Welcom for being here. And thanks for still being here while we are getting closer to the end of those two long but beautiful days here on E-Shop Expo.
I am thrilled to be here with all of you in Tour & Taxis, a beautiful and fully restored former industrial warehouse in Brussels.
I hope you are still enjoying it as I do and I bet you probably have seen and heard a lot of great idea’s, gained new insights and maybe made new business friends during the sessions of your choice or even at the floor.
So, I spend 99% of my time with clients that are rethinking their business and help them in the decisions and actions in their journey to improve customer loyalty, profitability and agility.
[Slide 5 - Intro after CEC video]
I Like the intro video just shown for two reasons
First, It illustrates where we are today in the evolution of commerce. Second, I like the movie because it helps me to introduce my topic here
I believe being in business is about being essential. These are big words. In fact, being in business is about making yourself relevant and interesting.
Think about amazing fire swords juggling. You might find it, just like I do very interesting, but it might be absolutely not relevant for you for various personal reasons.
In my opinion, and hope you agree – this is so fundamentally important to acknowledge when you’re dealing with your clients in your online and offline world.
In the next 20-30 minutes I will be taken you on a journey to Smarter Commerce that puts the customer in context based on three key principles of 1/ Understanding your customer, while putting your customer in context 2/ Connect with them to deliver what and when they need it 3/ Engage with them at the right time, place and manner
I see it as my job here to give insight in 1/ Why – I think it matters: that it will delighting your clients, 2/ How – you can creating a system of satisfaction 3/ What – are the choices at stake to drive commercial success
[Slide 6 – Personalization facts]
Let’s talk about the chief executive customer, the customer in context if you like.
Today’s customer are everywhere and they are either thinking of you, talking about you, or ignoring you.
There are so many sites of your customers. Customers want to be treated as individuals and now we can do that in very compelling, persuasive, and pervasive ways,” This level of personalization is something that customers are begging for. Our research shows that 9 out of 10 people want this, and are willing to spend 20 minutes to set up their personal information to help retailers give them a better experience And yet!...only 32% of the enterprises surveyed claim to be able to leverage this and engage with customers as individuals
[Slide 7 – Helping vs Selling]
So what does that mean ? And why is it so relevant?
So to me, I believe, “If you know so much about your customers that you can have relationships with them that transcend the transaction, you can actually focus on helping them.”
Like Jay Bear, a marketing strategist in the US once said: Because the difference between “helping” and “selling” is just two letters—and “in modern business, those two letters make all the difference,”
Indeed, you can sell something and make a customer today. But if you help someone you can create a customer for life.
When doing this right, you actually creating Moments of Engagement.
Moments of Engagement. My take away here is that precise moment when we as individuals, consumers lean in. Leaning into a discussion that is occurring and we become interesting in something.
You and I now this But how do you get your company, your enterprise, your business To do this at scale and repeatable way?
[Slide 8 – My Restaurant]
Speaking of being a regular – I’d like to tell you about a small restaurant which I love called the Da Lidia.
It’s in Maasmechelen here in Belgium. It is there since 1973. And the food is great but what makes the difference is their hospitality.
They remember me – “Welcome back Mr. and Mrs Levels, and good to see your little boy and girl”.
Last time I was there the Chef, Chef Bert had me try his homemade tagliatelle with lobster and it was fantastic – I can’t wait to go there again.
Chef Bert and his wife Elvira expect us on Friday nights, and they have the kids’ favorite homemade soda ready when we arrive which makes them happy and sets the tone for a great family night out.
In some ways though, this was a lucky accident.
I discovered the restaurant on my own and without much thought.
I returned almost accidentally but very quickly they came to recognize me, and cater to me personally.
Along the way, I’ve been upsold and cross-sold farm-to-table specials, paired-wines and deserts more ways than I can remember.
But I feel good about it.
[Slide 9 – Facts to Maximize a Moment]
Leaving this to chance is not something any of us here today can afford to do.
We can’t rely on our customers to find us on their own, or to invest their time with us of their own volition or willpower so to say
And the customers just expect more.
They expect companies to understand them, connect with them, and engage them.
Listen and learn from them and deliver back something value at precisely the right time and place.
Be intuitive and consistent and you’ll be rewarded.
So our challenge is how can we consistently build that relationship, personalize it – at scale.
How can we do it in the here and now, with intent and purpose, without relying on chance?
So let’s talk about LEADERS who maximize a moment.
They understand their customer, in the specific context of the interaction and have the customer’s attention – regardless of who initiated it, take the next best action.
They answer a question; present an offer; complete a transaction.
In short, they meet the customer’s need.
When you get it right, you know it, it feels good for everyone and forms a virtuous circle
[Slide 10 – Ana, maximize a moment]
Look at Ana here.
She’s a friend of my colleague, and also one of our customers, from Argentina.
She was visiting Los Angeles and this is the moment when she discovered her favorite beer was available in Los Angeles.
Look at her reaction – pure joy!
That’s the expression you want to put on all of your customer’s faces.
That moment was created by sending her an alert letting her know her favorite beer had just been released in California was available nearby.
A maximized moment by delivering the right piece of information at the right time and in the right location.
This is critically importantly, because strong connections turn loyal customers into advocates.
And in this new mobile, social world, advocacy is critical to all businesses
To achieve this, you need an adaptive, responsive value chain to ensure you can deliver; at the right moment, in the right place, at the right price
[Slide 11+12 – Caterpillar – UNDERSTANDING]
During those last two days you probably have heard about how leaders today are meeting this challenge...
and if not I’ll be available to you and happy to share some more examples and ideas with you after this session or any later moment you wish.
Let me tell you about Caterpillar how they are making the connection in context, and driving real results -- right now!
Caterpillar’s traditional sales approach was “face-to-face”.
Dozers, Excavators and mining shovels big sales, made through their network of dealers and partners that are done one handshake at a time
But Caterpillar understood that the new generation of customers are online and they needed to connect with these new or dormant customer without a physical handshake but it’s digital equivalent.
So they made a change and now go where these customers are
* They go beyond search, social media and syndication by reaching out to existing, new, and small or inactive customers
* They engage these customers in a dialog and where they can, provide expertise that gently guides them to a caterpillar solution.
* They personalize interactions based on a customers ownership status or fleet information
At the right moment they transition customers to dealer sales; and provide the dealer with a profile of the buying considerations they have learned about
And they don’t stop there… Because businesses don’t buy these machines every day the post-purchase experience is essential.
They provide great support by, for example, letting customers order replacement parts using their mobile device and the QR Code on the physical part
It’s this digital handshake that links marketing to sales to service and creates strong, rich relationships that deliver customers the premium, online experiences they expect
[Slide 13+14 – ING Direct, small sacrifices – CONNECT]
Let me share a story from a company in a very different business, consumer banking – ING DIRECT Canada has to meet the rising expectations of 1.8 million digital customers
They’ve started the Orange Snapshot initiative, which is designed to provide each customer greater control of their accounts in their increasing mobile and social lifestyles.
ING Direct’s mission is helping customers save --- so they have found a great way to do that.
They have enabled a mobile and social app that gives the customer a complete and simplified view of all their accounts, along with bill payment and email money transfers, in two easy clicks.
All this from a single mobile connection and integrated with the social environments
But, that is almost table stakes these days.
They have gone 1 step further
They chose to connect to that moment where you’re about to buy something but because you’re saving for something more special, you choose not to.
You sacrifice that cup of coffee or music download for something better.
Through their app SMALL SACRIFICIES you mark that moment and move the money saved into an account and share the moment and saving with your network of friends.
Because perhaps you’re saving for something together one small sacrifice or transaction at a time.
Connecting with clients like this allows ING DIRECT Canada to serve their customer in context – again and again.
It’s making a difference for customers, and a difference for ING’s bottom line
[Slide 15 – Costco Wholesale - ]
Speaking of savings – you should check the Costco rebate check from my colleague Craig, a good friend of mine!
Of course what this really means is that his family shops there a lot.
As Craig told me they’ve bought everything from TV’s to his contact lenses there.
In fact, a few weeks ago he bought a years’ worth of contacts --
If you check out Costco Wholesaler’s website you’ll figure out they sell almost everything But did you know that “Costco Optical” ranks as the fourth-largest optical company in the US?
Costco has been on a Smarter Commerce journey with us for some time now.
They recently re-platformed and re-architected their on-line store to our commerce solution, and saw immediate benefits.
Online revenue is up and they now have a platform that will allow them to scale and perform to meet their ever growing sales projections
In fact, they are in the middle of a multi-year strategy to modernize their business – to scale and continue their growth.
This includes transforming their front and back office, their supply chain -- as well as in-store and online experiences for 64 million members....
...so they can master regional and seasonal variations, add new lines of business, and deliver a huge array of products and services at the right time and the right place.
And, as a part of that transformation, they recently adopted a cloud strategy - with a (IBM Sterling) B2B integration solution - they can seamlessly integrate with their supplier network and ultimately serve customers better
So with this rebate check in my friend, Craig’s hand – Costco has clearly connected with him as their customer – personally and profitably!
[Slide 16 – KLM – Personal Care & Engagement]
Another great example of - a maximized moment – is delivering the right piece of information at the right time and in the right place.
If you have ever been delayed, frustrated and stuck at an airport, you know what a nightmare that can be and all you need is a little piece of information.
This is what started happening since the ash cloud incident happened in 2011
AirFrance KLM recognized this as an opportunity to seize the moment and turn a frustrating situation into a positive moment of engagement.
Working together, the marketing and customer service teams deployed a marketing system which informs and alerts their customers – in near real time for flight delays, cancellations, gate changes and additional check in options that customer may have.
To show that personal connection, AirFrance KLM chose to provide this customer service, delivered via mobile messages, at key points along the customer journey.
As a result, the number of customer calls have dropped and the cost of handling individual calls has decreased dramatically. And, their customers open and click rates have increased because they have become a trusted source of valuable information at the right moment.
So, AirFrance / KLM started their smarter commerce journey by Investing in 1/ Social media & webcare (Understand) 2/ Service program (Connect) 3/ And next a Loyalty Program (Engage)More personalized engagement First through SMS and eMail, Next step is mobile sending push messages,- offering location based services- local travel tips- parking information
[Slide 17 – thumps up or down]
This is not simply a vision of the future, this is happening right now
Brands that are not focused on the customer experience are falling behind …
whereas - brands that are engaging with their customers are seeing results
But what does it take to be engaging and provide an outstanding customer experience?
[Slide 18 – Understand, Connect, Engage]
Working with hundreds of industry leading clients we have seen three key best practices emerge:
First they develop a deep contextual understanding of the customer across all interaction channels.
Observing and understanding the customers’ journey, predicting their needs and next steps – like Caterpillar did with parts and services
Second they Connect with their customers and their value chain, through integration with suppliers, trading partners and service providers to deliver exactly what the customer needs, when they need it.
To do this, leaders are taking an integrated approach to procurement and supply chain to marketing to selling to service, inside and outside their organization.
Like Costco does with contact lenses for my friend.
And finally they orchestrate the act of engagement – using the customer’s preference and journey, they present the most appropriate offer, content, and experience in context – at the right time, place and manner.
This is so much more than a like, a follow or a tagged note – it is about being deeply engaged – being of service to their customers and helping them wherever they are on their journey – like ING does with Small Sacrifices. Or AirFrance / KLM with their Personal Care & Loyalty Program
Whether you are in procurement, supply chain, marketing, sales or customer service, you know the value of truly productive engagement with customers, vendors and suppliers
The challenge is, how do you approach that systematically, and at scale?
How do you build a System of Satisfaction, if you will?
Well, it should have these attributes: an adaptive and optimized procurement and supply chain; a targeted and personalized marketing message or offer; a seamless, omni-channel customer engagement; and flawless customer service that anticipates and delivers – even predicts what your customers want
[Slide 20 – Embed Social, Mobile, Cloud, BigData & Analytics]
We’ve touched on all of these best practices and believe they are so relevant in maximizing the moment and delivering a system of satisfaction,
but let’s drill down a little further
We’ve found that there are key areas that leading companies are leveraging to fuel their the buy, market, sell and service processes.
They are using big data and analytics (2x) applied to mobile; social; and cloud in predictive and cognitive ways
[Slide 21 – BigData & Analytics]
Big data and analytics are crucial to understand who your customers are – their behaviors, intentions, preferences and needs.
One of our offerings, (IBM Tealeaf,) enables you to create a map of your customer’s actual online and mobile experience.
Not the one you think they have – the one they actually do have.
You’d be surprised how much your customers struggle every day in dealing with you.
Simple changes in areas identified by the (Tealeaf) online customer experience heat-map remove that struggle.
Make those changes and you’ve a better chance of a delighted customer.
[Slide 22 – Mobile]
Mobile has changed the landscape.
Consider that on average 370,000 babies are born everyday in the world.
On average 370,000 iphones sold everyday in the world.
We all know no-baby is average but we all know many mobile experiences are.
So we helping to make those experiences better .
With our marketing solution (IBM Unica ) you can create mobile centric marketing campaigns that have personalized and targeted messages and offers. As we’ve seen in the AirFrance / KLM case.
And, for selling, There are (Websphere Commerce has) starter stores available optimized for specific mobile devices that actually use the device technology with location based services, bar code scans, voice search, and much more…
[Slide 23 – Social]
The third critical component of customer engagement is Social.
For this we have seamless integration to social sites for your marketing and selling.
With (our latest offering,) social media analytics, can tell you what is trending before it makes it into the main stream.
By analyzing social sentiment as it relates to your brand, it transforms unstructured data into valuable insights that businesses can use to determine commerce strategies.
[Slide 24 – Cloud]
And finally, let’s look into the Cloud.
More and more businesses are looking to Cloud solutions – and specifically “Software as a Service” -- to accelerate their business and transform the customer experience.
Today’s (IBM Smart-) Cloud solution for Smarter Commerce helps businesses drive revenue growth and improve margins by finding new ways to reach customers and collaborate across the value chain.
It enables you to gain deeper insights into customer behavior by analyzing data from multiple sources in the cloud.
All to help accelerate your journey and leverage the power of cloud economics
[Slide 25 – Fully Engaged Customers]
Using the three best practices of “understand”, “engage”, and “connect”, and addressing the four key areas of analytics, mobile, social, and cloud, you’ll be able to build that System of Satisfaction.
You’ll be able to match the speed of your customers – the speed of life
This isn’t just theoretical.
Companies that are implementing this are already seeing results.
For these leaders, Smarter Commerce means: increased customer base; improved efficiency; stronger ROI; (not for the return on the buying solution, but on cost incurred or returns they’re forgoing by failing to act on the opportunity) and improved customer loyalty
Customers are willing to reward organizations that knows them this with loyalty, share of wallet and endorsements.
Engaged customers are willing to pay almost a 25% premium over average customers (think of my restaurant experience)
They visit a company’s website 2X as often and purchase more when they are there
According to Harverd Business Review (HBR) a 1% customer sat = 4.6% market value
But to accomplish this it is going to take a different approach to the problem…. A cognitive approach -&gt; if you’re interested to hear I invite you to have a separate conversation
Sources: Most Engaged Customers 2010 - Overall Consumer Sector Report. PeopleMetrics. 2010. http://www.peoplemetrics.com/resources/2010_MEC%20Overall%20Report.pdf 1% customer sat = 4.6% market value gain: AMA – Journal of Marketing / January 2006 - Customer Satisfaction and Stock Prices: High Returns, Low Risk. http://terpconnect.umd.edu/~smithas/papers/mithascsstkprice2006.pdf
[Slide 26 – ING NBA Ref.] ING understands, present an offer and completes a transaction more often with their “Next Best Action”
[Slide 27 – Wehkamp Personal Retargetting Ref.] Wehkamp increased their online commerce through Personalized Retargetting
[Slide 28 – SmC Wheel, flat - Final]
It’s our mission to help building that system of satisfaction by providing the right tools and support.
It is about Engagement that is at the core of e-commerce and a fundamental reason why IBM created Smarter Commerce.
Smarter Commerce is a process, a journey, NOT a project!
It is there to help customer showing excellence in every category From sourcing and vendor management to marketing management.
From customer and web analytics to eCommerce and application integration.
With Smarter Commerce you can -- like my favorite restaurant -- ‘welcome back’ your customers...
‘welcome’ your partners and suppliers...
‘welcome’ new customers...
and maximize the moment.
So what do you need now to “Get more out of YOUR (online) commerce?”
And how do you Maximize a moment ?
---- Over the last 3 years we’ve invested over $3B, including acquisitions, of best of breed solutions for procurement, supply chain, marketing, commerce and customer service solution providers to create a portfolio of integrated solutions
I hope you enjoyed the moments in this talk –
And like to thank for your interest and investing your time
It is my pleasure and honor to help where ever I can. If you like to engage, please send me a mail, LinkedIn or twitter message.