The Empowered Customer:Deliver What They Want, When They        Want It and Profit Big      An InformationWeek Webcast    ...
Webcast Logistics
Today’s Presenters         Craig Hayman,         General Manager,         IBM Software Industry Solutions         Charles ...
Craig Hayman,GM IBM Industry Solutions  © 2012 IBM Corporation
We have a big emphasis on being there for our    customers; having a great experience focused on    being more convenient ...
Forget everything you think you know about marketing.    Todays marketing is about understanding your    customers better ...
We analyze customer information across all channels    to gain insight, take action and create loyalty.              Dev M...
Our value chain must be agile and transparent, so we    can deliver the end-to-end customer relationship.                 ...
Empowered Customers areReshaping Businesses44% of companies use                                    86% use multiplecrowd s...
“The purpose of business is to     create and keep a customer”                                                 — Peter Dru...
11   © 2012 IBM Corporation
On average, a retailer failed in the United States last year12                            © 2012 IBM Corporation
Due to out of stock inventory13            © 2012 IBM Corporation
Stockpiled in supply chains14           © 2012 IBM Corporation
To gain a new customer than retain one15                 © 2012 IBM Corporation
We Call the Path ForwardSmarter Commerce     Places the customer   Maximizes                   Capitalizes on social     a...
Smarter Commerce:Transforms the Commerce Cycle         Insight                                Strategy                    ...
Smarter Commerce:Ahead of Demand                                            Analyzes     Optimizes                        ...
What Does Smarter Commerce Look Like     at Cengage Learning           BUY              MARKET                SELL        ...
Smarter Commerce at Cengage Learning:Reaching B2B and B2C customers throughe-Business- Charles Qian, Director of eCommerce...
Cengage Faced Significant Business and Market Challenges  Attrition/Arbitrage eroding sales of traditional, new textbooks...
The Cengage Approach to These Challenges      Enhancing the direct-       to-consumer (D2C)     experience and offering   ...
Cengage Learning Online Retail Solution       Micro-sites                                            CengageBrain         ...
CengageBrain.com Implementation Timeline     Launched pilot program for ebooks and echapters in December 2005     Expand...
Homepage with Marketing Pods & Social MediaCengage Learning reaches B2B and B2C customers through e-business
Browse By CategoryCengage Learning reaches B2B and B2C customers through e-business
Search Results and FilteringCengage Learning reaches B2B and B2C customers through e-business
Product Detail Page with All Purchase OptionsCengage Learning reaches B2B and B2C customers through e-business
Up-selling and Cross-selling in Shopping CartCengage Learning reaches B2B and B2C customers through e-business
QAI Address ValidationCengage Learning reaches B2B and B2C customers through e-business
Digital Dashboard Content AccessCengage Learning reaches B2B and B2C customers through e-business
Rental Options and Contract ManagementCengage Learning reaches B2B and B2C customers through e-business
The Results of the B2C Strategy  D2C online revenue grew on average, over 50% year over year from   2006 to 2011.  Digit...
Keys to Monetizing D2C Digital Content – Closing Thoughts  Offer choice and value to offset market challenges        – El...
Smarter Commerce: A Complete Portfolio                        VALUE CHAIN STRATEGY AND SERVICES                           ...
Smarter Commerce: New Solution          HighlightsNEW!                                 Supplier Integration and Management...
Get Started on Your Journey..  Supply Chain    Marketing       Digital    Visibility   Innovation   Transformation        ...
Q&A Session        Craig Hayman,        General Manager,        IBM Software Industry Solutions        Charles Qian,      ...
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Empowered customer

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Empowered customer

  1. 1. The Empowered Customer:Deliver What They Want, When They Want It and Profit Big An InformationWeek Webcast Sponsored by
  2. 2. Webcast Logistics
  3. 3. Today’s Presenters Craig Hayman, General Manager, IBM Software Industry Solutions Charles Qian, Director of eCommerce Systems, Technology Services Cengage Learning
  4. 4. Craig Hayman,GM IBM Industry Solutions © 2012 IBM Corporation
  5. 5. We have a big emphasis on being there for our customers; having a great experience focused on being more convenient and having sound advice. Dan Marks, Chief Marketing Officer First Tennessee Bank I love my Mobile apps, lets you pay bills, check your status of your account at your finger tips. First TN even notifies you of any strange activity to verify that its you.5 © 2012 IBM Corporation
  6. 6. Forget everything you think you know about marketing. Todays marketing is about understanding your customers better than they know themselves. John Lazarchic, VP of eCommerce PETCO Love the versatility and durability. I’ll be surprised if I ever have to purchase another crate again!6 © 2012 IBM Corporation
  7. 7. We analyze customer information across all channels to gain insight, take action and create loyalty. Dev Mukherjee, SVP and President Home Appliances, Sears Holding Company Sears Social – Kenmore Elite Washer “Brilliant, easy to use design with every thing I want my washer to do and it looks sweet too…It is a work of laundry art!”7 © 2012 IBM Corporation
  8. 8. Our value chain must be agile and transparent, so we can deliver the end-to-end customer relationship. Mark Booth, North America CIO Whirlpool We gotten a generous 35 years out of this workhorse Whirlpool dryer and hopefully we can get lots more!8 © 2012 IBM Corporation
  9. 9. Empowered Customers areReshaping Businesses44% of companies use 86% use multiplecrowd sourcing channels4 in 10 smartphone users e Multi channel buyerssearch for an item spend 4 to 5 times morein a store than average80% of CEOs think 45% check with a friendthey deliver a superior before buyingcustomer experience…8%of their customers agree 78% of consumers trust peer recommendations 9 © 2012 IBM Corporation
  10. 10. “The purpose of business is to create and keep a customer” — Peter Drucker …and this has never been more challenging10 © 2012 IBM Corporation
  11. 11. 11 © 2012 IBM Corporation
  12. 12. On average, a retailer failed in the United States last year12 © 2012 IBM Corporation
  13. 13. Due to out of stock inventory13 © 2012 IBM Corporation
  14. 14. Stockpiled in supply chains14 © 2012 IBM Corporation
  15. 15. To gain a new customer than retain one15 © 2012 IBM Corporation
  16. 16. We Call the Path ForwardSmarter Commerce Places the customer Maximizes Capitalizes on social at the center the insight and mobile Drives growth Synchronizes your entire value chain Increases margins Improves collaboration and visibility16 © 2012 IBM Corporation
  17. 17. Smarter Commerce:Transforms the Commerce Cycle Insight Strategy Buy Market Service Sell Engagement17 © 2012 IBM Corporation
  18. 18. Smarter Commerce:Ahead of Demand Analyzes Optimizes sentiment supply and chain anticipates execution behavior Services Creates and exceptional delivers customer flawlessly experience18 © 2012 IBM Corporation
  19. 19. What Does Smarter Commerce Look Like at Cengage Learning BUY MARKET SELL SERVICE New Channels The ability to Seamless end to Buy what you end service over open up greater target new offers need, when you the web buying based on need it, and get opportunity for customer access instantly cusatomers behavior19
  20. 20. Smarter Commerce at Cengage Learning:Reaching B2B and B2C customers throughe-Business- Charles Qian, Director of eCommerce Systems
  21. 21. Cengage Faced Significant Business and Market Challenges  Attrition/Arbitrage eroding sales of traditional, new textbooks – Used book market – Textbook Rentals – Parallel importation (overseas pricing)  Escalating costs in Higher Education forcing students to make tough purchasing decisions – Reduced government funding in HED – Tuitions and fees rising quickly, especially in public education  Legislative pressure forces examination of pricing/delivery models – Many states have passed, or are considering, legislation to limit price increases or bundling – California requiring more use of online, free content in state college system  Professors are looking for non-traditional teaching tools – Technology challenges the traditional learning model (Google, Wiki, etc.) – More “free” information available, although less reliable, has become more acceptedCengage Learning reaches B2B and B2C customers through e-business
  22. 22. The Cengage Approach to These Challenges Enhancing the direct- to-consumer (D2C) experience and offering more digital options using innovative offer modelsCengage Learning reaches B2B and B2C customers through e-business
  23. 23. Cengage Learning Online Retail Solution Micro-sites CengageBrain Web Services Marketplace: Cengage.com -Homepage Sealed -Static pages Media Regional -My stuff ERP/WS Other CL websites OLR Digital Rights: Payment -DRM error msg. Gateway Email Campaign SSO Online Selling ePin Organic SEM IBM -Search/browse -Product details Paid SEM -Shopping cart IP Lookup -Checkout -Registration Address Affiliates -Order status -Account profile Validation Central -Redeem prepaid ERP/WS Social Media Tax Payment Credit Gateway Card Nightly Feed School Product Order Picker Meta-Data Orchestration Order Processing/Print FulfillmentCengage Learning reaches B2B and B2C customers through e-business
  24. 24. CengageBrain.com Implementation Timeline  Launched pilot program for ebooks and echapters in December 2005  Expanded pilot program to iChapters.com storefront in June 2006  Migrated from 3rd party/in-house hybrid to complete in-house storefront in July 2007  Rolled out to 4 International regions between 2008 and 2009  Rebranded to CengageBrain.com in 2009  Added industry-leading rental program in late 2009  Creating a single destination for student customers – First publisher to offer by-chapter purchases – First publisher to offer a rental program with over 1,200 titles – Offers a wide range of buy, rent, and digital options – Consolidated divergent experiences into a single, cohesive brand and user experience – Simplify purchase, registration, and access of productsCengage Learning reaches B2B and B2C customers through e-business
  25. 25. Homepage with Marketing Pods & Social MediaCengage Learning reaches B2B and B2C customers through e-business
  26. 26. Browse By CategoryCengage Learning reaches B2B and B2C customers through e-business
  27. 27. Search Results and FilteringCengage Learning reaches B2B and B2C customers through e-business
  28. 28. Product Detail Page with All Purchase OptionsCengage Learning reaches B2B and B2C customers through e-business
  29. 29. Up-selling and Cross-selling in Shopping CartCengage Learning reaches B2B and B2C customers through e-business
  30. 30. QAI Address ValidationCengage Learning reaches B2B and B2C customers through e-business
  31. 31. Digital Dashboard Content AccessCengage Learning reaches B2B and B2C customers through e-business
  32. 32. Rental Options and Contract ManagementCengage Learning reaches B2B and B2C customers through e-business
  33. 33. The Results of the B2C Strategy  D2C online revenue grew on average, over 50% year over year from 2006 to 2011.  Digital product sales including e-books, e-chapters, and online study tools, now account for 80% of D2C revenue.  Over 5 million visitors, 600K registered users, and 450K purchases in 2010  Over 120K products offered in five regional storefronts – US – EMEA – Latin America – Canada – Australia/New Zealand  2011 Fall Rush saw 100%+ year-over-year increase in traffic and revenueCengage Learning reaches B2B and B2C customers through e-business
  34. 34. Keys to Monetizing D2C Digital Content – Closing Thoughts  Offer choice and value to offset market challenges – Electronic version of print materials at a significant discount – Offering rentals to reduce up-front customer costs  Using digital rights management effectively to drive new business models – ebooks and echapter expire after certain time period – Online course solutions and study tools drive repeat, annualized sales  Employ a compelling yet simple to use eCommerce environment to support just-In-time consumer purchase behaviors – Buy what you need, when you need it, and get access instantly – Provides new avenue to deliver non-physical products and content more efficiently, more quickly, and more cost effectively – Opportunity to gain insight into consumer behavior – Creates brand loyalty and social/mobile marketing  Experiment with new selling/delivery modelsCengage Learning reaches B2B and B2C customers through e-business
  35. 35. Smarter Commerce: A Complete Portfolio VALUE CHAIN STRATEGY AND SERVICES CORE BUSINESS SOLUTIONS BUY MARKET SELL SERVICE Intelligent and Personalized Customers and Anticipates optimized supply and relevant offers partners buy what behavior and chains based on with unified cross- they want, when delivers flawless demand channel marketing and where customer service Advanced Analytics Workload Optimized Systems35 © 2012 IBM Corporation
  36. 36. Smarter Commerce: New Solution HighlightsNEW! Supplier Integration and Management • Optimize and automate supplier interactions with ILOG Supply Chain Optimization, ECM Smarter Commerce on Cloud Case Manager, Sterling B2B Integration and SPSS Digital Marketing Optimization • Transform insights across all digital interactions including social media into relevant and optimized marketing execution with Cognos Consumer Insight, SPSS, Coremetrics and Unica Cross-channel Selling • Sell seamlessly where and how customers want to buy with Websphere Commerce, Sterling Configure, Price, Quote and Customer Experience Suite optimized on Power Systems Smarter Commerce on Cloud36 © 2012 IBM Corporation
  37. 37. Get Started on Your Journey.. Supply Chain Marketing Digital Visibility Innovation Transformation www.ibm.com/smartercommerce
  38. 38. Q&A Session Craig Hayman, General Manager, IBM Software Industry Solutions Charles Qian, Director of eCommerce Systems, Technology Services Cengage Learning

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