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SERIES
ConsumerConnected
Session sponsored by
Presented by
#CCS14
A Retailer's Guide To iBeacon™ Marketing
SERIES
ConsumerConnected #CCS14
Welcome Webinar Attendees
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ConsumerConnected #CCS14
Follow this Webinar on Twitter 
#CCS14
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ConsumerConnected #CCS14
About Retail TouchPoints
ü  Launched in 2007
ü  Over 28,000 subscribers
ü  To provide executives with
relevant, insightful content
across a variety of digital
medium
Free subscription to our weekly newsletter:
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SERIES
ConsumerConnected #CCS14
Panelists
 Debbie Hauss
Editor-in-Chief
Retail TouchPoints
MODERATOR
Adam Silverman
Principal Analyst
Forrester
Rob Murphy
VP of Marketing
Swirl Networks
© 2014 Forrester Research, Inc. Reproduction Prohibited 6
We are living in the “age of the
customer”
© 2014 Forrester Research, Inc. Reproduction Prohibited 7
The past.
Information
Price Location
Tech
© 2014 Forrester Research, Inc. Reproduction Prohibited 8
Information
Price Location
Tech
Today.
© 2014 Forrester Research, Inc. Reproduction Prohibited 9
Source: RIS News
Tech Investment Up At Nordstrom
“The pace of change
is accelerating faster
than we anticipated a
year ago”
Blake Nordstrom, President of Nordstrom
April, 2014
© 2014 Forrester Research, Inc. Reproduction Prohibited 10
Agenda
› The importance of mobile in an
omnichannel world
› Why location matters
› Beacon marketing
› Recommendations
© 2014 Forrester Research, Inc. Reproduction Prohibited 11
Introducing the mobile mind shift
The perpetually connected customer
© 2014 Forrester Research, Inc. Reproduction Prohibited 12
Customers turn to digital technology
Source: Forrester The State Of Consumers And Technology: Benchmark 2013, US
© 2014 Forrester Research, Inc. Reproduction Prohibited 13
Customers turn to digital technology
Source: Forrester The State Of Consumers And Technology: Benchmark 2013, US
© 2014 Forrester Research, Inc. Reproduction Prohibited 14
This year 52% of all US retail sales will
either be influenced by, or occur online
No indoor malls built since 2006.
15% going out of business.
Source: theatlanticcities.com, Financial Times. Image source: Flickr
Footfall to European retail outlets in decline:
Germany: -6.4%
Italy: -6.2%
UK: -2.9%
Spain: -3.1%
e: Forrester; “While Retail Footfall decreases, digital influence on Consumer shopping Behavior increases” 2/26/14
© 2014 Forrester Research, Inc. Reproduction Prohibited 17
Source: ShopperTrak, CoStar Group, Wall St Journal
US retail outlets also in decline
© 2014 Forrester Research, Inc. Reproduction Prohibited 18
To satisfy changing customer behavior,
the digital store must emerge
› The store becomes an in-store experience
platform to drive engagement and conversion…
› …infused with technology, including location
information
› BUT – customers also expect associates to
participate
The digital store is built on a core
set of technology:
1.  Common commerce layer
2.  Distributed order management
3.  Content & Campaign management
4.  Analytics
5.  Location
© 2014 Forrester Research, Inc. Reproduction Prohibited 20
Agenda
› The importance of mobile in an
omnichannel world
› Why location matters
› Beacon marketing
› Recommendations
© 2014 Forrester Research, Inc. Reproduction Prohibited 21
Service & engagement are at the core of
location services in retail
Service
Engagement
Customer & retailer
benefits
© 2014 Forrester Research, Inc. Reproduction Prohibited 22
Service & engagement are at the core of
location services in retail
Insight
Efficiency
Differentiation
Service
Engagement
Context
Personalization
Customer benefits Retailer benefitsCustomer & retailer
benefits
© 2014 Forrester Research, Inc. Reproduction Prohibited 23
Beacon technology is the connective tissue
Insight
Efficiency
Differentiation
Service
Engagement
Context
Personalization
Customer benefits Retailer benefitsCustomer & retailer
benefits
Examples
Engagement:
Significant lift in app open rates
and offer redemption rates
Service:
Hotel doors activated by beacon
technology
Service + Personalization:
Alerts on availability of “click
and collect”
Pinpoints location of items on a
shopping list
Source: Retailnext
Insight:
Ability to understand unique
in-store shopping behavior
Efficiency + Service:
Request for associate help
within the aisle
© 2014 Forrester Research, Inc. Reproduction Prohibited 30
Agenda
› The importance of mobile in an
omnichannel world
› Why location matters
› Beacon marketing
› Recommendations
Swirl is leveraging the power of mobile
and iBeacon technology to reinvent the
in-store shopping experience.
For consumers: The smartphone becomes
an integral part of the in-store experience,
informing and motivating buying decisions
when it matters most.
For retailers and brands: A new way to
drive sales by influencing consumers with
actionable content and offers at the
“moment of truth.”
32
General
Location
Location Profile
Neighborhood
Store Entry
Department or
Area of Store
Verified
Micro-
Location*
End Cap or
POS Display
•  Self-reported
•  Mobile tracking
•  Data modeling
Technology
Marketing
Goal
•  GPS/Geofence
Mobile commerce
& drive to store
“Steer” to store
Engage and
influence
purchase
decisions in
store 
*Other technologies include Wi-Fi, Check-in, Audio, Light, QR code, NFC
Location-Based Mobile Marketing
Poll Question
33
Location-targeted mobile ads. Are you . . . 
§  Currently using
§  Considering/planning to use this year
§  Not likely to use this year
Poll Question
34
GPS/Geofence push messaging. Are you . . . 
§  Currently using with customers
§  Considering/planning to use this year
§  Not likely to use this year
Poll Question
35
BLE/Beacon marketing. Are you . . . 
§  Currently using with customers
§  Considering/planning to use this year
§  Not likely to use this year
Poll Question
36
Other in-store mobile marketing (Wi-Fi, QR codes,
etc.) Are you . . . 
§  Currently using with customers
§  Considering/planning to use this year
§  Not likely to use this year
Configuredsmartphoneapp
listensforbeaconsignal,which
triggersdeliveryoftargeted
content&monitorsuseractivity
Beacon Marketing – How it Works
In-store beacons
transmit location
information 
MarketingConsole(CMS)
allowsmarketertocreate,
manageandanalyze
campaigns
CloudservicesandAPI’s
providescalability,security,
andplatform/database
integration
37
Why Beacons?
§  Work indoors
§  Precise, adjustable range (Tap – 100m)
§  Passive/automatic for consumers
§  Battery-powered (1+ yr. life)
§  Easy set-up & maintenance
§  Low infrastructure investment 
§  Work across iOS and Android
§  Growing ecosystem momentum
38
Beacon Marketing Offers Big Benefits to Retailers
§  Increase mobile engagement
§  Retailer-branded experiences
§  Seamless and valuable for consumers
§  Combat showrooming
§  Influence buying decisions at right place/time
§  Enhance in-store shopping experience
§  Insights into in-store shopping behavior
§  Key component of omni-channel strategy
39
Smartphone Users are Ready for Beacon Marketing
Have used a mobile
shopping app while
inside a store


Would share their
location in return for value


Would purchase in-store
after receiving a relevant
offer while shopping 




40
19%
58%
62%
78%
80%
Ability to pay with mobile
phone
Loyalty program integration
Content that is relevant to
interests and location
More tools for price
comparisions, accessing
lists, style guides
Push notifications about
sales/promotions
Which mobile app features do they most want
to use in-store?
Swirl/Research Now survey of Smartphone users, Nov 2013 
85%
77%
72%
41
Beacon Marketing
Examples & Use Cases
Poll Question
42
What is your current stage of BLE/Beacon marketing?
§  In-store pilot underway
§  Preparing for in-store pilot
§  Evaluating technology in office/lab
§  Still learning/exploring
§  No plans for beacon marketing this year
Alex and Ani - Reinventing Retail
43
Shopper satisfaction
with beacon marketing
experience
In-store app open rate
In-store conversion rate
from visit to purchase
“It’s the strategic and foundational
investments like iBeacon that have
enabled Alex and Ani to grow our
customer-centric omnichannel strategy
at record pace.” 
- Ryan Bonifacino, VP Digital Strategy, Alex and Ani
How Alex and Ani
Is Pioneering the
Future of Retail
90%
75%
35%
Alex and Ani Shoppers Love the Beacon Experience
44
“The fact that it follows me and
synchs with the store location is
genius. It takes out the struggle
to awkwardly stand in a store
looking for offers and
information via the internet.”
“. . . It felt like an exclusive
shopping experience.”
“It added a fun factor to my
shopping experience.”
93%	
   90%	
   88%	
   88%	
  

 
 
 
In-store
mobile offers
would
increase my
likelihood to
buy
In-store mobile
offers would
entice me to
visit a store
more
frequently
The in-store
experience
was intuitive
and easy to
use
The in-store
experience
was useful/
valuable
USER FEEDBACK
(Top 2 Box Survey Responses)
Shopper Feedback
A New “Welcome” Experience
§  Exclusive, Personalized Offers
-  Usage/category stimulation
-  Guide to “beaconized” depts
§  Loyalty Program Integration
-  Member rewards/recognition
-  Sign-up incentives
§  Auto-launch Mobile Features
-  Store search/map
-  Saved wishlist/shopping list
-  Order status/pick-up
§  Value-added Digital Content
-  Store promotions
-  Closeout specials
-  Seasonal content/trends/tips
-  New arrivals
45
Department-Based Digital Experiences
§  Promotions and Offers
-  Exclusive, personal offers
•  Upsell, cross-sell
-  Existing store promotions
-  Manufacturer rebates
-  Closeout/open-box specials
§  Auto-launch Relevant Mobile Features
-  Full online inventory
-  Product reviews
-  Past purchases/specs
-  Saved wishlist/shopping list
§  Value-added Digital Content
-  Buying guides, style tips
-  Seasonal/regional/trending content
-  Reordering recommendations
46
More Beacon-Triggered Experience Ideas
47
§  Interactive end cap/POS display
-  “Tap” for info/sweeps/offer
§  Mobile rewards card displayed at checkout
§  Post shopping engagement
-  eMail address capture
-  Shopper surveys
§  The future of personalized service
-  Clienteling system alerts
-  Dept/fitting room assistance
Remember the 3 C’s – Consumer, Consumer, Consumer
§  Privacy concerns
§  Data for Value equation
§  Relevance is the price of entry
§  Engaging vs. annoying
§  Plan the lifecycle
§  Personalization - key to long-term success
§  A true omnichannel opportunity
§  Test & learn NOW
48
Swirl/Research Now survey, Nov 2013 
Not
relevant to
my interests
or location
41%
Did not
provide
enough
value
37%
Too
annoying
16%
Did not
opt-in to
receive
them
6%
Push Notification Turn-Offs
Moving From the Test Lab to the Main Street

§  Enterprise-class Beacons
-  Data security, radio certifications
-  Beacon network management
§  Consumer experience
-  Retailer/brand messaging
-  Messaging control (push/pull, triggers, caps)
-  Content richness/engagement
-  Personalization
-  Omnichannel integration
§  Campaign management
-  Retail marketer ownership
-  Targeting based on profiles & behaviors
-  Campaign measurement & analytics
-  Testing & optimization
§  Platform scaling
-  Workflow/permissioning
-  API’s and data integration
49
© 2014 Forrester Research, Inc. Reproduction Prohibited 50
Agenda
› The importance of mobile in an
omnichannel world
› Why location matters
› Beacon marketing
› Recommendations
© 2014 Forrester Research, Inc. Reproduction Prohibited 51
#1 - Begin to build the digital
store foundation
Includes infrastructure to support
location marketing and beacons
© 2014 Forrester Research, Inc. Reproduction Prohibited 52
#2 - Choose a beacon marketing
partner to increase agility and
reduce complexity
Those who test now will gain
early insights into future
deployments and use cases
© 2014 Forrester Research, Inc. Reproduction Prohibited 53
#3 - Align your organization on the
opportunity
Leverage beacons to build
meaningful experiences. This
requires a coordinated effort from
many teams.
© 2014 Forrester Research, Inc. Reproduction Prohibited 54
#4 - Address privacy concerns
Hands down this is biggest
adoption barrier.
SERIES
ConsumerConnected #CCS14
Q & A // Panelists
 Debbie Hauss
Editor-in-Chief
Retail TouchPoints
MODERATOR
Adam Silverman
Principal Analyst
Forrester
Rob Murphy
VP of Marketing
Swirl Networks
SERIES
ConsumerConnected #CCS14
9	
  
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Don’t miss today’s session:
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A Retailer's Guide To iBeacon Marketing

  • 1. SERIES ConsumerConnected Session sponsored by Presented by #CCS14 A Retailer's Guide To iBeacon™ Marketing
  • 4. SERIES ConsumerConnected #CCS14 About Retail TouchPoints ü  Launched in 2007 ü  Over 28,000 subscribers ü  To provide executives with relevant, insightful content across a variety of digital medium Free subscription to our weekly newsletter: RETAILTOUCHPOINTS.COM/SUBSCRIBE
  • 5. SERIES ConsumerConnected #CCS14 Panelists Debbie Hauss Editor-in-Chief Retail TouchPoints MODERATOR Adam Silverman Principal Analyst Forrester Rob Murphy VP of Marketing Swirl Networks
  • 6. © 2014 Forrester Research, Inc. Reproduction Prohibited 6 We are living in the “age of the customer”
  • 7. © 2014 Forrester Research, Inc. Reproduction Prohibited 7 The past. Information Price Location Tech
  • 8. © 2014 Forrester Research, Inc. Reproduction Prohibited 8 Information Price Location Tech Today.
  • 9. © 2014 Forrester Research, Inc. Reproduction Prohibited 9 Source: RIS News Tech Investment Up At Nordstrom “The pace of change is accelerating faster than we anticipated a year ago” Blake Nordstrom, President of Nordstrom April, 2014
  • 10. © 2014 Forrester Research, Inc. Reproduction Prohibited 10 Agenda › The importance of mobile in an omnichannel world › Why location matters › Beacon marketing › Recommendations
  • 11. © 2014 Forrester Research, Inc. Reproduction Prohibited 11 Introducing the mobile mind shift The perpetually connected customer
  • 12. © 2014 Forrester Research, Inc. Reproduction Prohibited 12 Customers turn to digital technology Source: Forrester The State Of Consumers And Technology: Benchmark 2013, US
  • 13. © 2014 Forrester Research, Inc. Reproduction Prohibited 13 Customers turn to digital technology Source: Forrester The State Of Consumers And Technology: Benchmark 2013, US
  • 14. © 2014 Forrester Research, Inc. Reproduction Prohibited 14 This year 52% of all US retail sales will either be influenced by, or occur online
  • 15. No indoor malls built since 2006. 15% going out of business. Source: theatlanticcities.com, Financial Times. Image source: Flickr
  • 16. Footfall to European retail outlets in decline: Germany: -6.4% Italy: -6.2% UK: -2.9% Spain: -3.1% e: Forrester; “While Retail Footfall decreases, digital influence on Consumer shopping Behavior increases” 2/26/14
  • 17. © 2014 Forrester Research, Inc. Reproduction Prohibited 17 Source: ShopperTrak, CoStar Group, Wall St Journal US retail outlets also in decline
  • 18. © 2014 Forrester Research, Inc. Reproduction Prohibited 18 To satisfy changing customer behavior, the digital store must emerge › The store becomes an in-store experience platform to drive engagement and conversion… › …infused with technology, including location information › BUT – customers also expect associates to participate
  • 19. The digital store is built on a core set of technology: 1.  Common commerce layer 2.  Distributed order management 3.  Content & Campaign management 4.  Analytics 5.  Location
  • 20. © 2014 Forrester Research, Inc. Reproduction Prohibited 20 Agenda › The importance of mobile in an omnichannel world › Why location matters › Beacon marketing › Recommendations
  • 21. © 2014 Forrester Research, Inc. Reproduction Prohibited 21 Service & engagement are at the core of location services in retail Service Engagement Customer & retailer benefits
  • 22. © 2014 Forrester Research, Inc. Reproduction Prohibited 22 Service & engagement are at the core of location services in retail Insight Efficiency Differentiation Service Engagement Context Personalization Customer benefits Retailer benefitsCustomer & retailer benefits
  • 23. © 2014 Forrester Research, Inc. Reproduction Prohibited 23 Beacon technology is the connective tissue Insight Efficiency Differentiation Service Engagement Context Personalization Customer benefits Retailer benefitsCustomer & retailer benefits
  • 25. Engagement: Significant lift in app open rates and offer redemption rates
  • 26. Service: Hotel doors activated by beacon technology
  • 27. Service + Personalization: Alerts on availability of “click and collect” Pinpoints location of items on a shopping list
  • 28. Source: Retailnext Insight: Ability to understand unique in-store shopping behavior
  • 29. Efficiency + Service: Request for associate help within the aisle
  • 30. © 2014 Forrester Research, Inc. Reproduction Prohibited 30 Agenda › The importance of mobile in an omnichannel world › Why location matters › Beacon marketing › Recommendations
  • 31. Swirl is leveraging the power of mobile and iBeacon technology to reinvent the in-store shopping experience. For consumers: The smartphone becomes an integral part of the in-store experience, informing and motivating buying decisions when it matters most. For retailers and brands: A new way to drive sales by influencing consumers with actionable content and offers at the “moment of truth.”
  • 32. 32 General Location Location Profile Neighborhood Store Entry Department or Area of Store Verified Micro- Location* End Cap or POS Display •  Self-reported •  Mobile tracking •  Data modeling Technology Marketing Goal •  GPS/Geofence Mobile commerce & drive to store “Steer” to store Engage and influence purchase decisions in store *Other technologies include Wi-Fi, Check-in, Audio, Light, QR code, NFC Location-Based Mobile Marketing
  • 33. Poll Question 33 Location-targeted mobile ads. Are you . . . §  Currently using §  Considering/planning to use this year §  Not likely to use this year
  • 34. Poll Question 34 GPS/Geofence push messaging. Are you . . . §  Currently using with customers §  Considering/planning to use this year §  Not likely to use this year
  • 35. Poll Question 35 BLE/Beacon marketing. Are you . . . §  Currently using with customers §  Considering/planning to use this year §  Not likely to use this year
  • 36. Poll Question 36 Other in-store mobile marketing (Wi-Fi, QR codes, etc.) Are you . . . §  Currently using with customers §  Considering/planning to use this year §  Not likely to use this year
  • 37. Configuredsmartphoneapp listensforbeaconsignal,which triggersdeliveryoftargeted content&monitorsuseractivity Beacon Marketing – How it Works In-store beacons transmit location information MarketingConsole(CMS) allowsmarketertocreate, manageandanalyze campaigns CloudservicesandAPI’s providescalability,security, andplatform/database integration 37
  • 38. Why Beacons? §  Work indoors §  Precise, adjustable range (Tap – 100m) §  Passive/automatic for consumers §  Battery-powered (1+ yr. life) §  Easy set-up & maintenance §  Low infrastructure investment §  Work across iOS and Android §  Growing ecosystem momentum 38
  • 39. Beacon Marketing Offers Big Benefits to Retailers §  Increase mobile engagement §  Retailer-branded experiences §  Seamless and valuable for consumers §  Combat showrooming §  Influence buying decisions at right place/time §  Enhance in-store shopping experience §  Insights into in-store shopping behavior §  Key component of omni-channel strategy 39
  • 40. Smartphone Users are Ready for Beacon Marketing Have used a mobile shopping app while inside a store Would share their location in return for value Would purchase in-store after receiving a relevant offer while shopping 40 19% 58% 62% 78% 80% Ability to pay with mobile phone Loyalty program integration Content that is relevant to interests and location More tools for price comparisions, accessing lists, style guides Push notifications about sales/promotions Which mobile app features do they most want to use in-store? Swirl/Research Now survey of Smartphone users, Nov 2013 85% 77% 72%
  • 42. Poll Question 42 What is your current stage of BLE/Beacon marketing? §  In-store pilot underway §  Preparing for in-store pilot §  Evaluating technology in office/lab §  Still learning/exploring §  No plans for beacon marketing this year
  • 43. Alex and Ani - Reinventing Retail 43 Shopper satisfaction with beacon marketing experience In-store app open rate In-store conversion rate from visit to purchase “It’s the strategic and foundational investments like iBeacon that have enabled Alex and Ani to grow our customer-centric omnichannel strategy at record pace.” - Ryan Bonifacino, VP Digital Strategy, Alex and Ani How Alex and Ani Is Pioneering the Future of Retail 90% 75% 35%
  • 44. Alex and Ani Shoppers Love the Beacon Experience 44 “The fact that it follows me and synchs with the store location is genius. It takes out the struggle to awkwardly stand in a store looking for offers and information via the internet.” “. . . It felt like an exclusive shopping experience.” “It added a fun factor to my shopping experience.” 93%   90%   88%   88%   In-store mobile offers would increase my likelihood to buy In-store mobile offers would entice me to visit a store more frequently The in-store experience was intuitive and easy to use The in-store experience was useful/ valuable USER FEEDBACK (Top 2 Box Survey Responses) Shopper Feedback
  • 45. A New “Welcome” Experience §  Exclusive, Personalized Offers -  Usage/category stimulation -  Guide to “beaconized” depts §  Loyalty Program Integration -  Member rewards/recognition -  Sign-up incentives §  Auto-launch Mobile Features -  Store search/map -  Saved wishlist/shopping list -  Order status/pick-up §  Value-added Digital Content -  Store promotions -  Closeout specials -  Seasonal content/trends/tips -  New arrivals 45
  • 46. Department-Based Digital Experiences §  Promotions and Offers -  Exclusive, personal offers •  Upsell, cross-sell -  Existing store promotions -  Manufacturer rebates -  Closeout/open-box specials §  Auto-launch Relevant Mobile Features -  Full online inventory -  Product reviews -  Past purchases/specs -  Saved wishlist/shopping list §  Value-added Digital Content -  Buying guides, style tips -  Seasonal/regional/trending content -  Reordering recommendations 46
  • 47. More Beacon-Triggered Experience Ideas 47 §  Interactive end cap/POS display -  “Tap” for info/sweeps/offer §  Mobile rewards card displayed at checkout §  Post shopping engagement -  eMail address capture -  Shopper surveys §  The future of personalized service -  Clienteling system alerts -  Dept/fitting room assistance
  • 48. Remember the 3 C’s – Consumer, Consumer, Consumer §  Privacy concerns §  Data for Value equation §  Relevance is the price of entry §  Engaging vs. annoying §  Plan the lifecycle §  Personalization - key to long-term success §  A true omnichannel opportunity §  Test & learn NOW 48 Swirl/Research Now survey, Nov 2013 Not relevant to my interests or location 41% Did not provide enough value 37% Too annoying 16% Did not opt-in to receive them 6% Push Notification Turn-Offs
  • 49. Moving From the Test Lab to the Main Street §  Enterprise-class Beacons -  Data security, radio certifications -  Beacon network management §  Consumer experience -  Retailer/brand messaging -  Messaging control (push/pull, triggers, caps) -  Content richness/engagement -  Personalization -  Omnichannel integration §  Campaign management -  Retail marketer ownership -  Targeting based on profiles & behaviors -  Campaign measurement & analytics -  Testing & optimization §  Platform scaling -  Workflow/permissioning -  API’s and data integration 49
  • 50. © 2014 Forrester Research, Inc. Reproduction Prohibited 50 Agenda › The importance of mobile in an omnichannel world › Why location matters › Beacon marketing › Recommendations
  • 51. © 2014 Forrester Research, Inc. Reproduction Prohibited 51 #1 - Begin to build the digital store foundation Includes infrastructure to support location marketing and beacons
  • 52. © 2014 Forrester Research, Inc. Reproduction Prohibited 52 #2 - Choose a beacon marketing partner to increase agility and reduce complexity Those who test now will gain early insights into future deployments and use cases
  • 53. © 2014 Forrester Research, Inc. Reproduction Prohibited 53 #3 - Align your organization on the opportunity Leverage beacons to build meaningful experiences. This requires a coordinated effort from many teams.
  • 54. © 2014 Forrester Research, Inc. Reproduction Prohibited 54 #4 - Address privacy concerns Hands down this is biggest adoption barrier.
  • 55. SERIES ConsumerConnected #CCS14 Q & A // Panelists Debbie Hauss Editor-in-Chief Retail TouchPoints MODERATOR Adam Silverman Principal Analyst Forrester Rob Murphy VP of Marketing Swirl Networks
  • 56. SERIES ConsumerConnected #CCS14 9   Thanks for attending! Don’t miss today’s session: APRIL   Boos+ng  Revenue  With   Smarter  WFM   2PM  ET  /  11AM  PT   ccs.retailtouchpoints.com/2014