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Why Retailers Need to Reorganize for Effective Content-driven Commerce By Ray Grady, Senior Vice President of Commerce at Acquia

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Why Retailers Need to Reorganize for Effective Content-driven CommerceBy Ray Grady, Senior Vice President of Commerce at Acquia

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Table of Contents

Introduction ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 3

Six Steps Toward a Unified Content and Commerce Organization –––––––––––––––––––––––––––––––––––––– 5

Unlocking Business Growth Through a Unified Content and Commerce Strategy –––––––––––––––––––––––– 7

Dogs and Cats Living Together? Why It’s Time to Merge Content and Commerce Teams ––––––––––––––––– 9

Integrating CMS and Commerce Platforms: A Catalyst for Change? ––––––––––––––––––––––––––––––––––– 12

Finding—and Fixing—the “Gotchas” that Inhibit the Customer Journey –––––––––––––––––––––––––––––––– 13

The Right Content at the Right Time –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 16

Conclusion –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 18

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IntroductionStorytelling has long been a staple of good brand marketing. But the concept has taken on more urgency in the digital space, where brands now have the power to engage directly with their customers through web and mobile channels.

The mandate for more sophisticated brand content has introduced a new set of challenges for online retailers—namely, how to integrate traditionally separate marketing and commerce operations to deliver a unified experience to shoppers.

A lot is at stake. Research firm, eMarketer, estimates that digital commerce will account for nearly $1.6 trillion of global retail sales in 2015, an increase of almost 21 percent over 2014. That figure will grow to $2.5 trillion by 2018—accounting for 8.8 percent of all retail sales worldwide.

A recent Forrester survey found that nearly 60 percent of companies that sell products or services online have separate marketing and commerce teams. For many retailers, this siloed structure has resulted in what Forrester dubs the “two-site syndrome” in which the brand website is maintained separately from the commerce site.

“Commerce and marketing teams grew up separately,” said Stephen Powers, a Forrester VP and research director who has written extensively about the integration of content and commerce. “They had separate goals, separate organizations, separate reasons to exist.”

This separation forces consumers to make artificial choices—“Click here to learn more” or “Click here to shop”—that are based on the retailer’s operating structure, not what’s best for the shopper. The gaps that disrupt instead of enhance the consumer experience endure. Just 24 percent of companies in the Forrester survey share project teams and other operational leadership across marketing and commerce. More e-commerce teams report to corporate IT (23 percent) than to a marketing director (19 percent).

Ray Grady is Senior Vice President of Commerce at Acquia. Before coming to Acquia, he was a member of the Executive Management team of Acquity Group. During his tenure he built the go-to-market strategy and sales organization, resulting in a CAGR of over 40 percent. Prior to the Acquity Group, Ray was a VP and Principal at marchFIRST.

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“You could have the best technology in the world, but if you still have siloed organizations that aren’t collaborating together, you’re still going to wind up with two-site syndrome,” said Powers.

For retailers to be effective in the current consumer-driven, multi-channel environment, the silos need to come down. An experience-led strategy and supporting organizational structure that blends content and commerce is critical for any retailer trying to differentiate its brand amidst an increasingly crowded and commoditized digital marketplace. No wonder that brands like athletic apparel company Puma and UK-based cosmetics company Lush are investing in better ways to integrate commerce and content operations.

“Having a unified experience is a competitive advantage right now—because no one really has one,” said Powers. Unifying even a few steps of the customer lifecycle can give retailers a leg up on competitors now while laying a foundation for more personalized and engaging shopping experiences across all channels.

So what is your leadership team doing to integrate content and commerce operations?

“You could have the best technology in the world,

but if you still have siloed organizations that aren’t

collaborating together, you’re still going to wind up with

two-site syndrome.” — Stephen Powers, VP at Forrester

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Source: 2014 Internet Retailer 500 conversion rate estimates for URBN Inc., L’Oreal Inc., and Gap Inc.

Research firm L2 found that

brands’ success in delivering a variety of content on

their websites correlates with higher e-commerce

conversion rates.

Six Steps Toward a Unified Content and Commerce OrganizationMore retailers and branded manufacturers are acknowledging the importance of integrating digital content and commerce operations. They realize they need to move away from the classic “two-site syndrome”—where the brand site and the online store are separated by different technology platforms and managed by different teams—and give consumers a seamless experience along the many stages of the buying process.

Integrating content and commerce is a real business imperative. In its recent Intelligence Report on Content and Commerce, research firm L2 found that brands’ success in delivering a variety of content on their websites correlates with higher e-commerce conversion rates. “These assets are driving online sales, creating a virtuous content-commerce relationship tied to shareholder value,” the report states.

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1 GOALS—The desire to deliver a better digital experience to customers has to start at the top of the organization. A clear mandate from senior leadership is the only way to ensure organizational buy-in and provide the air cover necessary to make tough integration decisions.

4 PROCESSES—Pave a smoother path for customers as they move toward a conversion. Removing operational barriers—such as having to leave the brand site to complete a purchase, or having to re-enter information when moving from a smartphone to a website—requires a reworking of business processes and workflows around a common and comprehensive view of the customer lifecycle, not discrete parts of the journey.

2 TEAM STRUCTURE—Marketing and commerce teams have long co-existed under the figment of “collaboration.” But clear lines of delineation generally exist between the two groups, with separate agendas, separate key performance indicators (KPIs), and separate bosses. A C-level (chief-level) executive who has authority across all digital channels can bring content and commerce teams together in a structure centered on the customer, not organized around channels.

5 CONTENT—Compelling content is a big opportunity for a brand to differentiate itself. The old commerce model emphasized utility—grids, thumbnails, and prices. The new approach involves content that is tuned to engage a customer wherever they are on the purchase path from discovery to checkout. All formats—including blogs, video, and social media—must work together to drive engagement, conversion, and return visits.

3 TECHNOLOGY—Integrating web content management (WCM) and e-commerce platforms can be an excellent catalyst for unifying marketing and commerce operations. An integrated platform forces a meeting of the minds. Whether you add content management functionality to an existing commerce platform or layer commerce features onto your WCM platform, the end goal is the same: a seamless browsing and shopping experience.

6 METRICS—The uber-metric for any retailer or branded manufacturer—sales—doesn’t change in an integrated content/commerce operation. But many of the underlying metrics need tweaking. Eliminate any KPIs that reward sales through a specific channel; these types of incentives lead to internal barriers that inhibit the shopping experience. Integrating brand marketing and commerce platforms will drive new insights about customer behaviors and preferences.

SIX STEPS TO INTEGRATE YOUR TEAM Integrating content and commerce operations is a critical step for any business that hopes to thrive in the digital economy. Just 39 percent of companies in a recent Forrester survey have an integrated commerce and brand marketing team, and only 32 percent use a single technology platform for digital content and commerce. If you’ve been putting it off, it’s time to get started.

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The first 90 days of a

transformation initiative “are all about getting

ready for action.”

Unlocking Business Growth Through a Unified Content and Commerce StrategyDeveloping a unified online experience is an important step for any company trying to achieve what Kleiner Perkins’ Mary Meeker termed the Internet Trifecta (content+community+commerce) to differentiate its brand in an increasingly digitally dominated economy. That is why creating a shared vision is an important first step toward achieving a truly unified strategy.

Retailers and branded manufacturers should view the integration of content and commerce operations as part of a larger digital transformational journey, with a shared goal of delivering a consistently positive experience across every customer touchpoint.

This customer-first transition can be tricky, because it often challenges existing processes, workflows, metrics, and organizational structures. That’s why the CEO generally needs to lead the charge—or at least have the back of the person or team who’s driving the strategy.

Developing a shared strategy early in the process is critical to the success of any digital transformation project. In a recent report, Forrester notes that the first 90 days of a transformation initiative “are all about getting ready for action,” which includes getting buy-in around the goals of the transformation with senior management and others important to making it happen.

Part of the initial round of communications may involve helping the affected leaders and contributors become more digitally fluent, the report notes:

“ Far too many digital programs stall because eBusiness leaders over-focus on building plans and strategy documents and forget that their senior leaders are often out of their comfort zone in the digital world. Work with partners, agencies, your internal training team, and executive coaches to immerse your C-suite in digital. The rest of your firm can follow as you begin to build a stronger case based on real results.”

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Launched in the spring of

2014, Lush Kitchen already accounts for about 10

percent of online sales.

Another Forrester report suggests that marketing and commerce teams should closely collaborate to identify any pain points that are a priority to customers—using a combination of analytics and techniques such as customer journey mapping—and focus initial investments on shoring up those weak spots.

As content and commerce strategies begin to gel, you’ll gain even more insights about your customers. These insights can drive new features, functions, or products that improve engagement and potentially drive top-line growth.

Lush has used content as a springboard to extend its strong, socially conscious brand personality into its digital channels. The insights it gained from better brand engagement with customers online and through social channels led to a new product category known as Lush Kitchen, which features small batches of hand-made beauty products created and shipped daily. The Kitchen concept creates even deeper engagement with customers by opening a window into the company’s manufacturing process. Launched in the spring of 2014, Lush Kitchen already accounts for about 10 percent of online sales.

With a unified vision around content and commerce, Lush’s executive leadership has embraced digital as the next frontier for extending the company’s brand spirit to new channels and new customers.

Are your goals aligned to a similar vision of the future?

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Dogs and Cats Living Together? Why It’s Time to Merge Content and Commerce Teams Putting marketing and commerce teams in the same room isn’t exactly the equivalent of dogs and cats living together, but it’s close. While co-existing under the guise of collaboration, at most retailers these two groups have traditionally operated independently, with separate leaders, discrete objectives, and other clear lines of delineation. Commerce people live in a world of transaction processing, product information, and order management systems. They care about calculating shipping rates and sales taxes. Marketers use content management systems, Photoshop, social media tracking, and marketing automation services. They care about brand hygiene, color palettes, marketing calendars, and value propositions for their target personas and segments.

Putting marketing and commerce teams in the same room isn’t exactly the equivalent of dogs and cats living together, but it’s close.

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It’s time to break down those walls. As more retailers and brand manufacturers seek to differentiate their brands through customer-driven digital experiences, they’re embracing the need to integrate content and commerce operations. A critical step in this transformation isn’t finding a technical solution—it involves knocking down the organizational silos between marketing and commerce. In the end it’s about organizational charts.

Consumers crisscross multiple channels—often simultaneously—as they research products, compare prices, shop, and, ultimately, purchase goods and services. To be successful in this new environment, companies need to throw out existing channel- or function-specific organizational models and reorganize around the true customer journey.

It’s time to break down those

walls. As more retailers and brand manufacturers seek to differentiate their

brands through customer-driven digital experiences,

they’re embracing the need to integrate content and

commerce operations.

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FOUR TIPS FOR BREAKING DOWN THE SILOS:

1 HIRE A CHIEF DIGITAL OFFICER (CDO)—Marketing and commerce teams generally report to separate executives—the chief marketing officer (CMO) for marketing and either the chief information officer (CIO) or chief operations officer (COO) for commerce. Unification may require a new C-level executive who can strike a balance between telling great brand stories while increasing conversions, average order value, units per transaction, and other commerce metrics. A CDO may fill the void. CDOs are gaining traction across many industries; the CDO Club—the world’s largest network of chief digital and data officers—estimated the number of CDO positions worldwide would reach 1,000 in 2014, more than double the 488 executives who held CDO positions in 2013. Just 6 percent of those 2013 positions were in the retail sector, however.

2 CO-LOCATE MARKETING AND COMMERCE TEAMS— Something as simple as making marketing and commerce sit next to each other might provide a catalyst for tighter integration between content and commerce operations. As part of a wide-ranging digital initiative, Lush put its creative and commerce teams together in a space specifically designed to facilitate collaboration. Another retailer that has raised its digital marketing game, Puma, consolidated eight separate e-commerce teams into one global unit that oversees market rollouts, investments, and brand strategy.

3 ADD NEW SKILLS AS THE GLUE—Groups that have long worked separately may need some help forming tighter bonds. Adding new or repurposed skills could provide the adhesive. For example, user experience (UX) designers might evolve into the digital equivalent of a visual merchandiser—the person charged with designing store layouts that attract customers and maximize sales. Demand for editorial skills is also increasing as marketing content evolves from purely promotional messaging to a more engaging form of storytelling.

4 GET THE MEASUREMENT AND INCENTIVES IN SYNC— Changing the organizational chart won’t make a difference unless everyone’s focused on shared objectives. Marketers can’t be driving improvements in Net Promoter Score (an index that measures customers’ willingness to recommend a product or service) while commerce teams are putting all their efforts into driving sales. Blending the metrics will bond the teams more closely.

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Retailers and brands that aspire to deliver a more consistent experience across channels have to tear down the traditional walls. The integration of WCM and e-commerce technology can be the catalyst that helps you break down those silos. An integrated platform will force a meeting of the minds around the entire customer journey, not just the discrete elements that marketing and commerce oversee separately.

“When technology for content- and commerce-based experiences are disconnected,” according to a Forrester report, brands face “difficulties with consistency across channels, creating fully contextual experiences for site visitors and providing rich content at all stages of the customer life cycle.”

Forrester found that collaboration improves when commerce and marketing teams share technology systems. Over half (53 percent) of the organizations that share platforms rated collaboration between commerce and brand marketing teams extremely favorably, compared with only 19 percent when the groups don’t share technology.

Integrating WCM and e-commerce platforms provides benefits beyond better collaboration.

Integrating CMS and Commerce Platforms: A Catalyst for Change?

Forrester found that collaboration improves

when commerce and marketing teams share

technology systems.

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Finding—and Fixing—the “Gotchas” that Inhibit the Customer JourneyThe plethora of home renovation shows on cable TV often share a common theme: the “gotchas” that inevitably crop up as the homeowners start tearing down walls and ripping up floors. Hidden problems with plumbing, wiring, or other foundational components can stop a project in its tracks.

Overhauling your digital commerce strategy is no different. As you start tearing down functional walls to deliver a customer-driven online experience, you’re likely to discover outdated processes that impede your progress. Just 14 percent of business leaders in a 2014 Forrester study believe they have the processes in place to execute their digital strategy successfully.

A “shop.brand.com” subdomain that requires an extra mouse click or two—and a separate login—is a sure sign of a user-unfriendly shopping experience. A checkout process that times out before you can complete a transaction is a pain point. These are not just technology issues—they’re often dictated by competing teams with competing agendas, which results in conflicting processes.

Where to begin? Mapping what McKinsey & Company, a global management consulting firm, calls the customer decision journey will help companies identify the processes and programs required to improve the experience and capture new opportunities. Forrester explains a similar concept that it calls ecosystem mapping:

“ Ecosystem mapping is a collaborative process that helps companies identify the set of complex interdependencies that shape all of their interactions with customers. Typically conducted in a workshop setting, teams identify and document the people, processes, policies, and technologies that create the customer experience. This includes those parts of the ecosystem that are in plain view of customers as well as those parts that influence the customer experience from behind the scenes. Ecosystem mapping helps teams identify previously hidden people, processes, policies, and technologies—and the customer interactions they influence.”

Ecosystem mapping helps teams identify

previously hidden people, processes, policies, and

technologies—and the customer interactions

they influence.

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THESE MAPPING EXERCISES WILL LIKELY UNCOVER PLENTY OF EMBEDDED “GOTCHAS,” INCLUDING:

� Channel conflict—Rewarding functional units on channel-specific performance can lead teams to create paths or promotions that actually dissuade customers from purchasing through other channels. Retailers have to shed the mentality of caring where their customer acquires a product and instead create processes, workflows, and incentives that ensure a consistent experience across all channels.

� Lack of personalization—Just 29 percent of marketers offer personalized web experiences, according to ExactTarget, even though context and relevance are becoming key differentiators among consumers shopping online or through their phones. Companies should consider adding a handful of important personalization features to their websites to more closely replicate the high-touch shopping experience that the best brick-and-mortar retailers offer. That means more A/B testing to find out what works and what doesn’t—a process that must be ongoing and adaptive.

� Neglected channels—Many retailers that are still playing catch-up with web and email channels have been quickly overwhelmed by consumers’ interest in mobile commerce. Mobile devices accounted for 57 percent of all online traffic and 35 percent of online sales on Christmas Day in 2014. Companies need processes and workflows that optimize content for smaller screens and leverage mobile-specific features, such as geolocation to further personalize the shopper’s experience.

Revamping outdated processes to address these pain points not only drives important short-term improvements to your existing commerce business, it also leads to insights that drive new and better experiences for your customers.

CORE METRICS FOR A UNIFIED CONTENT/COMMERCE STRATEGY

A unified content and commerce operation doesn’t change your organization’s primary objective: increased sales. But retailers or branded manufacturers that are bringing digital commerce and marketing teams together will want to align and adjust other core metrics to ensure they’re getting a complete picture of how their digital investments are influencing customers in the purchase funnel.

Just 29 percent of marketers

offer personalized web experiences, according to

ExactTarget.

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Attribution modeling is

a good way to align marketing activities with business performance by

providing a more accurate view of the elements that

influence a sale.

Attribution modeling is a good way to align marketing activities with business performance by providing a more accurate view of the elements that influence a sale. This view gives marketing and commerce teams a better understanding of where they should be placing their bets. An integrated commerce and content management platform doesn’t solve the attribution problem, but it does give you the opportunity to create a unified view of your customer—the key to accurate attribution. Recent research from Forrester found that marketing and commerce teams that share a technology platform see improvements in a wide range of operational and customer experience metrics, including campaign costs, fulfillment costs per order, time-to-market, and conversion rates. Integrating content and commerce teams can have a positive impact on other core metrics as well, including:

� Bounce rate—In its latest eCommerce Quarterly report, marketing tech firm Monetate suggests that for digital commerce companies, “bounce rate might be worth even more obsessive focus” than conversion rate. The reason: 30 percent of website visitors leave in the first minute. More targeted inbound marketing efforts and landing pages that grab the visitor quickly with compelling visuals or other content can lower your bounce rate, which means visitors are sticking around on your site longer—offering more conversion opportunities. (A bounce rate under 40 percent is generally considered excellent.)

� Time on site—Compelling content gives visitors a reason to stay longer. The longer they stay, the more opportunities you have to serve up additional content that leads them down the purchase path. The key is a combination of brand and product content that both entertains and informs your audience, without any barriers to a transaction.

� Increased cart size—Recommendations and related content can influence customers to consider products or services they weren’t specifically looking for when they came to the site. Showcasing several products in the context of a various lifestyles is a smart approach to brand storytelling that can drive key commerce metrics such as cart size, average order value, and lifetime value.

Attribution modeling is far from perfect. But integrating content and commerce data can give you a better foundation for measuring the aggregate activities that have the most influence on your customers—and the biggest impact on sales.

LE

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In addition, a variety of

formats—including blogs, video, and social media—

must work together to drive engagement, conversion,

and return visits.

The Right Content at the Right Time B2C marketers are spending a quarter of their budgets on content, and nearly two-thirds plan to increase spending in the year ahead, according to the Content Marketing Institute. But just 27 percent have a documented content marketing strategy, and only 23 percent believe they can successfully measure the return on their content marketing investments.

Compelling content can help your brand rise above the clutter in a digital world in which 72 hours of video are uploaded to YouTube every minute. For retailers and branded manufacturers, integrating content and commerce operations presents an opportunity to provide a more engaging experience along the entire path to purchase.

But the traditional separation between marketing, which owns brand communications, and commerce, which oversees product and transaction information, creates significant challenges. In its Intelligent Report on Content & Commerce, research firm L2 identified three common content-related pain points among the 80 global brands it studied:

� Ownership—When commerce owns product-related content creation and marketing manages brand content, rifts can occur that affect the type and quality of the site experience.

� Objectives—Many organizations still don’t embed brand content—blogs, videos, and the like—across the commerce site, which limits its impact on driving sales.

� Globalization—Brands have a U.S.-centric approach to content creation, often taking a decentralized approach to content management with fragmented platforms that impede asset delivery across regions.

Integrating brand marketing and commerce operations requires a more holistic approach to content development and delivery. Content needs to be tuned to engage a customer wherever they are on their buying journey—from discovery to checkout.

In addition, a variety of formats—including blogs, video, and social media—must work together to drive engagement, conversion, and return visits. Successful retailers and branded manufacturers are blending different types of formats at different stages of the purchase cycle to create wonderful stories that integrate the brand story with the commerce experience.

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THREE GREAT EXAMPLES:

� Lush created a web experience that reflects the company’s rich brand spirit from the moment a user enters the site until long after they make a purchase. For example, the Lush Kitchen section combines a daily menu of exclusive products that feature an interactive list of ingredients and stories of how the products are individually sourced, turning a transactional commerce experience into a story-fueled customer journey. The site also deploys a responsive design that delivers a seamless experience across multiple devices and screen sizes without sacrificing the engaging and entertaining storyline.

� Puma consolidated its e-commerce and brand properties into a centralized website that can be tailored for consumers in local markets. Puma has also embraced the art of storytelling around athletes such as Usain Bolt, creating an integrated shopping experience that’s fueled through a YouTube channel and other social media. The highly visual and engaging experience has improved conversion rates by up to 20 percent and increased average order value by 12 percent. “Any company wants to inspire customers,” Chris Hardisty, general manager and head of e-commerce at Puma, told Digiday. “This [integrated] site gives us a much better vehicle to do that.”

� Watchmaker Timex also is building a storytelling engine around a unified content and commerce platform that it launched November 2014. Its new website offers a mix of content and product information targeted at different personas, such as “Weekender” or “Ironman”—a key part of the company’s ongoing strategy to grow its business by engaging with customers across many different channels.

Way back in 1996, then-Microsoft CEO Bill Gates penned an essay titled “Content is King,” predicting that “much of the real money will be made on the Internet” from content. In the evolving world of digital commerce, content has finally reached royalty status as a way to attract and engage consumers, build affinity and loyalty, and increase sales. Brands that integrate compelling storytelling with commerce capabilities across digital channels stand to gain a huge advantage over their competitors.

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Conclusion The story here is simple: To elevate your brand and online commerce experience and meet the demands of today’s consumer, you need to create a harmonious internal community.

The challenge? Your transaction and brand marketing teams have been forced to use different technologies and systems, precluding any real collaboration. To create today’s great commerce experience requires a single team, working on a shared platform.

“ An integrated platform can accomplish three things,” said Stephen Powers, a Forrester VP and research director. “One, it allows you to present product and marketing content at multiple stages of the customer life cycle in an integrated fashion. Two, it allows you to run campaigns across both marketing and commerce-driven portions of the website. Three, and perhaps most importantly, it allows you to have a consistent, personalized experience across the marketing portion and the buying portion of the website.”

Changing deeply embedded processes is a key step in the integration of content and commerce operations, and it’s not easy, but it is possible. With the resulting new spirit of collaboration and the right tools, your business will benefit from increased learning and growth, improved teamwork—and an increased bottom line.

SKU 0482-150203-EBOOK

AN INTEGRATED PLATFORM

1 Allows you to present product and marketing content at multiple stages of the customer life cycle in an integrated fashion.

2 Allows you to run campaigns across both marketing and commerce-driven portions of the website.

3 Allows you to have a consistent, personalized experience across the marketing portion and the buying portion of the website.