Analytics Powered Smarter Merchandising How Lee Jeans is Leveraging IBM WebSphere Commerce and Coremetrics Luis E Rodriguez WW Solutions Executive, Smarter Commerce, IBM Brian Tomz Sr. Director Product Strategy, Coremetrics, IBM Company Kris Aldridge Project Manager, VF Corporation - Lee Jeans 2011 IBM Corporation
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Agenda Trends Impacting Digital Marketing & Merchandising IBM Coremetrics data driven applications Powering Analytics Driven Merchandising IBM WebSphere Commerce & Coremetrics working in concert Smarter Merchandising @ Lee Jeans Analytics driven merchandising decisions Q&A 3
Innovation and business value Innovating and aligning business models to drive value to the customer IBM s integrated portfolio for Smarter Commerce VALUE CHAIN STRATEGY AND ENABLERS Market and customer mgmt Aligning sales, marketing and operations to engage with customers Operating and Organization Models Designing operations, supply chain and the organization model to deliver customer value CORE BUSINESS SOLUTIONS Core Business Processes Buy Market Sell Service Supplier Integration & Management Supply Chain Optimization Logistics Management Payments and Settlements Customer Awareness Analytics Brand Experience Social Media Marketing Cross-channel Campaign Mgmt Digital Marketing Optimization Marketing Resource Mgmt Cross-channel Selling Distributed Order Management Customer Integration & Collaboration Fulfillment Store Solutions Payments & Settlements Delivery, Service, & Support Customer Self-Service Reverse Logistics Case Management Advanced Analytics Store analytics Purchase analytics Consumer loyalty Predictive and prescriptive Social Analytics Master data management Workload Optimized Systems (Z-Enterprise, Power, X, Storage and Systems Software) focused on agility, integration and automation to drive relevant business outcomes 4
Trends Impacting Digital Marketing & Merchandising IBM Coremetrics data driven applications 5
Trend: Marketer s Priority = Customer Retention Customer Retention 52% Customer Acquisition 38% Customer Profitability 29% Source: Forbes, Brining 20/20 Foresight to Marketing, June 2011 6
Focus on retention requires tools that make marketing feel like a service 7Email Targeting Display Ad Targeting 7
Lifecycle Analytics Customers at different lifecycle stages require different communications 8
Trend: Spend Shifting Online 56% Will increase online marketing budgets Branding Direct Mail Print/Broadcast Online Trend: And to Cheaper Online Mediums 54% Will increase social media spend Paid Search Social Media Display Retargeting Email Source: Forbes, Brining 20/20 Foresight to Marketing, June 2011 9
Social Analytics Despite the investment, 84% of companies don t measure Social ROI 63% research via social networking 47% of the time they are influenced by what is read 10 83% of holiday shoppers influenced by reviews Consumer reviews are 12x more trusted than descriptions from mfg 500 million active, 175 million daily users A Facebook Like from a friend carries the same weight as 100 positive reviews from strangers 10
Trend: Quantifying multichannel influence Online Offline $5 Billion of in-store sales are influenced by our web site Every $1 spent on macys.com influences another $5.77 spent in-store. - Terry Lundgren Macys at Shop.org 11
Understanding online impact on offline will change your online media buying math Multichannel Analytics 12
Trend: Mobile & Digital Marketing Change In-Store Experiences Kiosks Mobile Apps Product Pamphlets QR Codes U.S. mobile commerce reaches $1.2 billion Global mobile commerce sales expected to reach $163 billion by 2015 Employee Suggestion Tablets & Digital Signage 13
Product Recommendations Product Recommendations across touch points Web Call Center Mobile Email In-Store Device Display 14
Powering Analytics Driven Merchandising IBM WebSphere Commerce & Coremetrics working in concert 15
Coremetrics for WebSphere Commerce IBM and Coremetrics Provide Tailored Best-in-Class Analytics for WebSphere Commerce Analytics solutions specifically designed for WebSphere Commerce Enhanced productivity as result of deep integration Jointly developed & tested technology Continuous enhancements Rapid implementation 16
Coremetrics WebSphere Commerce Integrations Since 2006 IBM and Coremetrics Have Been Delivering Value Through Out-of-the-Box Integrations 2006 2007 2008 2009 WC V6 Integration Tag Library Integration WC V5.6 and V5.6.1 Integration Customer Segment Import WC Extended Sites Support Auto Tagging Tool WC Custom Reports Sales Center Reports Multi-currency Support Multi-language Support Enhanced E-Site Support WC v7 Support Web 2.0 Store Support Mobile Commerce 2010 2011 Deep Coremetrics Intelligent Offer integration to WC Management Center Real-time Coremetrics IO info to WC Coremetrics IO icon in Mgmt Center Coremetrics IO delivered to WC espots Access to Coremetrics dashboards & reports from Mgmt Center Coremetrics impression tag for WC remote widgets Improved tagging Integrated store samples Enterprise Product Reports 17
Coremetrics for WebSphere Commerce Customer Benefits Single Sign-On authentication between applications Out of the box WebSphere Commerce specific analytics Auto-configured tag library to speed implementation & maintenance Intelligent Offer recommendations served through espots Export segment to WebSphere Commerce for personalized targeting 18
IBM Tag Library Coremetrics for WebSphere Commerce Shopping Cart Tag WebSphere Commerce DataBean 19
Easy Analysis for Business Users Same terminology and hierarchical structures Coremetrics for WebSphere Commerce IBM WebSphere Commerce Management Center 20
Industry Leading Targeting & Personalization One Click Segment Export to WebSphere Commerce I can define customer segment as: Visitors who have browsed jeans and have been referred from Facebook To serve them custom espot: I pass customer segment from Coremetrics to WSC for targeting 21
Dynamic Recommendations emarketing Spot Integration I can maximize cross-sell opportunities by delivering product recommendations through an espot, to further personalize shopping experience Display Intelligent Offer Recommendations emarketing Spot displays dynamic recommendations from Coremetrics Intelligent Offer 22
Access Coremetrics Analytics Reports from Management Center 23
Smarter Merchandising @ Lee Jeans Analytics driven merchandising decisions Kris Aldridge ecommerce Project Manager VF Corporation (Lee) 24
VF Corporation Overview Lee Jeans Company Overview ecommerce Strategy Merchandising Challenges Solution: Smart Merchandiser Future Enhancements Agenda The Lee T-Shirt give away! 25
VF Corporation Overview VF is the world's largest apparel company $7.7 billion in annual revenue 30+ dynamic lifestyle brands 780+ retail locations Sell in 150+ countries 46K+ employees Headquartered in Greensboro, NC 26
VF Brands 27
Lee Jeans Company ecommerce Overview Lee Jeans has had an ecommercesite since 2005. They re-launched in April 2009 under WC platform Increased net sales Increased AOV Increased conversion rate We are a manufacturer We are complementary to wholesale, however aiming to provide excellent product choices, service and value to our consumers online ecommerce platform heavily utilizes IBM solutions WebSphere Commerce (ecommerce engine) Omnifind (Search) WebSphere Content Management (WCM) Coremetrics (Website Analytics) 28
ecommerce Strategy The VF success formula: Blending the art and science of apparel Our strategy is driven by Passion for our products Deep understanding of our consumers Data-driven insights Expert execution Leverage all the above points together to strengthen the bond between the brand and consumer 29
The Merchandising Challenge 30
Merchandising Challenge Information Scattered Everywhere Merchandiser How do we make sense of it all? 31
Merchandising Today Disjointed and Disconnected from Site Management Center Accelerator Excel/Catalog Import 32
Smarter Merchandising 33
Our Solution: Smart Merchandiser Single tool that combines the intelligence of web analytics and social media data with the ease of a graphic, intuitive userfriendly interface Designed for business users to view product analytics, ratings, conversion rates, stock status, social data, etc just by clicking on product images 34
Smart Merchandiser WYSIWYG 35
Immediate Visual Indicators Unpublished Color specific inventory issues No Inventory Available 36
Sequence Management Drag and Drop Functionality 37
Color Management Sequencing and Publishing 38
Item Management 3 2 1 Features: 1 Dynamic Search (display changes as you type) 2 Sort Options 3 Items Per Page 4 Navigation 4 39
Sales Catalog Management Add/Remove from Master Catalog 40
Sales Catalog Management Add From List Entry 41
Sales Catalog Management Remove 42
Smart Merchandiser No Longer Disconnected 43
Informed Decision Merchandising Analytics (including Inventory) Pricing Strategy Social Date Based 44
Merchandising Overlay Analytics and Inventory Coremetrics Analytics Inventory 45
Merchandising Overlay Date Based Analytics 46
Pricing & Profitability Merchandising Overlay Pricing & Profitability Profitability Warnings 47
Facebook Merchandising Overlay Social Insights BazaarVoice Twitter 48
Smart Merchandiser Solution Benefits Streamline workflow for business users Ideal solution for resource constrained teams Improved merchandiser efficiency Assist in merchandising decisions Turn insights into action 49
Now its easy! Happy Merchandiser 50
Lee Smart Merchandiser Future Enhancements Competitive Data Pricing from other online retailers SEO (keywords, ) Category Sorting Automation (sales, inventory) Social Commerce Alerts & Recommendations Filters based on social activities (Likes, Twitter Hits, BZ Ratings) Trend detection (Facebook/ Twitter) Sentiment Analysis (Twitter) Sort Order Profiles 51
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