Be Like Bezos™ 2.0
The Future Omnichannel Brand Economy
May 2019

Table of Contents
Section I: Evolution of Business Models in Brand Direct Economy 3
Tech Stack for the Modern BrandSection II: 9
Key ConclusionsSection III: 17
2

Evolution of Business Models
in the Brand Direct Economy
3

Age of Legacy Retail
In the past, most brands needed retailers as intermediaries to sell their products to the
end consumer
This disconnected brands from their consumers, giving retailers control of the
customer relationship and ultimately the customer experience
Legacy Brand to Consumer Workflow
Brands Consumers
Third-Party
Retail
Advertising
4

Age of Legacy Retail
Key Players
Retailers Advertising Tactics
Selling directly to consumers required significant physical infrastructure, so brands sold
almost entirely through third-party retailers
5
…but this had drawbacks:
1. Limited channels for direct brand engagement
2. Little to no data on customers or consumer preferences
3. Minimal control over supply chain, inventory and distribution
4. Lack of sales measurability of marketing investment
1
2
3
4

Pure-Play Ecommerce Model
Key Players
Marketplaces
The initial core value of ecommerce was the ability to give consumers more
options to buy while in the comfort of their own home. Early marketplaces, like
Amazon, partnered with brands to make this possible
Digital Advertising Ecommerce Platforms
Brands then saw the opportunity to differentiate and tailor the customer
experience by collecting data and leveraging ecommerce platforms (e.g. Shopify)
to help develop a brand direct relationship with their clients
6

New Age: Omnichannel Model
DTC brands now have to demand and utilize data to operate and optimize on their
new omnichannel business model
Omnichannel Data-Centric
Control Customer Experience Own Customer Satisfaction
Utilize multiple channels for
customer engagement and selling
including ecommerce and retail to
always be where the customer is
Aggregate and unify data across all
channels including owned and
operated and 3rd party outlets
Determine optimal channel/partner
strategy based on customer
experience, product integration and
promotion
Use logistics data, 3rd party vendors
and user reviews to optimize
product availability, speed of
delivery and post-purchase
customer satisfaction
7
This new model has radically changed the way companies think and operate internally,
but this evolution has not been painless. Brands now have to own business functions and
technologies in areas where they have never had management experience or expertise

Brand to Consumer Workflow
Brand Direct Economy
Brands O&O
Ecommerce & Retail
Advertising
3rd Party
Ecommerce & Retail
Consumers
8
Modern brands utilize a variety of technology platforms, channels and data
sources to effectively engage their consumers and measure return on ad spend
New DTC brands have now emerged, and they compete with technology and data at the
heart of their business models. These companies tend to have smaller teams and lower
cost structures, yet are more dynamic when responding to customer trends and needs
Customer Data
ModernTechStack

Tech Stack for the Modern Brand
9

Data-Driven Strategy
Customer Data Platform (CDP)
Internal Customer Data 3rd Party Data
A centralized location to store, integrate and
orchestrate customer and 3rd party data
- Demographic
- Buying/Browsing
- Discovery
- Churn
- Reviews
- Visits/Impressions
- Returns/Exchanges
- Inventory
- Demand Forecasting
- Experience
 Overlay internal data with third-party party data to create enriched customer data profiles and actionable insights
 Provide all channels and partners access to data on a customer level to help more effectively sell your product
 Demand dataflow from online and offline retail partners (ensure API access and contractual consumer data rights)
10

5 Key Technology Focus Areas
Product Availability
 Inventory management – understanding demand and supply
Optimal Customer Experience
 Customer acquisition, customer matching, check-out process
Product Delivery
 Logistics tools, distribution of product, speed, efficiency, tracking
Post-Purchase Customer Satisfaction
 Reviews, returns, exchanges, product warranty coverage
Advertising Accountability
 Return on advertising spend, omnichannel advertising distribution
After the product is sourced, there are 5 core data categories to collect and activate
11

Key Data/Metrics
Demand Forecasting
Order Performance
Order Cycle Time
Inventory Turnover
Carrying Cost
Sell-Through Rate
Product Availability
- Provide inventory management for all channels
- Understand and project demand by channel and location
- Distribute and rebalance supply as needed
- Utilize order management and inventory control systems
Select Technology Providers
Utilize data from order management and inventory control systems to understand and forecast
consumer demand at product, geography and retail level
12

Key Data/Metrics
Transaction Data
Customer Demographics
Overall Satisfaction
Visitor Intent
Task Completion
Optimal Customer Experience
13
- Provide multiple channels for customers to purchase products
- Offer efficient engagement and checkout process in-store and online
- Optimize purchase workflow for the customer
- Product discovery and selection are vital
Select Technology Providers
Aggregate data throughout the sales process online and in-store to better understand
customer experience shortfalls resulting in cart abandonment and lost sales

Key Data/Metrics
Transportation Costs
Delivery Time
Order Accuracy
Number of Shipments
Location Data
On-Time Shipping Rate
Product Delivery
Use data from logistics tools to provide an efficient and cost-effective way to ensure real-time
product availability and speed of delivery, including on-demand and same-day shipping
14
- Ensure efficient and timely distribution of product to customers
- Optimize delivery channel mix from warehouse to last mile
- Capture all data to understand where products are in real-time
- Make data-driven spending decisions around inventory and logistics
Select Technology Providers

Post-Purchase Customer Satisfaction
Use customer reviews and returns technology to effectively respond to customer feedback
including product satisfaction, delivery reliability and customer experience
15
- Aggregate reviews through social media, ecommerce and retail
- Optimize returns and exchanges
- Provide warranty coverage for damaged goods
- Utilize data to upsell and cross-sell products and create repeat customers
Select Technology Providers
Key Data/Metrics
Net Promoter Score
Customer Satisfaction Score
Customer Effort Score
Returns/Exchange Data
Consumer Preferences
Customer Feedback Data

Advertising Accountability
Select Technology Providers
Use attribution data to determine what advertising channel a customer used to accurately
calculate return on ad spend – DO NOT spend advertising budget on unmeasurable media
16
- Aggregate data across all channels to determine strongest sales channels
- Optimize advertising spend by channel in real-time
- Quantify return on advertising spend for individual channels and overall
- Utilize data to dynamically determine ad spend tactics and allocation

Key Conclusions
17

Third-Party Retail Compliance
18
Retailers and marketplaces
provide limited customer
data and give very little
control over customer
experience or satisfaction
Amazon and others have already started providing access
to more robust customer and sales data through their API
New verticalized tools
empower brands to
optimize their sales,
advertising and fulfillment,
while providing all customer
and transaction data
Retailers will have to start
offering customer data to
brands and allow them to
have more control over the
sales process
Prediction #1: Retailers will have to provide brands with data access and ownership
Today FutureCatalyst

Brand Influence Beyond Advertising
19
As selling and advertising
channel options increase,
brands have the
responsibility to advertise
and distribute products
through multiple channels
New platforms that allow
brands to shift dynamically
between third-party
providers will ultimately
commoditize these channel
partners
These further empowered
brands will force third-party
retailers to give them more
control over the entire sales
lifecycle
New-age brands are primarily selling through their own
sales channels and collecting all of the associated data
Prediction #2: Brands will own sales, support and logistics across all channels
Today FutureCatalyst

Evolution of the Retailer Value Proposition
20
Physical retail remains the
best way for consumers to
try products and buy
quickly, but improvements
in the online shopping
experience are now putting
retailers at risk
IoT and new technology
platforms will allow retailers
to collect data, personalize
the customer experience
and provide a seamless
transaction process
With this new technology,
retailers will provide brands
with real-time customer
data and seamless
payments, all while giving
consumers the ability to
experience new products
Retailers are investing in customer experience and
transaction infrastructure to maintain brand dependency
Prediction #3: Retailers will double down on experience and seamless transactions
Today FutureCatalyst

Use an omnichannel approach to always be where the customer
is, own customer relationships and collect consumer data
Utilize the tech stack to receive real-time, consumer-level data
Demand data compliance from retail partners across all channels
Data must inform every spending decision made
The Most Successful Brands Effectively
Utilize Data Across The Organization
21

Revel Partners Team
JOE APPRENDI
General Partner
THOMAS FALK
General Partner
JOHN VINCENT
General Partner
CHRIS YOUNG
General Partner
www.revel.vc
@RevelPartners
MARCOS
MARTINEZ-VILLALBA
Senior Associate
JAKE KUPPERMAN
Associate
VARUN SRIDHAR
Associate
22