hybris Marketing & Commerce

hybris Marketing & Commerce The OmniChannel Customer Cosmin COSTEA SAP Business Consultant SAP Forum October 15, 2015

SAP and hybris Powering the Future of Customer Engagement ENTERPRISE APPLICATIONS #1 #1 OMNICHANNEL COMMERCE PLATFORM 40 years of business software leadership and solutions expertise Fastest growing, most advanced commerce platform - enabling next generation customer engagement

Simplified front office with SAP hybris EXPERIENCE MANAGEMENT COMMERCE MARKETING SERVICE SALES DATA MANAGEMENT PLATFORM, INFRASTRUCTURE, INTEGRATION Solution Owner: Please read explanation notes on slide notes pane below

Hybris ecommerce Typical Commerce Functionality Retail &Distribution Requirements Shopping Product Cart Checkout Master Data Management Data import and export Product content management Digital Catalog + Print Content Management Web content management Digital Asset management Order Management Negotiated contracts, prices Buyer org. modeling, budgets, cost centers Workflows and cart approvals Commerce Platform Omni channel ready Enterprise integration Scalability & availability IT independence Multi language, site, currency 2013 SAP AG. All rights reserved. 4

Hybris ecommerce Modules

Simplified front office with SAP hybris EXPERIENCE MANAGEMENT COMMERCE MARKETING SERVICE SALES DATA MANAGEMENT PLATFORM, INFRASTRUCTURE, INTEGRATION Solution Owner: Please read explanation notes on slide notes pane below

2.4 BILLION brand-related conversions happen online every day. Source: Keller Fay Group 57% of the buying process is completed before a first interaction with sales. Source: Customer Executive Board 86% of customers are willing to pay more for a better customer experience Source: AMEX Global Barometer

DISCOVER NEED RESEARCH RECEIVE OFFER TRACK ORDER BUY RECEIVE PACKAGE MISSING ITEM POST REVIEW SETUP PHONE BILLING ISSUE MAKE PAYMENT PHONE DAMAGE TERMINATE SERVICE JOIN GROUPS NETWORK ISSUE CHANGE ADDRESS RESTART SERVICE RECEIVE OFFER REFER FRIENDS WEB PRINT DIGITAL ADS WORD OF MOUTH SOCIAL RETAIL STORE WEB SHOP REVIEWS CONTACT CENTER WEB SHOP EMAIL SOCIAL RETAIL STORE WEB SHOP CONTACT CENTER CONTACT CENTER RETAIL STORE CONTACT CENTER CONTACT CENTER SOCIAL WORD OF MOUTH SOCIAL EMAIL YOUR CUSTOMER CHOOSES THEIR OWN ADVENTURE. SEARCH KW/ADS WEB SHOP WEB SHORT LIST TV BRANDED COMMUNITY SUPPORT PORTAL SUPPORT PORTAL

SHOP & BUY RESTART SERVICE SHOP & BUY SHOP & BUY RECEIVE PACKAGE MISSING ITEM SETUP PHONE BILLING ISSUE MAKE PAYMENT PHONE DAMAGE TERMINATE SERVICE NETWORK ISSUE CHANGE ADDRESS DISCOVER NEED REFER FRIENDS POST REVIEW JOIN GROUPS RESEARCH RECEIVE OFFER TRACK ORDER BUY RECEIVE PACKAGE MISSING ITEM POST REVIEW SETUP PHONE BILLING ISSUE MAKE PAYMENT PHONE DAMAGE TERMINATE SERVICE JOIN GROUPS NETWORK ISSUE CHANGE ADDRESS RESTART SERVICE RECEIVE OFFER REFER FRIENDS SHORT LIST AWARENESS DISCOVERY CONSIDERATION ACTION ACTION ADVOCACY ADVOCACY CONSIDERATION USE INTEREST USE YOUR CUSTOMER CHOOSES THEIR OWN ADVENTURE. WEB PRINT DIGITAL ADS WORD OF MOUTH SOCIAL RETAIL STORE WEB SHOP REVIEWS CONTACT CENTER WEB SHOP EMAIL SOCIAL RETAIL STORE WEB SHOP CONTACT CENTER CONTACT CENTER CONTACT CENTER SOCIAL WORD OF MOUTH SOCIAL EMAIL SEARCH KW/ADS WEB SHOP WEB TV BRANDED COMMUNITY SUPPORT PORTAL SUPPORT PORTAL RETAIL STORE CONTACT CENTER

CHANGE ADDRESS POST REVIEW MAKE PAYMENT SHOP & BUY SHOP & BUY SETUP PHONE JOIN GROUPS SHOP & BUY RECEIVE PACKAGE MISSING ITEM NETWORK ISSUE PHONE DAMAGE RESTART SERVICE ONE CUSTOMER. BILLING ISSUE TERMINATE SERVICE REFER FRIENDS

SHOP & SHOP &BUY BUYSHOP & BUY SETUP PHONE BILLING ISSUE SERVICE REFER FRIENDS MANY JOURNEYS.

SHOP & SHOP & BUY BUY INFINITE POSSIBILITIES.

MARKETING IS BROKEN Marketer accepts a 2% conversion rate as good, ignoring the effect on the 98% who do not convert. The customer is one of hundreds of thousands of targets, and is bombarded with irrelevant marketing.

WEB EMAIL SOCIAL MOBILE ADVERTISING WEAPONS OF MASS DISTRACTION. THIS IS WHAT MARKETERS DO TODAY! Marketers bombard customers with irrelevant messages. Not targeted, not relevant. Enough is enough.

CONTEXT MAKES THE DIFFERENCE.

THE PROBLEM LEGACY APPLICATIONS, INTEGRATION, AND DATA SILOS MAKE THIS IMPOSSIBLE TODAY. CRM. WEB CMS. MOBILE. MARKETING. OMS. STORES. CONTACT CENTERS. ETC.

WE ATTACK THE CORE OF THIS PROBLEM

NEGATIVE ONLINE EXPERIENCE @ Days later Email from wife asking for opinion Sports website Travel website Visits website. Approves & abandons. % @ News website $205 Promotional Email from Kitchenaid Wife buys blender on her laptop.

Its all About the Customer It s all about understanding the customer It s all about engaging with the customer in the real time It s all about giving the customer control and transparency

We humans use context intuitively Now we ve built that into the hybris marketing platform WHAT THEY MAY DO THE CUSTOMER WHAT THEY ARE DOING NOW REAL-TIME INDIVIDUALIZATION PRESENTATION OF RELEVANT CONTENT ACROSS TOUCHPOINTS [ SITES, APPS, ADS, EMAIL ] WHAT THEY HAVE DONE

THE DIGITAL MARKETING PROCESS Events & interactions from all channels Merge, match and enrich Context, interests & predictions Personalized targeting & orchestration Campaign execution in all channels Market data & events Digital & social channel Sales & service data Personalized commerce Financial data Interaction center Big data industry Lead, opportunity Social media, web E-mail, sms, traditional Capturing response Plan, measure & optimize

SAP HYBRIS MARKETING PRODUCT VIEW SAP HYBRIS MARKETING Planning 1 st Party Applications Sales Insights Acquisition Convert Loyalty* Segmentation Recommendation 3rd Party Applications (for data & execution) Email Engines Service Batch & Events Batch & Events Ad Providers Commerce Social providers ERP Mobile providers Marketing Data Management

MARKETING DATA MANAGEMENT Gain insight about known customers and unknown people in real-time Merge, match, and enrich profiles across all channels Identify interests and create a 360 view of people in your ecosystem across all channels Predict likelihood to buy, churn, show interest and other behaviors in real time. In time to react. Develop people from anonymous contacts to high-value customers and brand advocates

PREDICTIVE MODELS Leverage more than 3,000 algorithms in realtime on operational marketing data Predictive Scoring Buying Propensity for industries such as insurance, banking and retail Various scores for Contacts Activity Score Sentiment Score Profile Score Lead Propensity ABC Classification Customer Lifetime Value (CLV) Optimize, train, publish and maintain models, run the models in real-time for precise targeting Leverage existing models from SPSS, SAS etc.

SEGMENTATION High performance customer segmentation on Big Data in real-time Great visualization & exploration tools to slice and dice data on the fly Waterfall UI with rich set of segment operations to easily build complex segmentation trees with real-time counting Ad hoc analysis and segmentation at the same time, self service by business users. Aggregates data towards scores, KPIs, Sums on the fly Optimize target groups leveraging predictive analytics Highly flexible on data source, incl. unstructured data from social media, geospatial data, SAP and non-sap data Unlimited ways of personalizing messages for target group in any execution channel

Perfect Campaign Target List

RECOMMENDATION Provide context-relevant, smart recommendations based on previous purchasing behavior in real-time leveraging predictive analytics Increase conversion rates and average sales order size by cross-selling and upselling Self-Learning models Wizard-based UI for business analyst Deploy in any channel Standard integration with hybris commerce

ACQUISITION (CAMPAIGNS) Plan, set up and execute OmniChannel, multi-wave campaigns (email, SMS etc.) Manage communication templates Create personalized, targeted content for execution Automate Automate campaigns with triggers & actions (e.g. click link in mail -> send SMS) Automate bulk campaigns Triggered execution through segmentation criteria and marketing events like cart abandonment Detailed analytics at individual engagement level contacts and communications Aggregate across campaign to measure key KPIs

Build and Run Intelligent Marketing Campaigns

CONVERT REAL TIME 1:1 REMARKETING Real time email remarketing to nurture potential prospects lifts ecommerce revenues by 2% - 10% Real-time scoring of browsing behaviour to derive insights for contextual 1:1 marketing email remarketing to nurture potential prospects email remarketing for shopping cart recovery retargeted advertising to drive visitors back to the site monitoring ensures campaigns are always in step with customers Orchestrates a sequence of campaign steps to drive customers back to the site Built in rules and A/B testing Pre-packaged integrations real time with ESP s, DSP s and CRM systems for cross touchpoint execution Advertising Email Call Center Mobile Push Social Significantly improves conversion rates

LOYALTY* Enhance customer retention and lifetime value Flexible and easy-to-use interface for marketing users Deliver better customer experience by delivering frictionless signup Encourage advocacy and referrals Beta Aug 2015, GA targeted Nov 2015

ORCHESTRATION* Intelligent orchestration of marketing campaigns based on channel, timing, contact and content to deliver relevant interactions inbound and outbound Optimize contact, channel and content to reduce customer fatigue and to optimize budgets Discover and take action to moderate the customer journey **Roadmap 2015

INSIGHTS - MARKETING PERFORMANCE MANAGEMENT Stories and Components Multiple Drill Downs Fullscreen Mode Define your own KPIs from multiple (internal & external) data sources Independent of traditional IT Reporting structures Role oriented modelling paradigm, i.e. Dashboard design by composer and consumption by business user Form-support for desktop, tablet and smart phone Standard visualization catalogue for attractive information design Multiple Drill Downs can be viewed in parallel to the root-components Global filtering based on chosen dimensions Detailed view to visualize overall reporting results

INSIGHTS - CUSTOMER VALUE INTELLIGENCE Customer portfolio analysis using the current and potential value of your customers Balanced score card to detect strength and weaknesses in a customer relationship Whitespace analysis to derive additional revenue potentials Scoring of interactions on both consumers and contacts of a buying center KPI monitor to derive & detect trends and patterns from time series analysis Derive personalized engagements from those insights

MARKETING PLANNING Top down planning and budget distribution Bottom-up budget allocation Budget planning and consumption for all levels of the marketing organization Joint embedded analysis for managers and employees on all dimensions without need for BI / data warehouse Integrated calendar view of marketing campaigns and analysis View campaign key figures based on Campaign Categories, Priority, Programs, Responsibilities, Status and Region Optimized for Desktop and Tablet Native Calendar support (e.g. MS Outlook, Apple Calendar) using icalendar (.ics) format

Control of your marketing budget

hybris Marketing & Commerce - Integration E-Shop product recommendation based on omni-channel customer profile and buying behavior hybris Marketing customer profile, target groups & campaigns integrated to hybris E-Shop Tracking shopping behavior and buying patterns to enrich customer journey Segment and target across all channels, including commerce Personalized shopping experience Product recommendation Track Customer Interactions Omni-Channel Profiles, Target groups & Campaigns Personalized Shopping Experience

Personalized Shopping Experience

CUSTOMER SUCCESS STORIES HYBRIS MARKETING

Red Bull: Teaming up with SAP to put the Consumer at the Center Company Red Bull Headquarters Fuschl, Austria Industry Consumer Products Products and Services Red Bull Drinks, Events, Sports Teams Sold Cans 5+ Billion Revenue 5+ Billion EUR Web Site http://www.redbull.com Objectives Move from retail- to consumer-centricity Create central consumer data base by collecting the golden consumer profile across multiple channels Systematically collect known and unknown consumer information and opt-ins from underlying social profiles Personalize merchandising web stores based on hybris Commerce Technical implementation SAP Hybris Marketing on HEC hybris Commerce Benefits Better personalization across different channels Better targeting and marketing execution Real-time Recommendations Smarter Targeting the right consumers Simpler Easy deployment via HANA Enterprise Cloud Faster From weeks to seconds Accurate Real-time data feeds

Samsung: Through strength Customer Experience, Increasing profit Company Samsung Headquarters Seoul, Korea Industry Electronics Products and Services Devices, Display, Print, Medical Customers 14 M in Korea Revenue 208 bn ww Objectives Build up Global CRM process based on single platform Establish Global Standard Loyalty program Reduce lead time of creating campaign plan and target group. Integration with Predictive Analytics Technical implementation CRM on HANA Integration with hybris SAP Hybris Marketing Segmentation SAP Hybris Marketing Data Management Benefits Really High performance customer segmentation Marketing optimization leveraging predictive analytics Real-time analytics on campaign performance Simplifying CRM architecture through implementing CRM On HANA Recognition Recognize the right customers at all of channels Insight Understand what customer wants Engage From Pushing to engaging Accurate Real-time data analytics Web Site http://www.samsung.com

Asics: Consumer Centric Engagement Company Asics Headquarters Japan Industry Consumer Products Products and Services Shoes, Fashion, Fitness Revenue $2.7B USD Year over Year 27% Growth Web Site http://www.asics.com Objectives Move from retail- to consumer-centricity Create central golden consumer profile across multiple channels, including Foot ID Flexible and extensible omni-channel marketing platform Personalize merchandising web stores based on hybris Commerce Engage directly with consumers Technical implementation hybris Marketing hybris Commerce Benefits Better personalization across different channels Better targeting and marketing execution Real-time Recommendations Smarter Targeting the right consumers Simpler Single marketing platform Faster From weeks to seconds Accurate Real-time data feedsa

THANK YOU