ruckus smart wi-fi for retail

RUCKUS WIRELESS PROPRIETARY AND CONFIDENTIAL

Ruckus Smart Wi-Fi for Retail

2 RUCKUS PROPRIETARY AND CONFIDENTIAL

oRetail Market Introduction

oRuckus Retail Solutions

oSelling to Retail: Malls vs QSR

Agenda

o80% of people said that the availability of in-store WiFi influenced where they shop.

o74% of shoppers are happy for a retailer to send a text or email with promotions while they’re using in-store wi-fi.

o69% say their smartphone is a critical tool to have a better shopping experience

o70% plan to use their smartphone more to help their shopping experience in the next year

o92% of retail purchases occur in physical stores

Shoppers Want and Expect Wireless

4

Retail is a Large and Growing Market(s)

Number of stores (establishments) by segment (US Census)Only includes stores that are part of companies with > 500 employees2013 2014 2015 2016 2017

$0

$100

$200

$300

$400

$500

$600

Wi-Fi Equipment Sales to Re-tailers (US$M)

NAICS DESCRIPTION

# of Companies

# of Stores

Total Employment

Building material and garden equipment and supplies dealers 194 16,910 670,759Clothing and clothing accessories stores 276 77,626 1,175,636Electronics and appliance stores 84 16,530 0Food and beverage stores 414 27,602 1,882,029Furniture and home furnishings stores 117 10,570 175,811Gasoline stations 236 29,611 317,439General merchandise stores 66 37,905 2,745,084Health and personal care stores 320 41,726 673,404Miscellaneous store retailers 300 17,065 265,831Motor vehicle and parts dealers 207 25,528 409,769Sporting goods, hobby, book, and music stores 95 13,088 330,303

Grand Total 2,309314,16

1 8,646,065

o Current penetration of enterprise-class Wi-Fi is low

o Location, customer engagement, and access are becoming key tools to battle online competitors

o Managed Wi-Fi is an ideal upsell to current customers


oDelivers carrier-class Wi-Fi connectivity for shoppers and staff

oProvides secure, anonymous analytics

oOffers easy and secure access management

oEnables shoppers to opt-in for more services

oCreates a new, in-store personalized customer touchpoint

oSupports operational systems including PoS, RFID, IP Video, …

Ruckus Offers a Complete Retail Marketing Solution

SAMs SPOT

SPoT Ecosystem

Analytics Mobile apps

Simply Better Wireless for Stores and Malls

1.Stronger Wi-Fi signals at longer ranges

2.Adapts automatically to environmental changes

3.Supports more concurrent users per access point

4.Stable connections and faster speeds

5.Highly scalable, centralized management

Interference

Accelerated Time to Market Efficient use of commodity

hardware Operational simplicity Lower opex and capex Multi-tenant option Services @ scale Standard and open APIs

8

SCG / vSCG Allow Centralized Management

Mobile Devices

Ruckus APs

Mobile Devices

Ruckus APs

Store 1 … Store n

Accelerated Time to Market Efficient use of commodity

hardware Operational simplicity Lower opex and capex Multi-tenant option Services @ scale Standard and open APIs

Rapid turn-up of new sites Pricing flexibility Enable differentiated offers Deliver reliable service

8

SCG / vSCG Allow Centralized Management

Mobile Devices

Ruckus APs

Mobile Devices

Ruckus APs

Store 1 … Store n

o Enables ultra-easy design, management and monetization of Wi-Fi hotspot serviceso Combines the scale, efficiencies and cost-effectiveness of cloud-based services with best-in-

class Smart Wi-Fi products and technologyo Scales from large airports, malls and nationwide chains to single store locationso Captures customer demographic and contact information to enable online marketing

campaigns

Smart Access Management

The first cloud-based, carrier-gradeSmart Wi-Fi Access Management Service

o Industry's first completely cloud-based Smart Wi-Fi positioning service

oWorks seamlessly with Ruckus Smart Wi-Fi to deliver: oShopper / staff location analytics

oReal time location data

o Includes API and SDK for third-party developersoActive SPoT location ecosystem

Introducing Ruckus SPoT™

oRuckus SPoT has a large and growing location eco-systemo…and can easily integrate with

your existing apps

oProven solutions can be customized and integrated for specific Managed Wi-Fi needs

SPoT Location Application Ecosystem

Social Login

Internet Access

Retail apps with in-store location and associated store-centric features drive five times more shopper engagement than identical apps without these features

Ecosystem: Shopper Traffic Analytics

oUnprecedented insight into user behavior

oStore/mall traffic optimization based on real-time and historical analytics

Shopper count by zone/timeLength of stayRepeat customer %Heat maps

Offsets existing expenses

o Loyalty offers for repeat customers

o Improve new customer traffic

oLeverage Wi-Fi access to collect customer marketing dataoNameoDemographicsoEmail addressoFriends

Ecosystem: Social Marketing

Ecosystem: On-Site Customer Messaging

Ruckus SPoT ecosystem partners enable retailers and venue operators to communicate to consumers’ smartphones based on location data while they shop.

o Integrate digital ad networks into your shopping mall app

o Increase CPM and usage with real time location context

oEnable mall-based promotion and advertising opportunities

Ecosystem: Advertising

Impact of Targeting and Profiling= Revenue Uplift & ROI

AvgCPM

100% increase

300% increase

Blind Locationaware

VisitorIntelligence

oReal time mapsoDirections to stores or to specific

products in storesoTrack searches and shopper path

Ecosystem: Shopper Navigation


oGPS – outdoor only, loses accuracy indoors

oOther Wi-Fi vendorsoMost other vendors only offer ‘presence’, which tracks AP-level accuracyo Inadequate for many use cases beyond basic analytics, (OK for QSR/C-stores)

oBeaconsoPotentially more accurate, but cover a much smaller rangeoRequires user to activate an applicationoLow cost, but is a stand-alone infrastructureoLikely to become complementary to Wi-Fi location/analytics to provide more precise

locates when specifically needed

SPoT vs Alternative Location Options

Complete Product Line-up For Stores and Malls

R300Entry level

802.11n

79823X3, 3-stream

dual-band 802.11n

7372Mid-range dual band

T300Mid-rangeDual band

7731Point to point andmultipoint bridges

INDOOR

6 to 50 ApsSME

50 to 500 APsMid-range

50 to 1000 APsHigh end

MANAGEMENT

OUTDOOR

77823x3:3, 3-stream

dual-band

---------- Omni or 1200 sectorized ----------

---------------------------------- IP 67 Rated ---------------------------------

Up to 10K APs vSCG


How to Sell Managed Wi-FiMalls / Big Box StoresQSR / Convenience Stores

oSingle infrastructure for shopper access, store access and operational support including VoWLAN, IP Video signage, and security

o3-5x greater impact from mobile appsoNew, in-store/mall touchpoint

oAnalytics dashboard showing shopper activity and patternsoSell shopper data to brands

oAdvertising portaloOpportunity to enable tenant ‘flash promos’

oSocial marketing platformo3G / 4G offload (future)

Wi-Fi Offering for Malls and Stores

Ruckus SPoT offering Cost20AP SPoT license $6,000 / Yr• Footfall counters• Dwell times• Repeat vs new• Q-Buster (heat-map) dashboard• APIs for mobile apps, BI

integration

Revenue Opportunity$10/month/brand up to $24,000/Yr

SPoT ROIRelevant Department Store Marketing Spendo Footfall counters installed today $12,000/YroSurvey costs for shopper behavior $20,000/YroAdvertisements (print, digital, coupons..) $100,000/Yr

Net profit using SPoT –

$18,000 / Year / Store


o Initial focus is larger destination malls, typically owned by REITso Traditionally most marketing staff were at local malls, but central team often charged with Wi-

Fi / location solutionso Major care-abouts:o Analytics o SPoT delivers richer data at a much lower cost than current counting techniqueso Opportunity to package and sell analytics to brands and mall tenants

o Engagemento Creates entirely new targeted, real time marketing platformo Increases relevance and usage of current mall applicationso Enhances shopper experience

oWi-Fi performanceo Platform that can deliver great customer experience with room to growo Easy

o Future: 3G/4G offload opportunity with Passpoint

Selling to Malls


o US-based mall operator with ~20 malls, all major regional centerso Have limited Wi-Fi in all malls, limited coverage or usageo Deployed new Wi-Fi in one mall to test location-related appso Failed due to poor Wi-Fi connectivity, inaccurate and inconsistent locations, missing apps

o REIT CFO charged with finding a solution for all mallsoCommon solution, with current capabilities and strong future roadmapoDeployment timing driven by local mall GM and marketing

o Looking for complete managed serviceo No IT staff on premiseso Wants to defer costso Hoping a good solution provider can install and operate solution much less expensively

o Deploying trial in one mall wing (6 APs), aiming for decision by September

Mall Example


oMajor care-abouts:oRequired customer amenityoAnalytics o Focus on customer count and duration to do store to store comparisons and AB testingo Ideally with a tool that integrates diverse data, including PoS, weather, …

oBrandso Significant opportunity to sell marketing data to major brands

oWi-Fi performanceoNot much of an issue – generally a 1 AP hotspoto Some concern with Wi-Fi squatters – need a solution that can limit access during peak hours

QSR / Convenience Stores


Wi-Fi only sees half my customers

Yes, but the % using Wi-Fi is increasing and will grow even more rapidly as new standards rollout that automatically move their smartphones to Wi-Fi whenever it is available. It is a faster and lower cost connection option.If you need a full shopper count, we are working with market leaders in that space to integrate their data into the SPoT dashboard, and vice versa

I already have Wi-Fi in my store

Most in-store Wi-Fi provides only partial coverage and will need to be upgraded to meet shopper demand for connectivity. You can start with trials in stores with little or no existing Wi-Fi and rollout based on the marketing value or as customers swamp existing networks – whichever comes first

I’m reading a lot about blue tooth sensors

Blue-tooth Low Energy is also a popular location solution. Wi-Fi and Bluetooth are complementary – Wi-Fi can provide deeper insight into individual customers and the overall store, Bluetooth can be more accurate in a specific area. However, Wi-Fi also supports store applications such as POS and digital signage, and can provide network connectivity for shoppers. And BLE requires users to turn on an app.

This solution sounds too expensive.

Wi-Fi delivers a multi-purpose solution platform. It can • eliminate/reduce the need for alternative traffic counting solutions while also

providing rich customer data such as duration and repeat customer percent• provide a closed loop online marketing capability• Enable an in-store touchpoint which at other customers has driven a 5x increase in

promotion success and a 16x increase in loyalty program enrollmentsSounds complicated – we don’t have IT staff in-store

Ruckus Smart Wi-Fi can be delivered via a trusted managed service partner that will plan, design, install and operate your system. Local and/or corporate marketing staff will have access to an easy to use dashboard and, depending on their desired solution, an online, easy to use campaign management/policy engine for customer messaging and promotions

Objection Handling


oDelivers carrier-class Wi-Fi connectivity for shoppers and staff

oProvides secure, anonymous analytics

oOffers easy and secure access management

oEnables shoppers to opt-in for more services

oCreates a new, in-store personalized customer touchpoint

oSupports operational systems including PoS, RFID, IP Video, …

Ruckus Offers a Complete Retail Marketing Solution

SAMs SPOT

SPoT Ecosystem

Analytics Mobile apps

RUCKUS WIRELESS PROPRIETARY AND CONFIDENTIAL

Thank You!

ruckus smart wi-fi for retail

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