We are here today to talk about Smarter CommerceSmarter Commerce is a unique approach that increases the value companies generate for their customers, partners and shareholders in a rapidly changing digital world. It is designed to help companies better integrate and more effectively manage their value chain, including buy, market, sell, and service processes to put the customer at the center of decisions and actions leading to greater customer loyalty, revenue / margin growth and agility.Smarter Commerce is about redefining business in the age of the chief executive customerToday, we are going to talk about how leaders are providing an exceptional customer journey from awareness to advocacy and driving real business results from greater loyalty to ultimately increased profits.
Mobile and social are changing the way our customers interact with us. Today’s customer are infinitely smarter. They decide when, where and how the buying process begins and ends. They are using mobile and social and connecting with you and each other in ways that is reshaping the way business is done. Look at some of these stats – mobile is becoming dominant platform– and social sites are increasingly getting more of their attention. 92 percent of customers trust word of mouth and recommendations55% used their smart phones while in a store to compare prices before they made a purchase.Some consumers only go to stores for the ‘showrooming’ of the products and services and then buy online later. And, over 56% want more capabilities for self service.As a recent IBM Benchmark showed us – the trends are clear:Increased use of mobile. In November and December 2012, the percent of sales from mobile devices was up 50.66 % from 2011, and traffic from mobile devices was up 59.77%. And, social media is changing the way that customers interact with us and the global commerce landscape. Of the total time spent on the internet, 25 percent of time is spent on social sites No matter what industry you are in - whether you are a B2B or B2C business -- you have a choice – to embrace and capitalize on these changes now and thrive, or to wait and be left behind.For B2B enterprises – the same customer is doing these things in their retail, banking and media andtelecom interactions and expects to have the experience at work with so this applies to all businesses. Sources:IBM Benchmark Report 2013 (to be issued at NRF by IBM Press Relations)Sales from Mobile Devices was up 50.66% in 2012 versus 2011 (2012 – 15.69 % of sales from Mobile Devices versus 10.41 % in 2011)Traffic from Mobile Devices was up 59.77 % in 2012 versus 2011 (2012 – 21.85 % of traffic from Mobile Devices versus 13.68 % in 2011)55% of smartphone owners said they’ve used a mobile device to compare prices between retailers. 34% said they’ve scanned a QR code, and 27% have read online reviews from their devices before making purchase decisions.Emphathica—’Wave 1 2012 Key Trends’ (2012) http://www.empathica.com/consumer-insights/wave-1-2012-key-trends/ Global brands need to think about their consumers in an entirely different way. IBM data shows that mobile shoppers are even more laser focused than their PC-using counterparts: 44% of mobile users will abandon a site if they don’t find what they want on the very first page, versus an overall online rate of just over 37%. Source: What’s in a Store Anyway – The Rise of the Mobile Shopperhttp://asmarterplanet.com/blog/2011/11/what%E2%80%99s-a-store-anyway-the-rise-of-the-mobile-shopper.html 55% of smartphone owners said they’ve used a mobile device to compare prices between retailers. 34% said they’ve scanned a QR code, and 27% have read online reviews from their devices before making purchase decisions.Emphathica—’Wave 1 2012 Key Trends’ (2012) http://www.empathica.com/consumer-insights/wave-1-2012-key-trends/ 84% of US adults who have conducted an online transaction through a mobile device in the last year report experiencing a problem.Tealeaf—’Tealeaf Mobile Transaction Research Report 2011’ (2011):63% of online adults are less likely to buy from the same company via other purchase channels if they experienced a problem with a transaction on their mobile phones.Tealeaf—’Tealeaf Mobile Transaction Research Report 2011’ (2011)92% of consumers say they trust earned media, such as word-of-mouth and recommendations from friends and family, above all other forms of advertisingNielsen (Jan 2012)http://www.nielsen.com/us/en/insights/press-room/2012/nielsen-global-consumers-trust-in-earned-advertising-grows.htmlSocial media has grown rapidly – today nearly 4 in 5 active Internet users visit social networks and blogs (80%)Social networks and blogs continue to dominate Americans’ time online, now accounting for nearly a quarter of total time spent on the Internet Nielsen—The Social Media Report, Q3 2011’http://www.nielsen.com/content/corporate/us/en/insights/reports-downloads/2011/social-media-report-q3.html
Every interaction is important from awareness, to engagement, to interacting and ultimately transacting with your customers you must ensure it is seamless and integrated. And, even more important is the post purchase experience from involving them in your business – with forums, users groups, communities of like minded customers, to gaining their loyalty to them becoming an advocate for your business. Delivering a superior customer experience through targeted content and messages and offersBased on behavior via call centers, site visits, in person interactions Based on customer analyticsRecommends next best offer/step for the customer to take part inRecommends the best products/services offers specific the customerCreate unified agent desktop to improve productivity Drive call center sales revenue with targeted offersDelivering perfect orders with visibility into the order orchestration process (including all parties in the value chain), adapts supply chains to meet customer demand and increases production when needed for order backlogs. Especially when there is complexity in the process – providing a superior customer experience is more important than ever. And, all of this has to be seamlessly delivered to mobile and social networks and all points of interaction – Whether they are in person, over the phone and on the web …. with geo-targeted offers.86% of decision makers state good customer experience is a top priority but what investments are being made and who’s funding themSource: Forrester, Navigate the Future of Customer Service, Jan 2012
We have learned by working with thousands of engagements – including 2000 leading brand name companies – you need an integrated approach to commerce.This starts when you put the customer at the center of your businessAnd drive flawless customer service across all customer interactions and anticipates their behavior and take action to keep them loyal Anticipate and deliver in a social and mobile environmentEnabling customers and partners to shop, exchange information, and collaborate across all touch points, spanning human, digital, social, and mobile – all optimized according to their preferencesApply deep insights to take action in real-timeUsing customer insight - deep insights about customers and prospects – gleaned from a combination of implied and explicit behavior across offline and online channels – to deliver timely and personalizedengagement across all channels and touch points Optimize sourcing and procurement based on customer demandOptimizing supplier and partner interactions based on changes in shopping/buying behavior across the supply chain and reconsiders partner roles and relationships to generate new and differentiating customer value Integrate and extend core processes and systems to synchronize your value chainA very important point here is that this is not about rip and replace – we help customers evolve and accelerate their journey based on business objectives. IBM solutions enhance current processes, support heterogeneous and complex multi-enterprise environments and extend their value. A Smarter Commerce approach enables our customers to leverage and extend existing investments and get started where and when they want to focus; there are multiple entry-points for customers and it is not an all or nothing offering.
we’ve invested $3 billion thus far on acquisitions on top, we’ve created a GBS Smarter Commerce practice with over 1000 consultants and we are continuing to build it Let's take a look at the integrated, end-to-end portfolio. We had a leading, organic product in the market -- WebSphere Commerce. Decided to look at the whole Commerce business process end to end across Buy, Market Sell and Service. Sterling Commerce: B2B Integration and Managed File Transfer, distributed order management, multi-channel selling with configuration price quote and end-to-end logistics and supply chain visibilityILOG: supply chain optimization and decision rules capabilitiesCoremetrics: insight into web and marketing operations and digital marketing optimization leaderUnica: transforming marketing from an art to a science and the leader in enterprise marketing management.Filenet: enable management of any type of asset for all business needs used for things like advanced case management business processes in customer service Cognos, SPSS, and Netezza provide a powerful range of predictive & prescriptive analytics and data management. Customer Experience Suite – for a personalized powerful online customer experience Emptoris – brings cloud and on-premise analytics software that brings more intelligence to procurement and supply chain operationDemandTec –brings pricing, promotion and assortment optimization Tealeaf – Enables companies to better understand ‘why’ of a customer’s website and mobile interactions and uses this insight to optimize the customers digital experience. We have the best of the best to bring you the integrated portfolio of solutions from Value Chain Strategies to get you started – to a comprehensive suite of solutions across the value chain – for buying, marketing, selling and servicing your customers all supported by advanced analytics and workload optimized systems or cloud offerings.
Smarter Commerce delivers real results …Bytaking a strategic approach and placing the customer at the center of business operations these are the results that can be achieved:.increases margins by boosting efficiency at every stage of the commerce cyclemaximizes the insight generated through customer interactions capitalizes on social and mobile commercesynchronizes your entire value chain to deliver consistent and predictable outcomesimproves collaboration and visibility for your customers & partnersThe winners in tomorrow's commerce world will deliver an exceptional customer experience – one that is cross-channel by design, allowing customers to shop or buy seamlessly across channels and touch points. An experience that is informed by customer insights and is able to deliver product recommendations that are not only highly relevant, but also timely in nature. Smarter Commerce will benefit from highly efficient marketing capabilities that allow for a consistent message to be delivered across all mediums. And finally, Smarter Commerce will use intelligence gathered from an optimized supply chain to ensure that products and services will be fulfilled accurately and efficiently.
Take Anheuser-Busch In Bev for example - The leading global brewer and one of the world’s top 5 consumer product companies. Revenue of 39 billion USD.Well over 200 beer brands including three global brands : Budweiser, Stella Artois and Beck’s, multi-country brands like Leffe and Hoegaarden, and strong ‘local jewels’ such as Bud Light, Skol, Brahma, Antarctica, Quilmes, Michelob Ultra, Harbin, Sedrin, Klinskoye, SibirskayaKorona, Chernigivske, Hasseröder and Jupiler.The ABinBev team have $25B a year to manage for procurement from packaging to raw materials to indirect services (Media, Marketing, Logistics etc). They have taken eAuctions to a new level of sophistication over the last 7 years ... in 2011 ran 26,000 auctions for a spend value of $ 3.6 B and this year they estimate 30,000 auctions for approximately $4.2 B. Analyzing last 2 years – over 35K eAuctions to drive strategies around optimal number of suppliers, how they behave, length of auctions and using these drive predictive models. They are really changing the rules of the game and driving bottom line results in spend management, global alignment and shifting the dynamic of the buyer / seller relationship. In effect - the power is in procurement / buyer defining the game and the rules whether they are buying parts, ingredients, office supplies and services Leveraged from Smarter Commerce Global Summit Orlando 2012 – Empower Emptoris event – Tony Milkin VP of ProcurementAnd in this article:http://www.procurementleaders.com/news/news/e-auctions-the-future-claims-abinbev-cpo
Telefonica | Vivo, the largest mobile telecommunications provider in Brazil, has enjoyed remarkable success over the past decade. As demand for mobile services surged, Telefonica | Vivo tripled its customer base to roughly 60 million in just seven years, growing its annual revenue to more than USD15 billion. With success came more customers, more services and more products. That meant more data and more complexity—and a challenge for Telefonica | Vivo marketers. Recognizing the need to improve, Telefonica | Vivo marketing leadership selected IBM® Unica® based on best-of-breed functionality.Business need:Telefonica | Vivo needed to grow revenue through personalized marketing to its 60 million customers and eliminate the high costs, risks and inefficiency of a manual approach to campaign development and execution.Solution:With the Unica centralized marketing automation solution, Telefonica | Vivo now runs 200 campaigns a month by text message, email and telemarketing, and has improved the speed, quality and effectiveness of outbound communications.Benefits:Telefonica | Vivo has increased the revenues generated by direct marketing by 30 percent and reduced its operational costs by 80 percent, while realizing gains in efficiency and its ability to personalize interactions with customers.http://www-01.ibm.com/software/success/cssdb.nsf/CS/SBAT-8UCTFB?OpenDocument&Site=default&cty=en_us
At this sporting goods retailer in China – Li Ning Sports Goods – they transformed their website into a tool for capturing personal and shopping data, using unprecedented visitor demographic and behavioral intelligence to launch precision-guided marketing initiatives and drove unique promotions up 600%. Li Ning Sports Goods wondered “What if your marketing and product managers could design targeted promotions unique to every online shopper?”Li Ning implemented a next-generation e-commerce solution to capture customer demographics, purchase records and other browsing behaviors, distilling that data into actionable insights for making real-time, precision-targeted product recommendations. Every e-commerce activity, from loading an item in a shopping cart to making a purchase, triggers customized offers or targeted product promotions. Marketing managers now use the platform to test unique, small-scale promotional tactics on the site, learning which tactics generate the most clicks, page views and sales or drives the highest click-to-order conversion rate among a particular customer niche. In their stores or on their websites, retailers influence and direct consumer behavior, the only difference being that an online shopping environment leaves less room for subtlety. Active and informed selling is a must for most retail websites. This sporting goods retailer captures customer demographics, purchase records and other browsing behaviors, distilling that data into actionable insights for making real-time, precision-targeted product recommendations. Every e-commerce activity, from loading an item in a shopping cart to making a purchase, triggers customized offers or targeted product promotions. Marketing managers now use the platform to test unique, small-scale promotional tactics on the site, learning which tactics generate the most clicks, page views and sales or drives the highest click-to-order conversion rate among a particular customer niche. The findings help the company develop targeted campaigns that provide the right products to the right people at the right time. Operations managers leverage the solution's integration with the company's back-end business applications, such as its ERP system, to manage everything from pricing and inventory to purchase orders from a single platform. Supports launch of 600+% more marketing promotions, increasing opportunities for promotional innovation Provides platform for managing e-commerce from web, mobile and social sites Allows customer segmentation by order history, order volume or demographics, providing bases for offering customer-centric shopping experiencesBackgroundUsing IBM WebSphere Commerce V7 FEP2, IBM China Development Laboratories working with IBM LBS(Lab Based Service) team and WuXi Cloud Center the company deployed a customized, next-generation commerce-as-a-service (CaaS) solution, consolidating all the back-end systems and providing a robust platform for managing e-commerce activities from web, mobile and social joint sites. This solution helps LiNing successfully achieve three coexisting portals (official site, mobile, social joint sites). The solution is integrated with the company's back-end systems, such as ERP and email. The B2C system is based on WebSphere Commerce V7 FEP2 and its Main components include: Catalog, Slor search and SEO, member, order, inventory, payment and storefront improvement. The findings help Li Ning develop targeted campaigns that provide the right products to the right people at the right time. Operations managers leverage the solution's integration with the company’s back-end business applications, such as its ERP system, to manage everything from pricing and inventory to purchase orders from a single platform. Reference: http://www-01.ibm.com/software/success/cssdb.nsf/CS/KJON-8PYRZW
Let’s start a conversation now! Are you ready – visit our ibm.com today and see how other companies like yours are benefitting from Smarter Commerce.The time is now to get ready and get started to embrace the empowered customer.
In order to effectively leverage analytics across your commerce cycle, you need to begin by assessing your customer analytics capabilities and start asking yourself some key underlying customer, marketing and sales questions …..How compelling and consistent is the experience you offer customers?Are you doing things manually that should really be automated?Are you leveraging customer data to its full potential?Are you able to respond to changing consumer priorities and behaviors across the value chain, efficiently & profitably?Do you have the optimized cost model to acquire customers and serve?Do you have optimized skills and tools to generate actionable customer insights?Do you know which are your highest-value segments? Where future growth will come from?Are you optimizing marketing’s return to the business, driving revenue, developing future markets?
Ask yourself these difficult questions to assess your current capabilities to understand how you engage with your customers and partners?Is your brand experience consistent across all channels? — customers are expecting that they can start a purchase on one channel and complete on anotherCan you deliver a personalized experience to your customers? — customers increasingly expect more personalized offers that speak to their interests and needs. Everyone receives so much information from many channels that we need to help our customers (B2B as well as B2C) cut through the clutter to what is important. Can you sell complex and configurable products and services? — the opportunity to offer bundled solutions of products and services at the time of the order increases your value to the customer, differentiates from the competition and enables you to expand your offeringAre your customers moving to new channels like social networks & mobile? — a new level of customer interaction has been spawned by the growth of Web-enabled mobile phones, giving retailers an opportunity to tap into new unrealized revenue streams driven by mobile commerce (mCommerce).Can you deliver the perfect order? — companies want to deploy one e-commerce solution and deploy storefronts that meet their needs, which may be by customer, brand, geography, or a countless list of other segmentation options