C2BCustomer to Business

The Future of Commerce for RetailAugust 2015

2 © 2015 IBM

What has changed in theWorld of RetailCustomers are more connected, more empowered and demand satisfaction

Seamless customer interactions are sought across all channels

Fulfillment models are beingtransformed with on-demand options

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of companies say they have or are close to having a holistic view of their customers

of consumers say their favorite retailer understands them

Source: The Consumer Conversation – eConsultancy Report

4 Source: The Consumer Conversation – eConsultancy Report

…WHAT CUSTOMERS SAY

of brands are satisfied with their ability to resolve conflicts with customers

of consumers who had a significant customer service issue in the last twelve months say that the company resolved their conflict "very effectively."

WHAT BRANDS THINK…

Satisfaction gap exists as well …

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Retailers must now leverage brand advocates as the new strategic advantage

91% of consumers say they like to share views

about their brand experience with other

consumers

81% received advice through a social site about an upcoming

purchase

74% found it influential in their

buying decision

91% of mobile users keep their phone within one meter’s reach 24/7

150 is the average times a mobile user checks their device each day

37% of consumers say they post comments about retailers once or more a week

Sources: Yahoo/BBDP Survey, Bloomberg Businessweek Survey,IBM IBV Study, Morgan Stanley Research

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By 2018, organizations who offer personalization will outsell companies who don’t by more than 30%

83% of retail CMOs include Analytics in their digital strategy to capture customer insights, while only 36% of retail CxOs say they have an integrated digital-physical strategy

83% of consumers are more likely to do business with brands that allow them to control where, when, and how they interact

Customer-to-Business paradigm sets a higher bar

Source: Gartner Research, CFI Group, IBM IBV Study

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Deliver a contextual shopping experience

Build intelligent merchandising, fulfillment and supply operations

Drive informed and efficient operations

A C2B winningretail strategy

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Winning needs an integrated approach in retailIn the front office: Create seamless cross-channel

marketing strategies, execution and automation

Use data to gain deeper customers insights for a holistic view of your customer

Extend digital brand interaction into stores to create a seamless omnichannel brand experience

In the back office: Manage communications securely

and provide rapid onboarding for business partners

Integrate the ordering process with inventory management systems and delivery

IBM Commerce delivers nearly 15x ROI for every dollar spent

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50% of IBM Retail Solutions transacted over 50% more online sales than the next closest retail solution provider

2/3of business transactions for the US retail sector are conducted on mainframes

5 of the top 6 retailers globally use IBM Retail capabilities and solutions

#1 The IBM e-commerce platform has been ranked #1 by top industry analysts for 15 consecutive years

70of the top 100 global retailers are powered by IBM retail solutions

MoreTop 500online retailer sales are powered by IBM Retail Solutions than any other platform provider

Marketing

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Digital Marketing

Lead Management

CustomerExperienceAnalytics

JourneyDesign

Omni-ChannelMarketing

Real-TimePersonalization

IBM Marketing Cloud IBM Marketing Software

OrvisOrvis uses IBM Marketing Solutions to employ powerful flowchart logic, segmented offers, offer assignment, and channel selection.

88%

2yrsreduction in digital andnon-digital campaignand reporting costs

record profitsafter solutionimplementation 40

%

reduction in emailcosts versus prioroutsourced solution

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eCommerce and Merchandising

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B2CCommerce

B2BCommerce

Omni-ChannelMerchandising

Cloud and Software Solutions

HomebaseHomebase uses IBM eCommerce solutions to provide highly personalized shopping experiences that are designed to meet the needs of today's consumer.

Customers now shopping online

Increase in online traffic driving double digit sales growth40% 30%

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Customer Analytics

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Digital Analytics

SocialAnalytics

PredictiveAnalytics

CustomerExperienceAnalytics

CustomerService

Optimization

Cloud and Software Solutions

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FreshDirectFreshDirect is using IBM Customer Analytics and IBM Marketing solutions to drive campaigns that are personalized with the best offers based on customer insights.

40%Lift in order rates with new customers 10X

Increase in transaction rates from cart abandonment communications

Payments

16 © 2015 IBM

CommercialPayments

Cloud and Software Solutions

Retail Payments

JCC Payment SystemsJCC Payment Systems is using IBM Payments solutions to deliver SEPA transaction processing as a service to creditors and banks across Cyprus.

SEPA 250 K

Transaction processing to creditors and banks – enriching its service offering and driving growth

SEPA Direct Debits processed daily at peak times

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B2B Integration

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B2BIntegration

ManagedFile

Transfer

Cloud and Software Solutions

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Bonnie PlantsBonnie Plants is using IBM B2B Integration solutions to collaborate and engage with partners and suppliers with real-time visibility into inventory, enabling them to anticipate needs of an individual store.

Of their business occurs in 3 monthsfrom March to May

USD realized growth by reducing costs and increasing reliability of their B2B operations10-20M 70%

20 © 2015 IBM

Why choose IBM Commerce?

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Design & Analytics Integration

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Industry Expertise

Join the conversationBlog, YouTube, Twitter, LinkedIn and Facebook

The Future of Commerce is Now

Additional Slides

Our Business Partner Ecosystem: 1,822+Digital Agencies & Mktg Svc Providers

Complementary Solutions & ISVs

Systems Integrators

Resellers & SaaS Providers

eCOMMERCE MARKETING

PROCUREMENT B2B INTEGRATION

CUSTOMER ANALYTICS3 of 9

Leadership

6 of 9Strong Performer

6 of 7Leadership

1 of 2Leadership

3 of 3Leadership

2 of 2Leadership

Analysts perspective

1 of 7Strong Performer

© 2015 IBM24

Key capabilities for customer engagement

Convert and Retain Digital Customerswith digital marketing

Ignite and Grow Customer Relationshipswith omni-channel marketing

Deliver Personal Experiences with mobile customer engagement

Curate Personal Interactionswith real-time personalization

Understand Your Customerswith customer experience analytics

Serve and delight customerswith Watson Engagement Advisor?

Sell and Fulfil Products, Services, Configurable Bundles with B2B Commerce

Deliver Seamless and Personalized Omni-Channel Sellingwith B2C Commerce

Maximize Sales Profits and Shopper Loyaltywith omni-channel merchandising

Customer Analytics Marketing eCommerce & Merchandising

Analyze social media trendswith social media analytics

Capture, qualify and nurture leads with lead management

Predict customer desires with predictive analytics

© 2015 IBM25