1.
2016 Holiday Retail Tech Recap
DON DAVIS
Editor-in-Chief
Internet Retailer & B2BecNews
MODERATOR
VENKAT RAYAPUDI
Manager, eCommerce Operations
Neiman Marcus
ARTHUR VIENTE
Program Director,
IBM Watson Commerce Strategy
IBM Watson Commerce
DAVID JONES
Practice Director
Dynatrace

2.
A strong holiday season for online retailers
$73.6
$83.0
$91.7
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
$100.0
2014 2015 2016
Online holiday sales (in billions)
11%
Source: Adobe Digital Insights

3.
Web growth may have been even stronger
11% 12% 16% 20%
Estimated increase
in 2016 online
holiday sales
• Store sales increased
2.4%in November-December 2016 over
same months in 2015.
Source: U.S. Commerce Department

4.
Stores made a comeback
• Store traffic declined 4.4% during
the five days from Thanksgiving
and sales were down 4.2%.
• Source: RetailNext
• Online sales during those five
days were up 15.2%.
• Source: Adobe Digital Insights
50%
45%
31%
38%
52%
61%
Where consumers
planned to shop
Stores Online
Source: Market Track

5.
Amazon dominates Thanksgiving weekend (sales)…

6.
…and the holiday season (traffic)
1.30%
1.53%
1.61%
2.10%
2.93%
3.25%
6.69%
33.88%
Lowe's
Macy's
Kohl's
Home Depot
Best Buy
Target
Wal-Mart
Amazon
Percentage of traffic to retail websites
Source: Hitwise, a division of Connexity

7.
Amazon dominates the last week
Amazon’s percentage of web
sales
33%
38%
44%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Nov. 1-
Cyber
Monday
2016
season
Dec. 15-
25
The Prime Now effect
• Prime Now (2-hour delivery)
accounted for 13% of
Amazon’s late-season sales,
versus 10% in 2015.
• Source: Slice Intelligence

8.
More email, and more sales from email
Black Friday/Cyber Monday
campaigns
0
10000
20000
30000
40000
50000
Black Friday Cyber Monday
Number of email campaigns
2016 2015
Read rates above 20%
20% 19%
13% 12%
Black Friday Cyber Monday
2016 2015
41.9% 28.2%
Source: eDataSource

9.
Search drive most sales
• But ads on social
networks are driving
more traffic: 3.6% in
2016 versus only
0.25% in 2015.
Source: Hitwise, a division of Connexity

10.
Consumers browse on smartphones…
2016 2015 2014
50% 50% 56%
9% 11%
14%
41% 39% 30%
Percentage of visits, by device, 2014-16
Desktop Tablet Smartphone
Source: Adobe Digital Insights

11.
…and they buy on smartphones
2016 2015 2014
69% 73% 78%
10% 11% 12%21% 17% 9%
Percentage of sales, by device, 2014-16
Desktop Tablet Smartphone
Source: Adobe Digital Insights

12.
Poll Question:

13.
• Six luxury retailers — Neiman Marcus, Bergdorf Goodman, Last Call, Horchow, CUSP and
mytheresa.com — make up the Neiman Marcus Group.
• Founded in 1907
• 42 Neiman Marcus stores across the United States
• Two Bergdorf Goodman stores in Manhattan
• 29 Last Call clearance centers
• 3 Last Call Studios
• four CUSP stores
• Serving online customers including mobile through ecommerce websites for the last 16 years

14.
Key Takeaways
• Focus:
• Unique and personal online shopping experience
• Complexity:
• Backend integration
• Product filters, pricing, availability, checkout/delivery
• Gift registry
• Mobile
• Achieving high performance and stability
• Load testing
• Team readiness—anticipate and rehearsing mitigation processes

15.
Confidential, Dynatrace, LLC

16.
Confidential, Dynatrace, LLC

17.
Confidential, Dynatrace, LLC

18.
Confidential, Dynatrace, LLC
Key Takeaways
 Dynatrace US Retail Performance Benchmarks
 Remarkable alignment to poll results—
Good/OK/Poor distribution by end to end Page Load Time about 60%/30%/10%
 Industry trends
 Better performance! More reliable sites!
 …despite increasing complexity
 More third party connections, larger images, heavier scripting and interactivity
 On the frontend, interactivity and mobile adaption
 On the backend, cloud, new application frameworks and services-based approaches
 Can’t forget the impact on the customer!

19.
20
We’re drowning in a tidal wave of data…
Every day we create
2,500,000,000,000,000,000 bytes of
data
That’s 2.5 QUINTILLION
1/25/2017World of Watson 2016

20.
IBM Cognitive Engagement: Watson Marketing | Watson Commerce | Watson Supply Chain21
Working towards clarity across channels…
…through visibility across data points.

21.
1/25/2017World of Watson 201622
Trying to create a seamless experience…

22.
• Retailers don’t suffer from a lack of data
• Challenge: how to leverage it!
• Channel multiplicity
• Exacerbates the data challenge
• Hard to connect around the customer
• Technology can sometimes get in the way of multi-channel journeys
• Customers expect seamless, often get bumpy
• Cognitive is emerging to help smooth this out
Key Takeaways

23.
Removing performance friction from the experience
• A journey
• Getting the entire
business on-board
• Performance #1
feature
Boarding Plane by NinaZed on flickr

24.
Looking ahead
What to think about in 2017
• Artificial intelligence is becoming
practical and useful in helping
simplify business decisions
• AI also advancing on the IT front—
simplify technical complexity
• Cloud platforms will drive increased
personalization and agility and
Innovation will accelerate
• Anticipate more sophisticated digital
experiences
Curves Ahead by Jeremy Bronson on flickr

25.
Confidential, Dynatrace, LLC
Q & A
VENKAT RAYAPUDI
Manager, eCommerce Operations
ARTHUR VIENTE
Program Director,
IBM Watson Commerce Strategy
DAVID JONES
Practice Director
Learn More: www.dynatrace.com/trial/

26.
Connect with us!
Participate in our Forum :
community.dynatrace.com
Like us on Facebook :
facebook.com/dynatrace
Follow us on LinkedIn :
linkedin.com/company/dynatrace
Follow us on Twitter :
twitter.com/dynatrace
Watch our Videos & Demos :
youtube.com/dynatrace
Read our Blog :
application-performance-blog.com