promotionmanagement fÜr den digitalen posjun 06, 2016 · promotionmanagement fÜr den digitalen...

PROMOTIONMANAGEMENTFÜR DEN DIGITALEN POS

STRICTLY CONFIDENTIAL

Dr. Wolfgang Faisst, Head of SAP Exchange Media

June 6, 2016

© 2016 SAP SE or an SAP affiliate company. All rights reserved CONFIDENTIAL 2

This presentation outlines our general product direction and should not be relied on in making a purchase decision.

This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation.

This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice.

This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent.

Disclaimer


AGENDA - Opportunities for Collaboration

1. Drivers of innovation

2. Digital POS along the customer journey

3. Omni-channel approach

4. Discussion and next steps


Key drivers of innovationTechnology push & Customer pull

Technology push Customer pull

Increased hardware performance (main memory, multi-core, parallel processing)

In-memory databases (all data in-memory, column Store, OLAP + OLTP, no aggregates, …)

Big data (explosion volume + variety + velocity of data driven by the internet, …)

Internet of things (availability of cheap sensors everywhere)

Increased software capabilities

(predictive analytics, data mining, operations research, natural language processing)

Business agility (Real time business: time to innovate, time to market, time to react, time to adjust business model)

Consumerization of IT (innovation in IT driven by consumer electronics, social media)

Segment of one (precise targeting of customers, personal recommendations)

De-layering and empowerment (data-driven and analytical work, empowerment of front-line workers)

DIGITAL INNOVATION

Digitized companies fully exploit enhanced technology to build digital innovations thatmeet changing customer needs & leading to the network economy


Demand PullSmartphone usage in Germany: Always on via smartphone*

*Sources: Mobile Impact Academy I: Smartphone-Nutzung in Deutschland; Statisa; SYZYGY Digital at Point of Sale

• 49% use their smartphone to got store locations

and product availability

• 97% do overall shopping research with

smartphone

• Research-Online-buy-Offline is a growing trend

• Smartphones are used constantly during the day

regardless of gender or age

• Smartphones are used on weekdays as intense as

on the weekend

• 35,72 million use the internet via mobile phone in

2015

• 68,14 million will have a smartphone in 2019

Connected, always on and well-informed customer leads to connected retail


Most popular mobile apps in Germany3rd party apps are key to close the loop

• Most popular apps are from internet players, social media, and media companies

• Retailers can benefit from advertising on the most popular apps to reach their audience Ranking Top apps 2015 by monthly active users (with out games) Top app today by download

1 WhatsApp Messenger Whatsapp Messenger

2 Facebook Snapchat

3 Youtube MSQRD

4 Facebook Messenger Youtube

5 Google Maps Instagram

6 Amazon Facebook Messenger

7 eBay Facebook Messenger

8 Google Musical.ly

9 DB Navigator Shpock

10 Shazam Ebay Kleinanzeigen

11 Clean Master Pinterest

12 Dropbox Spotify

13 wetter.com Runtastic

14 Skype Google Maps

15 Web.de DB Navigator

16 GMX Amazon

17 TV Spielfilm Skype

18 Mobile.de Shazam

19 Kicker Deezer

20 Spiegel Online Dropbox

…

… Retailer's Retailer's

Internet players & social mediaMedia houses

eCommerce & retail

Sources: App Annie 2015 Retrospective; AGOF mobile facts 2015-I; Apple Appstore Topcharts 26.04.2016


E2E shopping scenario – Advertiser perspective Closed loop advertising from planning to proven purchase

3rd Party Apps

SA

P X

M a

dv

ert

isin

g

AP

I & S

DK

Retail

Brand Apps

Brand USER TARGETED CAMPAIGNS & PROMOTIONS

Retailer‘s Apps

CONSUMER PROFILING

SAP CDM (Including SAP CAR)

DATA ENRICHMENT*

* SAP CDM = SAP Customer Data Management across all SAP solutionsSAP CAR = SAP Customer Activity Repository (with feed from POS data)

SAPRetail

CRM

POS TARGETED OFFERINGS

Hybris MKTG

CRM


EXCHANGE

(third-party or publisher-owned)

SSP

(third-party or publisher-owned)

SAP XM DMP 3rd party DMP

Campaigns, target groups, …

Campaign results

Targeting data Targeting data

Standard formats

yMarketing

yCommerce incl. SeeWhy

SAP CRM / Cloud for Customer

SAP CAR (POS data)

** yProfile = Customer data management = Unified customer profile across all internal (SAP/Hybris) systems

Process efficiency improvement by elimination of media breaks

Handover of target segment information, matching of target customers

Real-time reporting - CMO dashboard as part of SAP’s board room of the future

Agile optimization of campaigns based on real-time information

SAP data sources

Concur (incl. TripIt)

SAP Consumer Insights 365

yProfile**

Etc.

Leveraging 360° Data (internal and external)Driving customer relevancy

ADVERTISER

(broad collection of consumer-related data)


Advertising EffectivenessE-to-E process excellence from planning to real-time optimization and billing*

Mobile payment

Plan campaignDetermine advertising

Execute advertisingMeasure consumer

reactionMeasure buying

Adapt on consumer reaction

SAP XM (ad tactics, targeting optimization)

SAP XM (programmatic buying & ad

recommendation - CPx based)

SAP XM (view, click, conversion / e.g., coupon

redemption) SAP Hybris Commerce (buy)

SAP Retail (buy)SAP Hybris Profile (consumer touch points*)

SAP Hybris Marketing

SAP CRM

SAP Retail (Promotion Management)

SAP Hybris Marketing

SAP CRM

SAP Retail (Promotion Management)

WLAN, Beacon at POS => transferred to SAP XM

(DooH advertising)

* Corporate websites, corporate eCommerce sites, call centers via SAP CRM, …

SAP able to cover the E2E campaign journey from advertisers

SAP XM closing the current gap in SAP’s portfolio

Google and other AdTech companies cannot cover the complete process given lack of enterprise data

Ad tech player coverageSAP XM

Advertiser (CPG, Retail)

Retail

SAP XM coverage


Advanced capabilities of eCommerce

Precise targeting

• Cross-device and multi-channel targeting along the

customer journey

• Personalized recommendations, promotions, and

advertisements

Data availability

• Advanced customer analytics based on customer

purchasing history leading to future promotion and

advertising advantages

• Unique customer information

• Tracking of advertising, promotion & marketing

activities influence on customer behavior along the

customer decision journey

Ongoing optimization of advertising, promotion and

marketing activities

eCommerceDeveloped advanced capabilites for better targeting the consumers

Impact

Convenience

• Unique, yet flexible customer shopping

experience to attract customers (1-click-

shopping)

• 24x7 shopping

• Information and reviews about products always

available without additional research effort

Scalability

• Easy to expand into new markets

• Complete self service model

Personalization

• Consumers can shop online from anywhere at

anytime

• Personalized advertising and customized

approaches based on individual consumer

requirements will

Data


eCommerceeCommerce is growing,but the POS stays the dominant sales channel for retail

Source: Statista; marketing+ Universität Siegen

• Overall retail eCommerce sales (CAGR) in Germany from 2012 to 2017 is forecasted to grow by 8,9% • Food and grocery eCommerce sales (CAGR) will grow by 1,7% from 2013 to 2016• POS remains the dominant channel

11,2 13,1 13,8 15 16,3 17,5 18,7

82,882,8 82,8

82,882,7

82,7 82,6

0

10

20

30

40

50

60

70

80P

op

ula

tio

n i

n G

erm

an

y in

mill

ion

Forecast of total eCommerce user in Germany within the FMCG sector

2014 2015 2016 2017 2018 2019 2020


eCommerce Digitalization within FMCG does not only mean eCommerce andonline

2020 forecast20142009

0,6 1,3

4,9 4,1

9,6

17,3

8,7

19,6

26,5

10,5

21,6

33,5

Consumer electronics Fashion & accessoires Furniture and home appliance FMCG

Sh

are

of

eC

om

me

rce

(in

%)

on

to

tal r

ev

en

ue

Source: IFH Köln, Branchenreport Online-Handel 2015

• POS will remain the dominant channel in Germany, especially in FMCG:


Target area

Digital Transformation of the POS Learning from eCommerce and combining the best of both worlds

Hyper-local targeting of

consumers in a defined

buffer around the store

Campaigning on mobile

apps, e.g. personalized

coupons

Leading potential

customers to the store

Tracking of consumers

enabled by

identification of

smartphone

Heatmaps supporting

traffic analysis and

assortment

optimization

Promotions in„cold“

store areas to leverage

the full potential of the

shopping area

Seamless payment via

NFC technology

Redemption of mobile

coupons

Simple participation

within customer loyalty

program

Advertising gets

measureable via direct

linking to the CRM data

In-store Target areaNext to the store

Service ExperienceElectronic payment Consumer tracking Connected retail Digital demand generation

DooH leading to

awareness right

before the store

Retailtainment

outside and in-store

increasing the

shopping experience

Service experience

increases as digital POS

combines the best of

offline and online world

Recommendations on

purchased goods can

be made

Digital demand

generation for another

partner in the SAP XM

ecosystem on basis of

the purchase

Opportunity of

consumer

personalization leading

to increasing service

experience

Assitive Consumer

Technology, e.g. in-

store displays for self-

service consulting

Assitive Retail


store apps for sales

staff*

http://www.youtube.com/watch?v=ZHr3B3iLQKo



Target area







coupons

Leading potential



enabled by

identification of

smartphone

Heatmaps supporting


assortment

optimization




shopping area


NFC technology


coupons



program

Advertising gets





DooH leading to

awareness right

before the store

Retailtainment


increasing the

shopping experience

Service experience




Recommendations on

purchased goods can

be made

Digital demand




the purchase

Opportunity of

consumer



experience

Assitive Consumer



service consulting

Assitive Retail



staff*




Demand side managementAssisted E2E geo campaign definition – Quick Demo 1/6

Run Geo Campaign

Target all Retailer's stores

Target consumers on mobile devices from 05:00 to 22:00 CET.

Quick Demo Overview

* Planned or WIP features

Retailer's Germany Retailer's Germany – all stores



1) Define Campaign Start / End

2) Select all stores of company X (Retailer's) in target region (Germany)*

Simple geo-campaign definition

Retailer's, GermanyRetailer's, Germany – all stores


Aldi

Retailer's, Germany – all stores

Rewe

Netto

Penny

Edeka

Retailer's

Norma

ILLUSTRATIVE EXAMPLE



3) (Optional) Zoom-In for better visual control



Retailer's, GermanyRetailer's, Germany – all stores

Aldi

Retailer's, Germany – all stores

Rewe

Netto

Penny

Edeka

Retailer's

Norma



Demand side managementAssisted E2E geo campaign definition – Example 4/6

4) Define buffer distance on target locations

5) Define day and daytime parting

6) Add to targeting



200

Retailer's Stores, Germany 3.200 locations




7) Review defined geo fences



Aldi

Rewe

Netto

Penny

Edeka

Retailer's

Norma

Kaufland

Retailer's stores – 200 m




8) Check campaign prediction (reach, impressions and clicks)*

9) Save targeting and activate campaign


Retailer's, Germany Retailer's, Germany




C A M P A I G N M O N I T O R I N G- G e o - A n a l y t i c s G e o - A n a l y t i c s

I n t e r a c t i v e V i s u a l A n a l y t i c s

F i l t e r

A l l c a m p a i g n s w i t h c a m p a i g n K P I



Target area







coupons

Leading potential



enabled by

identification of

smartphone

Heatmaps supporting


assortment

optimization




shopping area


NFC technology


coupons



program

Advertising gets





DooH leading to

awareness right

before the store

Retailtainment


increasing the

shopping experience

Service experience




Recommendations on

purchased goods can

be made

Digital demand




the purchase

Opportunity of

consumer



experience

Assitive Consumer



service consulting

Assitive Retail



staff*




Digital-out-of-HomeDigital displays becoming interactive & advertising can be personalized

• Recognize users via beacons

• Potential to personalize the content on the screens

• Possibility to offer coupons and personalized promotions near the stores


• Increasing awareness outside the store

• Interact with personalized offers outside and in-store, e.g. on digital price tags

Source: PRESTIGEenterprise; SYZYGZ Digital at Point of Sale

In-store displaysRetail-tainment


Target area







coupons

Leading potential



enabled by

identification of

smartphone

Heatmaps supporting


assortment

optimization




shopping area


NFC technology


coupons



program

Advertising gets





DooH leading to

awareness right

before the store

Retailtainment


increasing the

shopping experience

Service experience




Recommendations on

purchased goods can

be made

Digital demand




the purchase

Opportunity of

consumer



experience

Assitive Consumer



service consulting

Assitive Retail



staff*




In-store analysisConsumer tracking with SAP CAR & SAP HANA Cloud Platform

Heatmapping - Functionality

Anoym in-store data, generated with the help ofwifi sensors, are visualized through heatmapping

The heatmapping „Core Engine“ is available on HANA Cloud Plattform and can be used via different sensor technologies

The usage of heatmapping helps to gain insightsand leverage the personalization of thepurchase, service and in-store experience ofevery single customer

Retailer's in-store


Target area







coupons

Leading potential



enabled by

identification of

smartphone

Heatmaps supporting


assortment

optimization




shopping area


NFC technology


coupons



program

Advertising gets





DooH leading to

awareness right

before the store

Retailtainment


increasing the

shopping experience

Service experience




Recommendations on

purchased goods can

be made

Digital demand




the purchase

Opportunity of

consumer



experience

Assitive Consumer



service consulting

Assitive Retail



staff*




Coupon redempetionLoyalty and integrating check out

1) An nutella coupon ad isdisplayed during surfing

4) In background a new personalized coupon is created and shown on publishers inventory

5) He clicks on that Coupon to download it locally in his wallet app

6) Coupon is offline stored in the Wallet

8) On the POS he shows the coupon forredemption and gets the discountimmediately

2) Visitor clicks on that Ad

7) He goes shopping

Interaction with SAP XM

• Using coupons must be as simple as possible for the consumer:

9) Coupon redemption is integrated intothe check out and can interact with [y] Marketing Loyalty to accredit points tocustomers loyalty member account


Omni-channel CommerceDigital POS combines eCommerce and POS advantages

Criteria POS eCommerce Digital POS

Assortment - Most popular products + Broad assortment incl. long tail + Most popular products + ACT for broader assortment

Consulting + Personal - Limited (online chat) + Personal or Self Service

Trial + Possible - Via shipment + Possible

Transportation - Purchases to be carried + Logistics service +- Purchases can be carried

Consumption + Immediate - After shipment +- Can be Immediate

Exchange + Simple - Via shipment +- Can be Simple

Shoppingexperience

High Medium High

Shoppingconvenience

Medium High High

• Companies like amazon are continuously elimianting sources of friction*• Digital POS can combine a broad range of eCommerce and in-store metrics* • But digital POS is the ideal combination of best of both worlds:

Source: McKinsey & Company survey slides attached in the back up


Omni Channel Commerce Architecture RetailLeveraging the full potential of both worlds

Order Orchestration

Omni Channel Product Availability

In-Store

Fulfillment

Execution

Order Lifecycle

Management

Financial

Execution

Experience Mgmt

Personalization

Product Content

Commerce Mgmt

IS-Retail / FMS

Warehouse

Fulfillment

Execution

hybris Commerce Platform

CAR

Order Sourcing

hybris MarketingMDG

Product

Customer

POS by GK

Real-time Inventory

In-Store Clienteling

Customer Profiling Planning

Acquisition

Segmentation

Recommendation

OrchestrationOmni Channel Price Execution

Store Backoffice

Mgmt

POS Transaction

Mgmt

Mobile POS

BeaconData

Data Provider

EWM

Yaas Micro

Services

Marketplace

SAP CRM

Loyalty Mgmt

Interaction Center

BI

Business

Warehouse

SAP Exchange Media

Ad Campaigns

Targeting

Real-time Bidder / Buying

Ad Tracking

THANK YOU!

Wolfgang Faisst

STRICTLY CONFIDENTIAL

www.sapexchange.media

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 32Public

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promotionmanagement fÜr den digitalen posjun 06, 2016 · promotionmanagement fÜr den digitalen...

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