Realizing A Personalized Shopping Experience


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- The average U.S. citizen over the age of 12 spent more than 100 hours in 2011 accessing content on wireless devices, such as smartphones, computer tablets and e-readers.

- The average person spends about 400 hours per year on the internet, with about one-quarter of the time is spent on social media sites.

- Over 285 million mobile phones were operating in the U.S. in 2011, of which about 34% were smartphones and consumer end users will make up the majority by 2016.

- Over 600 million tablets will be in use worldwide by 2016.

These customers now expect all information, contacts, news, applications, services and products to come to them in any easy-to-access location, personalized and customized to suit their individual needs. To deliver these experiences, organizations will need to design content and services that can feed all channels used, whether it is field sales, a store location or the Internet (presented on any device, site or platform). The rising sales of iOS applications have shown that usability and convenience are of real value.

A personalized buying experience, enabled by Smarter Commerce, delivers the tools to improve relationships with connected customers.

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  • The average U.S. citizen over the age of 12 spent more than 100 hours in 2011 accessing content on wireless devices, such as smartphones, computer tablets and e-readers.The average person spends about 400 hours per year on the internet, with about one-quarter of the time is spent on social media sites.Over 285 million mobile phones were operating in the U.S. in 2011, of which about 34% were smartphones and consumer end users will make up the majority by 2016.Over 600 million tablets will be in use worldwide by 2016.These customers now expect all information, contacts, news, applications, services and products to come to them in any easy-to-access location, personalized and customized to suit their individual needs. To deliver these experiences, organizations will need to design content and services that can feed all channels used, whether it is field sales, a store location or the Internet (presented on any device, site or platform). The rising sales of iOS applications have shown that usability and convenience are of real value.A personalized buying experience, enabled by Smarter Commerce, delivers the tools to improve relationships with connected customersKey capabilities of personalized buying experience include:Extending the buying experience to multiple channels – like mobile, social, Tailoring customer interactions to customer traits by collecting and analyzing customer behaviorContinuously refining the approach by using dashboards and Key performance indicators to gain visibility and insight into customer actions and act accordinglySatisfy customer needs through new purchase options by providing a variety of methods for buying content (like subscriptions)Enhancing customer engagement through targeted promotions and offers delivered on intelligent storefronts across channelsContinuously analyzing interaction performance gleaned from across interaction points to make better strategic decisions.- Extend the buying experience to multiple channels. This is similar to the scenario just presented where the customer was able to complete a purchase for movie across a mobile, social network or set top box.Enabling a consistent experience across multiple sales and service channels that creates a compelling customer experience. To ultimately redefine the value proposition by using physical and digital products to create new value by understanding the customer and delivering quality content and experiences wherever they are.A Smarter commerce approach to delivering a personalized buying experience can help our services customers more effectively market sell services products and services improving margins, creating new revenue streams and improving the efficiency and effectiveness of how they execute commerce across channels. mobile Internet usage will exceed desktop Internet usage by 2014.- 2011 GBS Thought Leadership White Paper: Smarter Channels: Which Channel Will You Bet On?Today, approximately 80 percent of online users have anaccount on a social networking site such as Facebook.- 2011 IBV CRM Study Analysis: From Social Media to Social CRM –What Customers Want.2011 Coremetrics Whitepaper: Building lift and loyalty with personal product recommendations
  • E-commerce is the buying and selling of goods and services on the Internet and it has changed dramatically from the days of an and eBay launch back in 1995. Over the past few years the combination of an explosion in mobile smart devices as well as continued growth in overall Internet access is providing the foundation for continued growth worldwide for eCommerce and in particular some of it’s newest iterations such as social commerce.
  • Overall mobile Internet usage will exceed desktop Internet usage by 2014.Approximately 80% of all online users have an account on a social networking site such as Facebook.Mobile commerce in particular will grow from $6 billion in 2011 to $31 billion by 2013.While all the micro-channels within eCommerce overlap and continue to emerge it make sense to talk about mobile in particular because it’s really an enabling channel to get to things such as mCommerce web sites, games, apps or social commerce solutions – but support for its usage is critical for any retailer, including CSPs.The Smarter Commerce approach supports mobile web, hybrid and native applications for the mobile industry.
  • With the explosion of social media a new dynamic has been introduced that changes our ecommerce customer lifetime value statement. Traditionally customers have been considered valuable if they either spend a large amount of money with a provider or show they are loyal. With the considerable influence accommodated through social networking that view point is changing. The new customer lifetime value statement includes not only a direct customer but their entire influenced network – however understanding, tracking and measuring this total revenue impact requires sophistication beyond what most service providers have utilized in the past.
  • Even before the fracturing began within the eCommerce channel, providing a consistent customer experience coordinated across multiple channelshas been an ongoing challenge for many service providers. Traditionally silo-ed functions, a lack of knowledge and data sharing, and marketing incentives that do not promote customer-centric strategies or cross-enterprise collaboration have resulted in fractured customer experiences from one channel to the next.This ultimately hurts the brand, customer advocacy and the bottom line. The new micro-channel complexity merely exacerbates the problem, with customer expectations for a consistent, branded experience higher than ever before.Even for those that have organized themselves around their customers, it will not be easy to incorporate new channels into the mix. There are very few CSPs who have achieved this ‘nirvana’ in which customers can successfully complete their goals in each channel offered to them.Source: “IBM – Smarter Channels: Which Channels will You Bet On?”; June 2011
  • CSPs have a much higher level of complexity to deal with than most industry verticals. If someone wants to order a large red sweater from L.L. Bean, L.L. Bean doesn’t care that they already ordered a blue sweater a week before – they will still sell the red sweater – no questions asked. CSPs usually do not have that luxury. If someone calls to order a home phone service it might be very important that a week before they ordered an IPTV and broadband Internet solution.It’s difficult enough to handle these complexities with a skilled and experience human being on the phone or in a storefront but it’s considerably more difficult to do with self-service solutions like those utilized in ecommerce channels. However, the ease-of-use and cost savings offered by ecommerce is too large to ignore – so how does a CSP overcome the deficiency?Through a guided-selling solution a CSP can provide top-tier assistance modeled through best practices to guide their self-service customers and untrained sales personnel through the process of ordering complex items to reduce customer concern and anxiety and increase potential spend and advocacy of their customers.
  • The needs and demands of connected customers call for services providers to enable a personalized buying experienceA personalized buying experience initiative will enable services providers to deliver a compelling and differentiated buying experience to customers as they engage directly with services provider across digital channels. A personalized buying experience strategy should include the following elements in order for a services provider to deliver a compelling and differentiated buying experience to the connected customer. Omni:Can you seamlessly engage with your customers across multiple online channels with a single user experience?Social:Can you interact and analyze your customers within their preferred environments, the social networks?Personal:Can you support the different ways your customers want to buy services products and personalize the offers to meet a particular customers needs?This is a strategy of brand differentiation to drive revenue generation.
  • A smarter commerce approach and integrated portfolio of commerce solutions enables you to offer a personalized buying experience to the connected customerA personalized buying experience involves a services provider moving beyond single channel ecommerce into a cross-channel or omni-channel commerce environment that makes it easier, faster, and more satisfying for customers to purchase  and manage services and products across online, mobile, social, and related channels.Enabling a personalized buying experience is involves a services provider addressing four key initiatives:Multi-channel enablement: where providers can seamlessly engage with customers across multiple channels like mobile and socialPersonalized marketing – where providers use customer data gleaned from customer interactions to personalize offers and promotions with targeted content and pricing with the goal of enabling personalized engagementDynamic Catalog– where providers can offer a variety of payment methods to customers to increase the likely hood of purchaseWeb Analytics - where providers can collect and analyze data about customers in order to refine the customer experience and quickly respond to customer needs.The goal of delivering a more personalized buying experience is to deliver greater customer value that encourage customers to buy more and more often.
  • “Omni” is defined as defined as “a combining form meaning ‘all’” – exactly what any online retailer, including CSPs should be striving for. A combined solution for all their digital channels – a unifying solution that brings together seamlessly the mobile, web, set top, app and social channels to create one experience for their customers.Combined with the complex product sets and components in the communications space this vision cannot be achieved without a solid foundation of capabilities supporting the channels. A cross-channel commerce framework, a common product configurator and universal guided selling are key capabilities needed to support an omni-channel experience.
  • A personalized buying experience starts with enabling omni-channel interactions between a CSP and their customers. The Smarter Commerce approach inherently enables a service provider to create and manage storefronts across multiple channels including web, mobile, and even social. Anomni-channel interaction architecture enables the connected customer to browse and buy where and when they want to.In addition, this solution has the capability to not only enable the deployment of interactive, channel-specific storefronts, but also enable a business to create storefronts for specific customer segments or brands. For example, if you offer games and ringtones, the solution enables the CSP to create and maintain a specific site targeted at the teen segment and the associated demographic brand.Of course, these storefronts must be supported by robust omni-channel commerce capabilities like natural language search and intelligent offer recommendations that create a differentiated and compelling buying experience for the customer.
  • While all the micro-channels within eCommerce overlap and continue to emerge it make sense to talk about mobile in particular because it’s really an enabling channel to get to things such as mCommerce web sites, games, apps or social commerce solutions – but support for its usage is critical for any retailer, including CSPs.The Smarter Commerce approach supports mobile web, hybrid and native applications for the mobile industry.
  • Dynamic Search Capabilities:Search Optimization Framework (SOF) for optimized search experience through embedded marketing triggersSearch based triggers can be used to drive search-driven landing pages, search-based merchandising, search-based recommendations, content spotlighting, etcImproved eCommerce search though meaningful keywords and shorten website addresses
  • The social channel is becoming increasingly more important tool for engaging with connected customers. As more connected customers use the social channel to share information as well as research what they want to buy, it essential that services provider extend their brand and commerce capabilities to the social channel. A personalized buying experience centers on enabling greater social interaction between a services provider and its customers. A Smarter Commerce approach takes customer interaction to the next level by shaping how a provider’s customers access, interact and experience theirbrand over social channels. With IBM capabilities, they can automatically and centrally manage their brand experience and marketing promotions across various social sites through business user tools and synchronize web promotions on their site with that of 3rd party sites like Facebook, and enable their customers to directly buy from the social site by directly linking to your on-line ordering capabilities. But enabling the presentation of promotions is part of the social experience. Today’s connected customers want to share and view information on the providers products and offers. To support this needs, the Smarter Commerce approach enables social bridging, which provides social networking capabilities that enable your on-line stores to support the open sharing of information within the storefront using external social IDs. Social bridging encourages shoppers to leverage their existing social networking sites and identities to extend the CSPs brand beyond their own ecommerce web site. Social bridging allows shoppers to use their established, external social networking IDs to create social content in your store. It also allows shoppers to leverage the social contributions they have made to your store on their personal external social networking sites.For example, Facebook integration allows shoppers to click and share their reviews. With a single click, shoppers to a CSPs site can share their finds with all of their Facebook friends using a Like button on the home page, Like and Send buttons on product pages, as well as an Activity Feed and log in support for Facebook. And it goes a step further by enabling marketing analysis of customers who participated in social commerce activities on your site. You can gather this information and then leverage precision marketing targeting promotions to shoppers who 'Liked' your home page or a product. With this approach, CSPs can greatly extend and enhance your relationship with customers via social channels, especially a new breed of customer called the influencer…
  • Enabling mutli-channel interactions is the foundation of a personalized buying experience. Delivering multi-channel interactions is key in enabling you to meet and exceed connected customer expectations for anywhere, anytime buying. To give an example of this capability in practice, a European Video Service Provider embraced the Smarter Commerce approach and uses the multi-channel interaction capabilities of WebSphere Commerce to enable the ordering of video-on-demand across on-line, mobile, and set-to-box channels. The catalog, pricing, and ordering experience is seamless across those channels.Another example is a book retailer that sells academic books to university students in the US. With our capabilities, this book retailer has created, within one eCommerce platform, unique sites by university each with its own look and feel, content, products, and pricing. Each sits is targeted to the needs and culture of each university. However, a common checkout process is used across sites to improve management efficiency. These are just a couple examples of the smarter commerce approaches you can take to deliver a compelling and differentiated buying experience to your customers.
  • According to research from Gartner Inc., global social commerce revenue is expected to hit $10.3 billion by the end of this year. That's an increase of 41.4% from 2010 and Gartner analysts predict that social media will stay on an upward trend, hitting an expected $29.1 billion in 2015.Facebook already has over $4 billion worth of merchandise listed on the site and Dell recorded $6 and a half million in direct sales from Twitter as early as 2010. Pinterest is the fastest growing social network in history and referrals from the new site are double those coming from Facebook.According to Carolyn Heller Baird, IBM's Communications Strategy Leader for Global Business Services in North America, “Approximately 90% of all the real-time information being created today is unstructured data. CMOs who successfully harness this new source of insight will be in a strong position to increase revenues, reinvent their customer relationships and build new brand value.” (no mobile usage data included)
  • The complexity of many product and service bundles in the telecommunications space means that anxiety and trepidation are introduced for many customers. In order to make the experience simpler and easier across all online channels a robust product configurator and guided selling solution are needed.The IBM Smarter Commerce approach provides for rapid product and model creation to enable new products in the marketplace faster than ever before while reducing the ongoing maintenance and operating costs for changes and updates to products and services offerings.Since the product and service offerings are configured through an easy to use business center it makes enabling a guided selling solution for that product or service easily configurable at the time of bundle creation meaning more targeted and complex offerings can be created, reducing order errors before they happen and allowing for cross-sell and up-sell opportunities along the way.
  • Guided ordering capabilities enables self-service and CSRs with less training to provide high level assistance for the ordering and configuration of complex solutions and bundles through an online interaction.
  • Precision comes through personalization, the ability to reach out directly to a particular customer.
  • Personalization must become a key corporate goal for CSPs with regards to their commerce initiatives, not just another feature added to their web site.Personalization is not a new idea in ecommerce as Amazon and Netflix have been using the concept for years. Personalization is the strategy of presenting options and offers to people based on what they are looking for, what they have found interesting in the past, what their friends have engaged with or based on declarative statements like their interests. Personalization has gotten a lot of positive attention recently because it can be used to make complex information into relevant, digestible and meaningful.Successful providers invest in personalization as a core value of how they do business – the same “customer-centric” philosophy employed by Smarter Commerce– rather than an add-on “feature.” In order to provide that they need a solution built with that purpose in mind.
  • Let’s take a look at a Smarter Commerce scenario showing how a service provider might use precision marketing to improve the buying experience for a customer:The customer is a return customer who has written a number of reviews of various services products over time. This is valuable information for the provider and they want to reward or incent the customer for this type of behavior.Precision marketing is preset to reward such a customer after they have written 5 online reviews. The customer is added to a predefined customer segment called “Active Participant” and then either sent a text message offering a $10 off coupon or when the customer returns to the site, they will see an offer for $10 off their next services purchase. Thus the solution automatically segments customers based on behavior and takes actions based on that behavior to improve the overall relationship with the customer.
  • Here is a second and more detailed scenario showing how precision marketing works within the context of social services.The scenario begins with a customer viewing an e-marketing widget for a sports subscription service on a friend’s Facebook page. The widget will appear on a Facebook page when a customer goes to a services provider storefront and chooses to recommend a certain deal on their Facebook profile. In this case the customer is viewing a friends page and happens to see this deal of the week posted.Upon clicking on the page, the customer is added to the customer segment Facebook deal of the week. After registering the customer may choose to place the order for the subscription or navigate away and browse something else. Depending on this trigger by the customer, precision marketing will either send them a thank you email or text for placing their order. Or it will recommend other offers intelligently based on this customers past and current behavior. In this case it might be to recommend a live sports video stream bundle that might better suit what the customer is looking for in order to save the sale.Ultimately the goal is to track and act on customer behavior in real time in order to deliver then best and most relevant offers to customers in order to make the information they view more valuable and increase the number of sales and revenue.
  • Providers must develop deep understanding of the customer and how he or she makes their purchase decision. As the customer changes the provide must be able to adapt and refine the buying experience to continue to deliver value. With online web analytics service providers can develop a base of intelligence on which to build unique offers, promotions, custom storefronts, and social engagement.This is enabled by the ability to:Track performance of websites, sales, and campaignsTrack Impact of messages and brand engagement across channels like social and mobileAnalyze and refine the customer experience based on insight gathered about customer behavior over time.Web Analytics provides a complete picture of customer interactions to enable continuous experience refinement by services providers. First, service providers get a more comprehensive set of insights:Key performance indicators in real time so you know where you standBenchmark on how results compare to their peers in the communications industry( and sub-verticals), so they see immediately where they stand and where they have opportunity to improve.Dashboards and reports for business usersDeepest power user analysis for the most advanced analystsCapabilities for mobile site and app analytics And much more (e.g. API access, ability view reports in Excel, rich marketing attribution reporting, cross-session segmentation, etc. etc. etc.)Web Analytics can also be embedded more deeply into the enterprise and the CSP eco-system offeringDeep integration with ecommerce storefronts and single sign on that have been honed over the years. Self-service data feed capability.Web analytics is uniquely designed to allow a provider to domore than just to optimize a website and online ads but rather to go from insight to automated marketing action with just a few clicks to help turn visitors into repeat customers and loyal advocates over time byCollecting and analysing customer profiles to build granular visitor-activity profiles automatically.Selecting promising segments and configurig email or display ad campaigns to re-target or cross-sell or better service and “wow” their customers.
  • Delivering a personalized buying experience requires that you target specific offers and promotions to individual customer segments.But what if you could take the even further and interact with these segments over specific commerce sites tuned with content, look and feel, offers, etc. tuned to that segment? That would certainly deliver a differentiated user experience.The Smarter Commerce approach enables multiple stores to be deployed on a common instance of software. The stores share a code base and business context configuration called an Asset Store and both the business context configuration and code base can be modified for each extended site (or microsite) to create a completely separate store and experience for the end user.The Extended Site capability is best explained using an example scenario:Suppose you wish to create a microsite named “Smarter Tennis”, leveraging your ecommerce site assets but configured separately to display a sub-set assortment of products, content, and user interface for tennis enthusiasts. To implement, your overall store would be used as the Asset Store and the “Smarter Tennis” store would be created. The Smarter Tennis micro-site can automatically inherit all elements of your core store. However, when a separate UI is applied and user configuration is applied using the Extended Site business tooling, the content, catalog assortment, and presentation for the “Smarter Tennis” micro-site can be completely different.The goal is to enable today’s service providers with the tools to flexibly design unique experiences targeted at specific customer segments. In this way, they can differentiate the experience to drive greater customer attraction and revenue.
  • For CSPs who can bring a common ‘omni-channel’ and personal experience in the ecommerce micro-channels of mobile and social the rewards can be substantial – reduced cost, reduced time to market, increased customer advocacy, increased efficiency of campaigns and higher conversion rates on cross and up-sell activity.The IBM Smarter Commerce approach provides the foundations for helping CSPs take their first steps toward a personalized buying experience for their customers.
  • Use customer value strategy and engagement assessments to help clients rethink business models and optimize channel strategy to maximize value.
  • Realizing A Personalized Shopping Experience

    1. 1. Realizing  a  Personalized  On-­‐line  Shopping  Experience  Next-­‐Genera:on  eCommerce  for  Communica:ons  Service  Providers      Smarter  Commerce  for  Communica:ons         © 2012 IBM Corporation
    2. 2. Today’s  connected  customers  are  relying  more  and  more  on  ecommerce  to  browse  and  buy  communica5ons  offerings   →   Connect  Me   →   Know  Me   →   Show  Me   →   Guide  Me   →   Support  Me  2 © 2012 IBM Corporation
    3. 3. Digital  commerce  is  leading  the  growth  in  sales  and  will  con5nue  to  do  so  for  the  foreseeable  future   “If  I  had  to  guess,  social   Forecasted  growth  by  2014   commerce  is  the  next  to  blow   up…”   98%   184%   –  Mark  Zuckerberg   84%   Predicted  Social  Commerce   Growth  (in  billions  $USD)   71%   35   30   204%   88%   25   20   Rest  of   15   World   10   U.S.   104%   5   0   2011   2012   2013   2015   2014   $102.4   $90.5   $54.5   $9.5   $8.9   $2.6   $1.6   2009  annual  e-­‐commerce  spend  in  billions  $USD  3 © 2012 IBM Corporation
    4. 4. Connected  customers  are  also  showing  a  growing  preference  for  using  emerging  on-­‐line  channels  to  browse  and  buy   Mobile  commerce  is  accelera:ng  the  growth  of   eCommerce   79%   Use  phone  for   shopping  related   ac:vi:es   70%   Use  phone  while   shopping  in-­‐ store   74%   Of  shoppers   purchased  as  a   result  of  using   the  phone  Sources: comScore and thinkmobile4 © 2012 IBM Corporation
    5. 5. What  makes  a  customer  valuable?   influencer  Historical  customer  life:me  value  statement  =  customer  spend  +  customer  loyalty  New  customer  life:me  value  statement  =  total  influenced  customer  and  network  spend  +  loyalty  90 63 percent  of  customers  trust   percent  of  users  choose   recommenda5ons  by  friends   consumer  ra5ngs  as  their   more  than  tradi5onal   preferred  source  of   adver5sing   informa5on  about  services  5 © 2012 IBM Corporation
    6. 6. Fracturing  of  the  tradi5onal  ‘eCommerce’  channel  has  created  the   need  for  providers  to  enable  a  singular  on-­‐line  experience   With  over  20%*  of  telecom  customers  desiring  to  use  online  systems  as  their   primary  means  of  ordering  new  services  and  end  user  devices,  service   providers  must  provide  a  consistent  and  compelling  experience  across  digital   channels  1995   2000   2005   2010   Portals   Web  chat   Search  Engine  Op5miza5on   Social  Networking   Viral  Marke5ng   Virtual  User  Communi5es  * Source: Analysys Mason 6 © 2012 IBM Corporation
    7. 7. Communica5ons  service  providers  have  to  accommodate  more   complexity  than  most  in  their  digital  commerce  channels   Credit  Score   3rd  Party  Installa:on   Network  Capacity  CPE  Inventory   Customer  Facing  Services   Reseller   Contract  Status  Customer  Inventory   Billing  History   Resource  Facing  Services   The  service   provider  is   Smartphone  Op:ons  rewarded  with   This  complexity  is  difficult  enough   advocacy,   to  accommodate  with  a  human   increased   involved  –  through  a  digital   spend  and   channel  it’s  considerably  more  so.  reduced  churn.   A  guided  selling  solu:on  reduces   customer  experience  expenses  like   :me,  effort,  anxiety  and  confusion   and  increases  experience  rewards   like  convenience,  ease  of  use  and   7 personal  touch.     © 2012 IBM Corporation
    8. 8. The  demands  of  connected  customers  call  for  service  providers  to   enable  a  personalized  shopping  experience  across  all  digital  channels   1 23 Service   Provider   eCommerce   must   become   omni   guided   precise     A  personalized  shopping  experience   ini:a:ve  will  enable  service   providers  to  deliver  a  compelling   and  differen:ated  buying   experience  to  customers  as  they   engage  across  digital  channels.8 © 2012 IBM Corporation
    9. 9. IBM’s  Smarter  Commerce  approach  and  integrated  por[olio  enables  a  personalized  on-­‐line  shopping  experience  in  communica5ons   Sourcing,   Targeted  and   Personalized  Shopping  Experience   controlling  and   personalized   Gives  your  customers  the  control  to  determine   procurement  of   marke:ng  across   when  and  how  they  buy  on-­‐line  including  the   goods  and  services.   all  customer   ability  to  personalize  what  they  buy  to  their  unique   interac:ons   needs  and  requirements.   Buy   Market   IBM Websphere Commerce (Omni-channel Sales + Social) Service   Sell   IBM Sterling Configurator (Guided Ordering) Servicing  customer   Selling  and  fulfillment   needs  across  all   of  products  and   Interac:on   services  across   IBM WebSphere Commerce & Coremetrics channels   all  channels   (Precision Marketing) Smarter  Commerce  Lifecycle  9 © 2012 IBM Corporation
    10. 10. 1Omni-­‐channel  enables  a  unified  on-­‐line  ordering  experience  across  digital  channels   mobile   web   Mobile  usage  is   exploding  and  is   expanding  to   The  web  con5nues  to   grow  in  usage  by   customers  as  a   omni   more  devices   omni = preferred  method   of  shopping   common experience set  top social   The  next  shopping   Social  commerce  is    CSPs  need  to  strive  for   revolu5on   may  be  the  home   becoming  a  key   contributor  through   providing  the  same  user   entertainment   experience  –    television   recommenda5ons  and   referrals   experience  throughout  all     digital  channels.   cross-­‐channel  commerce  framework  10 © 2012 IBM Corporation
    11. 11. Suppor5ng  cross-­‐channel  interac5ons  consistently  is  cri5cal  in   aarac5ng  and  cap5va5ng  connected  customers   Service  providers  must  meet  the  connected  customer’s  demand  for  a  seamless  and   consistent  buying  experience  across  mul:ple  channels   Cross-­‐Channel  Interac:ons   Cross-­‐Channel   Suppor:ng  how   customers  want   to  buy   On-­‐line   Mobile   Social   Call  Center   Retail   Cross-Channel Coordination & Unified Cart Mul:-­‐Site   Targe:ng  what   Brand  Site  3   Brand    Site  4   Brand    Site  1   Brand    Site  2     customers  want   Mobile   VOD  &  IPTV     Games     Apps   to  buy   Content   Enhanced   Experience   Intelligent   Search  &   Social   Personalized   Flexible     Differen:a:ng  the   Comparison   Communi:es   Recommend-­‐ Content   Pricing   brand  with   a:ons   customer-­‐centric   capabili:es  11   © 2012 IBM Corporation
    12. 12. The  mobile  channel  is  becoming  the  most  dominant  commerce  channel  and  robust  support  is  cri5cal  to  success  for  CSPs   The  Smarter  Commerce  approach  enables  service  providers  to  offer  customers  a   rich  mobile  storefront  for  several  mobile  devices  and  plamorms  Rich  Mobile  Storefronts:   ü  Product  naviga:on  and  Search   ü  Cross-­‐channel  inventory  and  pricing   ü  Loca:on  based  marke:ng  and   promo:on   ü  Buy-­‐Online,  Pickup-­‐In-­‐Store  or   §  Mobile  phones     Ship-­‐To        -­‐  iPhone,  Android,  Blackberry  and  others   ü  Quick  checkout  profile  for   §  Tablet  devices   smartphones        -­‐  iPad,  Android,  Playbook  and  others   ü  Barcode  scan  for  product  or   §  Mobile  Browser  (JSP,  HTML5  and   marke:ng  landing  page   CSS3)   §  Hybrid  Applica:ons  (Android,  iOS,  …)   ü  Voice  search  for  product   informa:on   §  Na:ve  Applica:ons  (Android…)        -­‐  WC  REST  interface  for  server  content   ü  Store  locator  with  local  maps        -­‐  Device  features  via  direct  na:ve  API  calls  12 © 2012 IBM Corporation  
    13. 13. Providing  dynamic  search  and  browse  capabili5es  are  essen5al  as  customers  use  the  mobile  channel  to  facilitate  their  purchases   The  Smarter  Commerce  approach  simplifies  how  customers  get  to  informa:on   Landing   Result   Product   Faceted   Page   Ranking   Recommenda:on   Naviga:on  WC  Cross  Channel  Precision   Marke:ng  Engine   2 Rules-­‐Driven  Search  Results   WC  Triggers   WC  Search  Op:miza:on   1 Storefront   Framework   Auto  Suggest   Spell  Correc:on   internet   broadband  Apache   Search   Third   smartphone  internet   Did  you  mean:  “broad  band”   Solr   Adapter Party   high-­‐speed  internet   “broadcast”  “bandwidth”?   Crawler   Search   internet  modem   wireless  internet   Phrase   Wildcard   high  speed  internet   And*  phone  13 © 2012 IBM Corporation
    14. 14. Extending  a  service  provider’s  brand  to  social  and  partner  channels  helps   services  provider’s  broaden  their  market  presence   The  Smarter  Commerce  approach  enables  service  providers  take  full  advantage  of   social  dialogs  to  enhance  on-­‐line  sales    Extended  Digital  Interac:ons:   ü  Customers  and  partners  to  share   products,  lists  and  other  content   on  social  networks  and  any  third-­‐ Promo:ons   party  Internet  site   Social  Networks   ü  Facebook  integra:on  with  ‘Like’   and  ‘Share’  burons   Buying   ü  Support  product  ra:ngs  and   Service  Provider   Extended  Digital   reviews  by  integra:ng  with  third-­‐ Brand   Partners   party  vendors   Sharing   ü  Social  bridging  allowing  shoppers   to  use  their  exis:ng  social   networking  ID  to  create  social   Aggregators   content   14 14 © 2012 IBM Corporation  
    15. 15. An  omni-­‐channel  shopping  experience  is  completed  by  coordina5ng  on-­‐line  interac5ons  with  tradi5onal  channels   The  Smarter  Commerce  approach  helps  service  providers  increase  on-­‐line  sales  close   rates  by  enabling  customers  to  get  help  as  needed   Cross-­‐Channel  Coordina:on:   ü  Co-­‐shopping  enables  customer   service  representa:ve  to  assist   customers  with  their  on-­‐line   experience   ü  Customers  can  share  their  shopping   Customer   experience  with  service   service  reps   can  be   representa:ves   available   ü  Business  user  interface  for  Customer   24/7   ...  and   Care  management  tasks  (e.g.  create,   customers   modify,  delete  and  assign  queues   get  the   associated  with  customers)   help  they   need.   ü  Mul:-­‐customer  queue  support  and     re-­‐route  15 © 2012 IBM Corporation  
    16. 16. Smarter  Commerce  enables  personalized  on-­‐line  shopping  by  allowing  customers  to  browse  and  order  across  any  digital  channel   Key  Benefits:   §  Meet  and  exceed  customer  expecta:ons  for  anywhere,   any:me  buying   Personalized  Shopping   §  Delivers  a  seamless,  branded  buying  experience  across  Experience  –  Omni  Channel   channels  §  Enable  search,  browse,   §  Extend  brand  reach   order,  and  checkout  across   digital  channels   Solu:on  in  Ac:on:  §  Deliver  a  mobile-­‐oriented   §  European  service  provider  sought  to  create  mul:-­‐channel   buying  experience  across   ordering  environment  for  new  IP-­‐based  on-­‐demand  video   device  OSs  §  Extend  customer  interac:on   service   to  social  and  partner   §  IBM    implemented  a  mul:-­‐channel  eCommerce  solu:on   channels   using  WebSphere  Commerce  §  Coordinate  on-­‐line   interac:ons  with  call  center     §  Solu:on  enables  customers  to  buy  via  on-­‐line,  mobile,  and   set-­‐top  box  channels   §  Extensive  use  of  on-­‐line  social  sharing  (reviews,   recommenda:ons,  and  ra:ngs)  facilitates  sales   © 2012 IBM Corporation
    17. 17. 2Guided  ordering  simplifies  on-­‐line  ordering  increasing  customer’s  ability  to  personalize  their  purchases   guided   mobile   web   Mobile  usage  is   The  web  con5nues  to   exploding  and  is   grow  in  usage  by   expanding  to   customers  as  a   more  devices   omni = preferred  method   of  shopping   common experience set  top social    CSPs  need  to  remove   The  next  shopping   revolu5on   Social  commerce  is   becoming  a  key   the  complexity  and  fric:on   may  be  the  home   entertainment   contributor  through   recommenda5ons  and   in  on-­‐line  ordering  to  truly   experience  –    television   referrals   enable  a  personalized     cross-­‐channel  commerce  framework   shopping  experience.   guided  ordering  17 © 2012 IBM Corporation
    18. 18. To  increase  on-­‐line  sales  close  rates  and  revenue,  service  providers  must  make  it  easy  for  customers  to  navigate  the  ordering  process   Allows  customers  to  tackle  even  the  most  complex  current  and  future   product  configura:on  and  offer  crea:on  scenarios  with  confidence     §  Create  a  guided  ordering  experience   Configure   Products,   Services,   §  Clearly  suggest  and  explain  op:ons   Op5ons   §  Validate  oven  -­‐-­‐  errors  prevented  up   front   Service   Choice   Dependent   Validate   §  Selec:ons  can  be  used  to  make   Op5on   Op5on   Availability   recommenda:ons  or  guide  the   Choice   Product   Choice   configuring  user   Gather   Choice   Data   Op5on   Op5on   Choice   Incompa:ble   Choice   Configured  Solu:on  &  Order  18 © 2012 IBM Corporation
    19. 19. Guided  ordering  facilitates  customer  decisions,  removes  anxiety,  and  gives  customers  the  confidence  to  complete  orders  on-­‐line   The  Smarter  Commerce  aproach  integrates  guided  ordering  into  the  on-­‐line  ordering   process  to  guide  customers  to  making  valid  purchase  and  ordering  decisions   Integrated  guided  ordering:   On-­‐line  Ordering   ü  Guides  customers  hrough  valid   decisions  and  ac:ons  when   Guided   Guided   Order   adding,  changing  or  removing   Selec:on   Configura:on   Valida:on   products   ü  Fully  validates  feasibility  of  order   Bundle   ac:ons  to  ensure  order  accuracy   Product  1   Product  2   Product  3   Product  4   ü  Enables  the  business  to  model   configura:on  flow  and  rules  to   Op5on  1   Op5on  2   Op5on  A   Op5on  B   Op5on  C   provide  the  op:mal  customer   order  flow   ü  Designed  to  handle  highly   Service  Availability   complex  communica:ons   ordering  requirements   A  and  B  or  C  are  mutually  exclusive  19   © 2012 IBM Corporation
    20. 20. 3Precision  is  the  key  to  marke5ng  directly  to  a  par5cular  consumer  regardless  of  channel   mobile   web   Mobile  usage  is   exploding  and  is   The  web  con5nues  to   grow  in  usage  by   precise   expanding  to   customers  as  a   more  devices   omni = preferred  method   of  shopping   common experience set  top social    CSPs  need  to  embrace   The  next  shopping   Social  commerce  is   revolu5on   becoming  a  key   eCommerce  as  an  ac:ve   may  be  the  home   contributor  through   entertainment   recommenda5ons  and   marke:ng  plamorm  rather   experience  –    television   referrals   than  a  passive  ordering   cross-­‐channel  commerce  framework   plamorm   guided  ordering   precision  marke:ng  20 © 2012 IBM Corporation
    21. 21. The  Smarter  Commerce  approach  integrates  precision  marke5ng  into  key  eCommerce  processes  to  deliver  true  personaliza5on   omni-­‐ 10% average  upliv  in   channel   sales  by  making   interac:on   personal   recommenda:ons   Who  is  my   and  offers  to   customers   customer   and  what   do  they  2/3 of  smartphone  users   precision   marke:ng   want?   online   analy:cs   say  they  would  share   personal  info  to  reap   addi:onal  benefits  of   personalized  services.  21 © 2012 IBM Corporation
    22. 22. Precision  marke5ng  enables  services  providers  to  personalize  the  buying  experience   The  Smarter  Commerce  approach  enables  service  providers  to   automate,  extend  and  adapt  marke:ng  strategies  to  personalize  the   experience  for  their  customers   Precision  Marke:ng:   ü    Automated  and  dynamic  offers   Triggers   Ac:ons   based  on  preference  and  inten:on    ü  Extend  personalized  marke:ng  by   using  browsing  behavior  and   transac:on  history  to    trigger  offers   mobile   social  commerce   promo:ons   mobile   and  promo:ons   Precision     ü  Adap:ve  personalized  marke:ng  to   Marke:ng   support  on-­‐going  dialog  with   order  history   browsing   cross/up  sell   point  of  sale   customers,  over  :me,  across   channels  (including  emails,  SMS,   landing  pages,  etc.)   ü  Business  tooling  to  define  offers,   personaliza:on   search   email   kiosk   campaigns,  on-­‐line  behavior,  etc.    22 © 2012 IBM Corporation  
    23. 23. Example  of  solu5on  in  ac5on:  Precision  marke5ng  presen5ng  personalized  offer  based  on  specific  customer  behavior       Scenario:  Reward  a  customer  for  par:cipa:ng  in  the  online  review  of  services   products  by  issuing  a  coupon   Add  to  Ac:ve   Change  Banner  $10  Off  Next  Order   Customer  Writes  5  Reviews   Par:cipant  Segment   (Online  Channel  Ac5vity)   CUSTOMER REVIEWS Overall Rating Send  $10  Off  SMS  Coupon   (Dialogue  Ac5vity)   Thank  you  for  your   WRITE A REVIEW > review.  Receive  $10  off   your  next  purchase!   Customer  writes  5  reviews  on  a   services  provider  site.  The  5th   The  customer  is  added  to  the   review  triggers  an  ac:on  by  the   Ac:ve    Social  services   The  customer  receives  a  text   precision  marke:ng  engine     Par:cipant  customer  segment     message  for  a  $10  off  coupon  on  his       next  services  purchase  and  the   banner  on  the  services  storefront  is   personalized  to  include  a  $10  off  23 coupon.   © 2012 IBM Corporation
    24. 24. Example  of  solu5on  in  ac5on:  Precision  marke5ng  integra5ng  extended  channels  into  the  marke5ng  mix   Scenario:  Promote  a  new  subscrip:on  internet  television  service  for  a  spor:ng  event   using  an  e-­‐marke:ng  spot  on  social  services  sites  like  Facebook   Send  Email:   Thank  you  for   Customer  places  order   your  order   for  video  subscrip:on   service  The  customer   The  customer  is   The   Branch  to  the   Customer   Customer  sees    clicks  on  a  deal   added  to  the   customer   first  path  for   navigates  away   recommenda:on  of  the  week  e-­‐ customer   registers   which   and  does  not   for  sports  video  spot  for  a  live   segment:   at  the   customer   place  order     tournament  sports  video   Facebook  deal   services   qualifies   bundle  subscrip:on   of  the  week     provider  service  on   website  Facebook   © 2012 IBM Corporation24
    25. 25. Precision  marke5ng  takes  advantage  of  robust  web  and  social   analy5cs  to  gather  a  complete  picture  of  customer  behavior   The  Smarter  Commerce  approach  integrates  web  analy:cs  into   eCommerce  processes  so  service  providers  can  op:mize  the  on-­‐line   experience  and  increase  the  value  delivered  to  connected  customers   Integrated  web  analy:cs:     ü  Track  performance  of  web-­‐   site,  sales,  and  campaigns   ü  Track  impact  of  messages  and   brand  engagement  across  all   digital  channels   ü  Analyze  and  refine  customer   experience  based  on  insight      25 © 2012 IBM Corporation
    26. 26. Using  web  analy5cs  can  lead  service  providers  to  implement  even  greater  personaliza5on  such  as  a  segment  specific  micro-­‐sites   The  Smarter  Commerce  approach  delivers  extended-­‐sites  capabili:es  enabling  a   services  provider  to  deploy  sites  for  specific  customer  groups  or  brands     Extended  Sites:   Search  for  category   Browse  selec5ons   Select  movie     Preview    trailer   ü  Create  custom  micro-­‐sites  for   Checkout   Download   specific  brands,  customer  segments     or  geographical  marketplaces     Brand    Site  1   Brand    Site  2     Brand  Site  ite  3     Brand    S 3   ü  Personalize  content  for  each  micro-­‐ Games     Apps   Mobile   VOD   site  based  on  defined  business  rules   Content   and  policies   Catalog/   Catalog/   Catalog/   Content   Content   Content   ü  Share  assets  across  mul:ple  micro-­‐   Business   Page Page       Business   Page   Page     Business   Page     sites  with  one  set  of  developers     Assets     Logic Logic     Assets   Logic   Logic     Assets     Logic   Extended  Sites   ü  Enable  partners  to  build  their  own   Inherit,  Reference,  Override     partner-­‐specific  storefronts  and  add   Business   their  own  items   Catalog  /Content   Assets   Page  Logic         Base  Site    26 © 2012 IBM Corporation
    27. 27. Smarter  Commerce  delivers  greater  personaliza5on  through  through  ac5on  based,  targeted  and  invidualized  offers     Key  Benefits:   §  Users  have  achieved  two  :mes  higher  results  in:   Personalized  Shopping   §  Customer  reten:on  rates   Experience  –     Precision  Marke:ng   §  Profitability  per  customer  §  Uses  customer’s  profile,   §  Profitability  per  customer  transac:on   historical  and  behavioral   §  Percent  of  customers  purchasing  mul:ple  products  or   informa5on  to  deliver  a   services   personalized  shopping   experience   Solu:on  in  Ac:on:  §  Ini5ate  marke5ng  ac5on   triggered  by  specific   §  On-­‐line  retailer  and  media  company  sought  a  solu:on  that   customer  ac5on   could  op:mize  a  user’s  shopping  experience  by  §  Track  behavior  and  automate   automa:cally  displaying  addi:onal  relevant  items   ongoing  dialog  with  the   throughout  the  browsing  and  purchasing  process.   customer  to  adapt  to   changes  over5me   §  Wanted  recommenda:ons  to  be  based  on  both  browsing   and  purchase  behavior.   §  Implemented  Coremetrics  intelligent  offer  helping  double   conversion  rate  for  recommended  items  27 © 2012 IBM Corporation
    28. 28. The  Smarter  Commerce  approach  delivers  a  personalized  on-­‐line   shopping  experience  for  communica5ons  service  providers   Make  it  easier,  faster,  and  more  sa:sfying  for  customers  to  purchase  and   manage  services  products  across  online,  mobile,    social  and  related  channels  to   deliver  greater  customer  value.     Ini:a:ves  to  enable  personalized   Benefits   shopping  experience:   §  Meet  and  exceed  customer  expecta5ons  for     anywhere,  any5me  buying    Omni-­‐channel  interac:ons  to  seamlessly   §  Deliver  a  seamless,  branded  buying   engage  with  customers  across  channels   experience  across  channels     §  Personalize  the  buying  experience  to    specific   Guided  ordering  to  simplify  complex   ordering  and  deliver  greater  personaliza5on   segments  and  regions     §  Automate  marke5ng  ac5ons  to  reduce  costs   Precision  marke:ng  to  personalize   §  Increase  revenue  via  crea5ve  purchase   customer  experience   op5ons     §  Capitalize  on  social  and  mobile  commerce   Web  analy:cs  to  analyze,  measure  and   §  Understand  and  an5cipate  customer  behavior   refine  the  customer  experience   turning  insights  into  ac5ons     28   © 2012 IBM Corporation
    29. 29. Genng  Started  with  Smarter  Commerce  -­‐  Customer  value  strategy  and  engagement  assessments   Customer  Value  Strategy         •  The  Smarter  Commerce  Customer  Value  Accelerator  –  helps  clients   rethink  the  business  model  by:   –  Understanding  the  new  set  of  possibili:es  created  by  customer  experience  transforma:on   –  Priori:zing  the  value  proposi:ons  to  focus  on  those  with  the  greatest  poten:al   –  Characterizing  the  possibili:es  into  a  set  of  customer  journeys/experiences   –  Defining  the  business  capabili:es  needed  to  opera:onalize  the  new  value  proposi:on     Customer  &  Partner  Engagement   •  The  Smarter  Commerce  Cross-­‐Channel  Experience  Assessment  –  helps   clients  op5mize  channel  strategy  to  maximize  value  by:   –  Developing  a  cross-­‐channel  strategy  that  reflects  current  consumer  trends  &  priori:es   –  Iden:fying,  analyzing  and  priori:zing  cross-­‐channel  opera:on  model  innova:ons   –  Crea:ng  journey  maps  of  key  events  to  characterize  the  future-­‐state  of  the  customer   experience  29 29 © 2012 IBM Corporation