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Intelligent detailhandel sætter kunderne først, del 1, Ben Heyerdahl, IBM
The document discusses how empowered customers are changing retail by putting businesses to the test. It argues retailers must transform from being product- and channel-centric to customer-centric by anticipating customer needs, providing seamless experiences across channels, and personalizing marketing. It presents IBM's "Smarter Commerce" approach for helping retailers put the customer at the center and optimize the entire value chain through insights from analytics and synchronization across partners.
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Intelligent detailhandel sætter kunderne først, del 1, Ben Heyerdahl, IBM
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- 2. Intelligent detailhandel sætterkunderne først Ben Andre Heyerdahl Smarter Commerce leader Europe IBM
- 3. Global businesses arestriving to engage the empowered customer 3 …and to connect seamlessly with their ecosystem
- 4. Retailers are redefiningthe value chain around the empowered customer A supply chain Marketing targeted to every prepared customer for the unpredictable personally 4 Service thatknows what customers want Selling that’s there for your customers, before they do wherever they are
- 5. Today’s “empowered customer”puts businesses to the test 44% 4 in 10 80% 86% 4-5x 45% 78% of companies Smart phone of CEOs think use multiple more than Check with a of consumers use crowd users search for they deliver a channels average is friend before trust peer sourcing from an item in a store superior spent by multi- buying recommendations customers customer channel buyers experience 8% of their customers agree 5 © 2012 IBM Corporation
- 6. CMOs admit theyare not prepared “From Stretched to Strengthened; Insights from the Global Chief Marketing Study” 6 www.ibm.com/cmostudy
- 7. To grow marketshare and profitability, retailers need to transform their operating model to satisfy increasing consumer expectations The smarter consumer has Retailers need to change from Consumers will reward redefined shopping to meet being product and channel customer centric retailers with their unique needs and centric to customer centric increased share of wallet and timeframes advocacy 85% 13% 6% Of shoppers expect a seamless Of retailers are able to provide Incremental sales lift from a one- experience across all retail a “consolidated” shopping size-fits-all approach to one that channels.1 experience across channels.2 emphasizes the principles of customer experience based retailing.3 “Our Customer 1st strategy continues to deliver results through improvements in all four key areas we target: our people, our products, the overall shopping experience in our stores, and prices” - Kroger Chairman and CEO David Dillon explaining a Q4’10 same store sales increase of 3.8% 4 Sources: (1) “Cross Channel Brand Interaction, 2010 Consumer Preferences.” Sterling Commerce and DemandWare. 2010 (2) “Enabling Buy Anywhere/Get Anywhere: The Future of Cross-Channel” Retail Systems Research. July 2011. (3) “Shopper Marketing: Capturing a Shopper’s Mind, Heart and Wallet.” Deloitte, Forester and www.money.cnn.com. 2007 (4) Dillon, David B. “Press Release: Kroger reports fourth quarter and full year 2010 results.” The Kroger Co. © 2012 IBM Corporation
- 8. At IBM, wecall the path forward Smarter Commerce placing the customer at the center of your business Buy Market Targeted and Adaptive personalized procurement and optimized supply Buy Market marketing across all channels chain Service Sell Anticipate behavior and Service Sell Seamless cross- channel deliver flawless customer customer service experience © 2012 IBM Corporation
- 9. Smarter Commerce: Acomplete portfolio VALUE CHAIN STRATEGY AND SERVICES CORE BUSINESS SOLUTIONS BUY MARKET SELL SERVICE Adaptive procurement Targeted and Seamless Anticipate behavior and optimized supply personalized marketing cross-channel and deliver flawless chain across customer customer service all channels experience Smarter Analytics IBM SmartCloud Solutions and Smarter Computing © 2012 IBM Corporation IBM Announced the intent to acquire Tealeaf, April 2012.
- 10. Smarter Commerce integratesand enhances the commerce cycle Visibility and order status adapt All customer procurement and logistics interactions are a market opportunity Buy Market Sell Service Insight from all channels through Promotions, guided selling and analytics improves loyalty precision marketing drive sales © 2012 IBM Corporation
- 11. Today’s customers expecta consistent and relevant experience across multiple channels and across sessions Natural Display Search Email Ad Paid Mobile Search Returned via a Came to the site via display ad click; Natural Purchased out- Responded to picked a product Search, entered of-stock blu-ray newsletter TV Searched for recommendation discount code and player after clearance link HDTV on on site purchased scanning QR Google code in-store
- 12. The reality: Empoweredcustomers are connected to each other What if… You could leverage consumer insights 22% 90% to increase sales? PETCO did! Increased coupon redemptions by 200% of online time of consumers online Increased unique visitor by 41% spent on social trust media recommendations BBVA did! Positive feedback increased by 1% Negative feedback decreased by 1.5% in Spain Sources: Nielson Global Online Consumer Survey 2009, Nielson Blog
- 13. The reality: Empowered customershave access to information What if… You could use analytics for a better 58% 43% grocery items promotions and supply chain execution? True Value did! Alerts when lead times are missed in the United Reduced out of stocks and enabled inventory are more price- optimization conscious today States were sold on promotion Schwan’s did! 15.6% higher revenue Increased revenue and a 11.5% higher margin for Kroger Sources: Nielson and Forrester Research
- 14. The reality: Empoweredcustomers engage when you get personal What if… You could personal your customer experience? 85% 56% Seton Hall did! Deposits up 25%, Enrollment up 13% Largest freshman class in 30 years believe that social want increased 18% increased in revenue ($29 million USD) networks will self-service save them time capabilities SingTel did! Real-time offers to agents and in stores Ads to mobile phones Cross/up-sell increased from less than 10% to over 40% Sources: IBM Consumer Study 2012, Forrester Research
- 15. The reality: Enterprisesmust connect to transform What if… You could synchronize supply chain 73% $93 partners and optimize logistics? SMA Solar did! Real-time visibility into supply chain and status of orders for B2B2C of organizations billion in sales regard value chain missed due to out Analyzed buying behavior and created synchronization as of stock inventory new offerings Sargento did! critical 60% cost savings Less truckload shipments by 60% Sources: Vanson Bourne Research and RIS 5th Annual Store Systems Study
- 16. To succeed andimprove performance Put the customer Anticipate and Apply deep Optimize Extend core at deliver across insights to procurement systems to the center take action synchronize of your business mobile and social based on demand in real time your value chain 16
- 17. Leaders today aredriving innovation in their business by… Maximizing Placing the customer insight Capitalizing on at the center social and mobile Driving growth Synchronizing the entire value chain Reducing costs and Improving collaboration increasing margins and visibility © 2012 IBM Corporation
- 18. The proof: analystsnamed IBM the leader in … Ecommerce Five major analyst reports Operationalizing Strategic sourcing and solutions and commerce on marketing solutions the voice of the customer procurement services (Emptoris*) consulting Market Star Performer for Mobile collaboration Enterprise social platform Dynamic case procurement outsourcing software software and horizontal management and capture portals software © 2012 IBM Corporation
- 19. Begin with thesequestions for your Smarter Commerce journey and opportunity Does your business Are you leveraging model adapt to customer insight to capitalize on new reshape your market opportunities? business? Can your operations anticipate and adjust Could your supply dynamically to market chain interrupt service Do you deliver exceptional conditions? to your customers? customer experience across all touch points? © 2012 IBM Corporation
- 20. Partner with IBMfor Smarter Commerce Industry leading portfolio for Buy, Market, Sell and Service Flexible, modular, open, integrated, optimized Real-time social, mobile and analytics capabilities driven by IBM leading research and proven through Watson Dedicated commerce consulting and systems integration practice with over a thousand experts Over 2,000 of the world’s top brands rely on IBM to improve their business insight and execution © 2012 IBM Corporation
- 21. Are you ready? Learn more about Smarter Commerce www.ibm.com/smarterplanet/commerce Learn more about IBM Business Value Accelerators to help you get started on your Smarter Commerce journey Join in the conversation Smarter Commerce Blog, YouTube, Twitter and Facebook © 2012 IBM Corporation
- 22. Contact details Ben Andre Heyerdahl Smarter Commerce Sales Leader Europe 00352 621 330759 Ben_heyerdahl@be.ibm.com © 2012 IBM Corporation
Editor's Notes
- #4 We are experiencing dramatic shifts in commerce brought on by empowered customers – mobile/social/digital are changing not just the way that our customers interact with us, but they are changing business models and the global commerce landscape. No matter what industry you are in - insurance, manufacturing, banking, retail, telecommunications – whether you are a B2B or B2C business, these dramatic changes effect you – and businesses have a choice –to embrace and capitalize on these changes now and thrive, or to wait and be left behind. The empowered customer – how do you connect with them and deliver value – how do you know when and how they want to interact with your business?And how to you innovate and work collaboratively with your trading partners, selling partners, distribution partners, service partners suppliers and marketing agencies? Because we all know – no company is successful alone – it takes an ecosystem from suppliers to trading partners / service partners to marketing partners all connected seamlessly to deliver exceptional experiences to customers and to keep them coming back for more. This conference is all about helping you succeed in all these areas and more …but first let’s look at the empowered customer ….
- #5 So what are the leaders doing to change the way they do business?Leaders today are innovating and redefining the value chain around the customerIt starts with having a supply chain that’s prepared for the unpredictable The buy phase: sourcing and procuring goods and materials for delivering products and services to meet customer demand. These solutions are for executives responsible for disciplines that support supply chain management and procurement, from partner and supplier integration and process improvement to inventory and warehouse management.Marketing that treats every customer personallyThe market phase: developing, delivering and measuring relevant and consistent messages through multiple channels to encourage demand. These solutions are for executives responsible for web, social and mobile marketing, as well as demand generation, customer acquisition and marketing operations.Selling that’s there for your customers wherever they areThe sell phase: selling and fulfillment of products and services in multiple channels to encourage revenue growth. These solutions are for executives in online commerce, web and social marketing, order-to-delivery fulfillment, and customer service.Service that knows what customers want before they doThe service phase: addressing customer needs in all channels to encourage repeat sales and increase customer loyalty. These solutions are for executives responsible for after-sale customer care, from customer service and retention to operations.And, you can too.
- #6 Most businesses today are challenged by the rise of the “empowered customer.” Today’s customers are well-informed, use other people as their primary information source, interact with the companies through multiple channels, touch-points and media, and want (but rarely get) a superior customer experience – and have outlets for venting frustration when they don’t get want they want. You can see on this slide a number of specific statistics from various sources that back up these points.In other words, customers are truly empowered. To serve these empowered customers, businesses must – now more than ever -- put customers at the center of everything they do.Sources of statistics [from “Smarter Commerce Stats and Facts Feb 3 2012.ppt”]:44 % of companies use crowd sourcing asking customers to provide ideas and help in decision making on how to tackle issues, 95% found crowdsourcing valuable to their company, Source Social Impact Study by KRC Research Oct 2010 based on over 200 companies and over 50% in Exec SVP or EVP for CommunicationsFour in ten smart phone owners have used their mobile phones to search for information on an item while in a brick and mortar store - ComScore June 201180% of CEOs think they deliver a superior customer experience, 8% of their Customers agree, Bain and Company, Close the Deliver Gap, 2005Let's face it, multichannel is here, and the majority of customers use several channels before they buy (around 86% apparently, according to a recent study by Leo Burnett)***http://multichannel-retailing.com/2011/04/the-multichannel-challenge-for-retailers-2/ April 2011Multi channel buyers spend four to five times more than average. Source: Forrester Research, Profiting the Multichannel Consumer, July 2010(no citation available: “45% check with a friend before buying”)78 % of consumers trust peer recommendations – ComScore Social Networking Phenomenon
- #7 The results of IBM’s groundbreaking Chief Marketing Officer (CMO) study, which was released in 2011, reinforces the observation that marketing is a challenging practice these days. IBM interviewed over 1,700 CMOs from around the world to create this study. The data I will share highlight some of the most important challenges facing CMOs and their marketing organizations today.In the study, CMOs talked about being challenged by the growing complexity of marketing. As you can see from this graphic, 79% of CMOs expect a high or very high level of complexity in their work as marketers in the next five years. But only 48% of CMOs feel prepared for the complexity they expect. This creates what IBM calls a 31% “complexity gap,” meaning CMOs need help dealing with this complexity.But what does “complexity” mean, exactly? I will now share some more data with you to help answer that question.
- #10 This is a strategy two years in the making – we’ve invested $3 billion thus far on acquisitions on top, we’ve created a GBS Smarter Commerce practice with over 1000 consultants and we are continuing to build it Let's take a look at the integrated, end-to-end portfolio. We had a leading, organic product in the market -- WebSphere Commerce. Decided to look at the whole Commerce business process end to end across Buy, Market Sell and Service. Sterling Commerce: B2B Integration and Managed File Transfer, distributed order management, multi-channel selling with configuration price quote and end-to-end logistics and supply chain visibilityILOG: supply chain optimization and decision rules capabilitiesCoremetrics: insight into web and marketing operations and digital marketing optimization leaderUnica: transforming marketing from an art to a science and the leader in enterprise marketing management.Filenet: enable management of any type of asset for all business needs used for things like advanced case management business processes in customer service Cognos, SPSS, and Netezza provide a powerful range of predictive & prescriptive analytics and data management. Customer Experience Suite – for a personalized powerful online customer experience Emptoris – brings cloud and on-premise analytics software that brings more intelligence to procurement and supply chain operationDemandTec –brings pricing, promotion and assortment optimization Tealeaf – Enables companies to better understand ‘why’ of a customer’s website and mobile interactions and uses this insight to optimize the customers digital experience. We have the best of the best to bring you the integrated portfolio of solutions from Value Chain Strategies to get you started – to a comprehensive suite of solutions across the value chain – for buying, marketing, selling and servicing your customers all supported by advanced analytics and workload optimized systems or cloud offerings.
- #13 The reality - customers are empowered and connected to each other and reshaping businesses todayThey want a consistent experience between all channels. They compare notes and instantly share. And they can champion a brand or sully a reputation with the click of a mouse. What if … you could use consumer insights … to increase sales and easily introduce new services to your customers? You could gain actionable insight from customer sentiment on social networks? Petco wanted to use personalization to improve their shopping experience.By capturing detailed product and visitor data they’ve developed deep buyer insights and driven a 41% increase in sales per unique visitor on a multi-session basis.200% Increase in coupon redemptionsPETCO is at the forefront of applying personalization to improve the shopping experience and increase return on investment. Theycapture detailed product and visitor data that provides insight into buying behavior. That data has helped PETCO marketers personalize many customer interactions. For example, marketers draw on geographic data to inform site visitors of new store openings. On the home page and in email campaigns, they have presented dog lovers with specials on canine products and bird enthusiasts with offers for avian supplies. They retarget people who browse but don’t buy with email containing highly relevant content and offers. The company had invested in banner ads in the past, but halted the program due to concerns about under performance. The introduction of Coremetrics AdTarget™, however, caught the attention of PETCO marketers. They recognized that this sophisticated advertising solution would enable intelligent targeting based on customer segment, and, as a result, drive up the effectiveness of the ads served. Coupon Redemption Rate Doubled Initially, PETCO kept ad campaigns simple. This approach allowed marketers to gain experience and work through the details of serving up ads through [x+1]. The first campaign used geographic targeting to encourage enrollment in the company’s mobile grooming program in Los Angeles and San Francisco. A follow-on campaign was branding focused, introducing new Los Angeles and San Francisco PETCO stores as “the location for natural and organic pet foods.” That campaign drove a coupon redemption rate in the stores that was more than double the highest rate achieved in any previous campaign. Results Summary • Coupon redemption rate in stores was two times the highest rate achieved in previous campaigns • 2/3 of all bird accessories orders were tied to personalized ads • Bird accessories cost per order was 64% lower than average cost per order • Orders with products that tied directly to the content served in display ads was proven for every segment used in the campaign • More than half of buyers attracted by the ads were new to PETCO.COM http://www-01.ibm.com/software/success/cssdb.nsf/CS/SJHA-8RNH5A?OpenDocument&Site=default&cty=en_usBBVA in Spain … needed an online tool to detect possible risks to its reputation in order to increase positive feedback and customer satisfaction. BBVA was interested in knowing what existing clients – and possible new ones – think about it through social media. Therefore, they implemented an automated consumer insight solution to monitor and measure the impact of brand perception online – whether this be customer comments on social media sites (Twitter, Facebook, forums, blogs, etc.), the voices of experts in online articles about BBVA and its competitors, or references to BBVA on news sites – to detect possible risks to its reputation or to possible business opportunities. Insights derived from this analytical tool give BBVA the opportunity to address reputational challenges and continue to build on positive opinions. For example, the bank can now respond to negative (or positive) brand perception by focusing its communication strategies on particular Internet sites, countering – or backing up – the most outspoken authors on Twitter, boards and blogs.http://www-01.ibm.com/software/success/cssdb.nsf/CS/STRD-8NUD29?OpenDocument&Site=default&cty=en_us 110 billion minutes on social networks and blog sites. This equates to 22 percent of all time online or one in every four and half minutes90% of consumers online trust recommendations from people they know; 70% trust opinions of unknown users. Sources: 90% of consumers online trust recommendations from people they know; 70% trust opinions of unknown users. http://econsultancy.com/us/blog/4175-online-consumers-trust-real-people-not-companiesOnline recommendations are powerful. New data from Nielsen’s Global Online Consumer Survey in July 2009 reveals that 90% of consumers online trust recommendations from people that they know, with 70% trusting the opinions posted online by unknown users. The popularity of social media is undeniable – three of the world’s most popular brands online are social-media related (Facebook, YouTube and Wikipedia) and the world now spends over 110 billion minutes on social networks and blog sites. This equates to 22 percent of all time online or one in every four and half minutes. For the first time ever, social network or blog sites are visited by three quarters of global consumers who go online, after the numbers of people visiting these sites increased by 24% over last year. The average visitor spends 66% more time on these sites than a year ago, almost 6 hours in April 2010 versus 3 hours, 31 minutes last year.Social Networks/Blogs Now Account for One in Every Four and a Half Minutes OnlineJune 15, 2010http://blog.nielsen.com/nielsenwire/global/social-media-accounts-for-22-percent-of-time-online/
- #14 The reality - empowered customers have access to information. These customers are empowered by technology and transparency and expect to engage with companies when and how they want, through physical, digital and mobile means. They compare notes and instantly share. And they can champion a brand or sully a reputation with the click of a mouse. What ifyou could use analytics for a better promotions and supply chain execution?True Value is one of the world’s largest retailer-owned hardware cooperatives, serving 54 countries with more than 5,000 stores and 12 regional distribution centers. They source merchandise from domestic and international suppliers. Logistically, they process 64,000 domestic inbound loads and over 600 million pounds of freight annually. Internationally, True Value imports 3500 containers annually through 30 international ports, and 10 domestic ports, using 5 ocean carriers. Due to complexity and sheer volume of data and product movement, True Value was challenged with being more proactive by resolving supply chain exceptions before they had a negative impact on inbound ordering costs and customer service levels. Proactively identifying and adjusting to exceptions was a daunting task due to the lack of procurement, shipping, and receiving visibility from their supply chain. The shortcomings in their inbound supply processes were caused by: • Fragmented visibility into the physical movement of shipments • Inability to model and track the events specific to each product flow • Inability to create custom role specific alerts In order to achieve their goal of delivering the right product, to the right place at the right time, True Value required electronic access to accurate decision critical data; real-time. The solution they were looking for would provide a comprehensive real-time view of orders and shipments across their global supply chain network. SolutionIBM Sterling Supply Chain Visibility provides True Value with the tools to improve the collection of order lifecycle information by tying data from internal procurement, warehouse, and transportation systems together with external data from their freight forwarder, broker and carriers. Sterling Supply Chain Visibility is the central repository that provides a view of the entire order lifecycle. Sterling Supply Chain Visibility provides True Value with the ability to minimize supply chain delays through customized supply chain process models that track and alert on potential bottlenecks in their network. True Value has defined milestones, thresholds, and alerts for three distinct process models. • Domestic Prepaid – Transportation is prepaid and the routing is handled by the vendor • Domestic Collect – True Value plans and routes the shipments from suppliers using either common carriers or their own fleet • International Direct – Containers shipped from China direct to a True Value depot True Value has reduced lead time variability by alerting their procurement, transportation, and warehouse personnel when predetermined lead times are in danger of, or have been missed. Procurement reduces their response time to late shipments; transportation proactively manages delays and expedites deliveries; and warehouse operations prioritize receiving and restocking activities. True Value maintains a very high order fill rate standard. The impact of Sterling Supply Chain Visibility effectively managing the inbound flow of goods from supplier to distribution center enables True Value to identify potential order delays or shortages even before the order is shipped. http://www-01.ibm.com/software/success/cssdb.nsf/CS/SSAO-8LJNGB?OpenDocument&Site=corp&cty=en_usSchwans is a $3 billion US dollar business selling frozen goods directly to consumers and through traditional grocery channel.They submit promotional offers to Kroger and similar retailers through the DemandTec Deal Management solution – enabling the retailer and the manufacturer to not only pass terms and conditions back and forth, but to also collaborate on the most effective promotion plan. In this case, Kroger was looking for a specific offer from Schwan’s to support what they thought the consumers/shoppers would receive especially well. Specifically, they wanted to run a big “pizza event” featuring two of Schwan’s brands.At first, based on intuition and “gut feel”, Schwan’s thought that different brands and price points would be more effective. (Kroger suggested $3.99 price pt for Freschetta & $2.98 for Red Baron; Schwan’s believed the Freschetta price point was too aggressive) Schwan’s Kroger team leveraged DemandTec Customer Trade Planning to simulate various event options and utilized the forecasts to make a more analytical, fact-based recommendation to Kroger, again using Deal Management to pass the information and rationale.To further support their case, Schwan’s Kroger team developed a ‘sell-in’ sheet to help influence Kroger and gain support for the event w/ the higher price point – all using the insights delivered by DemandTec’s CTP solution.Kroger trusted the forecasts knowing that they were based on DemandTec’s models and accepted Schwan’s revised offer. Post Event Analysis proved the value of the promotion – Schwan’s realized a 15% increase in revenue (compared to Kroger’s original promotion plan) while Kroger saw a 11.5% improvement in margin with no loss in revenue.This experience demonstrates how retailers and manufacturers can work together using demand analytics and collaborative cloud based software to develop optimal promotion plans and drive improved financial performance for both sides of the trading partnership while delivering what the consumer really wants.http://www.demandtec.com/mydemandtec/network/customers/successportal/schwans Of US online adults 58% are more price-conscious today than they were a year ago, Forrester Q3 2011Forrester noted that 58% of U.S. online adults say they are more price-conscious than they were a year ago; 59% says they shop more with sites that offer free shipping. The analyst notes that in 2010, 45 of the top 50 online retailers offered some type of special between Thanksgiving and Cyber Monday, most of which were some type of shipping promotion.http://news.yahoo.com/holiday-e-shopping-grow-15-2011-forrester-says-000428338.html43% of the grocery items in the United States were sold on promotionIn 2009, The Nielsen Company reported that almost 43% of grocery items in the United States were sold on promotion. Source: The Nielsen Company, “Almost Half of U.S. Supermarket Purchases are Sold on Promotion”, October 5, 2009
- #15 The Reality – they engage when you get personal with them.What if …. You could personalize your customer experience?SingTel is Asia's leading communications group operations and investments in more than 20 countries and territories around the world. It was incorporated in March 1992 and became a public company in October 1993. SingTel is the largest company listed on the Singapore Exchange. Looking for opportunities to cross-sell and up-sell services and serve real time personalized offers to mobile devices.Leverage inbound channels to identify and target cross-sell opportunitiesSell mobile advertising opportunities to third-partiesSolution: Unica Campaign and Interact to drive outbound marketing programs and real-time cross-channel marketing in inbound channels including mobile devicesResults:Unica Interact allows their call center and retail representatives to deliver the highest-impact offers - in real time. Serves real-time offers to agents in call centers and at retail stores to facilitate cross-sell/up-sellSend offers and advertisements to mobile phonesCross-sell/up-sell success rate increased from <10% to >40%Seton HallWanted to understand how offline and online marketing activities interrelated and led to conversion (enrollment)Recruitment cycles range from 18 to 36 months; needed to evaluate influences over a long period of timeDiscovered that the combination of direct mail and email, although expensive, resulted in 376% application rate versus 76% for email aloneDiscovered surprising results regarding which channels bring students to the site, resulting in increased investment in paid and natural searchThe university’s online marketers sensed that social media — in particular, Facebook —would enable them to extend the Seton Hall experience to prospective students. Their target “customer,” they reasoned, belongs to a generation that spends a significant amount of time on social sites. So instead of trying todraw future students to the university site, the marketers sought to reach them where they already spend their time. The marketing staff believed this approach might engage students earlier in the recruitment process and, as a result, increase enrollments and revenues.Marketers at the university implemented Coremetrics, which allows both offline and online data to be mapped and quickly understood—and allows the marketing team to leverage the vast reach of social media. The solution allowed university marketers to take advantage of online locations where prospective students already gather. Prospective students using Facebook pages connected with current and prospective students, forming groups based on majors, interests, geographical location, residence hall room number and other factors. This group formation process created a sense of community early in the recruitment process—something that was previously available to students only after enrolling.Using the Coremetrics Impression Attribution feature, which captures visitor behavior on third-party sites, the university was able to track the effectiveness of banner ads, videos, widgets and other marketing initiatives not hosted on the Seton Hall website. This tool allowed university marketers to anticipate customer behavior, automate personalized, relevant responses, and syndicate these responses to third-party sites such as Facebook. Additionally, this tool provided insight into the relationships between activity in Facebook and “downstream” activity on the website, especially conversion activity around late funnel transition points, such as freshman preview registrations.Attribution capabilities also allowed the university to decide upon the most effective mix of outreach to potential students. By using the solution, Seton Hall marketers were able to discover that a mix of email and physical mail in outreach campaigns resulted in 376 percent more registrations, as compared to only 76 percent more registrations with digital-only promotions.Results:18.2 percent year-to-year increase in enrollment candidate conversion rate, representing an additional US$29 million in tuition revenues by leveraging Facebook and social media metrics analysis; 25 percent increase in tuition deposits due to the ability to attract prospective students faster; Improved ability to target marketing programs and resources; Improved accuracy in freshmen enrollment forecasts.85% believe that social networks will save them time – Source IBM ConsumerStudy 201256% want increased self service capabilities – Source Forrester 2011 reporthttp://www.ibm.com/smarterplanet/us/en/leadership/stories/pdf/seton_hall.pdf
- #16 The reality - the connected enterprise must transform with the customer at the center of all decisions and actions. There is a new breed of customer, dictating a new set of terms in the dynamic between buyers and sellers. What if you could predict the needs of a rapidly growing market for your products?And You could identify where shipments are and confirm the right rates for the right shipments?SMA Solar Technology is a EUR 1.7 billion in 2011 global leader in solar energy solutions and offers key technologies for future power supply structures and markets in 19 countries on four continents. SMA’s wholesale/distributor customers can place orders, and then view the availability of the ordered products via a Web interface. The consolidated e-commerce platform for Shops and information portals is for wholesale customers (Business to Business) and Customer Service (Business to Business / Customer).They have extended their core system and integrated it with their with SAP-driven manufacturing system, giving SMA’s customers real-time visibility into the manufacturing status and availability of product orders.provides supply chain transparency to both SMA and its wholesale/distributor customers. SMA also embraced the analytics from the system about their client buying behavior and used this information to develop more targeted product promotions and product enhancements. By analyzing a customer’s current order while they are on the site, SMA can offer installation kits or other merchandising products, creating new up-sell and cross-selling opportunities automaticallyhttp://www-05.ibm.com/de/services/referenzen/downloads/cs-smasolar-op.pdfhttp://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0CRDD-8GXGNX&appname=crmdSargentoIBM® Sterling Transportation Management System steers Sargento towards increased savings and improved productivitySargento Foods Inc. is a family-owned business, employing approximately 1,300 people at four Wisconsin facilities, one in Washington, and one in South Dakota. They are one of the largest converters of cheese in the United States, offering a variety of cheese products marketed through four business divisions: Consumer Products Division, Food Service Division, Food Ingredients Division and Culinary Solutions. Sargento Foods Inc. needed a Transportation Management System (TMS) that would meet their operational needs today and in the future. When Sargento planned orders into shipments, their previous solution did so without considering cost, service or contractual commitments to carriers. An increasing problem for Sargento was their inability to accurately allocate transportation costs at the order level. For example, accessorial costs were not being allocated. Recognizing the limitations of their current system, Sargento determined the need for a solution that would meet their current operational needs, as well as any changes they may face in the future. The solution:Sargento began looking for a new solution in January, 2006, and identified IBM to be their provider by mid- March. In June, 2006, after only three months, Sargento went live with Sterling Transportation Management System (Sterling TMS), integrating with 30 carriers, shipping approximately 3,000 orders per month, and transporting 24 million pounds of Sargento products on average per month. Sargento chose Sterling TMS because it was an on demand solution with connectivity to a large logistics network as well as having a strong TMS functionality, including comprehensive freight payment capabilities. Sterling TMS works with Sargento’s existing supply chain applications as well as IBM® Sterling Information Broker®, allowing them to improve logistics efficiency and customer satisfaction. Customers are placing orders via EDI, which are then fed into Sargento’s SAP ERP system. SAP feeds inbound purchase orders to Sterling TMS as well as Sargento’s Warehouse Management System.Sargento is using Sterling TMS for shipment planning, execution and freight payment. They are now able to track the performance of their carriers, allowing them to identify areas where they can eliminate costs. They are also utilizing the system for visibility purposes and can now accurately allocate transportation costs to their customers. With Sterling TMS they can clearly identify where their shipments are throughout the process and confirm the right rates for the right shipments. They are also using freight payment on the back end after the shipment is completed. The benefitSargento measures their success through three key metrics: • On time delivery • Customer service level • Cost of product shipped per pound Due to Sargento’s commitment to their customers, on time delivery has always been at 99 percent. They continue to meet that delivery rate and exceed their customers’ expectations, but with the implementation of Sterling TMS, Sargento has been able to lower their third metric as well. Sargento measures their cost per pound by taking their transportation expenses divided by the number of pounds shipped. Since the implementation of Sterling TMS, they have seen a drop in the cost per pound by 15 percent. This has been accomplished through more efficient planning, clean identification of carrier costs and formalized contracts within Sterling TMS. 60 percent administrative cost savings by automating freight payment:Sargento improved operational efficiencies by eliminating manual processes and non-value added services. In the past, if a carrier charged Sargento an incorrect transportation cost, Sargento did not have the visibility to correct these charges prior to being invoiced for them. Sargento would calculate the rates, but were often invoiced using a different rate. As a result, Sargento had a difficult time reconciling payments. Since the implementation of Sterling TMS, each carrier has a contract in the Contract Management Module of the system where their rates are locked and paid accordingly with no discrepancies. Not only has the system helped Sargento manage costs, the automation has reduced the manpower required to reconcile payments from 15 hours per week to six hours per week resulting in a 60 percent reduction in administrative costs for freight payment.Improved allocation of costs:Accruals are done as soon as the product is loaded at the distribution center. The billing information is fed to the finance department and the accrual of transportation costs is done in real-time. Accessorials that occur during delivery are captured as part of the invoicing process and are also allocated down to the order level. This helps to ensure the real cost of freight is captured for each customer. With Sterling TMS they are now able to evaluate charges during the year to better determine what the customer charges should be the following year, taking in to account the back end fees that each customer was accumulating. This allows Sargento to accurately allocate costs back to their customers and helps ensure Sargento remains profitable.Reduced LTL shipments by 60 percent: Prior to the implementation of IBM Sterling TMS, Sargento was doing 10 percent of their shipments via Less than TruckLoad (LTL). With the visibility provided by IBM Sterling TMS, they are able to convert more of their shipments into Full TruckLoads (FTL), with only 4 percent now being shipped as LTL. With enhanced planning capabilities, Sargento can now plan multi-stop and multi-pickup routes consolidating on average four different customer orders per shipment, for optimal execution and further cost savings.http://www-01.ibm.com/software/success/cssdb.nsf/cs/SSAO-8LJHGZ?OpenDocument&Site=scmgmt&cty=en_us73 % of organizations regard value chain synchronization being critical – yet only 17% of organizations can synchronize their internal systems with their business community to drive business performance and success According to a recent Vanson Bourne Survey in 2012$ 93 B in sales lost due to out of stock inventorySources: $ 93 Billion amount of sales lost due to out of stock inventorySource: RIS 5th Annual Store Systems Study, IHL Group and RIS News, 2008http://risnews.edgl.com/cross-channel-retail/Retailers-in-Denial-about-$93-Billion-Out-of-Stock-Problem/36585Vanson Bourne Survey, commissioned by IBM March 2012
- #17 We have learned by working with BBVA, Petco,Sargento, SingTel, Seton Hall and SMA Solar and through thousands of engagements – including 2000 leading brand name companies – you need to do these things to be successful and transform and improve performance…To survive in today’s rapidly changing digital world , you need to: Put the customer at the center of your businessAnd drive flawless customer service across all customer interactions and anticipates their behavior and take action to keep them loyal This means you need to make all decisions and take actions with insights to customer behavior – and drive your commerce processes from buy to market to sell to service around the customer. whether you are B2B or B2C or a marketplace or a B2B2C business model - your value chain must work in concert from demand to supply and deliver a seamless customer experience. Anticipate and deliver in a social and mobile environmentThis means enabling customers and partners engagement so they can shop, exchange information, and collaborate across all touch points, spanning human, digital, social, and mobile modes of access that are optimized according to their preferencesApply deep insights to take action in real-timeThis means using customer insight - deep insights about customers and prospects – gleaned from a combination of implied and explicit behavior across offline and online channels – to deliver timely and personalizedengagement across multiple channels and touch points Optimize sourcing and procurement based on customer demandThis is about optimizing supplier and partner interactions based on changes in shopping/buying behavior across the supply chain and reconsiders partner roles and relationships to generate new and differentiating customer value Integrate and extend core processes and systems to synchronize your value chainA very important point here is that this is not about rip and replace – we help customers evolve and accelerate their journey based on business objectives. IBM solutions enhance current processes, support heterogeneous and complex multi-enterprise environments and extend their value. A Smarter Commerce approach enables our customers to leverage and extend existing investments and get started where and when they want to focus; there are multiple entry-points for customers and it is not an all or nothing offering.With years of implementations behind you for ERP, CRM, MRP, SFA you name it – you now need to leverage and extend these systems directly to your customers, partners and suppliers.Because no company is an island – you must connect, communicate and collaborate with your trading partners and have shared visibility to increased demand, excess inventory to collaborate on this and keep business flowing. You need to embrace customer self service – as they are demanding this – and make it easy for your customers and partners to do business with you directly and seamlessly over the web and into your direct sales force, call center and sales partners and distributors. This means you will need take these core EPR systems and extend your eCommerce/Order Management processes directly to your customers, you will need to take your supply chain in transit, inbound or outbound and know where everything is at any time to be agile and possibly reconfigure it based on demand real time. You will need to take your CRM solution and deliver personalized and relevant offers and campaigns and ensure that you have captured your customer behavior and are reaching out to them the way they want to engage with you. These systems were not built to be ‘customer, partner, supplier facing’ but now you must extend them to be just that and leverage these investments as much as possible. This is not about rip and replace it is about adapting and optimizing key processes directly to your customers and finding new ways to engage them, service them and keep them loyal.
- #18 Leadersare taking a Smarter Commerce approach to drive growth and increase revenuesThey are taking a strategic approach and placing the customer at the center of their business operations.Starting with a proactive approach to safeguarding customer data and your brandThey are driving growth by enhancing, extending, and redefining the value you provideThey are increasing margins by boosting efficiency at every stage of the commerce cycleThey are maximizing the insight generated through customer interactions They are capitalizing on social and mobile commerceThey are synchronizing your entire value chain to deliver consistent and predictable outcomesAnd, they are improving collaboration and visibility for your customers & partnersThe winners in tomorrow's commerce world will deliver a “Smarter Commerce” experience – one that is cross-channel by design, allowing customers to shop or buy seamlessly across channels and touch points. An experience that is informed by customer insights and is able to deliver product recommendations that are not only highly relevant, but also timely in nature. Smarter Commerce will benefit from highly efficient marketing capabilities that allow for a consistent message to be delivered across all mediums. And finally, Smarter Commerce will use intelligence gathered from an optimized supply chain to ensure that products and services will be fulfilled accurately and efficiently.
- #19 The Proof: analysts named IBM the leader in ….IBM is the leader in the Gartner Magic Quadrant for Ecommerce – combining WebSphere Commerce, Sterling Order Management, Sterling Configure Price Quote solutions to be a clear leader ranked by Gartner. Key points in the report to use with prospects and customersGartner positioned IBM the leader for e-commerce solution offerings based on the following key capabilities:A complete set of core e-commerce capabilities and a vision to deliver a seamless customer experience across channels which validates our Smarter Commerce initiative.A client reference base using social capabilities through IBM WebSphere Commerce, and driving online sales across social networks such as Facebook.Enterprise mobile applications based on the IBM Global Services roadmap and the introduction of a new set of handheld devices in 2011. Forrester’s Global Commerce Service Providers Wave Report, Feb 2012 IBM ranked a leaderIDC MarketScape: Worldwide Business Consulting Services 2012 Vendor Analysis, March 2012Enterprise Marketing Management earns top category rating across five major analyst reports IBM’s EMM group has received numerous awards from industry analysts for these key reports:Cross-channel Campaign Management Wave (Forrester) Q1 2012Web Analytics Wave (Forrester) Q4 2011Integrated Marketing Management Magic Quadrant (Gartner) Q4 2011Marketing Resource Management Magic Quadrant (Gartner) Q1 2011Multi-channel Campaign Management Magic Quadrant (Gartner) Q2 2011Analytics IBM SPSS a Leader in the Hypatia's Galaxy for Operationalizing Voice of the Customer, 2011Source: Hypatia Research and Consulting “Operationalizing Voice of the Customer: How Top Performers Create ActionStrategic Sourcing and Procurement Services - Spend Management IBM Emptoris*: Leader Gartner Magic Quadrant, 2012: Telecom Expense ManagementIBM Emptoris: Leader Gartner Magic Quadrant, 2012: Strategic Sourcing IBM Emptoris: LeaderForrester Wave™: Services Procurement, Q3 2010IBM Emptoris: LeaderForrester Wave™: eSourcing, Q1 2009IBM Emptoris: LeaderForrester Wave™: Contract Life-Cycle Management, Q2 2011Procurement (PO) OutsourcingIBM Leader Everest names IBM as 2011 Market Star Performer for Procurement (PO) OutsourcingMobile Collaboration IBM leader Mobile Collaboration Source: The Forrester Wave™: Mobile Collaboration, Q3 2011 Social Platform and Horizontal PortalsGartner named IBM as a leader in the Gartner Magic Quadrant or “Enterprise Social Platform Software”Source: Gartner Magic Quadrant for Social Software in the Workplace, 2011Gartner research positions IBM in the leaders quadrant for Horizontal PortalsGartner Magic Quadrant for Horizontal Portals, 24 October 2011 Content ManagementLeader, Forrester Wave, Dynamic Case Management, 2011
- #22 Let’s start a conversation here at the event! Speak with your IBM Representative here today.Are you ready – visit our ibm.com today and see how other companies like yours are benefitting from Smarter Commerce.We also offer Business Value Accelerators to get you started on your Smarter Commerce journey. The time is now to get ready and get started to embrace the empowered customer.