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All-Channel Experience withIBM Smarter Commerce

Increase customer loyalty and optimize systems by putting thecustomer at the center of everything. Capgemini’s All-ChannelExperience delivers improved consumer insights, differentiatedconsumer engagement, increased loyalty and sales—andbusiness continuity.Whether at work or at home, the way we select, transact andconsume products and services is changing. The proliferationof the internet and of mobile technologies opens up a wholeraft of channels and choice. Touchpoints with services,products and brands span numerous platforms, from websites,to call centers, to mobile apps, to checkouts and beyond.Underpinning all of this is the fact that customers demand aseamless experience — yet, based on our research, are notconsistently getting it. For retailers and service providers, thisrequires a fully integrated back-end of systems, which combineto deliver the responsive and personalized outcomes thatcustomers really want.Capgemini has observed this shift over several years. We haveworked with retailers and service providers, end users and ITpartners to develop a blueprint for delivering seamlessly acrosschannels. The result is what we call an All-Channel Experience(ACE). An All-Channel Experience provides a single brandexperience across multiple channels, delivered through amodel that harnesses technology to join up customertouchpoints with insight and data, procurement and fulfillment,marketing and pricing, and align it with the legacyIT infrastructure.Crucially, the All-Channel Experience enables businesses toact in exactly the right way at exactly the right moment,wherever the customer or user may be. It gives companies thelatest technology and capabilities so they can orchestrateindividual customer relationships, and hit the right note exactlywhen they need to.Capgemini’s All-Channel Experience approach brings tangiblebusiness value through increased customer loyalty andoptimization of systems. We partner with IBM to driveperformance through the entire customer journey, byharnessing the Smarter Commerce initiative — powered byIBM market solutions — which puts the customer at the centerof any business.2

All-Channel Experience with IBM Smarter Commerce the way we see itBrand loyalty, not channel loyalty 56% of shoppers said they were more likely to spend more money at a physical store if theyhad used digital channels to research. 55% of shoppers want personalized offers and recommendations through digital channels. 50% of shoppers want to be able to easily return a product using digital channels regardlessof where a product is purchased.Source: Digital Shopper Relevancy, Capgemini, 2012Customer satisfaction and loyaltyare won across channelsThe evolution of customer behaviors and expectations presentsa new set of challenges for businesses and service providers,regardless of sector. While the retail sector may drive change,customer expectations (in terms of choice of channel, responseand service) spill over into interactions with, for example,utilities, telecom providers, local government and more. Whilethe solution may vary for the service or product provider, thetenets of the All-Channel Experience remain the same:Customers are not loyal to a single channel. Rather, customersatisfaction and loyalty are won through a single brandexperience across channels.In order to meet customer expectations and increaseprofitability, retailers and service providers need to do anumber of things across different capability areas. We haveestablished seven key steps for business, which comprise theAll-Channel Experience proposition for business:1.2.3.4.5.6.7.Connect elegantlyDelight and entertain dailyCharge competitivelyDeliver flawlesslyMeasure relentlesslySee completelyTransform effectivelyFigure 1: The All-Channel Proposition: Driving Value for Customers and the BusinessTransform Effectively(A Compelling Proposition)Connect Elegantly(Customer Management)Building the right proposition for yourbrand and customer, bringing it to lifethough a clear vision and roadmap, andassessing its financial viability bydeveloping a business caseSee Completely(Single View of Data)Manage a personal and relevantdialogue with individual customers andmarkets to learn more about them andimprove conversionsUse a common set of real-time(internal and external) data for allstrategic, tactical and operationalactivities to ensure accuracy, avoidduplication and improve insightsDelight and Entertain Daily(Content Management)Measure Relentlessly(Performance Management)Effectively manage high-quality richand inspirational content across allchannels and touch points for highercustomer engagement and improvedROI on assetsOptimise and monitor the performanceof your business across all channels forimproved profitability and marginsCharge Competitively(Commerce Management)Provide the capability to transact onlineand manage the most optimalmerchandising and pricing across allchannels to offer customers value formoney and drive salesDeliver Flawlessly( Fulfilment Management)Efficiently deliver your merchandise atthe location and time your customersprefer for improved convenience andoperational efficiencies3

An important principle of the All-Channel Experience is usingdata to extrapolate sharp customer insights, and applyingthese to create differentiated “moments of truth” for customersand users, which change perceptions, drive loyalty andincrease advocacy. But it goes deeper than simply listeningand responding; the technology infrastructure and businessprocesses must be fit for purpose.Meeting the challenges of anall-channel approachWhile retailers and service providers are making strides toadopt the all-channel approach by, for example, introducingnew customer-facing mobile apps, improving online orderfunctionality, or investing in social media listening and analysis,the task of delivering an All-Channel Experience requires ao360 approach.Delivering the seamless journey means reviewing andredesigning processes, and then constant evaluation andflexing to ensure a responsive service. This covers all aspectsof the operation, for example: Optimizing performance across the supply chain Seeking, listening and responding to customer feedback4 Capturing, analyzing and applying customer insight,constantly Business performance and behavior changeFor this reason, Capgemini’s All-Channel Experience solutionsspan the initial strategic roadmap, right the way through to theunderlying technology and business processes in three distinctareas:Digital Strategy and Transformation:Assisting with the development of a digital strategy androadmap, and the subsequent transformation of their overalldigital capabilities.All-Channel Commerce:Integrating the commercial activities of retailers and serviceproviders in all relevant physical and digital channels.Consumer Dialogue:Managing the relevant personal interactions with customers viasocial media channels, mobile applications andlocation-based services.

All-Channel Experience with IBM Smarter Commerce the way we see itIBM solutions address theall-channel challengeLike Capgemini, IBM recognizes the evolution of thetechnology-empowered customer. It has invested over 3billion in the last three years to create a truly smarter approachto commerce.The IBM Smarter Commerce approach puts the customer atthe center of operations, analyzing critical customer andoperational data — including multichannel buying behaviorsand social media content — and optimizes processes acrossthe enterprise and commerce cycle, including buy, market, selland service.Figure 2: IBM Smarter Commerce point of viewBuyMarketAdaptiveprocurementand optimizedsupply chainTargeted andpersonalizedmarketing acrossall channelsCapgemini and IBM are aligned in the way they are helpingbusinesses better serve the new breed of technology-savvycustomer. IBM’s Smarter Commerce strategy enjoys a good fitwith Capgemini’s All-Channel Experience approach, allowingfor easier implementation and increased speed to value.Smarter benefitsIBM’s clients have seen impressive benefits from their adoptionof solutions selected via the Smarter Commerce approach, for1example : 5%-20% increase in revenue15%-25% reduced shipping costs5%-15% decrease in customer attrition15%-30% increase in campaign ROILuxury retailer: Creating personalizedtouchpoints to accelerate salesA European luxury cosmetics retailer had traditionallyenjoyed strong sales through in-store merchandising andconsultant recommendations to customers. With IBM’sSmarter Commerce approach, the company was able toreplicate this success online, too.The challenge:Email marketing techniques were seeing limited success,and the retailer wanted to drive greater onlineengagement.The solution:ServiceSellAnticipatebehavior anddeliver flawlesscustomer serviceSeamlesscross-channelcustomerexperienceBy operationalizing business around the customer, companiescan deliver a personalized, highly relevant and seamlessexperience across channels, which can foster increasedcustomer loyalty. Additionally, through the ability to betterenable and integrate their commerce processes, companiescan capitalize on opportunities for profitable growth andimproved efficiency.IBM’s web analytics tools have enabled the company touse the information provided by customers andbehavioral web data (shopping frequency and productaffinity, for example) to segment its customers and delivermore targeted offers to them based on product affinities.Results:By delivering highly targeted and personalized offers forthe products its customers want the most, this retailerhas seen online revenue increase by 2,500%, andconversion to sale by almost 1,700%.Personalized email touchpoints are keeping customerengagement high and driving repeat online purchases.1 Source: Internal IBM benchmarks based on actual (retail) client engagements;results may vary by project5