The Present and Future of Unified Commerce

Comprehensive Retail Consulting

2©2015 Boston Retail Partners. All rights reserved

2015 E-Commerce SurveyOctober 2015



Agenda§ About BRP§ Improving the customer experience§ Unified commerce is critical§ Mobilization of retail§ Payment types and security§ Key takeaways



About BRP



Retail experts with retail backgrounds

Built with unique professional profileu Managed by industry-recognized leadersu Recruit experienced retail professionals with process, technology and operations skillsu Recognized expertise in all facets of strategy, selection and deployment of Point of Sale, Payment

Security, CRM/Loyalty, Customer Engagement, Order Management, Merchandising and Supply Chain solutions

Trusted advisors of acknowledged industry leaders

No exclusive partnerships or alliances with software or hardware providers

u Chanelu Coachu Rooms To Go

u MGM Resortsu Michaels Storesu Ann Inc.

u Tire and Battery Corpu Brooks Brothersu ABC Fine Wine & Spirits

About Boston Retail Partners



Luxury Insights Summit 2015

Media Articles

Thought LeadershipWhite Papers/Special Reports

Speaking Engagements/Webinars

Industry-leading Surveys Industry Blog

Luxury Insights Summit



Improving the customer experience



The customeris now the centerof the universe

Social Media

Website

Email

Apps

Mobile Website

SMS

Direct Mail

Catalog

Employees

Checkout

Kiosk

Signage

Advertising


9©2015 Boston Retail Partners. All rights reservedSource:eMarketer, August 2015

$349.1B14.4%(year over year)

2015 Projected E-Commerce Sales



$79.4B13.9%(year over year)

Source: eMarketer, August 2015

2015 Projected E-Commerce Holiday Sales – November & December



What does the customer want?



43%of retailers are prioritizing a consistent brand experience across channels



33%of retailers indicated that improving the user

experience/navigation is a top priority



Top Priorities§ Customer experience§ Unified commerce

19%

19%

21%

24%

29%

29%

29%

33%

43%

Enhance content management

Improve personalization of the online …

Share inventory across channels

New/upgraded mobile website

Increase fulfillment options

Increase site traffic

New/upgraded unified commerce platform

Improve user experience/navigation

Consistent brand experience across channels



E-commerce site offerings83%

76%

76%

73%

63%

61%

56%

46%

44%

41%

39%

FAQs

Order history

Order status

Order tracking status/notifications

Shopper account maintenance (update profile/contact/payment info)

User reviews

Suggestive selling

Product comparisons

Loyalty status (points, rewards, history, etc.)

Browsing history

Wish list



Customer engagement effectiveness§ Customers reviews rated as most effective customer engagement tool however, 39% do not offer customer reviews on website

23%

10%

5%

5%

3%

31%

18%

25%

36%

24%

29%

22%

23%

36%

43%

33%

42%

41%

44%

15%

15%

15%

19%

24%

20%

15%

8%

21%

13%

7%

8%

10%

20%

Customer reviews

Live chat

Online surveys

Corporate social media page

Instructional videos

Community/forum

Blog

Very effective

Somewhat effectiveNeutral

Somewhat ineffectiveVery ineffective



Guided Selling – Digitizing the Black Book



What did the customer browse?1060% increase in personalization of shopping experience by understanding online browsing history within 3 years

5%

10%

20%

23%

25%

41%

53%

51%

56%

40%

51%

Suggested selling based on social media activity/posts

Suggested selling based on online browsing history

Suggested selling based on customer closet

Suggested selling based on previous purchases

Personalized promotions

Personalized rewards based on customer loyalty

Tailoring the Customer Experience

Already offer

Offer within 3 years

1060%



What’s in the customer’s closet?510% more retailers plan to offer associates the ability to suggestive sell based on the customer’s closet in the next 3 years

5%

10%

20%

23%

25%

41%

53%

51%

56%

40%

51%








Already offer


510%



What has the customer purchased?280% more retailers plan to suggestive sell based on the customer’s previous purchases in the next 3 years

5%

10%

20%

23%

25%

41%

53%

51%

56%

40%

51%








Already offer


280%



Unified commerce is critical



29%of retailers indicate a new/upgraded unified commerce platform is a priority



The Legacy The AspirationThe Reality The Nirvana

Multi-ChannelSingle Channel Unified CommerceOmni-Channel

Channel Evolution – Unified Commerce



Unified commerce offers real-time visibility§ Unified commerce enables transparency, or the “glass pipeline,” of real-time visibility to inventory, product and customer information. This is the nirvana, or end-state, that many retailers are trying to achieve with their customer experience and unified commerce goals

Customers))

Products))

Promo-ons)))))))))))

Inventory))

Orders))

Transac-ons)

New)Retail)Formats)

Real;Time)

Retail)

3rd )Pa

rty)

Inventory)

Single)

Cart)

Seamle

ss)

Experienc

e)

Iden-fy)Customer)



Unified Commerce Platform

Unified Commerce Enterprise

BICRM

FIN

INV

MFG

Mobile Devices

Web Site

Traditional POS

Middleware

Social Media Integration

Rules Engine

AssociatePOS

Real-time Task ManagementCustomer & Associate Stations

Real-Time Retail(AKA the Cloud)



Technology status§ Unified commerce platforms are making traction with nearly one-third of the respondents currently having implemented a unified commerce platform

10% 21% 26% 21%Unified commerce platform

Implemented and working well

Implemented and needs improvement

Implement within 2 years

Implement within 3-5 years



Unified commerce services§ The ability to “buy anywhere, ship anywhere” is gaining ground with 74% of respondents planning to offer it within 5 years

51%

40%

36%

27%

24%

14%

10%

29%

29%

39%

27%

29%

7%

14%

17%

12%

22%

12%

Buy online, drop ship from vendor

Buy online, ship from store

Buy online, ship to store

Reserve online, pick up in-store

Buy anywhere, ship anywhere

Buy online, same day delivery

Implemented





Unified commerce capabilities§ Retailers are gaining real-time visibility to their customers’ behavior across channels

31%

29%

19%

Track a customer order started on a mobile device, and then completed online

Track a customer order started online, and then completed in the store

Track a customer order started on a mobile device, and then completed in the store



Order management as the single platform§ An order management solution may be one of the best approaches to offer a single unified commerce platform

37% 37% 24% 2%Order management

Implemented and working well

Implemented and needs improvement





Mobilization of retail



Mobile is Changing E-Commerce§ 191.4 million people in the U.S. own smartphones (77.1 percent mobile market penetration)1

§ 61% of U.S. Internet usage is on Mobile2

1 comScore Report: July 2015 U.S. Smartphone Subscriber Market Share, September 3, 20152 comScore MMX Multi-Platform, US, Canada, UK, March 2015

Internet&Usage&by&Device&

Desktop Mobile



68%of retailers expect an increasein mobile website revenueby the end of 2016



Additional mobile capabilities§ More than two-thirds of respondents offer a mobile website and one-third offer a mobile app but opportunities abound to identify the customer in the store, offer personalized promotions, and even allow the customer to use their mobile device to locate products within the store

68%

32%

27%

27%

14%

11%

11%

11%

11%

Mobile website (site specifically designed for mobile access)

Mobile app

Geolocating

Suggestive selling

In-store sign-in via phone

Customer identifying technology within the store

Locate products in store with mobile app/website

Mobile offers within store

Real-time events selling (i.e promotion based on weather event)



Payment types and security



63%of retailers in BRP’s 2015 POS/Customer Engagement Survey indicated payment securityis a top priority



Shift of fraudsters to online§ When EMV has been implemented in other countries, store fraud is reduced and online fraud rises dramatically

• France – Store fraud was reduced by 35% while online fraud increased by 360%• UK – Store fraud was reduced by 58% while online fraud increased by 100%• Australia and Canada saw similar results



Emerging payment acceptance• Currently, PayPal is the top accepted payment type online• Retailers plan to support Apple Pay (63%) and/or Google Wallet (48%) in the next few years

40%

10%

7%

5%

3%

3%

2%

31%

48%

63%

8%

28%

8%

17%

7%

5%

10%

5%

10%

3%

10%

PayPal

Google Wallet

Apple Pay

Samsung Pay

Android Pay

Bitcoin

Amazon Payments

Already accept

Plan to accept within 2 years

Plan to accept within 3-5 years



Key takeaways



The new retail paradigm§ E-commerce continues to expand

• 85% of retailers expect an increase in 2016 e-commerce website revenue

§ Improving the customer experience is the top priority• 43% of retailers indicate a consistent brand experience across channels is a top priority

§ A unified commerce platform is critical• 78% of retailers plan to have a unified commerce platform within five years

§ Mobilizing commerce remains a high priority• 45% of retailers indicate that mobile websites are their top e-commerce retail capability

§ Payment options and security are essential• 63% of retailers plan to accept Apple Pay within two years


40©2015 Boston Retail Partners. All rights reservedw w w . b o s t o n r e t a i l p a r t n e r s . c o m

Brian BrunkPrincipal

Boston Retail [email protected]

Meet Mozu

Remarkable Experiences Engage and Convert More Shoppersü Retailers on Mozu are experiencing a 55% higher conversion rate than industry average

ü Retailers need to be transparent on inventory levels and communicate where customers can find them in-store

ü Sales associates should be empowered with product, inventory and brand information at their fingertips

The Mobilization of Retail

1990sECOMMERCE IS BORN

Early vendors supplied the basics of ecommerce: listing products and accepting payments

2000sMOBILE RISES

Mobile devices forced retailers to maintain both traditional and mobile-friendly sites

2010sMULTI-CHANNEL EXPLODES

Proliferating sales channels require retailers to create a seamless experience both on and offline

TODAYLIMITLESS COMMERCE

Today’s business is truly omni-channel, requiring a modern platform that provides limitless extensions

2007IPHONE ARRIVES

The invention of the iPhone and rapid adoption of mobile devices transforms the world of online shopping

Consumer Behavior Forever Changed with the Launch of the iPhone

Consistency Across Devicesü Consumers demand consistent shopping across all devices

ü Shoppers want the ability to begin shopping on one device and end on another or in-store

ü Building, managing and maintaining separate sites for different devices is a thing of the past

Unified Commerce in Action

In-store

Online

Unified Digital Experiences ExtensibilityFaster time-to-market Improved TCO

Modern TechnologyStack

Native Mobile

Responsive Theme

REST API

SaaS

Business Critical Applications

Commerce

Fulfillment

ERP

POS

Mozu’s flexible SaaS commerce platform is setting a new standard for performance and innovation.

CUSTOMER EXPERIENCE

Stores, Kiosks Call Centers

Mobile, Tablet, PC’s

COMMERCE MANAGEMENT

REST APIMulti-Tenant SaaS

MOZU DEV CENTER

Theme Development

Widget Development

APP DEVELOPMENT Native App

Integrations

Catalog

Reports

Customers Orders

Publish

Locations

Marketing Site Builder

SDKsHypr

Them

e En

gine

Applications

Mozu | The Cloud Commerce Platform

Jelly Belly Experiences Sweet Growth

47

Challenges• Replace homegrown system• Focus on expanding online sales• One platform for B2C, B2B and consolidated

content sites WW

Solutions• Cost efficient SaaS platform • Consistent experience across mobile• Scale operations with master catalog• Empower eBusiness team to quickly update

products, promotions and content

Results• Mobile revenue increased from 2% to 32%• Record sales the week after launch• Happy eBusiness team

“Migrating from our homegrown platform to Mozu has given Jelly Belly the power and agility to innovate.”

Brandon Finch—Director of eBusiness, Jelly Belly

+

Sigma Beauty. Beautiful eCommerce.

“We knew we needed an enterprise level platform that would accommodate our growing needs. That was the most important strategic decision. Going

into the project, we felt nervous but were confident in our partners”Annie Westman—Director of Strategy

+

Challenges• Engage a younger demographic• Limited mobile experience• Wanted to develop custom features

Solutions• Face Chart: Visual showcase of cosmetics on

virtual face• Free gift with purchase: personalized and

segmented gifts with different purchases• Dynamic pricing: unique catalogs and price lists

across customer segments• Responsive mobile sites

Results• Unique experiences that disrupt the market• Marketing is now empowered to create custom

digital experiences• Consistent, engaging experiences across

devices including mobile

36% 42% 22%LIFT IN CONVERSION RATE INCREASE IN MOBILE SALES BOOST IN TIME ON SITE

Curious to see how modern technology can help you build the digital experience your shoppers crave?

Let us show you.

Request a demo at mozu.com