Today’s empowered consumer expects a connected, personalised, and frictionless experience throughout their shopping journey. Understanding the consumer's style, network, influencers and aspirations, in addition to just knowing what they buy, why they buy, and even why they choose not to buy, are factors that are becoming ever more vital to the success of a retailer. James Lovell, IBM Retail Commerce Lead, will share latest insights and recommendations on how IBM are creating industry leading customer experiences in a digital era.

1. Customer
Engagement
in
the
Digital
Era
IBM
Commerce
Enabling
an
Industry
Leading
Customer
Experience
James
Lovell
European
Retail
Solu4ons
Execu4ve
@jameslovell
in/jameslovell71

2. The
digital
channel
brings
challenges
to
your
industry
(and
ours)
The disruption of the digital channel brings
unprecedented challenges to almost every
industry based on the fast pace consumers
adapt to the channel and the constant
evolution of the supporting technology
And while industries face constant
changes, this time is different, this is not a
trend, this is a change of paradigm.

3. But
also
brings
bold
opportuni?es
The flip side is that the channel also
brings new sound tools to improve your
business:
- Increases our customer knowledge
though analytics and social media.
- Gives us the opportunity to provide
(and control) a seamless experience
across channels through a holistic
view.
- Allows us to have a 1 to 1 marketing
strategy, tailoring our offering to the
exact client needs.

4. A customer enters
the shop
Customer’s presence
is automatically noted The customer is
recognized as a
VIP customer
The shop asks
customer if he/she
wishes to interact
Customer agrees to
interact with shop
Shop assistants
automatically informed
of the arrival
The shop assistant is
informed of customer’s
decision
All devices in shop are alerted
that a specific customer is
willing to interact
If the customer
chooses not to
interact her
browsing patterns
and behavior's are
captured to
improve in-store
experience
The
Merging
of
Digital
&
Physical

5. 23/09/15
5
©
2015
IBM

6. 23/09/15
6
©
2015
IBM

7. Online Sales
Offline sales
directly
generated by the
online channel
Offline sales
influenced by
the online
channel
~5%+
Depending on vertical
and execution
~
10%
Depending on retail
structure, cross
channel incentives and
management focus
~
40%+
Depending, up to a
certain extent, on
the cross channel
awareness and the
retail structure
~ 55%
Plan
keeping
in
mind
the
real
value
of
the
channel!

8.
In-Store
Online
Other
Digital
and
physical
channels
are
merging
driving
revenue
growth
from
all
channels
By
2017
more
than
50%
of
in
store
sales
will
be
influenced
by
digital
channels.
%
of
purchases
made
Are
you
able
to
measure
digital
influence?

9. “I
need
to
be
able
to
deliver
relevant,
snackable
content
across
all
elements
of
the
customer
journey,
regardless
of
channel”
IBM
Amplify,
May
2015
David
Walmsley
Director,
M&S.com

10. Ask
for
advice
Check
adver4sing
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
Customer
journeys
can
be
complex
and
customers
don’t
think
in
silos…

11. Check
adver4sing
Go
Direct
Compare
SHOP
Go
to
the
Store
Check
around
Compare
SHOP
Surf
the
web
See
a
product
I
like
Compare
SHOP
However,
most
companies
engage
consumers
in
a
silo’d
fashion

12. Check
adver4sing
Go
Direct
Compare
SHOP
Go
to
the
Store
Check
around
Compare
SHOP
Surf
the
web
See
a
product
I
like
Compare
SHOP
The
winners
will
be
able
ignore
internal
silos
to
engage
with
customers
at
any
point
of
their
journey

13. The era of Cognitive Commerce

14. 14
What
do
I
mean
by
Cogni?ve
Commerce?
“Understand
customer
intent
to
then
use
that
insight
to
shape
the
customer
experience
and
learn
from
the
outcomes”
Ordered
2
coats
online
Size
L
&
XL
Collected
order
from
Store
Returned
one
item
later
Checked
my
emails
later
Advert
for
my
new
coat
=
Wasted
marke4ng
spend

15. 15
What
do
I
mean
by
Cogni?ve
Commerce?
John
Lewis
know:
• I
live
in
Harrogate
and
my
nearest
JL
store
is
York
• I
am
a
male
• I’ve
bought
2
rain
overcoats
and
returned
the
size
XL
• I’ve
collected
it
from
my
local
Waitrose
store
This
advert
could
have
been
op4mised
based
on
what
JL
know
about
me:
• Products:
Umbrella,
Shoes,
Trousers,
Hat,
Scarf,
Complete
the
Look
• Waitrose
Harrogate
Promo4on
• JL
York
Promo4on
• Experience
Survey

16. 16
Gain
insight
into
customer
behavior
across
every
channel
With
the
benefits
of
choice
and
flexible
fulfillment
In
context
with
offers
and
content
Engage
Fulfill
Insight
3
areas
where
IBM
Commerce
transforms
the
customer
journey…

17. Understand
customer
intent
Take
ac?on
based
on
customer
behavior
Op?mize
order
sourcing
to
improve
the
customer
promise
INFUSE
INTELLIGENCE
Insight
Gain
insight
into
customer
behavior
across
every
channel

18. 200+
offers
available
at
any?me
BOOTS
18
million
ac?ve
customers
Between
40-­‐60
possible
offers
per
cardholder
15-­‐20%
incremental
sales
generated
Insight
Gain
insight
into
customer
behavior
across
every
channel

19. CUSTOMER
EXPERIENCE
Create
and
execute
personalised
campaigns
Engage
In
context
with
offers
and
content
MAKE
IT
PERSONAL
Manage
product,
content
and
offer
delivery
Enable
personalised
discovery

20. 6%
Redemp?on
Rate
Industry
average
2%
Moving
coupons
into
digital
channels
HOMEBASE
TILL
RECEIPT
COUPONS
Engage
In
context
with
offers
and
content

21. Fulfill
With
the
benefits
of
choice
and
flexible
fulfillment
PERFECT
FULFILLMENT
Streamline
execu?on
Enrich
the
customer
experience
Op?mize
opera?ons
Enable
the
store

22. Fulfill
With
the
benefits
of
choice
and
flexible
fulfillment
MARKS
&
SPENCER
New
state
of
the
art
distribu?on
centre
Click
&
collect
available
to
any
store
Rolling
out
tablets
to
store
associates
RFID
tagging
all
general
merchandise
to
provide
real-­‐?me
view
of
inventory
Consistent
digital
customer
experience

23. Fulfill
With
the
benefits
of
choice
and
flexible
fulfillment
MARKS
&
SPENCER
85
million
items
handled
Goods
inwards
processing
improved
by
10x
Customer
sa?sfac?on
rose
by
18%
Inventory
accuracy
improved
by
50%
13.8%
digital
sales
growth
Q4
2014

24. Stay
away
from
digital
spaghej
in
IT
architecture
and
processes
IBM’s
Commerce
pre-­‐integrated
suite
decreases
over
4me
your
integra4on
effort
• Market
leading
capabili4es
for
a
digital
shopping
experience
• Future-­‐proof
architecture
that
ensures
low
TCO
Insight
Engage
Fulfill

25. James
Lovell
Retail
Solu4ons
Execu4ve
IBM
Commerce,
Europe
jameslovell@uk.ibm.com
@jameslovell
In/jameslovell71