The Power of Cognitive Commerce for Retailers and CPG Manufacturers May 27, 2016

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What has changed in theWorld of Retail

Customers are more connected, more empowered and demand satisfaction

Seamless customer interactions are sought across all channels

Fulfillment models are beingtransformed with on-demand options

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of companies say they have or are close to having a holistic view of their customers

of consumers say their favorite retailer understands them

Source: The Consumer Conversation – eConsultancy Report

4 Source: The Consumer Conversation – eConsultancy Report

…WHAT CUSTOMERS SAY

of brands are satisfied with their ability to resolve conflicts with customers

of consumers who had a significant customer service issue in the last twelve months say that the company resolved their conflict "very effectively."

WHAT BRANDS THINK…

Satisfaction gap exists as well …

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Retailers must now leverage brand advocates as the new strategic advantage

91% of consumers say they like to share views

about their brand experience with other

consumers

81% received advice through a social site about an upcoming

purchase

74% found it influential in their

buying decision

91% of mobile users keep their phone within one meter’s reach 24/7

150 is the average times a mobile user checks their device each day

37% of consumers say they post comments about retailers once or more a week

Sources: Yahoo/BBDP Survey, Bloomberg Businessweek Survey,IBM IBV Study, Morgan Stanley Research

There has been a massive change in how people engage with brands…

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As leaders we need to embrace all the information that allows us to understand customers and serve them better

Expectations are high …

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I want to … use virtual reality to design and remodel

my kitchen, then have it delivered and installed while on a weekend getaway…

take delivery of fresh grocery – farm to table – and track the source and route it took…

have local health and wealth advisors accessible to me who are as knowledgeable

as the best advisors in NY and London…

have make custom made clothes from your

local retailer to exact measurements with the material of your preference ready for you…

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• Deliver a contextual shopping experience

• Build intelligent merchandising, fulfillment and supply operations

• Drive informed and efficient operations

A winning retail strategy

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Deliver in the moment Align past, present and future

dispositions

Anticipate intent Understand behavior and

emotional influences

Earn trust and loyalty

In every interaction across all channels

Many leading brands are differentiate through customer engagement…

Perfect TimingThe right experience, delivered at just the right moment.

Predictive CapabilityUnderstanding what individuals really want, before they even know it.Cognitive Power

Ability to see patterns and make unlikely connections, beyond human imagination.

Infinite DataAccess to an endless universe of information and possibilities.

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We help forward-thinking leaders make better decisions, drive insight to action, and deliver rapid innovation by capitalizing on these areas …

For marketers…the ability to create personalized, meaningful customer experiences, infused by analytics.

For e-commerce professionals…the ability to perfect all aspects of the customer’s interaction through customer and experience insights.

For supply chain leaders…the ability to orchestrate complex systems, processes and partners, to deliver flawlessly.

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To engage with customers, not at them

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Customer Analytics

Marketing

eCommerce & Merchandising

Digital Experience

IBM Interactive

Customer engagement solutions from IBM help you understand and adapt instantly to what customers are saying and doing – so you can deliver the kinds of experiences and offerings they want before they even know they want them.

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And, to have value chains that are seamless and strong

B2B Integration

Procurement

Payments

IBM Managed Services

Partner and supplier engagement solutions from IBM help you establish and manage closely linked value chains enabling seamless and secure collaboration, enhanced transparency and new levels of agility for you and your trading partners.

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Marketing

Engage customers inrelevant and rewarding experiences that makes them ask for more.

OrvisOrvis uses IBM Marketing Solutions to employ powerful flowchart logic, segmented offers, offer assignment, and channel selection.

88%

2yrsreduction in digital andnon-digital campaignand reporting costs

record profitsafter solutionimplementation 40

%

reduction in emailcosts versus prioroutsourced solution

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Deliver a differentiated brand experience across channels and show customers how much they matter to you.

eCommerce and Merchandising

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hhgreggCaptures sales in real-time to deliver a consistent experience across all channels -- all powered by IBM eCommerce solutions.

Of traffic from mobile devices

Enables mobile and desktop customers to execute product purchases25% Seamles

s

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Customer Analytics

Really knowhow your customers are feeling and what they need to serve them better.

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FreshDirectFreshDirect is using IBM Customer Analytics and IBM Marketing solutions to drive campaigns that are personalized with the best offers based on customer insights.

40%Lift in order rates with new customers 10X

Increase in transaction rates from cart abandonment communications

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Digital Experience

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Clear ReturnsDrives profitability for retailers - all powered by IBM eCommerce, IBM Customer Analytics, and IBM Digital Experience

650k

USD savings identified for UK fashion retailer by removing the top 10% of frequently returned items 30%

USD estimated impact of returns for the UK e-commerce sector

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B2B Integration

Improve information flows across all business relationships to be more responsive.

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Bonnie PlantsBonnie Plants is using IBM B2B Integration solutions to collaborate and engage with partners and suppliers with real-time visibility into inventory, enabling them to anticipate needs of an individual store.

Of their business occurs in 3 monthsfrom March to May

USD realized growth by reducing costs and increasing reliability of their B2B operations10-20M 70%

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Payments

Ensure customer trustby quickly and securely processing payments.

JCC Payment SystemsJCC Payment Systems is using IBM Payments solutions to deliver SEPA transaction processing as a service to creditors and banks across Cyprus.

SEPA 250 K

Transaction processing to creditors and banks – enriching its service offering and driving growth

SEPA Direct Debits processed daily at peak times

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Industry Expertise

Experience design and digital consultancy using disruptive thinking, visioning workshops, and cross-industry expertise

IBM IX pioneered new apps on the Apple watch for Nationwide, Citi and Japan Airlines

IBM is a leader in digital transformation consulting and SI services-IDC MarketScape 2016

25 Global Design Studios

World class design and digital transformation services

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Open Ecosystem

Ready for IBM CommercePre-built integrations that deliver value faster with complimentary capabilities.

IBM Universal Behavior Exchange For a key set of Business Partners who create and leverage a vast pool of behavioral data.

Plus…A comprehensive set of resellers, system integrators, complimentary solution providers as well as digital marketing agencies and marketing service providers.

Investing to deliver better customer experiences…

IBM Commerce delivers nearly 15x ROI for every dollar spent

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50% of IBM Retail Solutions transacted over 50% more online sales than the next closest retail solution provider

2/3of business transactions for the US retail sector are conducted on mainframes

5 of the top 6 retailers globally use IBM Retail capabilities and solutions

#1 The IBM e-commerce platform has been ranked #1 by top industry analysts for 15 consecutive years

70of the top 100 global retailers are powered by IBM retail solutions

MoreTop 500online retailer sales are powered by IBM Retail Solutions than any other platform provider

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Why choose IBM Commerce?

Powered by Watson

Experience DesignDesign based on a deep understanding of our users

Cognitive PowerAbility to see patterns and make unlikely connections

Industry ExpertiseScale with speed by developing asset-based industry solutions

Open EcosystemData exchanged to develop personalized customer experiences

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