Download - Empowered customer
The Empowered Customer:
Deliver What They Want, When They
Want It and Profit Big
An InformationWeek Webcast
Sponsored by
Webcast Logistics
Today’s Presenters
Craig Hayman,
General Manager,
IBM Software Industry Solutions
Charles Qian,
Director of eCommerce Systems,
Technology Services
Cengage Learning
Craig Hayman,
GM IBM Industry Solutions
© 2012 IBM Corporation
© 2012 IBM Corporation 5
We have a big emphasis on being there for our
customers; having a great experience focused on
being more convenient and having sound advice.
Dan Marks, Chief Marketing Officer
First Tennessee Bank
I love my Mobile apps, lets you pay bills,
check your status of your account at your
finger tips. First TN even notifies you of any
strange activity to verify that it's you.
© 2012 IBM Corporation 6
Forget everything you think you know about marketing.
Today's marketing is about understanding your
customers better than they know themselves.
John Lazarchic, VP of eCommerce
PETCO
Love the versatility and durability.
I’ll be surprised if I ever have to purchase
another crate again!
© 2012 IBM Corporation 7
We analyze customer information across all channels
to gain insight, take action and create loyalty.
Dev Mukherjee, SVP and President Home Appliances,
Sears Holding Company
Sears Social – Kenmore Elite Washer
“Brilliant, easy to use design with every thing
I want my washer to do and it looks sweet
too…It is a work of laundry art!”
© 2012 IBM Corporation 8
Our value chain must be agile and transparent, so we
can deliver the end-to-end customer relationship.
Mark Booth, North America CIO
Whirlpool
We gotten a generous 35 years out of this
workhorse Whirlpool dryer and hopefully we
can get lots more!
Empowered Customers are
Reshaping Businesses
© 2012 IBM Corporation 9
e
44% of companies use
crowd sourcing
4 in 10 smartphone users
search for an item
in a store
80% of CEOs think
they deliver a superior
customer experience…8%
of their customers agree
86% use multiple
channels
Multi channel buyers
spend 4 to 5 times more
than average
45% check with a friend
before buying
78% of consumers trust
peer recommendations
© 2012 IBM Corporation 10
“The purpose of business is to
create and keep a customer” — Peter Drucker
…and this has never been more challenging
© 2012 IBM Corporation 11
© 2012 IBM Corporation 12
On average, a retailer failed in the United States last year
© 2012 IBM Corporation 13
Due to out of stock inventory
© 2012 IBM Corporation 14
Stockpiled in supply chains
© 2012 IBM Corporation 15
To gain a new customer than retain one
We Call the Path Forward
Smarter Commerce
© 2012 IBM Corporation 16
Drives growth
Places the customer
at the center
Increases margins
Synchronizes your
entire value chain
Maximizes
the insight Capitalizes on social
and mobile
Improves collaboration
and visibility
Smarter Commerce:
Transforms the Commerce Cycle
© 2012 IBM Corporation 17
Engagement
Market Buy
Service Sell
Insight Strategy
Smarter Commerce:
Ahead of Demand
© 2012 IBM Corporation 18
Creates
exceptional
customer
experience
Analyzes
sentiment
and
anticipates
behavior
Services
and
delivers
flawlessly
Optimizes
supply
chain
execution
What Does Smarter Commerce Look Like
at Cengage Learning
19
MARKET
The ability to
target new offers
based on
customer
behavior
SELL
Seamless end to
end service over
the web
SERVICE
BUY
New Channels
open up greater
buying
opportunity for
cusatomers
Buy what you
need, when you
need it, and get
access instantly
Smarter Commerce at Cengage Learning:
Reaching B2B and B2C customers through
e-Business
- Charles Qian, Director of eCommerce Systems
Cengage Learning reaches B2B and B2C customers through e-business
Cengage Faced Significant Business and Market Challenges
Attrition/Arbitrage eroding sales of traditional, new textbooks – Used book market
– Textbook Rentals
– Parallel importation (overseas pricing)
Escalating costs in Higher Education forcing students to make tough purchasing decisions – Reduced government funding in HED
– Tuitions and fees rising quickly, especially in public education
Legislative pressure forces examination of pricing/delivery models – Many states have passed, or are considering, legislation to limit price
increases or bundling
– California requiring more use of online, free content in state college system
Professors are looking for non-traditional teaching tools – Technology challenges the traditional learning model (Google, Wiki, etc.)
– More “free” information available, although less reliable, has become more accepted
Cengage Learning reaches B2B and B2C customers through e-business
The Cengage Approach to These Challenges
Enhancing the direct-to-consumer (D2C)
experience and offering more digital options
using innovative offer models
Cengage Learning reaches B2B and B2C customers through e-business
Cengage Learning Online Retail Solution
Web Services
School Picker
Credit Card
Tax
Address Validation
IP Lookup
ePin
SSO
OLR
Sealed Media
CengageBrain
Marketplace: -Homepage -Static pages -My stuff
Online Selling IBM -Search/browse -Product details -Shopping cart -Checkout -Registration -Order status -Account profile -Redeem prepaid
Digital Rights: -DRM error msg.
Micro-sites
Cengage.com
Organic SEM
Affiliates
Other CL websites
Paid SEM
Social Media
Email Campaign
Order Orchestration
Payment Gateway
Payment Gateway
Product Meta-Data
Nightly Feed
Regional ERP/WS
Central ERP/WS
Order Processing/Print Fulfillment
Cengage Learning reaches B2B and B2C customers through e-business
CengageBrain.com Implementation Timeline
Launched pilot program for ebooks and echapters in December 2005
Expanded pilot program to iChapters.com storefront in June 2006
Migrated from 3rd party/in-house hybrid to complete in-house storefront in July 2007
Rolled out to 4 International regions between 2008 and 2009
Rebranded to CengageBrain.com in 2009
Added industry-leading rental program in late 2009
Creating a single destination for student customers
– First publisher to offer by-chapter purchases
– First publisher to offer a rental program with over 1,200 titles
– Offers a wide range of buy, rent, and digital options
– Consolidated divergent experiences into a single, cohesive brand and user experience
– Simplify purchase, registration, and access of products
Cengage Learning reaches B2B and B2C customers through e-business
Homepage with Marketing Pods & Social Media
Cengage Learning reaches B2B and B2C customers through e-business
Browse By Category
Cengage Learning reaches B2B and B2C customers through e-business
Search Results and Filtering
Cengage Learning reaches B2B and B2C customers through e-business
Product Detail Page with All Purchase Options
Cengage Learning reaches B2B and B2C customers through e-business
Up-selling and Cross-selling in Shopping Cart
Cengage Learning reaches B2B and B2C customers through e-business
QAI Address Validation
Cengage Learning reaches B2B and B2C customers through e-business
Digital Dashboard Content Access
Cengage Learning reaches B2B and B2C customers through e-business
Rental Options and Contract Management
Cengage Learning reaches B2B and B2C customers through e-business
The Results of the B2C Strategy
D2C online revenue grew on average, over 50% year over year from 2006 to 2011.
Digital product sales including e-books, e-chapters, and online study tools, now account for 80% of D2C revenue.
Over 5 million visitors, 600K registered users, and 450K purchases in 2010
Over 120K products offered in five regional storefronts
– US
– EMEA
– Latin America
– Canada
– Australia/New Zealand
2011 Fall Rush saw 100%+ year-over-year increase in traffic and revenue
Cengage Learning reaches B2B and B2C customers through e-business
Keys to Monetizing D2C Digital Content – Closing Thoughts
Offer choice and value to offset market challenges
– Electronic version of print materials at a significant discount
– Offering rentals to reduce up-front customer costs
Using digital rights management effectively to drive new business models
– ebooks and echapter expire after certain time period
– Online course solutions and study tools drive repeat, annualized sales
Employ a compelling yet simple to use eCommerce environment to support just-In-time consumer purchase behaviors
– Buy what you need, when you need it, and get access instantly
– Provides new avenue to deliver non-physical products and content more efficiently, more quickly, and more cost effectively
– Opportunity to gain insight into consumer behavior
– Creates brand loyalty and social/mobile marketing
Experiment with new selling/delivery models
Smarter Commerce: A Complete Portfolio
© 2012 IBM Corporation 35
Customers and
partners buy what
they want, when
and where
Advanced Analytics
Workload Optimized Systems
CORE BUSINESS SOLUTIONS
VALUE CHAIN STRATEGY AND SERVICES
MARKET
Personalized
and relevant offers
with unified cross-
channel marketing
SELL
Anticipates
behavior and
delivers flawless
customer service
SERVICE
BUY
Intelligent and
optimized supply
chains based on
demand
Smarter Commerce: New Solution
Highlights
© 2012 IBM Corporation 36
Smarter Commerce on Cloud
NEW!
Sm
art
er
Co
mm
erc
e o
n C
lou
d
Supplier Integration and Management
• Optimize and automate supplier interactions
with ILOG Supply Chain Optimization, ECM
Case Manager, Sterling B2B Integration and
SPSS
Digital Marketing Optimization
• Transform insights across all digital interactions
including social media into relevant and
optimized marketing execution with Cognos
Consumer Insight, SPSS, Coremetrics and
Unica
Cross-channel Selling
• Sell seamlessly where and how customers
want to buy with Websphere Commerce,
Sterling Configure, Price, Quote and Customer
Experience Suite optimized on Power Systems
www.ibm.com/smartercommerce
Supply Chain
Visibility
Marketing
Innovation
Digital
Transformation
Get Started on Your Journey..
Q&A Session
Craig Hayman,
General Manager,
IBM Software Industry Solutions
Charles Qian,
Director of eCommerce Systems,
Technology Services
Cengage Learning