As the 2016 shopping season comes to a close, take time to re-group and ramp up for 2017. We will share key industry observations on digital experience performance, technology trends and top retailers' best practices. Join a panel of experts from Neiman Marcus, IBM and Dynatrace for a discussion about: 2016 holiday technology trends – what are the new requirements to best serve digital customers? Leading retailers like Neiman Marcus and what made their performance great. How to assess your holiday performance and prepare for the year ahead. Start the New Year right by looking back at 2016 and getting ready for your next big sales event of 2017.

1. 2016 Holiday Retail Tech Recap
DON DAVIS
Editor-in-Chief
Internet Retailer & B2BecNews
MODERATOR
VENKAT RAYAPUDI
Manager, eCommerce Operations
Neiman Marcus
ARTHUR VIENTE
Program Director,
IBM Watson Commerce Strategy
IBM Watson Commerce
DAVID JONES
Practice Director
Dynatrace

2. A strong holiday season for online retailers
$73.6
$83.0
$91.7
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
$100.0
2014 2015 2016
Online holiday sales (in billions)
11%
Source: Adobe Digital Insights

3. Web growth may have been even stronger
11% 12% 16% 20%
Estimated increase
in 2016 online
holiday sales
• Store sales increased
2.4%in November-December 2016 over
same months in 2015.
Source: U.S. Commerce Department

4. Stores made a comeback
• Store traffic declined 4.4% during
the five days from Thanksgiving
and sales were down 4.2%.
• Source: RetailNext
• Online sales during those five
days were up 15.2%.
• Source: Adobe Digital Insights
50%
45%
31%
38%
52%
61%
Where consumers
planned to shop
Stores Online
Source: Market Track

5. Amazon dominates Thanksgiving weekend (sales)…

6. …and the holiday season (traffic)
1.30%
1.53%
1.61%
2.10%
2.93%
3.25%
6.69%
33.88%
Lowe's
Macy's
Kohl's
Home Depot
Best Buy
Target
Wal-Mart
Amazon
Percentage of traffic to retail websites
Source: Hitwise, a division of Connexity

7. Amazon dominates the last week
Amazon’s percentage of web
sales
33%
38%
44%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Nov. 1-
Cyber
Monday
2016
season
Dec. 15-
25
The Prime Now effect
• Prime Now (2-hour delivery)
accounted for 13% of
Amazon’s late-season sales,
versus 10% in 2015.
• Source: Slice Intelligence

8. More email, and more sales from email
Black Friday/Cyber Monday
campaigns
0
10000
20000
30000
40000
50000
Black Friday Cyber Monday
Number of email campaigns
2016 2015
Read rates above 20%
20% 19%
13% 12%
Black Friday Cyber Monday
2016 2015
41.9% 28.2%
Source: eDataSource

9. Search drive most sales
• But ads on social
networks are driving
more traffic: 3.6% in
2016 versus only
0.25% in 2015.
Source: Hitwise, a division of Connexity

10. Consumers browse on smartphones…
2016 2015 2014
50% 50% 56%
9% 11%
14%
41% 39% 30%
Percentage of visits, by device, 2014-16
Desktop Tablet Smartphone
Source: Adobe Digital Insights

11. …and they buy on smartphones
2016 2015 2014
69% 73% 78%
10% 11% 12%21% 17% 9%
Percentage of sales, by device, 2014-16
Desktop Tablet Smartphone
Source: Adobe Digital Insights

12. Poll Question:

13. • Six luxury retailers — Neiman Marcus, Bergdorf Goodman, Last Call, Horchow, CUSP and
mytheresa.com — make up the Neiman Marcus Group.
• Founded in 1907
• 42 Neiman Marcus stores across the United States
• Two Bergdorf Goodman stores in Manhattan
• 29 Last Call clearance centers
• 3 Last Call Studios
• four CUSP stores
• Serving online customers including mobile through ecommerce websites for the last 16 years

15. Key Takeaways
• Focus:
• Unique and personal online shopping experience
• Complexity:
• Backend integration
• Product filters, pricing, availability, checkout/delivery
• Gift registry
• Mobile
• Achieving high performance and stability
• Load testing
• Team readiness—anticipate and rehearsing mitigation processes

16. Confidential, Dynatrace, LLC

17. Confidential, Dynatrace, LLC

18. Confidential, Dynatrace, LLC

19. Confidential, Dynatrace, LLC
Key Takeaways
 Dynatrace US Retail Performance Benchmarks
 Remarkable alignment to poll results—
Good/OK/Poor distribution by end to end Page Load Time about 60%/30%/10%
 Industry trends
 Better performance! More reliable sites!
 …despite increasing complexity
 More third party connections, larger images, heavier scripting and interactivity
 On the frontend, interactivity and mobile adaption
 On the backend, cloud, new application frameworks and services-based approaches
 Can’t forget the impact on the customer!

20. 20
We’re drowning in a tidal wave of data…
Every day we create
2,500,000,000,000,000,000 bytes of
data
That’s 2.5 QUINTILLION
1/25/2017World of Watson 2016

21. IBM Cognitive Engagement: Watson Marketing | Watson Commerce | Watson Supply Chain21
Working towards clarity across channels…
…through visibility across data points.

22. 1/25/2017World of Watson 201622
Trying to create a seamless experience…

23. • Retailers don’t suffer from a lack of data
• Challenge: how to leverage it!
• Channel multiplicity
• Exacerbates the data challenge
• Hard to connect around the customer
• Technology can sometimes get in the way of multi-channel journeys
• Customers expect seamless, often get bumpy
• Cognitive is emerging to help smooth this out
Key Takeaways

24. Removing performance friction from the experience
• A journey
• Getting the entire
business on-board
• Performance #1
feature
Boarding Plane by NinaZed on flickr

25. Looking ahead
What to think about in 2017
• Artificial intelligence is becoming
practical and useful in helping
simplify business decisions
• AI also advancing on the IT front—
simplify technical complexity
• Cloud platforms will drive increased
personalization and agility and
Innovation will accelerate
• Anticipate more sophisticated digital
experiences
Curves Ahead by Jeremy Bronson on flickr

26. Confidential, Dynatrace, LLC
Q & A
VENKAT RAYAPUDI
Manager, eCommerce Operations
ARTHUR VIENTE
Program Director,
IBM Watson Commerce Strategy
DAVID JONES
Practice Director
Learn More: www.dynatrace.com/trial/

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