Commerce technology spending is up across the board. Retailers are significantly bolstering their capital investment programs. 85% will increase their spend on commerce technology in 2015. Is your organization prepared for the next generation of digital business?

1. 7 Traits of Highly Effective Digital Commerce Orgs
Sameer Khan
IBM ExperienceOne

2. 2
Agenda
Commerce Technology Spending
The 7 Traits of Highly Effective Digital Commerce Organizations
Conclusion and Next Steps
3
Who is today’s empowered consumer?
4
2
1

3. 3
Digital ChannelsTechnologySpending
Online retail continues to gain momentum!
Executive summary & research methodology
Source: Forrester – Commerce Technology Investment and Platform Trends - 2014
1 Commerce Technology Spending
• Commerce technology
spending is up across the
board.
• Retailers are significantly
bolstering their capital
investment programs.
• 85% will increase their spend
on commerce technology in
2015.
• Commerce technology is
mainstream and innovating.
• 72% of e-Business software
decision-makers believe
commerce platforms have
matured.
• 41% believe commerce
platform vendors are driving
innovation in their product
suites.
• Corporations are
increasingly incorporating
Big Data, SaaS and Mobile
for digital commerce.
• Emerging channels are
intertwining customer touch
points interchangeably.
• Customers will use any and
all channels in tandem to
help them accomplish their
shopping objectives.

4. 4
Digital Commerce Sales Expect to Increase by 61% by 2018
Executive summary & research methodology
Source: Forrester – Commerce Technology Investment and Platform Trends - 2014
1 Commerce Technology Spending

5. 5
Agenda
Commerce Technology Spending1
The 7 Traits of Highly Effective Digital Commerce Organizations
Conclusion and Next Steps4
3
Who is today’s empowered consumer?2

6. 6
Influences
“Communities of We”
Attitudes
“Era of Open Minded”
Consumers expectations are formed by a myriad of factors
Expectations
“Be loyal to me”
Technology
“Everything is Known”
2 Who is today’s empowered consumer?

7. 7
…and Consumers are highly always connected
84% have easy access to information…
high expectations… and are fickle.
92%
5 Minutes 70%
of smartphone users
check an app as soon
as they wake up
of consumers research
online and seek opinions
via earned media before
a purchase
of consumers have stopped doing
business with a brand following a
poor customer
experience
the response time users expect from
a company once they have
contacted it via social media
Always connected Easy access to information
High expectations Fickle
*Source: Econsultancy - 2013

8. 8
Agenda
1
The 7 Traits of Highly Effective Digital Commerce Organizations
Conclusion and Next Steps4
3
Who is today’s empowered consumer?2
Commerce Technology Spending

9. 9
7 Traits
 Big Data
 Multichannel marketing
 Social Media Analytics
 Digital Experience
 Data Integration
 Real time Analytics
 Personalization

10. 10
7 Traits
 Big Data
 Multichannel marketing
 Social Media Analytics
 Digital Experience
 Data Integration
 Real time Analytics
 Personalization

11. 11
Big Data
3 The 7 Traits of Highly Effective Digital Commerce Organizations
Big Data Exploration
Find, visualize, and understand all big
data for improved decision making
Enhanced 360o View
of the Customer
View all internal and external
information sources to know everything
about your customers
Operations Analysis
Analyze a variety of machine data for
improved business results
Data Warehouse
Modernization
Modernize the data warehouse with new
technology: in-memory, stream computing,
Hadoop, appliances, while building
confidence in all data
Security Intelligence
Extension
Lower risk, detect fraud and monitor
cyber security in real-time

12. 12
3 The 7 Traits of Highly Effective Digital Commerce Organizations
The Challenge
Start Today is based on the corporate vision “Making the world cool, bring smiles
across the world” and operates Japan’s biggest fashion site, Zozotown. Zozotown
struggled with how to decipher massive amounts of data to deliver personalized
messages to its consumers.
Case Study
The Solution
Zozotown’s customer-centric focus company used IBM Netezza® and IBM Digital
Analytics® to rapidly analyze massive amounts of data, letting them create
personalized messages for each of their 3.8 million customers.
The Results
Zozotown’s 3.8M personalized messages resulted in a five fold
increase in email open rate, and conversion rate improvement
of nearly 1000%. In addition website sales went up 54.2%.
▲54%
Digital Sales
Zozotown

13. 13
7 Traits
 Big Data
 Multichannel marketing
 Social Media Analytics
 Digital Experience
 Data Integration
 Real time Analytics
 Personalization

14. 14
Digital world…few years ago
3 The 7 Traits of Highly Effective Digital Commerce Organizations
Website
Search
*Source: Google Image

15. 15
Digital world…today is Multichannel
3 The 7 Traits of Highly Effective Digital Commerce Organizations
Website
Search
Tablet
Smart
Phone App
Game
Console
Social
Network
Twitter
client
*Source: Google Image

16. 16
Successful Retail Organizations Understand Their
Customers…
3 The 7 Traits of Highly Effective Digital Commerce Organizations
…Across all Touch
points
*Source: Google Image

17. 17
Case Study
The Challenge
To win and retain customers, Orvis (a large retailer) must maximize the impact of its
clients marketing spend as well as understand every step of a long and complex
customer journey through online and offline touch-points.
3 The 7 Traits of Highly Effective Digital Commerce Organizations
The solution
A data-driven lifecycle-measurement strategy, backed by cloud-based IBM Campaign
(Unica), delivers key metrics on customer acquisition and retention direct to decision-
makers on mobile devices.
The benefit
Digital Marketers are able to connect the dots from multichannel
analysis. By analyzing the data from two or more streams the users
know everything about the customer as efficiently and effectively as
one can. Orvis team was able to save customer communication cost by
40%
▼40%
Comm. Cost
Orvis

18. 18
7 Traits
 Big Data
 Multichannel marketing
 Social Media Analytics
 Digital Experience
 Data Integration
 Real time Analytics
 Personalization

19. 19
Social Media Analytics
3 The 7 Traits of Highly Effective Digital Commerce Organizations

20. 20
Case Study
3 The 7 Traits of Highly Effective Digital Commerce Organizations
The Challenge
Amici di Via Della Spiga - though the members of this association of fashion retailers each had a
social media presence with many followers, their online efforts were not leading to significant
business results. To drive sales in new markets while maintaining their critical brand identities,
these retailers needed a solution to capture online interactions and transform the data into usable
market insight.
The solution
A comprehensive social media analysis uncovered insight about consumer perceptions of these
brands online. Key fashion topics were used to search and extract postings from message boards,
blogs, news and social networks, then analyzed for trends that predict consumer behavior, e.g.
Brands that incorporated themes of environmental sustainability enjoyed a 60% increase in
reputation while promotional methods such as celebrity endorsements showed no significant
impact on revenue.
The benefit
By analyzing the social conversations around fashion for a full year, the IBM team
recognized a variety of key concepts that influence brand perceptions and purchase
decisions, e.g. A brand whose products incorporated a theme of environmentally
sustainability lead to increased sales. Associazone Amici Via della Spiga can now target
specific demographics and optimize capital spend on promotional efforts.
Amici di Della Spiga
▲60%
Social Reputation

21. 21
7 Traits
 Big Data
 Multichannel marketing
 Social Media Analytics
 Digital Experience
 Data Integration
 Real time Analytics
 Personalization

22. 22
Digital Experience
3 The 7 Traits of Highly Effective Digital Commerce Organizations

23. 23
Case Study
3 The 7 Traits of Highly Effective Digital Commerce Organizations
The Challenge
To boost customer loyalty, American Eagle Outfitters (operates more than 1000 stores in North
America and ships to 77 countries world wide) wanted to ensure that it could deliver high-quality
shopping experiences on every digital channel.
The solution
The company implemented IBM® Tealeaf® solutions, enabling its analytics team to identify and
eliminate sticking points along the customer journey.
The benefit
American Eagle Outfitters can now implement improvements to its digital channels
based on real-world customer behavior – increasing customer satisfaction and
nurturing loyalty.
American Eagle

24. 24
7 Traits
 Big Data
 Multichannel marketing
 Social Media Analytics
 Digital Experience
 Data Integration
 Real time Analytics
 Personalization

25. 25
Data Integration
3 The 7 Traits of Highly Effective Digital Commerce Organizations

26. 26
Search for all
customers that
struggled from the
home page
IBM Digital Analytics
IBM Tealeaf
2
Identify impact on
conversion rates
or discover
trends &
anomalies
Drill down to understand why
Why are there low
conversions from
the home page?
IBM Digital Analytics1
View Individual
Customer Experiences
to Understand Why
IBM Tealeaf2
IBM Digital Analytics & IBM Tealeaf Integration:
1
Enables rich new ad-hoc analysis: segment by any
attribute of the experience without tags
3 The 7 Traits of Highly Effective Digital Commerce Organizations
Continued

27. 27
Case Study
3 The 7 Traits of Highly Effective Digital Commerce Organizations
The Challenge
The online store for Dutch consumers Wehkamp sold approximately 17.2M products from
their online shopping. The website receives over 129M visits annually and ships 7.1M
packages in the Netherlands. The company wanted to 1. Improve customer experience,
2. Recover lost revenue, 3. Solve technical problems and 4. Reduce Fraud.
Website Visits: >129 M
Products Sold: 17.2 M
Packages Delivered: 7.1 M
Sales – RFS Holding: $590 M
-----------------------------------------------------
>180,000 Different Articles
150,000 Reviews
98% Brand Awareness
72% Female Buyers
51% New Customers < 35 years
The solution
IBM Digital Analytics and IBM Tealeaf transforms the way customers experience
information captured, stored and analyzed. The integrated solution helped Welkamp.nl
understand and improve their customer experience by combining the qualitative and
quantitative interaction data.
The benefit
Customer experience – a 10% improvement in conversation for a specific
segment. Recovered lost revenue - $40K in sales. Technical fix – solved
problems and saved millions in cart revenue. Reduced fraud – twice as
much fraud detected and prevented.
▲10%
Conversion
$40K
Lost sales
Wehkamp

28. 28
7 Traits
 Big Data
 Multichannel marketing
 Social Media Analytics
 Digital Experience
 Data Integration
 Real time Analytics
 Personalization

29. 29
Old Time Analytics is Colorless and Slow
3 The 7 Traits of Highly Effective Digital Commerce Organizations
*Source: IBM Watson Analytics

30. 30
Analytics Must Operate at the Speed of Light
3 The 7 Traits of Highly Effective Digital Commerce Organizations
*Source: Google Image

31. 31
Case Study
3 The 7 Traits of Highly Effective Digital Commerce Organizations
The Challenge
In the fast-paced travel industry, Amadeus Germany’s quarterly forecasts and annual
planning processes were no longer adequate for immediately identifying risks and
opportunities.
The solution
Amadeus introduced rolling forecasts based on IBM® Cognos® TM1® Web. Planning
data and reports are updated on a rolling basis, and key indicators and targets can be
checked in real time.
The benefit
Early warning system enables timely action. Increases personal
accountability. Encourages dialogue between finance and the business.
Makes forecasting cheaper, more accurate, and less labor-intensive.
Amadeus

32. 32
7 Traits
 Big Data
 Multichannel marketing
 Social Media Analytics
 Digital Experience
 Data Integration
 Real time Analytics
 Personalization

33. 33
Personalizing Shopping Experience
3 The 7 Traits of Highly Effective Digital Commerce Organizations
*Source: IBM PCI

34. 34
Case Study
3 The 7 Traits of Highly Effective Digital Commerce Organizations
The Challenge
Koçtaş is Turkey’s leading home improvement retailer. To boost average order value (AOV) on
it’s e-commerce channel, Koçtaş wanted to capitalize on upsell opportunities. Delivering
personalized product recommendations for every customer was the answer – but how?
The solution
Working with IBM Business Partner Tani, Koçtaş deployed IBM ExperienceOne solutions. The
company can now deliver tailored product recommendations automatically, both online and
in its email campaigns.
The benefit
By personalizing and enhancing the customer experience based on real-world insights into
online behavior, Koçtaş increased upsell conversion by 120 percent and cut cart abandonment
by percent.
▲120%
Upsell Conversion
Koçtaş

35. 35
Agenda
Commerce Technology Spending1
The 7 Traits of Highly Effective Digital Commerce Organizations
Conclusion and Next Steps4
3
Who is today’s empowered consumer?2

36. 36
5 Conclusion
Resources:
IBM Big Data Hub
http://www.ibmbigdatahub.com
WatsonAnalytics.com
BigDataUniversity.com
Schedule an IBM Big Data Workshop
 Free of charge
 Best practices
 Industry use cases
 Business uses
 Business value assessment
Next Steps and Resources