etailing india conclave jaipur- 2013 rajesh rao ibm-

Smarter Commerce: Engaging the Customer in the Multi Channel Rajesh Rao – Smarter Commerce Leader IBM India South Asia April 18th 2013

The use of both online and offline channels is transforming business and consumer interacEon

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§  Customers: are leading the conversaEons that define brands

§  Partners: are interacEng to accelerate business value

§  Employees: Need to be able to communicate across mulEple channels

§  Opera1ons: Need to service the customers across channels

Social

…this shift is facilitated by technology enabled social interactions

causing a seismic shift in the way business is done

© 2013 IBM CorporaEon

3

Call Center Create Order Check Status Cancel Order Initiate/Track

Return Schedule Delivery

or Pickup Change Order Schedule

Store Pickup Research Product

Store Create Order Check Status Cancel Order Initiate/Track

Return Schedule Delivery Change Order Pickup Research

Product

Create Order Check Status Cancel Order Initiate/Track Return

Schedule Delivery or Pickup Change Order

Schedule Store Pickup

Research Product Mobile

Create Order Check Status Cancel Order Schedule Delivery

or Pickup Change Order Schedule

Store Pickup Research Product Web

Managing customer experience across mulEple channels is creaEng new complexiEes


§  Customers’ experience needs to be managed across mulEple enEEes

§  Product and brand experience needs to be consistent

§  Inventory needs to managed across different channels

§  Data is everywhere and needs to uElized

§  Employees need new capabiliEes to deal with customers

What is the most important thing in you want to gain by influencing the customer?

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Online/Retailer Experience

Product Experience

Communication

Spend

Advocacy


Influence and communicate with your consumers to create the “loyalty loop”

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* David C. Edelman, McKinsey, Dec 2010

2) Strengthen brand preference through advocacy

3) Accelerate re-purchase through propensity models

1) Gain insights and increase positive sentiment in social conversations


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Consumer Maintains Control of Data What is your willingness to provide information in exchange for something relevant to you (non-monetary)?

Consumers are open to share their personal informaEon, with the excepEon of financial data,

when there is perceived benefit

25% 27%41% 41% 44% 46%

63%30% 30%

28% 29% 28% 28%

21%45% 43%33% 30% 28% 26% 15%

0%

20%

40%

60%

80%

100%

Media Usage(e.g. Mediachannels)

Demographic (e.g. age,ethnicity)

Identification(name,

address)

Lifestyle (# ofcars, homeownership)

LocationBased

Medical Financial

Completely Disagree Neutral Completely willing

Source: IBV Retail 2012 Winning Over the Empowered Consumer Study n= 28527 (global) P04: What is your willingness to provide informa1on for each of the following items if [pipe primary retailer] provided something relevant to you in exchange? © 2013 IBM CorporaEon 6

Understanding different digital plaYorms and their cultures is important to influencing the consumer

© 2013 IBM CorporaEon 7

Personalized cross-channel

execution

Optimizing customer

engagement at every touch

How do we use differentiated customer experience and drive to build loyalty, retention and advocacy?

How do we use individual customer likes, dislikes and unmet needs to personalize the experience?

2

1

Traditional and digital channels not integrated

Fragmented cross channel customer experience

Poor channel performance or utilization

Issues that need to be addressed

Questions that need to be

answered… Objectives

Social/mobile channels

How do we develop a develop a cross-‐channel transformaEon strategy?


A integrated mulE-‐channel business engages and manages customer experience across all the channels

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Harness the potential of social analytics for customer centric marketing

Optimize marketing spend across multiple channels in real-time

Establish and cultivate customer and advocate relationships

Recast your relationship with distribution partners via 360 customer insight

Embrace a fully-realized

Social media marketing strategy

Customer

Ac1vate your loyalty loop

Break your compe1tors’ loyalty bond

Capture new loyal customers


“As consumers effortlessly move across digital touchpoints and as markeEng campaigns span channels, the need for comprehensive analy0cs has never been greater.” “A data-‐sharing partnership between two or more organizaEons in order to increase customer insight, idenEfy opportuniEes for collaboraEve markeEng, deliver be_er targeEng and relevance, and improve customer experience and engagement.”

Harness the potenEal of customer centric interacEon with analyEcs and social business

Mobile Web Retail Social Media

Gaming & Entertainment

“Capture Trends as They Happen” (Cross Channel)

Recommendations

“Focus on User Segmentation”

“Marry User Activity to the Social Graph”

“Automate Targeting and Personalization”

“Leverage Analytics to Stay Ahead of Trends”

Source: http://www.forrester.com/The+Road+To+Digital+Intelligence/fulltext/-/E-RES61385 www.forrester.com/Leverage+Social+Data+To+Elevate+Customer+Intelligence/fulltext/-/E-RES72782


Establish and culEvate customer and advocate relaEonships

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R O E SH

ü Micro-‐segmentation: Social, Survey, Operational & CRM Datasets ü Profile Generation/Cultivation: Longitudinal Collection, 1:1 Engagement, Propensity Modeling, Targeted Crowd Sourcing

ü Metric Tracking: Migrations, Sales Influence, Brand Presence

Viral Negatives

Believers

Advocates

Viral Positives

High

Activity Le

vel

Low Negative Sentiment Positive

E


Recast your relaEonship: Channel sales dominate the sales, yet li_le consumer informaEon is shared

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E O E SH R

Retailers

Online Retailers

Distributors

End Consumers

Typical manufacturer see Complete end user data on < 5% of sales

“Black hole” on > 95% of sales

Rare Gems Diamonds & Jewellery


“Black hole” on > 95% of sales

Full Visibility to consumer

Recast your channel relaEonships: leverage your superior knowledge of the customer lifecycle

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Is it Eme to buy a new one??

I need help. I made the purchase.

I wish I could do...

I am interested in the product.

How do I use this?

Revitalize the Relationship

Shift the Balance of Power

Drive Channel Innovations

•  More fine-tuned offers •  Easier to do business with

•  Better terms/product placement •  Exchange leads for reduction in

trade funds

•  Evidence or sentiment based feature improvement

•  Complementary services that match customer lifecycle needs

E O E SH R


OpEmize markeEng spend across mulEple channels in real-‐Eme


E E SH R

•  Establish cross-channel Marketing Mgmt Platform •  Create a Comprehensive Analytics Model

•  Harness Customer (Channel) Preference •  Construct & Leverage Behavioral Profile(s) •  Determine Spend Objectives •  Analyze Performance Statistics •  Formulate Multi-channel Next Best Action

•  Execute real-time (monitor, measure, feedback)

O

MulE-‐channel Next Best AcEon (MNBA) decision making leads to cost savings

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E E SH R O

From Customer’s Smartphone

Contact center agent inputs

Ch

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el B

acke

nd

Sys

tem

s

Customer interact via multiple channels

Comments by customer on Facebook, Twitter

Social media data capture

Email from customer

Web store

POS data

Customer Real-Time State

Next Best Action Decisioning Module

Composite view of recent interactions between customer and business captured as “customer state” – what is the customer’s immediate goal?

Examples of Actions : Replace broken item (rather than repair), OR offer certain discount on upgrade

Customer Insights

Customers purchase history in combination with insights extracted from social media entries are used to extract insights about the customer

Ch

ann

el B

acke

nd

Sys

tem

s

Business rules operating on extracted customer insights and customer state generate NBA recommendations

Deliver Action to channel

Stor

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smar

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Inst

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Con

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+ 100 points = Automated eNurturing

Qualified Lead passed to Sales

Registers and downloads BAO paper

10 points

Downloads BAO ROI tool

15 points

Registers/attends BAO event

50 points

Receives email for BAO ROI tool

5 points Receives email invite to BAO event

LDR calls to qualify

10 points

25 points

Prospect searches for ROI on BAO solutions

5 points

0-10 POINTS 50-100 POINTS +100 POINTS

Awareness Interest Preference Action

A B2B example: Automated nurturing works to progress customers through their buying journey


Traditional Multi-touch Program

(3Q10 - Feb ‘11)

Automated Response Nurturing

(3Q10 - Feb ‘11)

Emails Sent

Open

Click-through

Responses

2.38M emails/372 tactics*

7.37%

0.73%

0.03%

61K emails/207 tactics**

15.59%

3.63%

3.30%

Data from Unica

2X

5X

100X

Source: IBM NA Demand Programs March 2011

IBM Case Study: Automated Nurture Accelerates Results for NA SWG Programs


In this case study, we will explore how StarAlign Jewelers focused on building integrated, cross-‐

channel experiences to drive revenue

Personalized cross-

channel execution

Optimizing customer

engagement at every touch

How do I build a differentiated cross-channel experience that drives loyalty, retention and advocacy?

How do I grow revenue by gaining a better understanding of individual customer likes, dislikes and unmet needs so I can personalize the experience?

2

1 CASE STUDY


InternaEonal jewelry retailer StarAlign was commi_ed to creaEng a superior customer

experience

•  Industry: Retail •  Specialization: Retailing of jewelry, watches and associated services •  Type: B-C company •  Revenues: $4 Billion •  Number of Employees: 18,000+

CASE STUDY

StarAlign jewelers background


The objecEve is to aggressively improve sales both online and in-‐store by improving the eCommerce and

Social experiences

•  StarAlign Jewelers has an 8.8% market share of the US jewelry market and is looking to double their online sales in 3 years.

•  StarAlign’s retail store operations are very successful but are not well integrated online, or in mobile and social media; therefore creating less affinity and lowering their brand equity as a cross-channel retailer.

•  StarAlign’s e-commerce governance practices and structure was outdated in need of optimization in order to grow into new channels.

Client issue

•  Social media and digital channels

•  Digital content governance

Scope

CASE STUDY


IBM assessed StarAlign to define a mission for improving growth

To drive sales and serve customers in whichever channel they choose, increasing both in-store sales growth and 'stand-alone' e-commerce sales. To do this:

• StarAlign will fully integrate a customer-centric point of view into its business strategy and operational processes.

• StarAlign will provide a world class multi-channel shopping experience for its customers regardless of where they complete a purchase - online or in-store.

• StarAlign endeavors to increase sales in-store and online through improved e-commerce and online capabilities.

• Mobile e-Commerce capabilities and social communication will be an element of StarAlign’s web, digital tool kit.

• StarAlign’s e-Commerce transformation will be led by consumer needs and desires, with social networking being a key part of the process.

Mission

CASE STUDY


We will explore 6 deliverables that were created for StarAlign to help them define a path forward

Envision

Evaluate Enable 1 2 3

•  Competitive marketplace audit

•  Customer persona

•  Capability map

•  Customer journey maps

•  Site redesign

IBM Interactive developed a cross-channel e-commerce strategy and roadmap for StarAlign Jewelers.

CASE STUDY


A compeEEve marketplace audit compared their capabiliEes relaEve to other leading jewelry

retailers Enable Evaluate Envision Sample deliverable

0 Capability does not exist, or was not found during assessment

1 Capability exists, but has poor execution/usability

2 Capability exists, has average/expected execution/usability

3 Capability exists, has superior execution/usability

Legend


Customer Personas were developed and act as ‘stand-ins’ for real customers and help guide

decision making Enable Evaluate Envision Sample deliverable

Alfred Cahill Engagement Ring Purchaser Age Hometown Marital Status Children Employment Personal Income Education

In his own words: I love my job, but it keeps me on the road a lot and the hours can be long. My iPhone is my lifeline -- without it, I wouldn't be able to manage my work schedule and service calls. And yeah, I love the Fox Sports App, too. I feel like it's time to take the next step in my relationship with Joanne, but I'm not sure how to start planning for it.

29 Chicago, IL Single, dating Joanne for 3 years None Mechanical Engineer $65,000 B.A., M.S. Mechanical Engineering

Alfred’s Story •  I’ve been with Joanne for three years now, and I really think this is it. I want her to know that she is the love of my life, and that I can’t imagine spending the rest of my life without her.

•  You’d think that was the hard part, getting to this decision. But now that I know I want to get engaged, I don’t know the first thing about how to do it. I know I have to get an engagement ring, but I don’t know the first thing about them. I don’t have a lot of time in my schedule for learning about them, either. Important touch points •  Diamond and Engagement Ring Education •  Engagement Ring Pricing Information •  Online Consultation •  In-Store Consultation •  In-Store Purchase


The only way to truly understand what the opEmal customer experience should be is to

model it through journey maps Enable Evaluate Envision Sample deliverable


The journey maps were translated in to capabiliEes that were categorized, esEmated and prioriEzed

Enable Evaluate Envision Sample deliverable

•  Requires a new interface between IMS and the web to supply inventory data

Project type

Quick Hit Repurpose Build Buy Strategic

Capability description

•  Current store inventory processes and systems do not distinguish between merchandize in sellable condition and damaged or defective merchandize.

•  Aligning operational practices and business rules to enable this will require changes in current operations

•  The data and technology exists today to enable this in the near-term with appropriate disclaimers.

✔

Ability to see the availability of a product and where it is available so customers can decide how and where to transact

Benefits

•  Allowing customers to view real-time inventory status (for both e-commerce and store location inventories) gives them the choice to complete the transaction in a way that fits their needs.

•  Being able to see that a product is available instills confidence in the customer that StarAlign is reliable and dependable.

Challenges, assumptions Dependencies

✔

ROM Duration, hours, other cost

Duration: 25 – 32 weeks Estimated design hours: 90 - 120 Includes requirements definition & UX design

Estimated development hours: 3,000 – 4,000 Includes IT development and test

Other cost: •  There may be a one time and/or ongoing cost to store operations to

maintain a more accurate account of inventory condition.

Real-time inventory and availability


To further demonstrated how changes in design would support their sales direcEves, IBM InteracEve

redesigned their site Enable Evaluate Envision Sample deliverable 1 2 3

Actual site design not shown


IBM helped StarAlign create a vision for the future and gave them a specific set of acEons to move

forward

•  Defined a strategy and a vision - that was informed by stakeholder interviews, in-store observations, a customer survey and a marketplace assessment of leading cross-industry site functionality and practices.

•  Develop Future State User Experience - Design and developed scenario-based narrative and graphic descriptions of the future-state user experience and differentiating capabilities as well as high-level requirements needed to support the strategy, and identification of key enablers (i.e., people, process and technology)

•  Define e-Commerce Roadmap - Defined the initiatives required to support the strategy, develop multi-stage Implementation roadmap, and estimate the cost and effort for re-launching StarAlign’s e-commerce solution.

Summary outcomes

•  IBM recommends that StarAlign management focus on the following set of projects and initiatives related to support the ecommerce strategy over the next 36 months: Tactical Redesign, Transformation Redesign, Contact Center Optimization, Social Computing Strategy, Mobile Strategy and Web Content Management

•  The e-Governance framework be addressed and implemented early in the roadmap.

Key recommendations

CASE STUDY


THANK YOU FOR YOUR TIME! ANY QUESTIONS?


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etailing india conclave jaipur- 2013 rajesh rao ibm-

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