This document summarizes a presentation on using customer data and analytics for retailers. It discusses how retailers have entered the "age of the customer" and must shift to be customer-obsessed. It also discusses how big data and analytics can provide insights across the customer lifecycle to personalize interactions. The presentation provides examples of retailers successfully improving metrics like sales and loyalty through analytics. It emphasizes starting with a pilot to learn from data before expanding initiatives.

1. Intelligent Customer Engagement™ Suite
Right Channel, Right Message. Right Now
Shopper Marketing
Insights for Retailers
September 11, 2014

2. Shopper Marketing Insights for Retailers
Rusty Warner
Principal Analyst
Forrester Research
Richard White
Advisor to Capillary
Technologies
Janet Jaiswal
VP of Marketing
Capillary Technologies
Private and Confidential 11/4/2014 2

3. • Introductions
• The Age of the Customer
• Big Data Analytics
• Retail Case Studies
• Key Takeaways
• Q & A
Agenda
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4. The age of the customer
Obsession and context
© 2014 Forrester Research, Inc. Reproduction Prohibited 4

5. We have entered the age of the customer
› Age of the customer — a 20-year business cycle in which
the most successful enterprises will reinvent themselves
to systematically understand and serve increasingly
powerful customers
Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report
© 2014 Forrester Research, Inc. Reproduction Prohibited 5

6. Customer obsession:
A customer-obsessed enterprise focuses its
strategy, its energy, and its budget on
processes that enhance knowledge of and
engagement with customers and prioritizes
these over maintaining traditional competitive
barriers.
© 2014 Forrester Research, Inc. Reproduction Prohibited 6

7. Marketing has a new remit: context.

8. How context changes marketing
BEFORE CONTEXT: AFTER CONTEXT:
• Campaigns
• Targeting
• Customer segmentation
• Media schedules
• Messages
• Transactions
• GRPs and CPMs
• Interactions
• Engaging
• Customer recognition
• Customer moments
• Utility
• Value exchanges
• Minutes of engagement
Source: April 14, 2014, “The Power Of Customer Context” Forrester report

9. The customer life cycle is contextual…
ENGAGE
Customers connect with brands
for nonservice reasons across
ASK
DISCOVER
Customers are exposed to the
initial trigger that will lead them
purchase of an existing need.
EXPLORE
USE BUY
to a new need or repeat
Customers research
your brand and product
— and their other
options.
Customers go through the
purchase process and
complete the transaction.
multiple channels.
Customers reach out to
get service or help with a
purchase.
Customers take possession of
their purchase, which includes
initial and ongoing impressions
of it.
© 2014 Forrester Research, Inc. Reproduction Prohibited 9

10. …And interactions depend on insights
ENGAGE
Insights ASK
Interactions
DISCOVER
EXPLORE
USE BUY
© 2014 Forrester Research, Inc. Reproduction Prohibited 10

11. Poll #1 : In your opinion, what are the main barriers
for marketers to overcome in the shift towards
customer-driven marketing?
• Lack of capabilities to manage and analyze Big Data
• Executing relevant, timely, channel-specific delivery
• Measuring the value through incremental sales
• Lack of support from senior management
• Overcoming the previous organizational mindset
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12. Big data
Analytics in the age of the consumer
© 2014 Forrester Research, Inc. Reproduction Prohibited 12

13. Big data uproots traditional analytics
and offers opportunities to:
› Serve the needs of contextual customer
experiences
› Dig deeper for predictive insights
› Understand the role of real-time digital data
Source: April 22, 2013, “The Consumerization of Customer Analytics” Forrester report
© 2014 Forrester Research, Inc. Reproduction Prohibited 13

14. A data evolution is underway
Less than 15% of data used for business intelligence (BI)
Source: May 28, 2014, “Big Data’s Big Meaning For Marketing” Forrester report
© 2014 Forrester Research, Inc. Reproduction Prohibited 14

15. Big Data:
Emerging business practices and
technologies that close the gap between the
amount of data available and your ability to
use it for business insight
© 2014 Forrester Research, Inc. Reproduction Prohibited 15

16. Big data in the modern world
© 2014 Forrester Research, Inc. Reproduction Prohibited 16

17. Big data in the eyes of marketers
© 2014 Forrester Research, Inc. Reproduction Prohibited 17

18. Time for marketing to reset on big data
8%
“Which view of big data is most aligned to yours?”
Technology Management Business
14%
35%
34%
7%
12%
21%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Hype Technology BI New Confusing
Base: 701 North American data and analytics decision makers
Source: Business Technographics Global Data And Analytics Survey, 2014
30% 30%
9%
© 2014 Forrester Research, Inc. Reproduction Prohibited 18

19. The big question…
“How can big data
help me delight my
customers?”
© 2014 Forrester Research, Inc. Reproduction Prohibited 19

20. A matter of perspectives…
Source: June 19, 2014, “How Analytics Drives Customer Life-Cycle Management” Forrester report
© 2014 Forrester Research, Inc. Reproduction Prohibited 20

21. Drive value across the life cycle
Source: June 19, 2014, “How Analytics Drives Customer Life-Cycle Management” Forrester report
© 2014 Forrester Research, Inc. Reproduction Prohibited 21

22. Analytics across the life cycle
Source: June 19, 2014, “How Analytics Drives Customer Life-Cycle Management” Forrester report
© 2014 Forrester Research, Inc. Reproduction Prohibited 22

23. Poll #2: What are the primary hurdles to successfully
leveraging data in your marketing organization
(check all that apply)
• Building reports that surface actionable insights
• Don’t have the team members with the right skills to
leverage the data
• Limited budget to install necessary technology
• Limited team capacity to prioritize
• Culture doesn’t embrace data
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24. Retail case studies
From insights to customer experience
© 2014 Forrester Research, Inc. Reproduction Prohibited 24

25. › Tracks both shopper
and item-level data
› Secures shoppers
beyond loyalty program
› Provides insights to small suppliers
› Enables shopper-focused assortments
› Defines individual, adaptable store planograms
© 2014 Forrester Research, Inc. Reproduction Prohibited 25

26. › Established a big data
sandbox to unearth
shopper insights
› Designed a social media
program to leverage
shopper content
› Developed even more
personalized shopping
experiences
› Recognized as a
destination retailer
› Focused on customer
experience
© 2014 Forrester Research, Inc. Reproduction Prohibited 26

27. › Combines shopping data
with social media
› Creates more actionable
shopper segments
› Enriches the shopping
experience with insights
› Providing seamless access to ANN INC. brands
› Complementing wear-to-work and special occasion
styles with affordable, effortless styles via Loft
› Focusing on various shopper roles and redefining
business strategy – “EVOLVING WITH HER”
© 2014 Forrester Research, Inc. Reproduction Prohibited 27

28. > Increased its repeat visits
per month by 15+%
> Realized a 5% increase in
same store transaction
growth (SSTG)
> 38% increases in campaign response rates with only a 14%
increase in communications
> Won Loyalty & Engagement Awards for "Best CRM Strategy"
and "Best Use of Relationship Marketing (B2C)“
> Won CMO Asia Award for "Best Use of Marketing
Communications”
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29. “Merely having an incredible data
capturing mechanism does not
mean business decisions can be
taken effectively. Capillary’s ability
to predict future performance helps
us take important and reliable
business decisions.” –Sumesh Bhat,
Business Head
> Obtained customer insight through real-time dashboards
and reports
> Created campaigns that increased incremental sales per
individual (achieved 4x campaign target)
> Realized 130% ROI on margin within 3 months
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30. Poll Question #3: What do you believe are some of the
biggest challenges facing marketers today
(select all that apply):
• Too much Big Data – don’t know how to handle it all
• The complexity of omni-channel marketing
• Measuring and delivering marketing ROI
• Delivering timely, personalized communications
• Adjusting company mindset & budgets to 1:1
communications
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31. Capillary Technologies
Intelligent Customer Engagement
Company Overview

32. Challenges Capillary solves
How can I retain
? more customers?
? in the store?
How can I increase my cross-sell
/ up sell revenue through
personalization?
How can I
improve my
Marketing ROI?
?
?
How can Store Associates
better engage customers
Private and Confidential 11/4/2014
What can I do to
increase revenue? ?
How can I bring
more people
into my store?
?
How can I get my
customers to increase
their Average Basket Size?
How can I improve my
marketing campaign results? ?
How can I market to my omni-channel
customer most effectively?
?
? How can I identify my most loyal customers?
And manage my loyalty program?
?
32

33. The Capillary Value
Built for retailers only
Integrated, multi-channel loyalty
Integrates with most leading POS
Real-time customer analytics
Complete customer engagement platform
Data integration across channels for key insights
Private and Confidential 11/4/2014
What can I do to
increase revenue? ?
How can I retain
? more customers?
How can I increase my cross-sell
/ up sell revenue through
personalization?
? How can I
improve my
Marketing ROI?
?
How can I bring
more people
into my store?
?
How can Store Associates
better engage customers
? in the store?
How can I get my
customers to increase
their spend?
How can I improve my
marketing campaign results? ?
How can I market to my omni-channel
customer most effectively?
?
? How can I identify my most loyal customers?
And manage my loyalty program?
?
33

34. Typical customer results
3%-5%
Same Store
Growth
Private and Confidential 11/4/2014
10%
Customer
Frequency
15%
Average
Bill Value
3-5X
ROI on
Margins
30%
Customer
Retention
Rate
34

35. Our solution is focused on the Retail industry
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35

36. Major Focus
• Customer big data analytics
• Loyalty program
management
• Campaign management
• Store clienteling
• Omni-channel engagement
Global Expertise
150+ customers
10,000 stores
100 million consumers
Privately held company with 350
employees across 7 offices in US,
UK, UAE, SA, AUS, APAC and India
Customers
About Capillary Technologies
Awards
Accolades
Private and Confidential 11/4/2014
36

37. Key Takeaways
Build a customer engagement intelligence platform
– Turn big data into business insights to understand all of your
customers
Ideation: Set realistic expectations
– Start small with a pilot and take a learnings-based approach
Implementation: Deliver success then expand
rapidly
– Measure results and then incorporate into all marketing programs
Private and Confidential 11/4/2014
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38. Rusty Warner
Principal Analyst
Forrester Research
http://www.forrester.com/Rusty%20Warner
Richard White
Advisor to Capillary Technologies
RWhite@CapillaryTech.com
Janet Jaiswal
VP of Marketing
Capillary Technologies
Janet@CapillaryTech.com
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