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Customer Engagement in the Digital Era


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Today’s empowered consumer expects a connected, personalised, and frictionless experience throughout their shopping journey. Understanding the consumer's style, network, influencers and aspirations, in addition to just knowing what they buy, why they buy, and even why they choose not to buy, are factors that are becoming ever more vital to the success of a retailer. James Lovell, IBM Retail Commerce Lead, will share latest insights and recommendations on how IBM are creating industry leading customer experiences in a digital era.

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Customer Engagement in the Digital Era

  1. 1. Customer  Engagement   in  the  Digital  Era     IBM  Commerce  Enabling  an  Industry   Leading  Customer  Experience   James  Lovell   European  Retail  Solu4ons  Execu4ve     @jameslovell   in/jameslovell71  
  2. 2. The  digital  channel  brings  challenges  to  your   industry  (and  ours)   The disruption of the digital channel brings unprecedented challenges to almost every industry based on the fast pace consumers adapt to the channel and the constant evolution of the supporting technology And while industries face constant changes, this time is different, this is not a trend, this is a change of paradigm.
  3. 3. But  also  brings  bold  opportuni?es   The flip side is that the channel also brings new sound tools to improve your business: -  Increases our customer knowledge though analytics and social media. -  Gives us the opportunity to provide (and control) a seamless experience across channels through a holistic view. -  Allows us to have a 1 to 1 marketing strategy, tailoring our offering to the exact client needs.
  4. 4. A customer enters the shop Customer’s presence is automatically noted The customer is recognized as a VIP customer The shop asks customer if he/she wishes to interact Customer agrees to interact with shop Shop assistants automatically informed of the arrival The shop assistant is informed of customer’s decision All devices in shop are alerted that a specific customer is willing to interact If the customer chooses not to interact her browsing patterns and behavior's are captured to improve in-store experience The  Merging  of  Digital  &  Physical  
  5. 5. 23/09/15  5   ©  2015  IBM  
  6. 6. 23/09/15  6   ©  2015  IBM  
  7. 7. Online Sales Offline sales directly generated by the online channel Offline sales influenced by the online channel ~5%+   Depending on vertical and execution ~  10%   Depending on retail structure, cross channel incentives and management focus ~  40%+   Depending, up to a certain extent, on the cross channel awareness and the retail structure ~ 55% Plan  keeping  in  mind  the  real  value  of  the  channel!  
  8. 8.                 In-Store Online Other   Digital  and  physical  channels  are  merging  driving   revenue  growth  from  all  channels   By  2017  more  than   50%  of  in  store  sales   will  be  influenced  by   digital  channels.  %  of  purchases  made   Are  you  able  to  measure  digital  influence?  
  9. 9. “I  need  to  be  able  to  deliver  relevant,  snackable   content  across  all  elements  of  the  customer   journey,  regardless  of  channel”   IBM  Amplify,  May  2015   David  Walmsley   Director,  M&  
  10. 10. Ask  for   advice   Check   adver4sing   Compare   products   online   Go  to  store   Learn   about    the   product   Read   reviews   Download   the  app   Check   youtube   video   Check   Facebook   Check  at   the  offline   store   Browse  the   Site   Google  the   product   SHOP   Customer  journeys  can  be  complex  and  customers   don’t  think  in  silos…  
  11. 11. Check   adver4sing   Go  Direct   Compare   SHOP   Go  to  the   Store   Check   around   Compare   SHOP   Surf  the   web   See  a   product  I   like   Compare   SHOP   However,  most  companies  engage  consumers   in  a  silo’d  fashion  
  12. 12. Check   adver4sing   Go  Direct   Compare   SHOP   Go  to  the   Store   Check   around   Compare   SHOP   Surf  the   web   See  a   product  I   like   Compare   SHOP   The  winners  will  be  able  ignore  internal  silos  to   engage  with  customers  at  any  point  of  their  journey  
  13. 13. The era of Cognitive Commerce
  14. 14. 14   What  do  I  mean  by  Cogni?ve  Commerce?     “Understand  customer  intent  to  then  use  that  insight  to  shape  the  customer  experience  and  learn  from  the  outcomes”   Ordered  2  coats  online   Size  L  &  XL   Collected  order  from  Store   Returned  one  item  later   Checked  my  emails  later   Advert  for  my  new  coat   =   Wasted  marke4ng  spend  
  15. 15. 15   What  do  I  mean  by  Cogni?ve  Commerce?   John  Lewis  know:   •  I  live  in  Harrogate  and  my  nearest  JL  store  is  York   •  I  am  a  male   •  I’ve  bought  2  rain  overcoats  and  returned  the  size  XL   •  I’ve  collected  it  from  my  local  Waitrose  store   This  advert  could  have  been  op4mised   based  on  what  JL  know  about  me:     •  Products:  Umbrella,  Shoes,  Trousers,   Hat,  Scarf,  Complete  the  Look   •  Waitrose  Harrogate  Promo4on   •  JL  York  Promo4on   •  Experience  Survey  
  16. 16. 16 Gain  insight  into  customer   behavior  across  every  channel   With  the  benefits  of  choice   and  flexible  fulfillment   In  context  with   offers  and  content   Engage   Fulfill   Insight   3  areas  where  IBM  Commerce   transforms  the  customer  journey…  
  17. 17. Understand  customer   intent   Take  ac?on  based  on   customer  behavior   Op?mize  order   sourcing  to  improve   the  customer  promise   INFUSE  INTELLIGENCE   Insight   Gain  insight  into  customer   behavior  across  every   channel  
  18. 18. 200+  offers  available  at  any?me   BOOTS     18  million  ac?ve  customers   Between  40-­‐60  possible  offers   per  cardholder     15-­‐20%  incremental  sales  generated   Insight   Gain  insight  into  customer   behavior  across  every   channel  
  19. 19. CUSTOMER   EXPERIENCE   Create  and  execute   personalised  campaigns   Engage   In  context  with  offers   and  content   MAKE  IT  PERSONAL   Manage  product,  content  and   offer  delivery   Enable  personalised  discovery  
  20. 20. 6%  Redemp?on  Rate   Industry  average  2%   Moving  coupons   into  digital  channels   HOMEBASE  TILL  RECEIPT  COUPONS   Engage   In  context  with  offers   and  content  
  21. 21. Fulfill   With  the  benefits  of  choice   and  flexible  fulfillment   PERFECT  FULFILLMENT   Streamline   execu?on     Enrich  the  customer   experience     Op?mize   opera?ons   Enable  the   store  
  22. 22. Fulfill   With  the  benefits  of  choice   and  flexible  fulfillment   MARKS  &  SPENCER   New  state  of  the  art  distribu?on  centre   Click  &  collect  available  to  any  store   Rolling  out  tablets  to  store  associates   RFID  tagging  all  general  merchandise  to   provide  real-­‐?me  view  of  inventory   Consistent  digital  customer  experience  
  23. 23. Fulfill   With  the  benefits  of  choice   and  flexible  fulfillment   MARKS  &  SPENCER   85  million  items  handled     Goods  inwards  processing  improved  by  10x   Customer  sa?sfac?on  rose  by  18%   Inventory  accuracy  improved  by  50%   13.8%  digital  sales  growth  Q4  2014  
  24. 24. Stay  away  from  digital  spaghej     in  IT  architecture  and  processes         IBM’s  Commerce  pre-­‐integrated  suite   decreases  over  4me  your  integra4on   effort       •  Market  leading  capabili4es  for  a  digital  shopping   experience   •  Future-­‐proof  architecture  that  ensures  low  TCO   Insight   Engage   Fulfill  
  25. 25. James  Lovell   Retail  Solu4ons  Execu4ve     IBM  Commerce,  Europe   @jameslovell   In/jameslovell71