamless integration of their online, physical
and mobile shopping experience by 2014
Roughly 30-40 % of the traditional segments
are more doubtful about the pace of digital "The Social Digital Shopper"
development of shopping experience The Digital Shop-a-Holic"
“The Digital Shopaholic”
“The Value Seeker”
"The Convenience-Seeker"
"The Occasional Online Shopper"
"The Rational Online Shopper"

56% of global consumers expect seamless The Techno-Shy"
integration of multichannel shopping 0% 20% 40% 60% 80% 100%
experience by 2014
Positive indication Neutral indication Negative indication



Digital Shopper Relevancy in Action
via the Salesforce.com Platform


Capgemini invites you to view any of our 3 demos

Booth 601
All-Channel Social
Experience Clientelling

Loyalty
Management



Capgemini Client Example: Cycle 30
A Telco provider going eRetail

Cycle30’s Online Ordering Project
OVERVIEW

• Cycle30 : provider of “Order-to-Cash” capabilities for telco
companies
• Capgemini engaged as Systems Integrator for its new Force.com-
based platform.
• Initial roll-out at GCI (Alaska-based Telecommunication company)

CHALLENGE SOLUTION VALUE

• Cycle30 to provide a “next generation” • Cycle30 identified Force.com as • Quick go to market – the Online Ordering Site went
platform in support of GCI‟s iPhone the platform for the online ordering live in 4 months.
offering (with online expansion into both site.
urban and rural Alaska). • Ability to scale without investments in additional
• The online solution as well as the Hardware or Software.
• GCI required an online ordering system backend master data
to enable its wireless customers order management applications are built • Expanding consumer base by reaching out to remote
Phones, Accessories & Plans quickly. using Force.com Platform, & customers who did not have access to GCI retail
Force.com Sites. stores.
• GCI required the capability of
understanding website visitor navigation • Integrated with a Payment • True channel ordering experience via Web channel
& behaviour. Gateway, Credit Check vendor and consistent with Call Center & Store
Billing system.
• A site and services that cater to a wide variety of
• Deemed secure by an external digital shopper segments
Security Auditing Agency.
• Improving CSR efficiency by enabling them to focus
on order fulfillment rather than order capture.

GCI's Online Ordering Site is a one of its kind Telecom eCommerce site built on Force.com platform.
It is aligned to Cycle30's strategic direction of offering Cloud based Telecom solutions to its clients.
Salesforce.com Confidential

Dynamic Plan & Feature Selector

Key Features
• Intuitive, step-by-step process for ease of ordering.
• Styling aligned to GCI’s corporate style guidelines.
• Information rendered dynamically based on selected handset.
• Dynamic Plan rules to included gratis plans and features.
• Ability to change selection at any point of ordering process.

Checkout Process

Key Features
• Simplified checkout process, with ability to navigate back, giving more control
to the consumer.
• Ability of Porting In numbers from other carriers.
• Frontend validations to assist correct information entry.
• Backend validations & rules for adhering to key business processes.

Master Data Administration

Key Features
Note: Records for representative purpose only. Non
• Administration Module with ability of real time update to Online Site (Price, production data.
Availability, etc.)
• Ability to schedule device, accessory, plan & feature visibility on online site.
• Access from within GCI’s corporate network.
• Can store device & accessory images
• Audit history for capturing any change to the master records

Solution Overview
Force.com Sites based
GCI Website
e-Commerce Website

Consumer

Order
Confirmation
Order & Lead
Email
Management &
Custom Reports
Campaign
Monitor Force.com Platform
(Bespoke eCommerce Business
Process Logic)

Payment
Gateway
MULE ESB
Credit
Check Business Users
Gateway (Customer Support Reps)
Kenan Billing System

Social Media Engagement
“Acquire to Inspire”

Social Media Monitoring: GCI

5,688 posts about GCI
were monitored from
August 11th to September
11th

“(…)Well time to ditch
“$#&3w GCI I want to ACS and sign up for new
switch to direct tv” company now, So long
ACS, GCI i'm on my way.”

“I really need to call GCI
“No local phone at home
and get cable soon. Cuz
for 3 days now. Thanks
going to buffalo wild wings
GCI!!!”
every Sunday is gonna get
expensive.”



Retail Gift Cards Example

Objective
• Are there any conversations about our products in Social
Media?
• What are these conversations about?
• Who are the people talking about us?
• What can we do to address them?



Social Media Respond

High Level Process
Twitter, 1
Facebook,
Blogs, 1. Collect Data/Conversations
YouTube, 2. Filter out Noise
etc. 3. Identify types of conversation
4. Build scenario based response model
5. Implement model
6. Continuous improvement cycle for responses with SMEs.

2 Identify and 3 Scenario-
4 5
Filter out Classify based Respond
the Noise Conversations Priorities and to
– Map to Response Customer
Decision Tree Selection

6
Client
SME



1 Capture - Data and Noise Overload

Introducing new Elements to the Mixture of Customer Communication
Capture Conversations across all platforms and sites
"I had purchased a gift
card and the recipient
never received it" “It was an issue of Q, of
the cartridge”

“Unfortunately none of the
cards that I shipped
arrived on time.”

"The kids tried to use their
cards and had them
rejected"

“The X card customer
service is so rude"
Ore. Wind farms seek
end to shutdowns, the
wind companies want to
Z card. “Just the best service at
Card Q”

Do we Z card &
electricity! This is what
D
we deal with every day “Card Y doesn't provide
shipping info online so
there's no way to track it."



2 Capture & Filter out the Noise

With a “tools only” approach, volume averaged at 284 daily posts, but
after our filtration process the average came down to 24 per day of
highly relevant conversations.

16
Brand X 14 Brand X
Card Card
Number of posts 000s

12
10
8
6
4
2
0

15-mei
17-mei
19-mei
21-mei
23-mei
25-mei
27-mei
29-mei
31-mei
02-jun
04-jun
06-jun
08-jun
10-jun
12-jun
14-jun
Do we X power and electricity? ~Sarah Hitchcock This is Never buy a visa giftcard from X they steal 6 dollars off
what I deal with daily! your balance a month what a joke #unethical #stealing

Ore. wind farms seek end to springtime shutdowns: The
why cant X be used for legal online gambling? smh.
wind companies want Bonneville to X power generators
misleading, it does say it can be used online!
out... http://bit.ly/kJmleW



3 Decision Tree

 57 Types of conversations
Posts  5 Levels of Decision Tree
 9 Types classified as Severity One

Who is posting?

Current Customers

What is their sentiment?

Positive Neutral Negative

Customer Customer Customer
Products Products Products
Service Service Service

No
Engagement SM Agent Engages Process Flow
Required



4
Convert Data Overload to Actionable Insights
5

Negative Positive

"I had purchased a gift
card and the recipient
never received it" “It was an issue of Q, of Customer Customer
the cartridge” Products
Service Service

“Unfortunately none of the Acquired Product Delivery Provided Solution
cards that I shipped
arrived on time.” "I had purchased a gift “Unfortunately none of “Thanks, that fix worked,
card and the recipient the cards that I shipped glad to refill my card"
"The kids tried to use their never received it" arrived on time.”
cards and had them
rejected" Product Use Provided Solution Quality of Service
“The X card customer
service is so rude" "The kids tried to use "I have faxed a “Just the best service at
their cards and had complaint and they card Q”
Ore. wind farms seek end
them rejected" never responded"
to springtime shutdowns:
The wind companies want
Bonneville to Z card “ Quality of Service
“Just the best service at
card Q”
"Their customer service
Do we Z card and is so rude"
electricity? ~Sarah
Hitchcock This is what I Channel
deal with daily! “Card Y doesn't provide
shipping info online so Orientation
there's no way to track it." “Card Y doesn't provide
shipping info online so
there's no way to track
it."



Typical Radian6 Enabled Process

Filter the Posts

Apply
Decision Tree

Map to Scenario
based Model


Compelling Outcomes

• 100% engagement of all product related and customer service related issues.

• Average response time improved from 43hrs to 4.5 hrs.

• Due to the engagement volume is growing at a rapid 22% month over month.

• 15%-20% of these conversations were negative in nature, with a potential to
significantly impact the brand. Post engagement it has dropped to less than 5%.

• 70% of the conversations revolve around Product transaction issues – Insights
leading to process improvements for transactions.

• Identified key influencers in unknown or new market segments that could generate
new revenue streams.

Capgemini provides excellent customer service on social media to
our consumers who purchase gift cards. The listening and
monitoring services have helped us understand our customers
better and address their needs.
Sr. Director of Customer Service



How to be Relevant?
The Myth of All Channels


Digital Shopper Relevancy Requires Thorough Understanding of
Customer Needs and Perceptions Across 5 Key Attributes

Access Experience Price Product Service

• Easy to reach stores • Friendly and clean • competitive pricing • Wide and deep • Customer Service
store assortment
• Complaints Handling
Traditional • Easy to navigate
• No damaged goods • Compelling • Freshness/ Quality • Return policy
stores
Relevancy in store promotions
• Availability • Loyalty program
Criteria for • Maximum opening • Inspirational (no stock-outs)
Physical Channels hours Atmosphere

“Making it “It is All About Your “Lowering Your “Better Stuff, “Whatever it Takes
Easy for You” Experience” costs “ Better Life” For You”

• eCommerce (mobile, • Inspirational • Dynamic Pricing • Wider and deeper • Personalised offers
Additional social, web) Content assortment
Relevancy • Location-based • Technology-enabled
Criteria for • Flexible delivery- • Community pricing • Advanced /visualised staff -support instore
options ( home, store- engegements product information
Digital Channels pick-up etc) („share • Personalised Pricing and (usage) advice • Interactive service via
experiences‟) digital channels (eg
• Mobile instore • Solution Pricing • Product Comparisons click-to-chat, social
Shopping support • Social Shopping media)
• Price Comparisons



How Can You Be Most Relevant to Digital Shoppers?

Illustrative
2. Differentiate on a compatible
1. Dominate on one value attribute
value attribute

3. Maintain parity on others

5
4
3 3 3

Access Experience Price Product Service

Successful companies dominate on one attribute, differentiate on a second and compete
at parity on the remaining three



Understand how Digital Shopper Behavior/Preferences Relate
to Your Positioning and Digital Performance
Illustrative
Understand different shopper attributes Identify most relevant Understand your current position and
shopper segments digital performance
Distribution in country / market Digital Shopper Relevancy Your current positioning & objectives
Consumer Segments Consumer
Strategic objectives
relevancy attributes
1
Demographics • Move clients to the store.
Ease of Access
The Value-Seeker • Convey the proximity concept.

• Develop private label brand image.
Product
2 • Develop image of Fresh Products.
The Occasional
Online Shopper Price • Help clients to obtain savings.

Social
Consumer Relevancy Attributes 3 • Ease the buying process.
Media Service
The Rational Secondary • Enable new ways to redeem coupons.
Experience
Price
Service
Online Shopper segment
• Get closer to the to consumer habits.
Ease of Access Experience
• Develop global brand image.
Product 4
The Digital Key Your current digital performance
Customer Journey

Channel Behaviour & Preferences Shop-a-Holic segment Awareness Choose Transact Deliver After Sales
Enablers Level of Development
Global1 Global Global Global Global

Online Social Online R2C Next Day
Loyalty Card Returns
Networking Advice Delivery

5 Catalogue
Online C2C
Advice
Gift Card
Time Slot
Delivery
M–C Query/
Complaints

The Social Digital Key Direct
Promotion
Online Product
Visual
Social Network
Transact
Delivery
Location Flex

Shopper segment Online/ Mobile
Product Search
Online
Availability
Indicator
Contact Centre
Transact
Click n Collect
in store

Online
Mobile Delivery
comparison Kiosk Transact
Commerce Tracking
Management

Mobile Phone Service at

6
Contact Centre Mobile Transact
Marketing Delivery

In-store Digital In-store Device Above average / Best in class
Display Transact

The Techno-Shy Online Size
Guides
On average

Below average

Store Cross-
Selling Average = Best in class level
1) Global: Global standard level of development



Superior execution starts with putting the consumer in the center
and building capabilities to deliver an All-Channel Experience
Put the Consumer at the center
Relevant
Personal
Engaging
Truly all-channel

Grow the All-Channel Experience

2011 – H1 2011 – H2 2012 – H1 2012 – H2
Accelerate revenue
MED MED MED
Mobile Web
HIGH HIGH HIGH
Mobile
Coupons MED MED MED
Location Based
MED MED MED
Augmented
Reality Game
Future State

De-risk the new business
Mobile Presence

Factory Services LOW MED LOW
HIGH HIGH HIGH HIGH HIGH HIGH
Mobile Mobile Google Earth

MED MED MED
Mobile App
Factory
Ticketing Compensation

Business
Process Mgmt
MED MED MED
Group
MED MED
Profiling
Enhancements
Enterprise
LOW

MED MED MED
Facebook
A future proofed platform
Service Service Game

Enhanced customer experience
Management Reusable Portal

Define and Build the required
Integration LOW LOW MED
LOW MED LOW LOW LOW LOW Facebook
Identity & Widget Ticketing
MDM Access Mgmt Factory
HIGH HIGH MED LOW LOW LOW
Bid-Based Strategy, Tools
Capacity Mgmt Integration

Capabilities
Current State

Strategic Foundations Web Presence Social Network Presence
Target Model
Diff Cost Time Enabler

Employee Social Public Social
Consumer Interaction
Network Network
Phased and controlled Consumer Management
Commerce Management
approach
Collaborate Consumer
Social Customer Profile Mobile
Apps

Supply Chain/
Financials
Social Enterprise
for Retail
Social
Shoppping Operations Management
Listen & Awareness Choose Transact Deliver After Sales Care

Social Engage
Web
Clienteling
Social
Customer Marketing &
Service Store Loyalty Mobile
Operations
Instore

Etc…
Customer Social Network
All-Channel Experience Management

Integrated & Flexible IT All-Channel All-Channel All-Channel
Digital
Content
Management
Customer Commerce
Management Management
All-Channel
Distribution &
Operations
Management
All-Channel
Customer
Service
Management
All-Channel
Sales &
Performance
Management

Services Platform Single View of Data

“powered by Saleforce.com” Demand Driven Business Operations



Conclusion and Q&A




Shoppers are no longer loyal to an individual channel but rather to an experience across all channels

?? ??
?? ??
You should be clear on your Digital Shopper Relevancy:
where to dominate, where to differentiate and where to compete at parity



Please contact us when you are interested in the Digital
Shopper Relevancy report and/or the demo

Kees.Jacobs@Capgemini.com

Brian.Girouard@Capgemini.com



About Capgemini
With more than 120,000 people in 40 countries, Capgemini is one
of the world's foremost providers of consulting, technology and
outsourcing services. The Group reported 2011 global revenues
of EUR 9.7 billion.
Together with its clients, Capgemini creates and delivers
business and technology solutions that fit their needs and drive
the results they want. A deeply multicultural organization,
Capgemini has developed its own way of working, the
Collaborative Business ExperienceTM, and draws on Rightshore ®,
its worldwide delivery model.
www.capgemini.com

The information contained in this presentation is proprietary.
It is for Capgemini internal use only.
Rightshore® is a trademark belonging to Capgemini.
© 2012 Capgemini. All rights reserved.

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