1. Smarter Commerce: Engaging the
Customer in the Multi Channel
Rajesh
Rao
–
Smarter
Commerce
Leader
IBM
India
South
Asia
April
18th
2013

2. The
use
of
both
online
and
offline
channels
is
transforming
business
and
consumer
interacEon
2
§ Customers:
are
leading
the
conversaEons
that
define
brands
§ Partners:
are
interacEng
to
accelerate
business
value
§ Employees:
Need
to
be
able
to
communicate
across
mulEple
channels
§ Opera1ons:
Need
to
service
the
customers
across
channels
Social
…this shift is facilitated by technology enabled social interactions
causing a seismic shift in the way business is done
©
2013
IBM
CorporaEon

3. 3
Call Center Create Order Check Status
Cancel Order
Initiate/Track
Return
Schedule Delivery
or PickupChange Order
Schedule
Store Pickup
Research
Product
Store Create Order Check Status
Cancel Order
Initiate/Track
Return
Schedule
DeliveryChange Order PickupResearch
Product
Create Order Check Status
Cancel Order
Initiate/Track
Return
Schedule Delivery
or PickupChange Order
Schedule
Store Pickup
Research
ProductMobile
Create Order Check Status
Cancel Order
Schedule Delivery
or PickupChange Order
Schedule
Store Pickup
Research
Product
Web
Managing
customer
experience
across
mulEple
channels
is
creaEng
new
complexiEes
©
2013
IBM
CorporaEon
§ Customers’
experience
needs
to
be
managed
across
mulEple
enEEes
§ Product
and
brand
experience
needs
to
be
consistent
§ Inventory
needs
to
managed
across
different
channels
§ Data
is
everywhere
and
needs
to
uElized
§ Employees
need
new
capabiliEes
to
deal
with
customers

4. What
is
the
most
important
thing
in
you
want
to
gain
by
influencing
the
customer?
4
Online/Retailer
Experience
Product
Experience
Communication
Spend
Advocacy
©
2013
IBM
CorporaEon

5. Influence
and
communicate
with
your
consumers
to
create
the
“loyalty
loop”
5
* David C. Edelman, McKinsey, Dec 2010
2) Strengthen brand
preference through
advocacy
3) Accelerate re-purchase
through propensity models
1) Gain insights and increase
positive sentiment in social
conversations
©
2013
IBM
CorporaEon

6. 6
Consumer Maintains Control of Data
What is your willingness to provide information in exchange for
something relevant to you (non-monetary)?
Consumers
are
open
to
share
their
personal
informaEon,
with
the
excepEon
of
financial
data,
when
there
is
perceived
benefit
25% 27%
41% 41% 44% 46%
63%
30% 30%
28% 29% 28% 28%
21%
45% 43%
33% 30% 28% 26%
15%
0%
20%
40%
60%
80%
100%
Media Usage
(e.g. Media
channels)
Demographic
(e.g. age,
ethnicity)
Identification
(name,
address)
Lifestyle (# of
cars, home
ownership)
Location
Based
Medical Financial
Completely Disagree Neutral Completely willing
Source:
IBV
Retail
2012
Winning
Over
the
Empowered
Consumer
Study
n=
28527
(global)
P04:
What
is
your
willingness
to
provide
informa1on
for
each
of
the
following
items
if
[pipe
primary
retailer]
provided
something
relevant
to
you
in
exchange?
©
2013
IBM
CorporaEon
6

7. Understanding
different
digital
plaYorms
and
their
cultures
is
important
to
influencing
the
consumer
©
2013
IBM
CorporaEon
7

8. Personalized
cross-channel
execution
Optimizing
customer
engagement at
every touch
How do we use
differentiated customer
experience and drive to
build loyalty, retention and
advocacy?
How do we use individual
customer likes, dislikes and
unmet needs to personalize
the experience?
2
1
Traditional and digital
channels not integrated
Fragmented cross channel
customer experience
Poor channel performance or
utilization
Issues that
need to be
addressed
Questions that
need to be
answered…
Objectives
Social/mobile channels
How
do
we
develop
a
develop
a
cross-­‐
channel
transformaEon
strategy?
©
2013
IBM
CorporaEon
8

9. A
integrated
mulE-­‐channel
business
engages
and
manages
customer
experience
across
all
the
channels
9
Harness the
potential of social
analytics for
customer centric
marketing
Optimize marketing
spend across multiple
channels in real-time
Establish and cultivate
customer and advocate
relationships
Recast your relationship
with distribution partners via
360 customer insight
Embrace a fully-realized
Social media marketing
strategy
Customer
Ac1vate
your
loyalty
loop
Break
your
compe1tors’
loyalty
bond
Capture
new
loyal
customers
©
2013
IBM
CorporaEon

10. “As
consumers
effortlessly
move
across
digital
touchpoints
and
as
markeEng
campaigns
span
channels,
the
need
for
comprehensive
analy0cs
has
never
been
greater.”
“A
data-­‐sharing
partnership
between
two
or
more
organizaEons
in
order
to
increase
customer
insight,
idenEfy
opportuniEes
for
collaboraEve
markeEng,
deliver
be_er
targeEng
and
relevance,
and
improve
customer
experience
and
engagement.”
Harness
the
potenEal
of
customer
centric
interacEon
with
analyEcs
and
social
business
Mobile Web Retail Social
Media
Gaming &
Entertainment
“Capture Trends as They
Happen” (Cross Channel)
Recommendations
“Focus on User
Segmentation”
“Marry User Activity to the
Social Graph”
“Automate Targeting and
Personalization”
“Leverage Analytics to Stay
Ahead of Trends”
Source: http://www.forrester.com/The+Road+To+Digital+Intelligence/fulltext/-/E-RES61385
www.forrester.com/Leverage+Social+Data+To+Elevate+Customer+Intelligence/fulltext/-/E-RES72782
©
2013
IBM
CorporaEon
10

11. Establish
and
culEvate
customer
and
advocate
relaEonships
11
R O E SH
ü Micro-­‐segmentation:
Social,
Survey,
Operational
&
CRM
Datasets
ü Profile
Generation/Cultivation:
Longitudinal
Collection,
1:1
Engagement,
Propensity
Modeling,
Targeted
Crowd
Sourcing
ü Metric
Tracking:
Migrations,
Sales
Influence,
Brand
Presence
Viral
Negatives
Believers
Advocates
Viral
Positives
High
Activity
Level
Low
Negative Sentiment
Positive
E
©
2013
IBM
CorporaEon

12. Recast
your
relaEonship:
Channel
sales
dominate
the
sales,
yet
li_le
consumer
informaEon
is
shared
12
E O E SH R
Retailers
Online
Retailers
Distributors
End Consumers
Typical manufacturer see Complete end user data on < 5% of sales
“Black
hole” on >
95% of
sales
Rare Gems
Diamonds &
Jewellery
©
2013
IBM
CorporaEon
“Black
hole” on >
95% of
sales
Full
Visibility to
consumer

13. Recast
your
channel
relaEonships:
leverage
your
superior
knowledge
of
the
customer
lifecycle
13
Is
it
Eme
to
buy
a
new
one??
I
need
help.
I
made
the
purchase.
I
wish
I
could
do...
I
am
interested
in
the
product.
How
do
I
use
this?
Revitalize the
Relationship
Shift the Balance of
Power
Drive Channel
Innovations
• More fine-tuned offers
• Easier to do business with
• Better terms/product placement
• Exchange leads for reduction in
trade funds
• Evidence or sentiment based
feature improvement
• Complementary services that match
customer lifecycle needs
E O E SH R
©
2013
IBM
CorporaEon

14. OpEmize
markeEng
spend
across
mulEple
channels
in
real-­‐Eme
©
2013
IBM
CorporaEon
14
E E SH R
• Establish cross-channel Marketing Mgmt Platform
• Create a Comprehensive Analytics Model
• Harness Customer (Channel) Preference
• Construct & Leverage Behavioral Profile(s)
• Determine Spend Objectives
• Analyze Performance Statistics
• Formulate Multi-channel Next Best Action
• Execute real-time (monitor, measure, feedback)
O

15. MulE-­‐channel
Next
Best
AcEon
(MNBA)
decision
making
leads
to
cost
savings
15
E E SH R O
From
Customer’s
Smartphone
Contact center
agent inputs
ChannelBackendSystems
Customer interact via
multiple channels
Comments by
customer on
Facebook, Twitter
Social
media
data
captur
e
Email from
customer
Web store
POS data
Customer
Real-Time
State
Next Best
Action
Decisioning
Module
Composite view of
recent interactions
between customer
and business
captured as
“customer state” –
what is the customer’s
immediate goal?
Examples of Actions : Replace broken
item (rather than repair), OR offer
certain discount on upgrade
Customer
Insights
Customers purchase
history in combination
with insights
extracted from social
media entries are
used to extract
insights about the
customer
ChannelBackendSystems
Business rules
operating on
extracted customer
insights and
customer state
generate NBA
recommendations
Deliver Action to
channel
Storestaff’s
smartphone
Customer’s
smartphone
Instructions
torespond
onfacebook
Emailto
customer
Contact
Center
Agent
Service
Staff
©
2013
IBM
CorporaEon

16. + 100 points = Automated eNurturing
Qualified
Lead
passed to
Sales
Registers
and
downloads
BAO paper
10 points
Downloads
BAO ROI
tool
15 points
Registers/
attends
BAO event
50 points
Receives
email for
BAO ROI
tool
5 points
Receives
email invite
to BAO
event
LDR calls
to qualify
10 points
25 points
Prospect
searches for
ROI on BAO
solutions
5 points
0-10 POINTS 50-100 POINTS +100 POINTS
Awareness Interest Preference Action
A
B2B
example:
Automated
nurturing
works
to
progress
customers
through
their
buying
journey
©
2013
IBM
CorporaEon
16

17. Traditional
Multi-touch Program
(3Q10 - Feb ‘11)
Automated Response
Nurturing
(3Q10 - Feb ‘11)
Emails Sent
Open
Click-through
Responses
2.38M emails/372 tactics*
7.37%
0.73%
0.03%
61K emails/207 tactics**
15.59%
3.63%
3.30%
Data from
Unica
2X
5X
100X
Source: IBM NA Demand Programs March 2011
IBM
Case
Study:
Automated
Nurture
Accelerates
Results
for
NA
SWG
Programs
©
2013
IBM
CorporaEon
17

18. In
this
case
study,
we
will
explore
how
StarAlign
Jewelers
focused
on
building
integrated,
cross-­‐
channel
experiences
to
drive
revenue
Personalized
cross-
channel
execution
Optimizing
customer
engagement
at every
touch
How do I build a
differentiated cross-
channel experience that
drives loyalty, retention
and advocacy?
How do I grow revenue by
gaining a better
understanding of
individual customer likes,
dislikes and unmet needs
so I can personalize the
experience?
2
1 CASE STUDY
©
2013
IBM
CorporaEon
18

19. InternaEonal
jewelry
retailer
StarAlign
was
commi_ed
to
creaEng
a
superior
customer
experience
• Industry: Retail
• Specialization: Retailing of jewelry, watches and associated services
• Type: B-C company
• Revenues: $4 Billion
• Number of Employees: 18,000+
CASE STUDY
StarAlign jewelers background
©
2013
IBM
CorporaEon
19

20. The
objecEve
is
to
aggressively
improve
sales
both
online
and
in-­‐store
by
improving
the
eCommerce
and
Social
experiences
• StarAlign Jewelers has an 8.8% market
share of the US jewelry market and is
looking to double their online sales in
3 years.
• StarAlign’s retail store operations are very
successful but are not well integrated
online, or in mobile and social media;
therefore creating less affinity and
lowering their brand equity as a cross-
channel retailer.
• StarAlign’s e-commerce governance
practices and structure was outdated
in need of optimization in order to grow
into new channels.
Client issue
• Social media and digital channels
• Digital content governance
Scope
CASE STUDY
©
2013
IBM
CorporaEon
20

21. IBM
assessed
StarAlign
to
define
a
mission
for
improving
growth
To drive sales and serve customers in whichever channel they choose,
increasing both in-store sales growth and 'stand-alone' e-commerce sales.
To do this:
• StarAlign will fully integrate a customer-centric point of view into
its business strategy and operational processes.
• StarAlign will provide a world class multi-channel shopping
experience for its customers regardless of where they complete a
purchase - online or in-store.
• StarAlign endeavors to increase sales in-store and online through
improved e-commerce and online capabilities.
• Mobile e-Commerce capabilities and social communication will
be an element of StarAlign’s web, digital tool kit.
• StarAlign’s e-Commerce transformation will be led by consumer
needs and desires, with social networking being a key part of the
process.
Mission
CASE STUDY
©
2013
IBM
CorporaEon
21

22. We
will
explore
6
deliverables
that
were
created
for
StarAlign
to
help
them
define
a
path
forward
Envision Evaluate
Enable1
2
3
• Competitive marketplace
audit
• Customer persona
• Capability map
• Customer journey maps
• Site redesign
IBM Interactive developed a cross-channel
e-commerce strategy and roadmap for
StarAlign Jewelers.
CASE STUDY
©
2013
IBM
CorporaEon
22

23. A
compeEEve
marketplace
audit
compared
their
capabiliEes
relaEve
to
other
leading
jewelry
retailers
EnableEvaluateEnvisionSample deliverable
0
Capability does not exist, or
was not found during
assessment
1 Capability exists, but has
poor execution/usability
2 Capability exists, has
average/expected
execution/usability
3
Capability exists,
has superior
execution/usability
Legend
©
2013
IBM
CorporaEon
23

24. Customer Personas were developed and act as
‘stand-ins’ for real customers and help guide
decision making
EnableEvaluateEnvisionSample deliverable
Alfred Cahill
Engagement Ring Purchaser
Age
Hometown
Marital Status
Children
Employment
Personal Income
Education
In his own words:
I love my job, but it keeps me on
the road a lot and the hours can be
long.
My iPhone is my lifeline -- without
it, I wouldn't be able to manage my
work schedule and service calls.
And yeah, I love the Fox Sports App,
too.
I feel like it's time to take the next
step in my relationship with Joanne,
but I'm not sure how to start
planning for it.
29
Chicago, IL
Single, dating Joanne for 3 years
None
Mechanical Engineer
$65,000
B.A., M.S. Mechanical Engineering
Alfred’s Story
• I’ve been with Joanne for three years now, and I really think this is it. I want her to
know that she is the love of my life, and that I can’t imagine spending the rest of my
life without her.
• You’d think that was the hard part, getting to this decision. But now that I know I want
to get engaged, I don’t know the first thing about how to do it. I know I have to get an
engagement ring, but I don’t know the first thing about them. I don’t have a lot of time
in my schedule for learning about them, either.
Important touch points
• Diamond and Engagement Ring Education
• Engagement Ring Pricing Information
• Online Consultation
• In-Store Consultation
• In-Store Purchase
©
2013
IBM
CorporaEon
24

25. The
only
way
to
truly
understand
what
the
opEmal
customer
experience
should
be
is
to
model
it
through
journey
maps
EnableEvaluateEnvisionSample deliverable
©
2013
IBM
CorporaEon
25

26. The
journey
maps
were
translated
in
to
capabiliEes
that
were
categorized,
esEmated
and
prioriEzed
EnableEvaluateEnvisionSample deliverable
• Requires a new interface
between IMS and the web
to supply inventory data
Project type
Quick Hit
Repurpose
Build
Buy
Strategic
Capability description
• Current store inventory processes
and systems do not distinguish
between merchandize in sellable
condition and damaged or
defective merchandize.
• Aligning operational practices and
business rules to enable this will
require changes in current
operations
• The data and technology exists
today to enable this in the near-
term with appropriate disclaimers.
✔
Ability to see the availability of a product
and where it is available so customers can
decide how and where to transact
Benefits
• Allowing customers to view real-time inventory status
(for both e-commerce and store location inventories)
gives them the choice to complete the transaction in a
way that fits their needs.
• Being able to see that a product is available instills
confidence in the customer that StarAlign is reliable and
dependable.
Challenges, assumptions Dependencies
✔
ROM Duration, hours, other cost
Duration: 25 – 32 weeks
Estimated design hours: 90 - 120
Includes requirements definition & UX design
Estimated development hours: 3,000 – 4,000
Includes IT development and test
Other cost:
• There may be a one time and/or ongoing cost to store operations to
maintain a more accurate account of inventory condition.
Real-time inventory and availability
©
2013
IBM
CorporaEon
26

27. To
further
demonstrated
how
changes
in
design
would
support
their
sales
direcEves,
IBM
InteracEve
redesigned
their
site
EnableEvaluateEnvisionSample deliverable 1
2
3
Actual site design not shown
©
2013
IBM
CorporaEon
27

28. IBM
helped
StarAlign
create
a
vision
for
the
future
and
gave
them
a
specific
set
of
acEons
to
move
forward
• Defined a strategy and a vision - that was informed by stakeholder
interviews, in-store observations, a customer survey and a marketplace
assessment of leading cross-industry site functionality and practices.
• Develop Future State User Experience - Design and developed
scenario-based narrative and graphic descriptions of the future-state
user experience and differentiating capabilities as well as high-level
requirements needed to support the strategy, and identification of key
enablers (i.e., people, process and technology)
• Define e-Commerce Roadmap - Defined the initiatives required to
support the strategy, develop multi-stage Implementation roadmap, and
estimate the cost and effort for re-launching StarAlign’s e-commerce
solution.
Summary outcomes
• IBM recommends that StarAlign management focus on the following set
of projects and initiatives related to support the ecommerce strategy
over the next 36 months: Tactical Redesign, Transformation Redesign,
Contact Center Optimization, Social Computing Strategy, Mobile
Strategy and Web Content Management
• The e-Governance framework be addressed and implemented early in
the roadmap.
Key recommendations
CASE STUDY
©
2013
IBM
CorporaEon
28

29. THANK
YOU
FOR
YOUR
TIME!
ANY
QUESTIONS?
©
2013
IBM
CorporaEon
29

30. §
©
Copyright
IBM
Corpora0on
2013.
All
rights
reserved.
– U.S.
Government
Users
Restricted
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-­‐
Use,
duplica0on
or
disclosure
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Schedule
Contract
with
IBM
Corp.
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that
any
acEviEes
undertaken
by
you
will
result
in
any
specific
sales,
revenue
growth
or
other
results.
Acknowledgements
&
Disclaimers:
©
2013
IBM
CorporaEon
30