the digital consumer & ibm smarter commerce

© 2014 IBM Corporation 1 IBM Confidential

THE DIGITAL CONSUMER Imran Choudhary

IBM, Smarter Commerce Lead

© 2014 IBM Corporation 2 IBM Confidential © 2014 IBM Corporation 2 IBM Confidential

THE CHANGES AFFECTING RETAILERS

Change Has

Happened

Smarter

Commerce Opportunity


Digital has become an

unavoidable part of our

path to purchase: we use it

to get information, to

compare products and to

finally decide where is more

convenient to make the

purchase based on our

buying criteria

© 2014 IBM Corporation


Check

advertising Go Direct Compare SHOP

Go to the

Store

Check

around Compare SHOP

Surf the

web

See a

product I

like

Compare SHOP

MOST RETAILERS ENGAGE THE CONSUMER IN A SILO’D FASHION


Ask for

advice Check

advertising

Compare

products

online

Go to

store

Learn

about the

product

Read

reviews

Download

the app

Check

youtube

video Check

Facebook Check at

the offline

store

Browse the

Site

Google

the

product

SHOP

THE PATH TO PURCHASE IS NOW VASTLY COMPLICATED


IBM SMARTER COMMERCE How we maintain and ensure our

leadership in the commerce

industry


QUICK IBM FACTS


LEADERS ARE REDEFINING THEIR VALUE CHAIN AROUND THE EMPOWERED CUSTOMER

prepared for the unpredictable

A supply chain Marketing targeted to

every customer

personally

what customers want before

they do

Service that knows Selling that’s there for your

customers,

wherever they are


SMARTER COMMERCE SOLUTIONS TOGETHER FORM A ‘SYSTEM OF ENGAGEMENT’

Customer

System of engagement:

Coordinates all decisions across all channels

to create an engaging relationship with each customer and prospect

ad

social

search

display ad

Web

mobile

email

ATM/kiosk

phone

branch

POS

mail


THE OMNICHANNEL ROADMAP

Mono

Channel

Multi

Channel

Cross

Channel

Omni

Channel

Single Channel

More Than One Channel

Synergies Fusion


IBMS INTEGRATED PORTFOLIO TO PUT THE CUSTOMER AT THE CENTRE OF EVERYTHING

Smarter Analytics

CORE BUSINESS SOLUTIONS

VALUE CHAIN STRATEGY AND SERVICES

Anticipate behavior and

deliver flawless customer service

IBM SmartCloud Solutions and Smarter Computing

Seamless cross-channel

customer experience

Targeted and personalized

marketing across all channels

Adaptive procurement and optimized supply

chain

Buy Market Sell Service

Market Buy

Service Sell

http://www.toshibagcs.com/


OPPORTUNITY


£911

£1,078 £1,235

£1,388

year 2013 year 2014 year 2015 year 2016

B2C ecommerce sales worldwide, by region (billions)

North America APAC Western EU Central & Eastern EU LATAM Middle East & Africa

Source: emarketer – B2C ecommerce sales worldwide by region. Includes travel, digital downloads and event tickets

£-

£50

£100

£150

£200

£250

£300

2013 2014 2015 2016

EU B2C Revenues 2013-16 (Bn)

UK DE FR ES IT NE NORDICS ROWE CEE

Germany

France

United Kingdom

Turkey

0%

50%

100%

0% 50% 100%

Inte

rnet use

rs a

s %

of

po

pu

lation

Online buyers as % of population

European Digital market potential by country

SOME OLD NEWS: • The digital market is

where growth lies • The UK is one of the key

leaders of the industry globally

Source 2014 / emarketer – B2C ecommerce sales worldwide by region


Source – Forrester, 2013 B2B Commerce Wave

SOME ‘NEW’ NEWS: A SHIFT IS ALSO HAPPENING IN THE B2B MARKET?


USING BIG DATA TO EMPOWER MARKETING DECISIONS, CUSTOMER ENGAGEMENT & HIGHER SALES REVENUE

Solution Area (IBM Name) Description Software

Digital Marketing

Optimization

Fuses customer profiles and web analytics to easily

execute display advertising, search campaigns, email,

and personalized recommendations through online, social

and mobile channels.

Cross-channel Marketing

Optimization

Engage each customer and prospect in a cross-channel

dialog that builds on past and current behavior.

Price, Promotion and Product

Mix Optimization

Quantify consumer behavior to make predictive

merchandising and marketing planning decisions that

drive sales volume, margin, profit, and shopper loyalty.

Customer Experience

Optimization

Captures each users end-to-end experience via digital or

mobile and then allows organizations to replay the actual

sessions to understand where customers are struggling and

quantify the impact.

Service

Market


TEALEAF AT THE MOVIES! HTTPS://WWW.YOUTUBE.COM/WATCH?V=YBZXYUOWGQA

https://www.youtube.com/watch?v=YbzxYUOWGQA


GIVE THE CUSTOMER WHAT THEY WANT BUILDING A RETAIL SELLING PLATFORM

Transact Fulfil Serve Engage

Web Store Mobile Call Center Social Networks

Field Sales

• Customer / Partner mgt

• Catalog / Search

• Content management

• Merchandising

• Promotions

• Personalization

• Guided selling

• Configuration / Visualization

• Reviews

• Wishlist / Registry

• Price

• Availability / Promising

• Cart management

• Entitlements

• Quoting / Contracts

• Shipping and Tax

• Appointments

• Payment

• Fraud

• Address verification

• Order Hub

• Sourcing and scheduling

• Order orchestration

• Drop ship / supplier fulfil

• Delivery management &

Service fulfilment

• Digital fulfilment

• Subscriptions

• Exception management

• Changes and cancellations

• Returns

• Exchanges

• Appeasements

• Reverse logistics

• Self-service

• Warranty

• Repair

Configurable processes Analytics Management and administration

Ultra-scalable commerce platform Range of deployment options

Service

Sell


TAKEAWAYS

The market is growing, retailers are having to invest otherwise they risk failure.

B2B is as relevant or more than B2C.

IBM has class leading technology, we dominate the Enterprise space (IR500), and are actively targeting the Mid Market

Quick Wins are possible with Tealeaf with an average return of 3.5% increase in sales from identifying and fixing those ‘unknown’ customer struggles.

IBM is empowering not only the IR500 but the Mid Market with easy to deploy Starter Stores which can get you online fast and against commercial models that de-risk your investment as you grow.

Find an EcoSystem, develop relationships, innovate, and create new business channels.


THANK YOU [email protected]

@MeetTheConsumer

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