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eTailing India Conclave Jaipur- 2013 Rajesh Rao IBM-


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eTailing India Conclave Jaipur- 2013 Rajesh Rao IBM-

  1. 1. Smarter Commerce: Engaging theCustomer in the Multi ChannelRajesh  Rao  –  Smarter  Commerce  Leader  IBM  India  South  Asia    April  18th  2013  
  2. 2. The  use  of  both  online  and  offline  channels  is  transforming  business  and  consumer  interacEon  2  §  Customers:  are  leading  the  conversaEons  that  define  brands  §  Partners:  are  interacEng  to  accelerate  business  value  §  Employees:  Need  to  be  able  to  communicate  across  mulEple  channels  §  Opera1ons:  Need  to  service  the  customers  across  channels                  Social…this shift is facilitated by technology enabled social interactionscausing a seismic shift in the way business is done©  2013  IBM  CorporaEon    
  3. 3. 3  Call Center Create Order Check StatusCancel OrderInitiate/TrackReturnSchedule Deliveryor PickupChange OrderScheduleStore PickupResearchProductStore Create Order Check StatusCancel OrderInitiate/TrackReturnScheduleDeliveryChange Order PickupResearchProductCreate Order Check StatusCancel OrderInitiate/TrackReturnSchedule Deliveryor PickupChange OrderScheduleStore PickupResearchProductMobileCreate Order Check StatusCancel OrderSchedule Deliveryor PickupChange OrderScheduleStore PickupResearchProductWebManaging  customer  experience  across  mulEple  channels  is  creaEng  new  complexiEes  ©  2013  IBM  CorporaEon    §  Customers’  experience  needs  to  be  managed  across  mulEple  enEEes  §  Product  and  brand  experience  needs  to  be  consistent  §  Inventory  needs  to  managed  across  different  channels  §  Data  is  everywhere  and  needs  to  uElized  §  Employees  need  new  capabiliEes  to  deal  with  customers    
  4. 4. What  is  the  most  important  thing  in  you  want  to  gain  by  influencing  the  customer?  4  Online/RetailerExperienceProductExperienceCommunicationSpendAdvocacy©  2013  IBM  CorporaEon    
  5. 5. Influence  and  communicate  with  your  consumers  to  create  the  “loyalty  loop”  5* David C. Edelman, McKinsey, Dec 20102) Strengthen brandpreference throughadvocacy3) Accelerate re-purchasethrough propensity models1) Gain insights and increasepositive sentiment in socialconversations©  2013  IBM  CorporaEon    
  6. 6. 6Consumer Maintains Control of DataWhat is your willingness to provide information in exchange forsomething relevant to you (non-monetary)?Consumers  are  open  to  share  their  personal  informaEon,  with  the  excepEon  of  financial  data,  when  there  is  perceived  benefit  25% 27%41% 41% 44% 46%63%30% 30%28% 29% 28% 28%21%45% 43%33% 30% 28% 26%15%0%20%40%60%80%100%Media Usage(e.g. Mediachannels)Demographic(e.g. age,ethnicity)Identification(name,address)Lifestyle (# ofcars, homeownership)LocationBasedMedical FinancialCompletely Disagree Neutral Completely willingSource:  IBV  Retail  2012  Winning  Over  the  Empowered  Consumer  Study  n=  28527  (global)  P04:  What  is  your  willingness  to  provide  informa1on  for  each  of  the  following  items  if  [pipe  primary  retailer]  provided  something  relevant  to  you  in  exchange?  ©  2013  IBM  CorporaEon     6  
  7. 7. Understanding  different  digital  plaYorms  and  their  cultures  is  important  to  influencing  the  consumer  ©  2013  IBM  CorporaEon     7  
  8. 8. Personalizedcross-channelexecutionOptimizingcustomerengagement atevery touchHow do we usedifferentiated customerexperience and drive tobuild loyalty, retention andadvocacy?How do we use individualcustomer likes, dislikes andunmet needs to personalizethe experience?21Traditional and digitalchannels not integratedFragmented cross channelcustomer experiencePoor channel performance orutilizationIssues thatneed to beaddressedQuestions thatneed to beanswered…ObjectivesSocial/mobile channelsHow  do  we  develop  a  develop  a  cross-­‐channel  transformaEon  strategy?  ©  2013  IBM  CorporaEon     8  
  9. 9. A  integrated  mulE-­‐channel  business  engages  and  manages  customer  experience  across  all  the  channels      9Harness thepotential of socialanalytics forcustomer centricmarketingOptimize marketingspend across multiplechannels in real-time  Establish and cultivatecustomer and advocaterelationshipsRecast your relationshipwith distribution partners via360 customer insightEmbrace a fully-realizedSocial media marketingstrategyCustomer  Ac1vate  your  loyalty  loop    Break  your  compe1tors’  loyalty  bond  Capture  new    loyal  customers      ©  2013  IBM  CorporaEon    
  10. 10. “As  consumers  effortlessly  move  across  digital  touchpoints  and  as  markeEng  campaigns  span  channels,  the  need  for  comprehensive  analy0cs  has  never  been  greater.”                “A  data-­‐sharing  partnership  between  two  or  more  organizaEons  in  order  to  increase  customer  insight,  idenEfy  opportuniEes  for  collaboraEve  markeEng,  deliver  be_er  targeEng  and  relevance,  and  improve  customer  experience  and  engagement.”  Harness  the  potenEal  of  customer  centric  interacEon  with  analyEcs  and  social  business    Mobile Web Retail SocialMediaGaming &Entertainment“Capture Trends as TheyHappen” (Cross Channel)Recommendations“Focus on UserSegmentation”“Marry User Activity to theSocial Graph”“Automate Targeting andPersonalization”“Leverage Analytics to StayAhead of Trends”Source:©  2013  IBM  CorporaEon     10  
  11. 11. Establish  and  culEvate  customer  and  advocate  relaEonships  11  R O E SHü Micro-­‐segmentation:  Social,  Survey,  Operational  &  CRM  Datasets  ü Profile  Generation/Cultivation:  Longitudinal  Collection,  1:1  Engagement,  Propensity  Modeling,  Targeted  Crowd  Sourcing  ü Metric  Tracking:  Migrations,  Sales  Influence,  Brand  Presence  ViralNegativesBelieversAdvocatesViralPositivesHighActivity  Level  LowNegative Sentiment   PositiveE©  2013  IBM  CorporaEon    
  12. 12. Recast  your  relaEonship:  Channel  sales  dominate  the  sales,  yet  li_le  consumer  informaEon  is  shared  12E O E SH RRetailersOnlineRetailersDistributorsEnd ConsumersTypical manufacturer see Complete end user data on < 5% of sales“Blackhole” on >95% ofsalesRare GemsDiamonds &Jewellery©  2013  IBM  CorporaEon    “Blackhole” on >95% ofsalesFullVisibility toconsumer
  13. 13. Recast  your  channel  relaEonships:  leverage  your  superior  knowledge  of  the  customer  lifecycle  13Is  it  Eme  to  buy  a  new  one??  I  need  help.  I  made  the  purchase.  I  wish  I  could  do...  I  am  interested  in  the  product.  How  do  I  use  this?  Revitalize theRelationshipShift the Balance ofPowerDrive ChannelInnovations•  More fine-tuned offers•  Easier to do business with•  Better terms/product placement•  Exchange leads for reduction intrade funds•  Evidence or sentiment basedfeature improvement•  Complementary services that matchcustomer lifecycle needsE O E SH R©  2013  IBM  CorporaEon    
  14. 14. OpEmize  markeEng  spend  across  mulEple  channels  in  real-­‐Eme    ©  2013  IBM  CorporaEon     14  E E SH R• Establish cross-channel Marketing Mgmt Platform• Create a Comprehensive Analytics Model• Harness Customer (Channel) Preference• Construct & Leverage Behavioral Profile(s)• Determine Spend Objectives• Analyze Performance Statistics• Formulate Multi-channel Next Best Action• Execute real-time (monitor, measure, feedback)O
  15. 15. MulE-­‐channel  Next  Best  AcEon  (MNBA)    decision  making  leads  to  cost  savings  15  E E SH R OFromCustomer’sSmartphoneContact centeragent inputsChannelBackendSystemsCustomer interact viamultiple channelsComments bycustomer onFacebook, TwitterSocialmediadatacaptureEmail fromcustomerWeb storePOS dataCustomerReal-TimeStateNext BestActionDecisioningModuleComposite view ofrecent interactionsbetween customerand businesscaptured as“customer state” –what is the customer’simmediate goal?Examples of Actions : Replace brokenitem (rather than repair), OR offercertain discount on upgradeCustomerInsightsCustomers purchasehistory in combinationwith insightsextracted from socialmedia entries areused to extractinsights about thecustomerChannelBackendSystemsBusiness rulesoperating onextracted customerinsights andcustomer stategenerate NBArecommendationsDeliver Action tochannelStorestaff’ssmartphoneCustomer’ssmartphoneInstructionstorespondonfacebookEmailtocustomerContactCenterAgentServiceStaff©  2013  IBM  CorporaEon    
  16. 16. + 100 points = Automated eNurturingQualifiedLeadpassed toSalesRegistersanddownloadsBAO paper10 pointsDownloadsBAO ROItool15 pointsRegisters/attendsBAO event50 pointsReceivesemail forBAO ROItool5 pointsReceivesemail inviteto BAOeventLDR callsto qualify10 points25 pointsProspectsearches forROI on BAOsolutions5 points0-10 POINTS 50-100 POINTS +100 POINTSAwareness Interest Preference ActionA  B2B  example:  Automated  nurturing  works  to  progresscustomers  through  their  buying  journey  ©  2013  IBM  CorporaEon     16  
  17. 17. TraditionalMulti-touch Program(3Q10 - Feb ‘11)Automated ResponseNurturing(3Q10 - Feb ‘11)Emails SentOpenClick-throughResponses2.38M emails/372 tactics*7.37%0.73%0.03%61K emails/207 tactics**15.59%3.63%3.30%Data fromUnica2X5X100XSource: IBM NA Demand Programs March 2011IBM  Case  Study:  Automated  Nurture  Accelerates  Results  for  NA  SWG  Programs  ©  2013  IBM  CorporaEon     17  
  18. 18. In  this  case  study,  we  will  explore  how  StarAlign  Jewelers  focused  on  building  integrated,  cross-­‐channel  experiences  to  drive  revenue  Personalizedcross-channelexecutionOptimizingcustomerengagementat everytouchHow do I build adifferentiated cross-channel experience thatdrives loyalty, retentionand advocacy?How do I grow revenue bygaining a betterunderstanding ofindividual customer likes,dislikes and unmet needsso I can personalize theexperience?21 CASE STUDY©  2013  IBM  CorporaEon     18  
  19. 19. InternaEonal  jewelry  retailer  StarAlign  was  commi_ed  to  creaEng  a  superior  customer  experience  •  Industry: Retail•  Specialization: Retailing of jewelry, watches and associated services•  Type: B-C company•  Revenues: $4 Billion•  Number of Employees: 18,000+CASE STUDYStarAlign jewelers background©  2013  IBM  CorporaEon     19  
  20. 20. The  objecEve  is  to  aggressively  improve  sales  both  online  and  in-­‐store  by  improving  the  eCommerce  and  Social  experiences  •  StarAlign Jewelers has an 8.8% marketshare of the US jewelry market and islooking to double their online sales in3 years.•  StarAlign’s retail store operations are verysuccessful but are not well integratedonline, or in mobile and social media;therefore creating less affinity andlowering their brand equity as a cross-channel retailer.•  StarAlign’s e-commerce governancepractices and structure was outdatedin need of optimization in order to growinto new channels.Client issue•  Social media and digital channels•  Digital content governanceScopeCASE STUDY©  2013  IBM  CorporaEon     20  
  21. 21. IBM  assessed  StarAlign  to  define  a  mission  for  improving  growth  To drive sales and serve customers in whichever channel they choose,increasing both in-store sales growth and stand-alone e-commerce sales.To do this:•  StarAlign will fully integrate a customer-centric point of view intoits business strategy and operational processes.•  StarAlign will provide a world class multi-channel shoppingexperience for its customers regardless of where they complete apurchase - online or in-store.•  StarAlign endeavors to increase sales in-store and online throughimproved e-commerce and online capabilities.•  Mobile e-Commerce capabilities and social communication willbe an element of StarAlign’s web, digital tool kit.•  StarAlign’s e-Commerce transformation will be led by consumerneeds and desires, with social networking being a key part of theprocess.MissionCASE STUDY©  2013  IBM  CorporaEon     21  
  22. 22. We  will  explore  6  deliverables  that  were  created  for  StarAlign  to  help  them  define  a  path  forward  Envision EvaluateEnable1   2   3  •  Competitive marketplaceaudit•  Customer persona•  Capability map•  Customer journey maps•  Site redesignIBM Interactive developed a cross-channele-commerce strategy and roadmap forStarAlign Jewelers.CASE STUDY©  2013  IBM  CorporaEon     22  
  23. 23. A  compeEEve  marketplace  audit  compared  their  capabiliEes  relaEve  to  other  leading  jewelry  retailers  EnableEvaluateEnvisionSample deliverable0Capability does not exist, orwas not found duringassessment1 Capability exists, but haspoor execution/usability2 Capability exists, hasaverage/expectedexecution/usability3Capability exists,has superiorexecution/usabilityLegend©  2013  IBM  CorporaEon     23  
  24. 24. Customer Personas were developed and act as‘stand-ins’ for real customers and help guidedecision makingEnableEvaluateEnvisionSample deliverableAlfred CahillEngagement Ring PurchaserAgeHometownMarital StatusChildrenEmploymentPersonal IncomeEducationIn his own words:I love my job, but it keeps me onthe road a lot and the hours can belong.My iPhone is my lifeline -- withoutit, I wouldnt be able to manage mywork schedule and service calls.And yeah, I love the Fox Sports App,too.I feel like its time to take the nextstep in my relationship with Joanne,but Im not sure how to startplanning for it.29Chicago, ILSingle, dating Joanne for 3 yearsNoneMechanical Engineer$65,000B.A., M.S. Mechanical EngineeringAlfred’s Story•  I’ve been with Joanne for three years now, and I really think this is it. I want her toknow that she is the love of my life, and that I can’t imagine spending the rest of mylife without her.•  You’d think that was the hard part, getting to this decision. But now that I know I wantto get engaged, I don’t know the first thing about how to do it. I know I have to get anengagement ring, but I don’t know the first thing about them. I don’t have a lot of timein my schedule for learning about them, either.Important touch points•  Diamond and Engagement Ring Education•  Engagement Ring Pricing Information•  Online Consultation•  In-Store Consultation•  In-Store Purchase©  2013  IBM  CorporaEon     24  
  25. 25. The  only  way  to  truly  understand  what  the  opEmal  customer  experience  should  be  is  to  model  it  through  journey  maps  EnableEvaluateEnvisionSample deliverable©  2013  IBM  CorporaEon     25  
  26. 26. The  journey  maps  were  translated  in  to  capabiliEes  that  were  categorized,  esEmated  and  prioriEzed  EnableEvaluateEnvisionSample deliverable•  Requires a new interfacebetween IMS and the webto supply inventory dataProject typeQuick HitRepurposeBuildBuyStrategicCapability description•  Current store inventory processesand systems do not distinguishbetween merchandize in sellablecondition and damaged ordefective merchandize.•  Aligning operational practices andbusiness rules to enable this willrequire changes in currentoperations•  The data and technology existstoday to enable this in the near-term with appropriate disclaimers.✔Ability to see the availability of a productand where it is available so customers candecide how and where to transactBenefits•  Allowing customers to view real-time inventory status(for both e-commerce and store location inventories)gives them the choice to complete the transaction in away that fits their needs.•  Being able to see that a product is available instillsconfidence in the customer that StarAlign is reliable anddependable.Challenges, assumptions Dependencies✔ROM Duration, hours, other costDuration: 25 – 32 weeksEstimated design hours: 90 - 120Includes requirements definition & UX designEstimated development hours: 3,000 – 4,000Includes IT development and testOther cost:•  There may be a one time and/or ongoing cost to store operations tomaintain a more accurate account of inventory condition.Real-time inventory and availability©  2013  IBM  CorporaEon     26  
  27. 27. To  further  demonstrated  how  changes  in  design  would  support  their  sales  direcEves,  IBM  InteracEve  redesigned  their  site  EnableEvaluateEnvisionSample deliverable 1   2   3  Actual site design not shown©  2013  IBM  CorporaEon     27  
  28. 28. IBM  helped  StarAlign  create  a  vision  for  the  future  and  gave  them  a  specific  set  of  acEons  to  move  forward  •  Defined a strategy and a vision - that was informed by stakeholderinterviews, in-store observations, a customer survey and a marketplaceassessment of leading cross-industry site functionality and practices.•  Develop Future State User Experience - Design and developedscenario-based narrative and graphic descriptions of the future-stateuser experience and differentiating capabilities as well as high-levelrequirements needed to support the strategy, and identification of keyenablers (i.e., people, process and technology)•  Define e-Commerce Roadmap - Defined the initiatives required tosupport the strategy, develop multi-stage Implementation roadmap, andestimate the cost and effort for re-launching StarAlign’s e-commercesolution.Summary outcomes•  IBM recommends that StarAlign management focus on the following setof projects and initiatives related to support the ecommerce strategyover the next 36 months: Tactical Redesign, Transformation Redesign,Contact Center Optimization, Social Computing Strategy, MobileStrategy and Web Content Management•  The e-Governance framework be addressed and implemented early inthe roadmap.Key recommendationsCASE STUDY©  2013  IBM  CorporaEon     28  
  29. 29. THANK  YOU  FOR  YOUR  TIME!  ANY  QUESTIONS?  ©  2013  IBM  CorporaEon     29  
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