Meeting Customer Expectations in the New Age of RetailDan Conway, Senior Product ManagerKelly Goetsch, Senior Product Mana...
of consumers will         86%                                          PAY MORE for a better                              ...
CUSTOMER EXPERIENCE BOOSTS REVENUE                                                                                        ...
mobileBy 2014, the web will                                  socialdirectly account for 8% of                             ...
How do you affect theMoments of Interaction?
MARKET, INTERACT, TRANSACT – ACROSS TOUCH-POINTS       Online           On the Go      In the Store
MUTI-CHANNEL CUSTOMER EXPERIENCE UTOPIA!                   “Why can’t I order an item                          “Wouldn’t i...
Frustrated Customers Lead to Lost Revenue, Loyalty     and Share of Wallet     CUSTOMER FRUSTRATION                       ...
Website Performance Critical   to Customer Experience                         33%              of dissatisfied online     ...
YOUR BUSINESS CAN’T AFFORD TO MISS A BEAT                            CUSTOMER                           SATISFACTION      ...
ARE YOUR COMMERCEAPPLICATIONS KEEPING UP?
WHAT DOES IT TAKE TO DELIVER APPLICATIONS SUCCESSFULLY? EASE OF DEPLOYMENT                                                ...
ORACLE FOR RETAILMerchandise                                                                         Marketing & LoyaltyPl...
Engineered Solutions for Retail      STRATEGIC OBJECTIVETo deliver optimal solutions necessary to addresschanging industry...
ORACLE ENGINEERED SYSTEMS STRATEGY                             Engineered to work together                             • T...
ORACLE EXADATA DATABASE MACHINE      FASTEST FOR OLTP, DATA WAREHOUSING & MIXED WORKLOADS      BEST COST/PERFORMANCE      ...
ORACLE EXALOGIC ELASTIC CLOUD                EXTREME PERFORMANCE FOR JAVA                APPLICATIONS                EXTRE...
EXALOGIC AND EXADATA WORKING TOGETHER                                Typical                                 5X           ...
ENGINEERED SYSTEMS IMPROVE TIME TO MARKET                         Network Do It Yourself Systems Integration   Oracle Engi...
ENGINEERED APPROACH TO CUSTOMER EXPERIENCE                                      Drive Up Revenue                          ...
ORACLE’S SOLUTION FOR CUSTOMER EXPERIENCE    Speed of Execution              Highly Scalable                  Speed of Tho...
ORACLE COMMERCE APPLICATIONS                                                                    Exalogic and Exadata      ...
ORACLE RETAIL APPLICATIONS                                                                    Exalogic and Exadata        ...
HARNESS THE VALUE OF RETAIL APPLICATIONSSEIZE           LOWER      REDUCEMARKET          BUSINESS   COST ANDOPPORTUNITIES ...
MEASURING BUSINESS VALUE OF CUSTOMER EXPERIENCEACQUISITION       RETENTION        EFFICIENCY
MEASURING BUSINESS VALUE OF CUSTOMER EXPERIENCE      ACQUISITION             RETENTION            EFFICIENCY   • Increase ...
EXAMPLE: CALCULATING REVENUE IMPACT Traffic               x Conversion rate               = # of Customers # of Customers ...
CASE STUDY: BRAZILIAN ONLINE RETAILERCOMPANY OVERVIEW• Largest sporting goods retailer in Brazil, $500M+ revenues• 100%+ Y...
Success! Results:  Netshoes’ Expectations Exceeded by >2x     30-40                                  1                    ...
Business Results• More revenue – able to run new campaigns   – Netshoes is now able to run campaigns that they otherwise w...
Customer Proof Points        Márcio Kumruian, CEO, Netshoes                                 “As the largest retailer of sp...
ORACLE EXADATA & EXALOGIC: PHENOMENAL ADOPTION
THE PERFECT CUSTOMER EXPERIENCEWHERE BRAND PROMISE MEETS BRAND EXECUTION  “The value of my brand, the fate of my enterpris...
JOIN THE COMMUNITYTwitter   Facebook   Blogs   LinkedIn   YouTube                Visit us at:oracle.com/us/products/engine...
Meeting the Customer Experience in New Age of Retail
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Meeting the Customer Experience in New Age of Retail

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Meeting the Customer Experience in New Age of Retail

  1. 1. Meeting Customer Expectations in the New Age of RetailDan Conway, Senior Product ManagerKelly Goetsch, Senior Product ManagerSanjeev Sharma, Principal Product Director
  2. 2. of consumers will 86% PAY MORE for a better Customer Experience.**Source: Harris Interactive Customer Experience Impact (CEI) Survey, September 2011
  3. 3. CUSTOMER EXPERIENCE BOOSTS REVENUE REVENUE10% point increase inCustomer Experience Index = $2.2B Source: Forrester Research, “Customer Experience Boosts Revenue”, Bruce Temkin, June 22, 2009 *The increase in revenue include that from Additional purchases, Churn reduction and Word-of-mouth advocacy
  4. 4. mobileBy 2014, the web will socialdirectly account for 8% of Mobile commerce willU.S. retail sales and influence local reach $31 billion by 2016*53% of consumer purchases* Experiences happen anytime, anywhere, all day, every day *Source: Forrester Research, 2011
  5. 5. How do you affect theMoments of Interaction?
  6. 6. MARKET, INTERACT, TRANSACT – ACROSS TOUCH-POINTS Online On the Go In the Store
  7. 7. MUTI-CHANNEL CUSTOMER EXPERIENCE UTOPIA! “Why can’t I order an item “Wouldn’t it be nice if they online and pick it up at my rewarded me for my local store?” business?” Mobile Web “When I clicked the “Chat Store Mail “Why can’t I check my orderNow” the agent had no idea of status from my phone? what was in my shopping Acme lets me.” cart?” Call Center Partner “When I go online, I can’t easily find what I need. Its too complicated to find what’s best @ “The promotions I receive are relevant. Once they sent me a Email Social coupon after my purchase?” for me.”
  8. 8. Frustrated Customers Lead to Lost Revenue, Loyalty and Share of Wallet CUSTOMER FRUSTRATION LOST REVENUEPercentage of customers dissatisfied with cross-channel experience1 Revenue lost by enterprises in 16 key global $338 Billion economies due to customer defections andPercentage of multi-channel customers that switch abandoned purchases 2vendors after a single bad experience Revenue lost by enterprises in 16 key global economies due to customer defections and abandoned purchases 2
  9. 9. Website Performance Critical to Customer Experience 33% of dissatisfied online shoppers attributed their dissatisfaction to the Web site being too slow
  10. 10. YOUR BUSINESS CAN’T AFFORD TO MISS A BEAT CUSTOMER SATISFACTION CONVERSIONS1 second delayin page load time = 16% 7%
  11. 11. ARE YOUR COMMERCEAPPLICATIONS KEEPING UP?
  12. 12. WHAT DOES IT TAKE TO DELIVER APPLICATIONS SUCCESSFULLY? EASE OF DEPLOYMENT AT LOW COST RUNTIME EXCELLENCE BUILT ON OPEN STANDARDS INTEGRATED MANAGEMENT12 Copyright © 2011, Oracle and/or its affiliates. All rights Insert Information Protection Policy Classification from Slide 8 reserved.
  13. 13. ORACLE FOR RETAILMerchandise Marketing & LoyaltyPlanning & Optimization service plan Store OperationsProduct Development, ManagementSourcing & Manufacturing fulfill makeMerchandise Operations E-CommerceManagement sell buy Business Intelligence &Supply Chain Planning & market move AnalyticsOptimizationSupply Chain Execution Corporate Operations Operating Virtual Middleware Database Servers Storage System Machine
  14. 14. Engineered Solutions for Retail STRATEGIC OBJECTIVETo deliver optimal solutions necessary to addresschanging industry requirements and processingdemands, retail IT shops need to create a data centerinfrastructure that is complete, open and integrated at alllevels from the applications to the server/storagehardware. Oracle’s vision is to create hardware andsoftware that is ‘Engineered to Work Together’. 14 Copyright © 2011, Oracle and/or its affiliates. All rights Insert Information Protection Policy Classification from Slide 8 reserved.
  15. 15. ORACLE ENGINEERED SYSTEMS STRATEGY Engineered to work together • Tested together • Certified together • Packaged together • Deployed together • Upgraded together • Supported together • Managed togetherOptimized Engineered
  16. 16. ORACLE EXADATA DATABASE MACHINE FASTEST FOR OLTP, DATA WAREHOUSING & MIXED WORKLOADS BEST COST/PERFORMANCE BEST DATABASE CONSOLIDATION PLATFORM SCALES FROM ¼ RACK TO 8 FULL RACKS
  17. 17. ORACLE EXALOGIC ELASTIC CLOUD EXTREME PERFORMANCE FOR JAVA APPLICATIONS EXTREME PERFORMANCE FOR ORACLE AND OTHER BUSINESS APPLICATIONS SIMPLIFIED MAINTENANCE BEST CONSOLIDATION PLATFORM
  18. 18. EXALOGIC AND EXADATA WORKING TOGETHER Typical 5X OTLP Performance Gain Exalogic ExadataHIGHEST LEVEL OF SERVICE IN THE INDUSTRY WITH ORACLE PLATINUM SERVICES
  19. 19. ENGINEERED SYSTEMS IMPROVE TIME TO MARKET Network Do It Yourself Systems Integration Oracle Engineered Systems Hundreds of components Single, optimized platform 10s of servers 2 servers Months to deploy Weeks to deploy Costly to integrate and test Pre-integrated, pretested Unpredictable product lifecycles Oracle’s strategic development platform
  20. 20. ENGINEERED APPROACH TO CUSTOMER EXPERIENCE Drive Up Revenue Omni-Channel Support Expedited Transaction Times Connected Conversion Rates Interactions Aligned Supply and Demand PROFIT Improved Inventory Management Optimized Accurate Real-Time Sales Operations Meet Peak Business Demand Actionable Insight Price and Promotion Execution Drive Down Costs
  21. 21. ORACLE’S SOLUTION FOR CUSTOMER EXPERIENCE Speed of Execution Highly Scalable Speed of ThoughtData Management for OLTP Transaction Management Analytics for OLAP Big Data Appliance Exadata FAST FAST Infiniband ATG – Web Commerce Infiniband Retail Analytics Retail Merchandising Suite Retail Data Model EXADATA EXALOGIC EXADATA Oracle RDBMS Weblogic - Coherence Oracle RDBMS, Smart Flash Cache OBIEE, & HCC
  22. 22. ORACLE COMMERCE APPLICATIONS Exalogic and Exadata DIY Platform Oracle Knowledge ATG Web Commerce WebCenter Sites Knowledge Management Commerce Reference Store Web Experience Management 2x better Response Time 3x better Response Time 2x better Response Time 2x better Scalability 3x better Scalability 2x better Scalability 10 113 164 3.1 74 52
  23. 23. ORACLE RETAIL APPLICATIONS Exalogic and Exadata DIY PlatformRetail Price Management Retail Merchandising Retail Analytics Price Execution Update Daily Replenishment Store Reporting 5x better Response Time 3x better Performance 2x better Scalability 10 35 164 3.1 74 7
  24. 24. HARNESS THE VALUE OF RETAIL APPLICATIONSSEIZE LOWER REDUCEMARKET BUSINESS COST ANDOPPORTUNITIES RISK COMPLEXITY
  25. 25. MEASURING BUSINESS VALUE OF CUSTOMER EXPERIENCEACQUISITION RETENTION EFFICIENCY
  26. 26. MEASURING BUSINESS VALUE OF CUSTOMER EXPERIENCE ACQUISITION RETENTION EFFICIENCY • Increase in Traffic • Increase in CSAT • Increase in SS% • Increase in • Increase in CES • Reduce Cost / X Conversion Rate • Increase in NPS • Reduce SG&A% • Increase in AOV
  27. 27. EXAMPLE: CALCULATING REVENUE IMPACT Traffic x Conversion rate = # of Customers # of Customers x Frequency = Purchases per Year Units per Transaction Average Order Value x Average Selling Price (ASP) = (UPT) (AOV) Purchases per Year x Average Order Value (AOV) = Gross Revenue Returns+ Cost of Loyalty Gross Revenue - = NET REVENUE Program(Discount)
  28. 28. CASE STUDY: BRAZILIAN ONLINE RETAILERCOMPANY OVERVIEW• Largest sporting goods retailer in Brazil, $500M+ revenues• 100%+ YoY growth over the last decadeCHALLENGES / OPPORTUNITIES• Frequent outages and poor response time for online commerce application Runs ATG and• Rising datacenter costs due to ad-hoc and frequent hardware Weblogic Server on refresh and management complexity• Poor customer experience resulting in high order abandonment Oracle Exalogic! resulting in revenue lossRESULTS• 6x improvement in throughput• 7X reduction in datacenter footprint• Double-digit improvement in conversion rates
  29. 29. Success! Results: Netshoes’ Expectations Exceeded by >2x 30-40 1 30x Servers Rack of Exalogic Fewer Servers 103 16 6.4x JBoss Instances WebLogic Mgd Svrs Fewer Instances6+ months 3 weeks 8xInitial System Setup Exalogic Launch Faster 6x 6.2x Better Performance Better Scalability Exceeded Expectations by > 2x
  30. 30. Business Results• More revenue – able to run new campaigns – Netshoes is now able to run campaigns that they otherwise wouldn’t have been able to because the site can handle the traffic. For example, they drove 33% more traffic to the site (than their highest ever watermark) as the result of a Facebook campaign that they previously could not have run• More revenue – able to handle traffic from special events – In 2012, the Champions of America Cup (the premier soccer championship in Latin America) was held in Brazil. Netshoes manages the online stores for both participating teams and sells merchandise on its own flagship website too. After the hometown favorites won, record traffic was driven to Netshoes with no downtime or performance degradation• More revenue – higher conversion rates – Better response times lead to higher customer satisfaction and conversions – Able to employ more personalization without performance degradation – Customers are happier because the site is always up
  31. 31. Customer Proof Points Márcio Kumruian, CEO, Netshoes “As the largest retailer of sporting goods in Latin America, we are achieving very aggressive growth - over 100% per year. Running our ATG ecommerce application on our previous JBoss infrastructure we had 30-40 different machines. We were able to migrate to Oracle Exalogic Elastic Cloud in less than 3 weeks, without any downtime and have already seen impressive results. With Oracle Exalogic, we have consolidated to 1 server, providing both cost savings and increased business efficiency. Our ATG application performs 6x greater than before and is fully synchronized with Oracle WebLogic Server. The Netshoes brand means quality and value for our customers and we want their online experience to be excellent. With Oracle Exalogic all the pieces work together, so we can focus on customer service and expanding our business.”Márcio Kumruian, CEO, Netshoes
  32. 32. ORACLE EXADATA & EXALOGIC: PHENOMENAL ADOPTION
  33. 33. THE PERFECT CUSTOMER EXPERIENCEWHERE BRAND PROMISE MEETS BRAND EXECUTION “The value of my brand, the fate of my enterprise, is in their hands, driven by the quality of their experience”
  34. 34. JOIN THE COMMUNITYTwitter Facebook Blogs LinkedIn YouTube Visit us at:oracle.com/us/products/engineered-systems

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