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Meeting the Customer Experience in New Age of Retail

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  • CX is top of mind for retailer a the balance in the buyer-seller relationship has tilted in the favor of the former. In fact a research by Harris Interactive ha found that 86% of consumer are willing to pay more for a better customer experience.
  • Your business can’t afford to miss a beatA forrester study found that 10% point increase in CX translates into $2.2B in revenue across industries
  • The face of retail is changing driven by a nexus of trends mobile, social and cloud. Today experience happen anytime, anywhere, all day every day.The volume, variety and velocity of data is overwhelming retailers.
  • The challenge facing retailers today is to affect the moments of interaction across multiple channels
  • This fundamentally requires the ability to Market, interact, transact & service customer across online, mobile and in-store channels.
  • The pursuit of multi-channel customer experience is far from over.Cite the bubble that mentions “Click to Chat” and the bubble that mentions “promotions”.
  • 50% of customers not satisfied with cross channel experience (Forrester)59% of multi-channel customers switch vendors after a single bad experience (Gartner)Poor customer experience results into revenue lost to defections and abandoned purchases$83 Billion for enterprises in the US annually$23 Billion for UK enterprises in the UK annually$338 Billion for enterprises in 16 key global economies
  • In a study conducted by Jupiter Research, nearly 1/3 of the dissatisfied online shoppers attributed their dissatisfaction to the website being too slow. Clearly website performance is a critical aspect of customer experience.
  • Your business can’t afford to miss a beat
  • So how are your business applications keeping up?Are you suffering from common problems like:Customers waiting for your Web site to respond?Orders fulfilled too slowly?Missed market opportunities?
  • So what does it take to deliver applications successfully?Our extensive experience with applications shows that it comes down to 3 things… (see slide)(runtime excellence means performance, scalability, availability)
  • Looking more deeply at the Oracle retail business solutions that contribute to your experience platform…Oracle offers best-in-class applications to power all customer touch points including your stores, your web site and your call center, …all core retail business processes such as merchandising, marketing, and supply chain, as well as corporate administrative processes such as HR, Finance, and Real Estate. We have taken these best-in-class applications and built into adaptable processes that are oriented towards serving the cross-channel consumerThese processes are enabled by a core retail foundation, e-commerce, and cross-channel management capabilities that ensure synchronization and one version of the truth……and they are infused with science and in-context business intelligence to enable better customer understanding, targeting, and operational decisions.We wrap these solutions in a compelling business user interface…and we can deliver them to retailers on a single technology stack. We’re the only company that provides end-to-end, apps to disk solution. Only Oracle provides the middleware layer.We have designed our solutions to span across consumer touchpoints, to power your all phases of the business process from planning to execution, and back through to corporate administrative processe. We have infused all our solutions with science and business intelligence, and built them in a way that lets them all inform each other,. We are able to help retailers scale modern retailing strategies and help connect functional areas in retailer organizations. As a result, data analysis and decision making all become much more manageable, accurate, and fast.We wrap all of our solutions in an intuitive business user experience, so employees are presented information and workflow in a manner that makes working with these complex processes more straightforward.And based on how we give the processes we power access to science and a core foundation of common data to work with, we are able to help retailers inform these processes and decisions with customer insight, and rapidly act on these insights…and by making this offering available on a single technology stack, we ensure that these solutions work togetherTransition to next slide: And we are constantly innovating and evolving our solutions with ongoing support and investment from the wider Oracle corporation.
  • The systems is fully integrated – which means all hardware and software components are:(see slide)
  • These are the goals that we set out to deliver with Exadata.(see slide)
  • These are the goals that we set out to deliver with Exalogic.(see slide)
  • What we’ve seen since the introduction of Exalogic, is that many of our initial customers were Exadata customers that loved the simplicity and performance of an Engineered System and were looking to use Exalogic and Exadata together. Even today, many of the customers that are interested in these systems buy them jointly for the superior results they can deliver together.These are some of the results we’ve seen: (see following slides)
  • Here we see a comparison of a Do It Yourself Integration versus Engineered SystemsIf you were to do this yourself it would require hundreds of components, tens of servers, months to deploy and costly to integrate and test and would likely have unpredictable results.On the other hand, engineered systems is a single optimized platform, 2 servers can be deployed in weeks and is pre-integrated and tested. Oracle Exadata and Exalogic is our strategic development platform. The Do It Yourself scenario has become very cumbersome and costly for many customers. Retailers want a platform that will grow with them.
  • At a high level Retailers challenges are like other businesses, drive revenue up and keep costs down. However, you have unique challenges which we have broken out into three areas; Connected Interactions – where conversion rates and providing and satisfying omni channel experience for your customer is critical to increasing revenue. As we all know, consumers are connected 24/7 and have high expectations and demand more from retailers.The next area is Optimized Operations where you can drive down costs by reducing stock, streamlining your return process and improving customer service.Lastly, you are challenged with analyzing massive amounts of data and turning this into Actionable Insight. We have organized this presentation into these 3 topic to highlight how Oracle’s engineered systems address these business challenges. Just as Retailers have unique business challenges you also have unique IT challenges.
  • Left Side:Exalogic features for highly scalable transaction management - Addresses retailer needs for seasonal peak processing loads.Exadata features for speed of execution data management - Handle volumes of transaction data (sales, shipments)Right side:Exadata features for speed of thought analytics - Deeper and broader use of analytics
  • Oracle is constantly running benchmarks for major business applications on ExalogicThese are scalability results – transactions per time unit (higher is better)
  • Oracle is constantly running benchmarks for major business applications on ExalogicThese are scalability results – transactions per time unit (higher is better)
  • To measure the business value of CX we need to measure the impact of CX in terms of Customer Acquisition, Retention and Efficiency.
  • For instance, we can measure the impact of improving CX on improving Customer Acquisition by measuring the increase in traffic, the increase in conversion rate and the increase in Average Order Value.Likewise, we can measure improvement in retention through increase in Customer Satisfaction index, Customer Experience scores and Net Promoter Score.
  • Let’s look at an approach to measuring the tangible business impact of running commerce applications on Oracle Engineered Systems.By embracing Oracle Engineered System the retailer decreases the online abandonment rate due to reduction in outages and faster application response-time.The decrease in online abandonment rate translates directly into an increase in the conversion rate.Note: If we do the math, follow each row from left to right.
  • Adoption of Exadata since 2008, and Exalogic since 2010, when these products were introduced, has simply been phenomenal.
  • Customers are in control of your – brand. Customer experience is more important now – since customers can endorse or defect with the click of a mouse.
  • For additional information, I recommend that you:Join the community on these social networks… (read from slide)And check for updates on the Engineered Systems web page.
  • Transcript

    • 1. Meeting Customer Expectations in the New Age of RetailDan Conway, Senior Product ManagerKelly Goetsch, Senior Product ManagerSanjeev Sharma, Principal Product Director
    • 2. of consumers will 86% PAY MORE for a better Customer Experience.**Source: Harris Interactive Customer Experience Impact (CEI) Survey, September 2011
    • 3. CUSTOMER EXPERIENCE BOOSTS REVENUE REVENUE10% point increase inCustomer Experience Index = $2.2B Source: Forrester Research, “Customer Experience Boosts Revenue”, Bruce Temkin, June 22, 2009 *The increase in revenue include that from Additional purchases, Churn reduction and Word-of-mouth advocacy
    • 4. mobileBy 2014, the web will socialdirectly account for 8% of Mobile commerce willU.S. retail sales and influence local reach $31 billion by 2016*53% of consumer purchases* Experiences happen anytime, anywhere, all day, every day *Source: Forrester Research, 2011
    • 5. How do you affect theMoments of Interaction?
    • 6. MARKET, INTERACT, TRANSACT – ACROSS TOUCH-POINTS Online On the Go In the Store
    • 7. MUTI-CHANNEL CUSTOMER EXPERIENCE UTOPIA! “Why can’t I order an item “Wouldn’t it be nice if they online and pick it up at my rewarded me for my local store?” business?” Mobile Web “When I clicked the “Chat Store Mail “Why can’t I check my orderNow” the agent had no idea of status from my phone? what was in my shopping Acme lets me.” cart?” Call Center Partner “When I go online, I can’t easily find what I need. Its too complicated to find what’s best @ “The promotions I receive are relevant. Once they sent me a Email Social coupon after my purchase?” for me.”
    • 8. Frustrated Customers Lead to Lost Revenue, Loyalty and Share of Wallet CUSTOMER FRUSTRATION LOST REVENUEPercentage of customers dissatisfied with cross-channel experience1 Revenue lost by enterprises in 16 key global $338 Billion economies due to customer defections andPercentage of multi-channel customers that switch abandoned purchases 2vendors after a single bad experience Revenue lost by enterprises in 16 key global economies due to customer defections and abandoned purchases 2
    • 9. Website Performance Critical to Customer Experience 33% of dissatisfied online shoppers attributed their dissatisfaction to the Web site being too slow
    • 10. YOUR BUSINESS CAN’T AFFORD TO MISS A BEAT CUSTOMER SATISFACTION CONVERSIONS1 second delayin page load time = 16% 7%
    • 11. ARE YOUR COMMERCEAPPLICATIONS KEEPING UP?
    • 12. WHAT DOES IT TAKE TO DELIVER APPLICATIONS SUCCESSFULLY? EASE OF DEPLOYMENT AT LOW COST RUNTIME EXCELLENCE BUILT ON OPEN STANDARDS INTEGRATED MANAGEMENT12 Copyright © 2011, Oracle and/or its affiliates. All rights Insert Information Protection Policy Classification from Slide 8 reserved.
    • 13. ORACLE FOR RETAILMerchandise Marketing & LoyaltyPlanning & Optimization service plan Store OperationsProduct Development, ManagementSourcing & Manufacturing fulfill makeMerchandise Operations E-CommerceManagement sell buy Business Intelligence &Supply Chain Planning & market move AnalyticsOptimizationSupply Chain Execution Corporate Operations Operating Virtual Middleware Database Servers Storage System Machine
    • 14. Engineered Solutions for Retail STRATEGIC OBJECTIVETo deliver optimal solutions necessary to addresschanging industry requirements and processingdemands, retail IT shops need to create a data centerinfrastructure that is complete, open and integrated at alllevels from the applications to the server/storagehardware. Oracle’s vision is to create hardware andsoftware that is ‘Engineered to Work Together’. 14 Copyright © 2011, Oracle and/or its affiliates. All rights Insert Information Protection Policy Classification from Slide 8 reserved.
    • 15. ORACLE ENGINEERED SYSTEMS STRATEGY Engineered to work together • Tested together • Certified together • Packaged together • Deployed together • Upgraded together • Supported together • Managed togetherOptimized Engineered
    • 16. ORACLE EXADATA DATABASE MACHINE FASTEST FOR OLTP, DATA WAREHOUSING & MIXED WORKLOADS BEST COST/PERFORMANCE BEST DATABASE CONSOLIDATION PLATFORM SCALES FROM ¼ RACK TO 8 FULL RACKS
    • 17. ORACLE EXALOGIC ELASTIC CLOUD EXTREME PERFORMANCE FOR JAVA APPLICATIONS EXTREME PERFORMANCE FOR ORACLE AND OTHER BUSINESS APPLICATIONS SIMPLIFIED MAINTENANCE BEST CONSOLIDATION PLATFORM
    • 18. EXALOGIC AND EXADATA WORKING TOGETHER Typical 5X OTLP Performance Gain Exalogic ExadataHIGHEST LEVEL OF SERVICE IN THE INDUSTRY WITH ORACLE PLATINUM SERVICES
    • 19. ENGINEERED SYSTEMS IMPROVE TIME TO MARKET Network Do It Yourself Systems Integration Oracle Engineered Systems Hundreds of components Single, optimized platform 10s of servers 2 servers Months to deploy Weeks to deploy Costly to integrate and test Pre-integrated, pretested Unpredictable product lifecycles Oracle’s strategic development platform
    • 20. ENGINEERED APPROACH TO CUSTOMER EXPERIENCE Drive Up Revenue Omni-Channel Support Expedited Transaction Times Connected Conversion Rates Interactions Aligned Supply and Demand PROFIT Improved Inventory Management Optimized Accurate Real-Time Sales Operations Meet Peak Business Demand Actionable Insight Price and Promotion Execution Drive Down Costs
    • 21. ORACLE’S SOLUTION FOR CUSTOMER EXPERIENCE Speed of Execution Highly Scalable Speed of ThoughtData Management for OLTP Transaction Management Analytics for OLAP Big Data Appliance Exadata FAST FAST Infiniband ATG – Web Commerce Infiniband Retail Analytics Retail Merchandising Suite Retail Data Model EXADATA EXALOGIC EXADATA Oracle RDBMS Weblogic - Coherence Oracle RDBMS, Smart Flash Cache OBIEE, & HCC
    • 22. ORACLE COMMERCE APPLICATIONS Exalogic and Exadata DIY Platform Oracle Knowledge ATG Web Commerce WebCenter Sites Knowledge Management Commerce Reference Store Web Experience Management 2x better Response Time 3x better Response Time 2x better Response Time 2x better Scalability 3x better Scalability 2x better Scalability 10 113 164 3.1 74 52
    • 23. ORACLE RETAIL APPLICATIONS Exalogic and Exadata DIY PlatformRetail Price Management Retail Merchandising Retail Analytics Price Execution Update Daily Replenishment Store Reporting 5x better Response Time 3x better Performance 2x better Scalability 10 35 164 3.1 74 7
    • 24. HARNESS THE VALUE OF RETAIL APPLICATIONSSEIZE LOWER REDUCEMARKET BUSINESS COST ANDOPPORTUNITIES RISK COMPLEXITY
    • 25. MEASURING BUSINESS VALUE OF CUSTOMER EXPERIENCEACQUISITION RETENTION EFFICIENCY
    • 26. MEASURING BUSINESS VALUE OF CUSTOMER EXPERIENCE ACQUISITION RETENTION EFFICIENCY • Increase in Traffic • Increase in CSAT • Increase in SS% • Increase in • Increase in CES • Reduce Cost / X Conversion Rate • Increase in NPS • Reduce SG&A% • Increase in AOV
    • 27. EXAMPLE: CALCULATING REVENUE IMPACT Traffic x Conversion rate = # of Customers # of Customers x Frequency = Purchases per Year Units per Transaction Average Order Value x Average Selling Price (ASP) = (UPT) (AOV) Purchases per Year x Average Order Value (AOV) = Gross Revenue Returns+ Cost of Loyalty Gross Revenue - = NET REVENUE Program(Discount)
    • 28. CASE STUDY: BRAZILIAN ONLINE RETAILERCOMPANY OVERVIEW• Largest sporting goods retailer in Brazil, $500M+ revenues• 100%+ YoY growth over the last decadeCHALLENGES / OPPORTUNITIES• Frequent outages and poor response time for online commerce application Runs ATG and• Rising datacenter costs due to ad-hoc and frequent hardware Weblogic Server on refresh and management complexity• Poor customer experience resulting in high order abandonment Oracle Exalogic! resulting in revenue lossRESULTS• 6x improvement in throughput• 7X reduction in datacenter footprint• Double-digit improvement in conversion rates
    • 29. Success! Results: Netshoes’ Expectations Exceeded by >2x 30-40 1 30x Servers Rack of Exalogic Fewer Servers 103 16 6.4x JBoss Instances WebLogic Mgd Svrs Fewer Instances6+ months 3 weeks 8xInitial System Setup Exalogic Launch Faster 6x 6.2x Better Performance Better Scalability Exceeded Expectations by > 2x
    • 30. Business Results• More revenue – able to run new campaigns – Netshoes is now able to run campaigns that they otherwise wouldn’t have been able to because the site can handle the traffic. For example, they drove 33% more traffic to the site (than their highest ever watermark) as the result of a Facebook campaign that they previously could not have run• More revenue – able to handle traffic from special events – In 2012, the Champions of America Cup (the premier soccer championship in Latin America) was held in Brazil. Netshoes manages the online stores for both participating teams and sells merchandise on its own flagship website too. After the hometown favorites won, record traffic was driven to Netshoes with no downtime or performance degradation• More revenue – higher conversion rates – Better response times lead to higher customer satisfaction and conversions – Able to employ more personalization without performance degradation – Customers are happier because the site is always up
    • 31. Customer Proof Points Márcio Kumruian, CEO, Netshoes “As the largest retailer of sporting goods in Latin America, we are achieving very aggressive growth - over 100% per year. Running our ATG ecommerce application on our previous JBoss infrastructure we had 30-40 different machines. We were able to migrate to Oracle Exalogic Elastic Cloud in less than 3 weeks, without any downtime and have already seen impressive results. With Oracle Exalogic, we have consolidated to 1 server, providing both cost savings and increased business efficiency. Our ATG application performs 6x greater than before and is fully synchronized with Oracle WebLogic Server. The Netshoes brand means quality and value for our customers and we want their online experience to be excellent. With Oracle Exalogic all the pieces work together, so we can focus on customer service and expanding our business.”Márcio Kumruian, CEO, Netshoes
    • 32. ORACLE EXADATA & EXALOGIC: PHENOMENAL ADOPTION
    • 33. THE PERFECT CUSTOMER EXPERIENCEWHERE BRAND PROMISE MEETS BRAND EXECUTION “The value of my brand, the fate of my enterprise, is in their hands, driven by the quality of their experience”
    • 34. JOIN THE COMMUNITYTwitter Facebook Blogs LinkedIn YouTube Visit us at:oracle.com/us/products/engineered-systems

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