EL01 - IBM Customer Engagement Solutions

EL01 - IBM Customer Engagement Solutions Real Customer Experiences and Use Cases IBM Commerce cases in Italy Felice Petrignano Management Consutant IBM Commerce felice_petrignano@it.ibm.com Please check-in to this session

Agenda Why Digital in Commerce and Marketing and the role of IBM Commerce A summary of real cases and experiences: the "Abc Fashion" Narrative IBM Commerce Partners: an endless source of innovation for Business Leaders 2

The Digitally Empowered Confused Customer I can always think I can find a better product better price better service but I'm overwhelmed by too much information and I can't find what's in it for me email email Store Milan SMS Store Rome ecommerce catalogues 3 email email SMS Ads Ads

Can you generate serendipity by design? In a world of endless alternatives can you orchestrate every interaction with the Customer from awareness to decision? This is C2B, Customer to Business: a new digital transformation in all industries, Retail, Banks, Insurance, Travel, Media, Energy, Consumer Products IBM Commerce and IBM Partners provide a unique set of capabilities and competences to enable C2B. Yes! That one email ecoupon Store Profile Behaviour ecommerce SMS Social

IBM Commerce, It's all about Customers Competition & Change Can you attract and retain the "New Empowered Customer"? ecommerce Customers represent a relevant target UK 15% of revenues, Italy 2% yet growing 14% new generations are "always on", "drive to store by digital" is a new mantra Can you anticipate disruptive sources of Competition? Amazon, revenues 2014/2013 was up 23% to $19.74 billion. Alibaba's revenues soared 54% to over $2.7 billion once "pure players" both are adopting some forms of "phyisical" IBM Commerce helps more than 2.500 brands in the world on the path to digital transformation measurable business results Can you Change your Omnichannel Customer Journey? It's not about fragmented innovation, a new web site,a new APP Brands need a holistic transformation with new processes new competences and new advanced capabilities tested in the market 5

CAMSS: a foundation of IBM Commerce Cloud: accelerate time to market and reduce risks Analytics: develop new insights about customers' behaviours and preferences Mobile: build a real omnichannel customer journey, and generate drive to store from digital Social: support your customers' dialogue about you with their trusted "friends" IBM Commerce Marketing Cloud Commerce on Cloud Customer Analytics on Cloud Procurement on Cloud Payments on Cloud Secure: generate trust providing reliable access and payment methods. 6

Abc Fashion Blinded case derived from a summary of key cases 2014 IBM Corporation IBM Confidential 8

New Clients, New Channels, New Change Management Strategy Interaction Brand CEO Customer Call Center CEO Katie Digital Agency CMO CIO CFO Product Store Associate Digital Marketing ecommerce director 9 Fashion 9

"Abc" case: lessons from real Customer Experiences Blinded cases Italy: business areas Marketing, Commerce, Services, Procurement primary Bank manages the digital experience, improving customer satisfaction primary Fashion Brand sells its products all over the globe, achieving relevant growth rates primary Retailer sells its products on line, manages its multichannel campaigns and monitors the effectiveness of the digital interaction, reinforcing its leadership premium Brand develops a stronger drive to store capability with Interactive Marketing a leading Fashion Brand is transforming the omnichannel experience to attract customers via services new Marketplace connects customers and manufacturers on a single ecommerce platform Energy & Utility, empowering an interactive effective marketing and call center Industrial components brand launching a B2B ecommerce to sell on a global scale others: B2C Retail, Financial Services, B2B Retailers, Consumer Products Italian Brands who shared their experience at IBM events or published on Youtube Iperceramica, a medium enterprise: rapid growth with ecommerce MSC Crociere, a new B2B2C model with ecommerce to include Agents and Customers Sky Italia, improves effectiveness and efficiency of Marketing Conad del Tirreno, a retailer determines the ideal prices on a broad array of products 10

IBM Commerce in the world $65 billion Sales in the Internet Retailer Top 500 powered by WebSphere Commerce $100 billion Commerce transactions analyzed Holiday Benchmark Reports 110 million Messages a day are transferred via IBM Payments 11% savings Companies report an average with IBM Procurement solutions 91billion Behavioral interactions In the last 12 months 350,000+ Global trading entities connected Sources: Internet Retailer Top 500, IBM and Nucleus Research Provided for illustrative purposes and is not intended to be a guarantee of future growth rates or market opportunity. 11

Before any "digital initiative" Stop and focus on the "Why?" 2014 IBM Corporation IBM Confidential 12

Why "digital" after years of web initiatives and discussions? Brand CEO CEO Why from initiatives for innovation to a digital transformation for Business? and...why now? CMO CIO Digital Marketing CFO ecommerce director

Today, 20 years after the first online transaction ecommerce still grows at strong double digit rates. Technology (Markets) Can you export to affluent markets? Can you sell to growing segments? 14

The quality of on line interactions impacts the bottom line beyond ecommerce revenues Technology (Markets) 15

Can the brand underestimate the digital impact? Customers 83% of consumers are more likely to do business with brands that allow them to control where, when, and how they interact. Competitors By 2018, organizations who offer personalization will outsell companies who don t by more than 30% Technology Mobile commerce will account for 24% of all ecommerce revenues by the end of 2017 16

Abc Business Objectives Increase Revenues On line and in Stores can we attract new customers with a digital impact? new segments (millennials), new geos (affluent)? CMO Increase Customer Satisfaction and Loyalty can we transform our sales into a valued service? ecommerce director CFO Improve Operative Efficiency, cost optimization can we communnicate more and better with less? 17

Why Change in digital and Why Now? Current Status Customers data: CRM and ERP. CRM provides data to an external mailing service. A basic ecommerce exposes the catalogues, CIO Massified communication - ads - fragmented IT innovation Issues No harmonic management of communication in-out Brand Customers complain about fragmented dialogue with Brand Stores are not leveraging digital innovation for better service CEO Impact: revenue decline 2014/2013-10%, not compensated by online revenue (1% of revenues) nor by export (3% of revenues) 18

Brand CEO How can we transform the challenge into an opportunity? CMO CIO Digital Marketing ecommerce director

From cold segments Define a persona, a profile "who is our typical customer"? 2014 IBM Corporation IBM Confidential 20

2014 IBM Corporation The team selected Katie IBM Confidential Interests: Consumer Fashion 2 travels year to Milan Purchases 2.000 "Fashion" Demographics: Years: 35 Lives in Berlin, Germany Profession: Managing Director Digital Behaviours Frequently on Web Mobile Social She Visits our site in the morning IBM Commerce 21

Empower Marketing with new tools to enable a relevant dialogue Customer to Business A Personalized Communication on Large Scale Efficiency in marketing operations, no manual workload (spreadsheets etc) nor dependency on IT 2014 IBM Corporation IBM Confidential 22

Business Need new processes and capabilities CMO CIO Digital Marketing Digital Agency Manual Fragmented Decide Execute Feedback Adapt Time

A new platform for a new generation of Marketing CMO Digital Marketing Marketing Platform Decide Execute Feedback Adapt Time

Business Users agile access to tools Digital Marketing IBM Marketing Cloud Digital Agency Campaign Lead Mgmt SMS emails APP Push 1 2 1 1 0 5 0 0 8 5 7 6 0 5 KPIs 3 0 2 0 2 7 6 0 0 3 0 1 0 2 5 5 0 0 1 3 0 0 0 0 Customer Analytics Decide Execute Feedback Content / Message / Segment Business.Rules (eg Time of delivery) Adapt

Saturday 7.30: Katie reading her Ipad, her friend "Laura89" LIKES the new abc fashion red dress 2015 explore reading opionions Trust

2014 IBM Corporation now the Brand can send Katie selected contents "for her" Micro Segment A Hi Lilly! do you remember the white skirt you bought from us? now you can buy the perfect bag for the office IBM Commerce Micro Segment B Micro Segment C HI Gianni, I see you're in via Montenapoleone come and visit us for a special advice Hey Katie! Interested in fashion 2016 trends? Visit our site IBM Confidential 27

2014 IBM Corporation the Brand can always manage the lead and the follow-on with a planned approach IF-Then. IBM Confidential The best possible approach step by step SMS Monday 9.00 Hey Katie! Interested in fashion 2016 trends? Visit our site landing page SMS 1 SMS response SMS 2 email wait IBM Commerce 28

IBM Marketing Solutions: continous innovation IBM Marketing Cloud Rapid time to value Subscription based Multi-tenant SaaS Shared Capabilities New innovations Continuously improving Cross platform IBM Marketing Software Robust integration platform Highly scalable Deployed on premises IBM Marketing Cloud IBM Marketing Software Digital Marketing Lead Management Customer Experience Analytics Journey Design Omni-Channel Marketing Real-Time Personalization

IBM Marketing solutions references and results in Retail, Banking, Insurance, Telco, Energy&Utility, Media, Travel, CPG Orvis (Retail Apparel) Increases marketing performance for email and direct mail -- all powered by IBM Marketing solutions. Reduction in digital and non-digital campaign 88% and reporting costs 2yrs Record profits after solution implementation 40% Reduction in email costs versus prior outsourced solution

open up your Brand to customers with an agile seamless and relevant access do we generate serendipity on the right time and at the right location? 2014 IBM Corporation IBM Confidential 31

ecommerce evolution Stores Manager ecommerce director CIO Web Presence Web Interaction Massified web presence Personalized Omnichannel Commerce Poor drive to store influence Relevant drive to store influence

Katie lands on the Brand's ecommerce site Is she Inspired? Can she Understand the value for her? Can she easily Compare options? Is the online store our flagship store? More than 60% of visitors will browse our Site before the Physical Store do our Pictures and Contents show the value of our catalogue? 2014 IBM Corporation 33 IBM Confidential

The site leads Katie in the configuration of personalized solutions Self Service tools: Reliable, reduction of mistakes, improved satisfaction, higher engagement beyond the price

The site enables a continous dialogue everywhere Responsiveness The Brand can frequently update its catalogues and keep consistency through all devices with no impacts on IT

The online store is managed with user oriented tools ecommerce business user Engaged Customer efficient IT

...Katie explores the ecommerce of the Brand......she finds relevant information, images and videos... abc Explore, Understand Compare Prepare for the new fashion week in Milan

2014 IBM Corporation On the Brand site Katie receives a real personalized service before any sales proposal IBM Confidential IBM Commerce 38

IBM Commerce Solutions Marketing Selling and Fulfillment Procurement B2B Integration

Homebase Retail Provides highly personalized shopping experiences to meet the needs of today's consumer -- all powered by IBM ecommerce solutions. Customers now shopping online 40% 30% growth Increase in online traffic driving double digit sales

Enable trusted reliable After sales Services to generate trust as a key factor to sell 2014 IBM Corporation 41 IBM Confidential

Before she decides to buy she wants to be assured she will receive or return the product easily I'm never at home I can't wait hours at the office I want it now from whoever has it No Trust No Order I want to return it if I don't like it touching 2014 IBM Corporation IBM Confidential 42

the whole value chain needs to be enabled to provide a new level of service to the customer and generate trust conflicting incentives on line vs stores lack of consistency lost promises emails spreadsheets phone calls lost requests lack of productivity conflicts 2014 IBM Corporation IBM Confidential 43

a new capability needed to enable innovation in services across the different channels Front end In store Management Distributed Order Management warehouses and distribution centers network and supply chain Third parties logistcs synch fulfilment management Trust & Productivity ERP full inventory visibility 2014 IBM Corporation IBM Confidential 44

she order as she is assured she will receive or return the product easily when and where she prefers Buy Online Pick-up In Store Delivery Promise (Day/Hour) Endless Aisle for stock outages Trust = OK I ORDER Return Management Convenient & Agile 2014 IBM Corporation IBM Confidential 45

The APP notifies her "pick up ready" at the right moment Good Morning Katie would you like to enter into our store 200metres from here? we have your order ready for pick up OK 2014 IBM Corporation IBM Confidential 46

The APP shows a push notification to help her go to 3rd floor your order is ready for pick up 2014 IBM Corporation IBM Confidential 47

The new systems enable assistants and customers taking value from fulfiment services Anna receives Katie Lana picks the product from the back store While they are waiting Anna and Katie discuss other needs and preferences Store Associate Store Assistant 2014 IBM Corporation IBM Confidential 48

Katie is worried, does she have to start from the begininning? she has been speaking with the Brand emails website sms app...but after all these on line conversations... call center ecommerce visits to stores

the store assistant receives Katie and recognizes her The dialogue Customer to Brand goes on seamlessy abc

The system suggests the store associate how to complete the order for Katie abc red dress sku 1322 red jacket sku 1304 Gift card, use special promotion for friend

Why IBM Distributed Order Management Complexity behind a nice promise to the customer. Delivery Scheduling Promising capacity to deliver to specific time slots Service Scheduling Promising at specific time slots, considering capacity and skills Capable-to-Promise (CTP) Real-time promising of product with delivery & services capacity Available-to-Promise (ATP) and Sourcing Proven in high volume environments Highly scalable & available Highly flexible rules based on real experience All fulfillment channels (DC, warehouse, stores, vendors, etc ) Flexible criteria: requested delivery dates, ship methods, transit times, distance, cost, product velocity, location of source, region/grouping of sources... Considers inbound or expected supply Dynamically change rule as demand/availability changes (i.e demand spikes)

Media-Saturn Provides top-notch customer experience including same day pick-up to bring customers into their stores -- all powered by IBM ecommerce solutions. 40% day Of customers opt in for same pick up service 53 2015 IBM

Our solutions are ahead of the curve I F I C L A I M S 2 0 1 3 TOP 2 0 US PAT E N T A S S I GNEE IBM Corp. Canon K K JP Microsoft Corp Toshiba Corp JP QUALCOMM Inc Google Inc Apple Inc GM Global Ricoh Co Ltd JP Hewlett- 6,809 4,676 3,825 3,098 2,660 2,601 2,416 2,279 2,103 1,947 1,851 1,806 1,775 1,739 1,626 1,494 1,470 1,455 1,360 1,334 2014 IBM Corporation IBM Confidential 55

Our Business Partner Ecosystem: 1,822+ Digital Agencies & Mktg Svc Providers Complementary Solutions & ISVs Systems Integrators Resellers & SaaS Providers

Sales and Commerce B2B Commerce Why partnering with IBM? IBM brings virtually every channel into a single platform Better business outcomes Increase conversion rates, average order value, loyalty and retention Single vendor with comprehensive capabilities One platform for virtually all B2B routes to the marketplace Smarter commerce innovation, longevity and financial stability Aggressive and ongoing investment New enhancements functional and nonfunctional from industry thought leaders Network Extensive IBM Business Partner ecosystem, world-class support, large community

Please Rate this session THANK YOU E01 - IBM Customer Engagement Solutions Felice Petrignano felice_petrignano@it.ibm.com

continous and deep monitoring of the customer experience Do we help our customers when struggles arise? Do we communicate with them and timely recover their engagement level with us? 2014 IBM Corporation 60 IBM Confidential

She is now interested to the brand. She fills in a form to subscribe to newsmail service about the fashion calendar...i share information about my self as I appreciate the service they offer DATA PRIVACY "ACTIVE OPT-IN"

but for some reason the form is not accepted by the application "error code 123", she phones the call center FORM NOT COMPLETE PLEASE FILL IN THE FIELD IN RED

2014 IBM Corporation Customers can struggle on the site for any kind of "mistake" IBM Confidential Fill in your name Katu...not in record Privacy opt in MISSING 2014 IBM Corporation IBM Confidential 63 63

Customer experience management analytics enable a continous improvement and customer satisfaction Real time analysis Speed of Corrections On the web On mobile Real time dialogues Speed of Support Identification of affected segments Speed of communication to targets 2014 IBM Corporation IBM Confidential 64

She is satisfied as the call center immediately solved her problem, and on the same day she receive a mail... this brand is really different, they do care about me SORRY FOR ANY INCONVENIENCE WE WOULD APPRECIATE TO OFFER YOU A VISIT TO A PERSONAL STYLIST DOWNLOAD OUR APP TO PLAN YOUR VISIT

A Leading Beverage Maker Analyzes consumer behavioral data and creates persona-level campaign messages to drive brand loyalty -- all powered by IBM Marketing solutions. 2X Increase in loyalty program membership 360 View of consumer trends, preferences and patterns 2015 IBM

Katie is extremely satisfied and shares her happiness with her friends...proud to be an advocate for this Brand

Monday 8.30: she buys materials for her company, a travel, a mortgage, everytime same expectations Retail Manifatturiero / B2B Telco Travel...and i will always select the best experience Consumer Products Financial Services 2014 IBM Corporation

prepare for a partnership of ongoing business innovation 2014 IBM Corporation 69 IBM Confidential

Marketing Journey Designer and Journey Analytics Collaborate, design, monitor and continually improve customer experiences

IBM Commerce Insights (business user the Merrchandiser) Olivia can get Deep insights into customer online behavior and real-time reaction to marketing and merchandising tactics Pin-point causes of under-performing products and categories Optimize sales by predicting results and prescribing actions that inspire customers to buy Single point of access to relevant data and insights to quickly respond to competitor and market conditions

IBM Cognitive Commerce (Partner Fluid) I m gearing up for a 14 day backpacking trip. What equipment do I need?

Can you show me technical packs?

Please Rate this session THANK YOU E01 - IBM Customer Engagement Solutions Felice Petrignano felice_petrignano@it.ibm.com

About the Author Felice Petrignano is Management Consultant - IBM Commerce Italy. He works with companies in retail, consumer products and financial services to take advantage of IBM s solutions and research investments to build smarter customer experiences. He is a public speaker for IBM at events and lecturer at Universities Felice is a CMC Certified Management Consultant He has a degree in Business Economics at Università Luigi Bocconi, Milan Italy, and an MBA at Henley Management Business School, UK. 75