It’s really about knowing your customer Showing them you’re listening, caring, adopting, anticipating, Going-the-extra-mile by doing the large-, small-, and in-between things showing you really care Leaders put the customer at the center of the business….

1. The Power of
Cognitive Commerce for Retailers
and CPG Manufacturers
May 27, 2016

2. What has changed in the
World of Retail
 Customers are more connected, more
empowered and demand satisfaction
 Seamless customer interactions are
sought across all channels
 Fulfillment models are being
transformed with on-demand options

3. 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 …

5. Retailers must now leverage brand advocates as the new
strategic advantage
5
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

6. There has been a massive change in how
people engage with brands…
© 2016 IBM6
As leaders we need to embrace all the information that
allows us to understand customers and serve them better

7. Expectations are high …
© 2015 IBM7
I want to …
 use virtual reality to design and remodel
my kitchen, then have it delivered and installed
while on a weekend getaway…
 take delivery of fresh grocery – farm to table –
and track the source and route it took…
 have local health and wealth advisors
accessible to me who are as knowledgeable
as the best advisors in NY and London…
 have make custom made clothes from your
local retailer to exact measurements with the
material of your preference ready for you…

8. • Deliver a contextual shopping
experience
• Build intelligent merchandising,
fulfillment and supply operations
• Drive informed and efficient operations
A winning retail
strategy

9. © 2016 IBM9
Deliver in the moment Align
past, present and future
dispositions
Anticipate intent
Understand behavior and
emotional influences
Earn trust and loyalty
In every interaction
across all channels
Many leading brands are differentiate through customer engagement…

10. Perfect Timing
The right experience,
delivered at just the
right moment.
Predictive Capability
Understanding what
individuals really want,
before they even know it.
Cognitive Power
Ability to see patterns and
make unlikely connections,
beyond human imagination.
Infinite Data
Access to an endless
universe of information and
possibilities.
© 2016 IBM10
We help forward-thinking leaders
make better decisions, drive insight to action,
and deliver rapid innovation by capitalizing on
these areas …

11. For marketers
…the ability to create
personalized, meaningful
customer experiences,
infused by analytics.
For e-commerce
professionals
…the ability to perfect
all aspects of the
customer’s interaction
through customer and
experience insights.
For supply chain
leaders
…the ability to orchestrate
complex systems,
processes and partners, to
deliver flawlessly.
© 2016 IBM11

12. To engage with customers, not at them
© 2016 IBM12
Customer Analytics
Marketing
eCommerce &
Merchandising
Digital Experience
IBM Interactive
Customer engagement
solutions from IBM help
you understand and adapt
instantly to what customers
are saying and doing – so
you can deliver the kinds of
experiences and offerings
they want before they even
know they want them.

13. And, to have value chains that are seamless and strong
© 2016 IBM13
B2B Integration
Procurement
Payments
IBM Managed Services
Partner and supplier
engagement solutions from
IBM help you establish and
manage closely linked value
chains enabling seamless
and secure collaboration,
enhanced transparency and
new levels of agility for you
and your trading partners.

14. Marketing
Engage customers in
relevant and
rewarding experiences
that makes them ask for more.
© 2016 IBM14

15. Orvis
Orvis uses IBM Marketing Solutions to employ powerful flowchart logic, segmented offers, offer
assignment, and channel selection.
88% 2yrs
reduction in digital and
non-digital campaign
and reporting costs
record profits
after solution
implementation 40%
reduction in email
costs versus prior
outsourced solution

16. Deliver a differentiated brand
experience across channels
and show customers
how much they matter
to you.
eCommerce and
Merchandising
© 2016 IBM16

17. hhgregg
Captures sales in real-time to deliver a consistent experience across all channels -- all powered by IBM
eCommerce solutions.
Of traffic from
mobile devices
Enables mobile and
desktop customers to
execute product purchases25% Seamless
© 2016 IBM17

18. Customer Analytics
Really know
how your customers
are feeling and what they
need to serve them better.
© 2016 IBM18

19. 19 © 2015 IBM
FreshDirect
FreshDirect 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

20. Digital Experience
© 2016 IBM20

21. © 2016 IBM21
Clear Returns
Drives profitability for retailers - all powered by IBM eCommerce, IBM Customer Analytics, and
IBM Digital Experience
650k
USD savings identified for UK
fashion retailer by removing the top
10% of frequently returned items 30%
USD estimated impact
of returns for the UK
e-commerce sector

22. B2B Integration
Improve information flows
across all business relationships to
be more responsive.
© 2016 IBM22

23. 23 © 2015 IBM
Bonnie Plants
Bonnie 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 months
from March to May
USD realized growth by reducing
costs and increasing reliability of
their B2B operations10-20M 70%

24. Payments
Ensure
customer trust
by quickly and securely
processing payments.
© 2016 IBM24

25. JCC Payment Systems
JCC Payment Systems is using IBM Payments solutions to deliver SEPA transaction processing as a
service to creditors and banks across Cyprus.
SEPA 250K
Transaction processing to creditors and
banks – enriching its service offering
and driving growth
SEPA Direct
Debits processed
daily at peak times

26. 26 © 2016 IBM
Industry Expertise
 Experience design and digital consultancy using
disruptive thinking, visioning workshops, and
cross-industry expertise
 IBM IX pioneered new apps on the Apple
watch for Nationwide,Citi and JapanAirlines
 IBM is a leader in digital transformation
consulting and SI services-IDC
MarketScape 2016
 25Global Design Studios
World class design and digital transformation services

27. Open Ecosystem
© 2016 IBM27
Ready for IBM Commerce
Pre-built integrations that deliver value faster with
complimentary capabilities.
IBM Universal Behavior Exchange
For a key set of Business Partners who create and leverage
a vast pool of behavioral data.
Plus…
A comprehensive set of resellers, system integrators,
complimentary solution providers as well as digital marketing
agencies and marketing service providers.
Investing to deliver better customer experiences…

28. IBM Commerce delivers nearly 15x ROI for every dollar spent
50% of IBM Retail
Solutions transacted over
50% more online sales
than the next closest retail
solution provider
2/3
of 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
70
of the top 100 global
retailers are powered by
IBM retail solutions
MoreTop 500
online retailer sales are
powered by IBM Retail
Solutions than any other
platform provider

29. Why choose IBM Commerce?
© 2016 IBM29
Powered
by Watson
Experience Design
Design based on a deep
understanding of our
users
Cognitive Power
Ability to see patterns
and make unlikely
connections
Industry Expertise
Scale with speed
by developing
asset-based
industry solutions
Open Ecosystem
Data exchanged
to develop
personalized customer
experiences

30. Join the
conversation
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