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IBM Software Smarter Commerce

IBM Smarter Commerce


Your customer in context

IBM Smarter Commerce

The chief executive customer


At virtually every point of communication, todays customers are generating valuable data. These customers expect that this data will be used by companies to deliver a personalized experience at every stage of interaction. Companies that deliver on this expectation are rewarded handsomelyForrester data shows that the revenue impact of a 10-percentage-point improvement in a companys customer experience score can exceed USD1 billion.1 Its the age of the chief executive customer, where social and mobile technologyalong with an ever-expanding array of choiceshave created more-knowledgeable and moredemanding customers who expect virtually every touchpoint to be meaningful and personalized. Asking for every single touchpoint and transaction to be a positive, personalized one is a high bar to achieve, yet that is exactly what many customers expect from the companies they do business with. And because dissatisfaction often leads to defection, your competitors are rising to and meeting these demands in case you drop the ball. The stakes are incredibly high. Companies that use data to profoundly understand their customers and cater to them with unique interactions are often the most successful. This data-driven approach helps businesses continually learn, meet and even exceed customer expectations. The most sophisticated organizations synchronize their value chain to drive innovation around the needs and wishes of their customers.

Introducing the IBM Smarter Commerce approach. The IBM Smarter Commerce approach puts customers at the center of the commerce cycle. It provides companies tools to leverage critical customer and operational dataincluding multichannel behaviors, social media sentiment, and supply and demand volatilitiesto help unify the traditionally siloed buy, market, sell and service cycle. By organizing business operations around the customer, companies can deliver a personalized, highly relevant and seamless engagement across channels that can lead to greater customer loyalty. By gaining the ability to more easily enable and integrate their commerce processes, companies can better capitalize on opportunities for protable growth, improved efficiency and increased customer loyalty.

IBM Software

Todays smarter organizations engage customers, partners and suppliers with adaptive procurement and an optimized supply chain, personalized marketing, seamless sales experiences, and responsive customer service to create an experience more valuable than the sum of its parts. The cycle becomes a system of satisfaction that helps organizations:

IBM Smarter Commerce: an integrated approach


The IBM Smarter Commerce approach is an innovative way to increase the value companies generate for their customers, partners and shareholders in a rapidly changing digital world. It is designed to help companies orchestrate the ecosystem to consistently deliver optimum experiences throughout the customer journey and drive protable growth. It includes buy, market, sell and service processes that put the customer at the center of decisions and actions, which can lead to greater customer loyalty, protable growth and agility. The IBM Smarter Commerce approach includes consulting and services, advanced analytics, infrastructure, managed services, and a set of marketplace-leading solutions for the commerce cycle core business processes of buy, market, sell and service.

Understand each customer as an individual: Look beyond segments and demographics to reveal a customers intentions so you can deliver the right offers, services and information at exactly the right moment in the relationship. This can lead to new customers, happier customers, higher sales and continued engagements. Maximize the moment: Use a customers contextual information, such as location, sales history, and intent or motivation, to deliver seamless, intuitive interactions that can increase sales opportunities, heighten customer loyalty and accelerate advocacy. Satisfy customers at the speed of life: Integrate front- and backend operations to create an environment for connecting and collaborating with partners, suppliers and customers to deliver exceptional experiences every time, in every context.

Value chain strategies and services


From a strategic level, the Smarter Commerce initiative informs an organizations approach to its value chain. It aligns the business model with customer needs, reorienting such diverse functions as marketing, sales, procurement and supply chain operations. It helps build an agile business designed to serve ever-changing customers and marketplace conditions.

The Smarter Commerce approach enables a more adaptive value chain, which can result in a customer experience thats more valuable than the sum of its parts; the commerce cycle becomes a single system of satisfaction. But it does more than just create an incredible customer engagementit creates incredible value too. For every dollar spent on Smarter Commerce solutions, approximately USD12 is generated in the form of an increased customer base, improved efficiency, a stronger return on investment and improved customer loyalty.2 Responding with the right offers, service and information at exactly the right time in a relationship enables companies to treat every customer as an individual. Its a new approach to commerce.

IBM Smarter Commerce

Core business solutions and processes


At a more tactical level, the Smarter Commerce approach can be used to create specic solutions to address various aspects of a companys commerce lifecycle. Each solution area creates customer value in its own right and is integrated around the commerce cycle as well as externally with partners, suppliers and service providers. Buy: The Smarter Commerce approach adapts procurement and optimizes supply chain execution to help reduce costs and mitigate risks and enables the following capabilities: supplier integration and collaboration, supply chain management, accounts payable, source to contract, supplier management, risk, and compliance. Market: The Smarter Commerce approach creates targeted and personalized marketing across channels to help increase sales and loyalty and enables the following capabilities: customer analytics; customer experience management; cross-channel marketing optimization; digital marketing optimization; marketing performance optimization; marketing performance analytics; and price, promotion and product mix optimization. Sell: The Smarter Commerce approach enables seamless crosschannel customer experiences to help increase revenue and loyalty and enables the following capabilities: cross-channel selling, order management and fulllment, customer integration and collaboration, store solutions, and payments and settlements. Service: The Smarter Commerce approach is designed to anticipate behavior and deliver awless customer service to help organizations take action and keep customers loyal, and it enables the following capabilities: engagement advisor for call center representatives and customer self-service; delivery, service and support; customer self-service; and case management.

IBM business analytics


Across the enterprise, the collection and analysis of data continues to keep the focus of an organization on the changing needs of its customers. Analytics extracts insight from sales, operations, social media and customer loyalty programs to improve customer experiences by embedding actionable insights into operational processes.

IBM SmartCloud, computing and infrastructure


Running an efficient enterprise means running an agile enterprise. Smarter computing is the IT infrastructure that unleashes innovation through the cloud, unlocks the power of big data, and safeguards the security of critical information and business processes, allowing organizations to focus on serving their customers.

IBM Software

Buy

Coca Cola Bottling Co. Consolidated


Coca Cola Bottling Co. Consolidated makes, sells and delivers carbonated and noncarbonated beverages to 11 states in the southeastern United States. Their offerings include carbonated soft drinks, bottled water, teas, juices, isotonic sports drinks and energy drinks. Coca Cola Bottling Co. Consolidateds business was running on a multitude of different technologies. Manual searches and information delays were creating operational bottlenecks and business inefficiencies. The company needed to quickly accept and return information electronically without error and focus on software replacement as a means to improve cross-application and system integration. Coca Cola Bottling Co. Consolidated now has end-to-end integration and improved visibility across service management, spare parts procurement and equipment lifecycle management with seamless, security enhanced integration across its business units and throughout its external customer and partner base, providing value to its customers by automating and streamlining processes, accommodating unique requirements and enabling business agility. Near-real-time access to decision-critical information helps secure timely monitoring of performance against key service-level agreements with customers.

Market

LOCCITANE en Provence
LOCCITANE is an international manufacturer and retailer of skin care, body care, hair care and fragrance products that are sold in more than 85 countries around the world through a wide network of boutiques and strategic partners. The company has also been using online and email marketing for years to help build excitement about new products and drive orders. Recently, however, marketers within the company noticed a decline in customer engagement through email. So the company began using behavioral web analytics to segment its customers and deliver more-targeted solutions to them based on product affinities. The personalization efforts were a huge success: email open rates increased from 26.1 percent to 43.1 percent, conversion rates improved from 0.14 percent to 2.43 percent, and revenue per email increased 2,500 percent.

IBM Smarter Commerce

Sell

1-800-FLOWERS.COM
1-800-FLOWERS.COM is the worlds leading orist and gift shop, with revenues approaching USD1 billion. The company prides itself on its large-scale vision and forward thinking, positioning itself at the leading edge of trends with innovative marketing. Its strategy resulted in a broad and diverse portfolio with 14 business units or brands, which created a business challenge. To fully realize the benets of its multibrand strategy, it needed to be unied behind the scenes and capable of delivering a consistent buying experience how and where customers wanted to buy its products across all the brands. By implementing a crosschannel buying experience, 1-800-FLOWERS.COM was able to break down these brand silos and can now share information across the entire enterprise, which enables customers to seamlessly interact with, shop for and buy multiple brands within the same online experience. With this capability, customers can easily buy or change an order online, in the store through the website, or from a mobile device.

Service
Sky Bet
With increasing numbers of Sky Bet customers accessing the website through mobile devices, Sky Bet decided to invest in developing a new mobile-specic website as well as mobile applications for devices running the Apple iOS and Google Android operating systems. But the company recognized that, in this fast moving mobile world, the importance of a good customer experience was more critical than ever. IBM Tealeaf software had become such a vital tool throughout the business that Sky Bet knew it needed that same level of insight across its new mobile site and apps. To improve the experience for mobile customers, Sky Bet turned to IBM Tealeaf CX Mobile software. This product extends the reach of Tealeaf software, allowing Sky Bet to see its mobile sites and apps through the eyes of its customers. The software provides the necessary context to help ensure that mobile sites and apps are useful, engaging and functioning properly. By understanding how customers were using its online betting products, Sky Bet has been able to make customer experience a strategic focus that is helping drive bottom line results; a third of all bets placed with the company now come through the mobile site or apps. In addition, the app designed for the Apple iPhone is one of the top ranked U.K. sports betting apps in the Apple App Store.

IBM Software

Getting started
Driving sustained, protable growth in a volatile operating environment requires that you optimize the experience of the chief executive customer. However, the ecosystem required to bring a single new product or service to the marketplace can touch dozens of countries and hundreds of suppliers. Thats why its important to work with a trusted resource with deep knowledge of more than 20 industries, a presence in more than 170 countries and technology expertise that aligns with the buying, marketing, selling and servicing lifecycle. IBM is in the business of business. Our products and services are designed to make the world work better. And the systems of commercestreamlining supply chain operations, mining customer data and moreare our stock-in-trade. We offer an extensive set of marketplace-leading solutions and have recently invested USD3 billion to deepen and broaden that portfolio. We have world-class expertise in business solutions for customer experience management, web analytics, procurement, supply chain integration and management, cross-channel marketing, selling, and service. IBM delivers these solutions on premises, in the cloud and through hybrid models to address the needs and priorities of your business. The IBM SmartCloud for Smarter Commerce offering delivers the advantage of cloud economics with immediate access to solutions to accelerate your ability to transform the customer experience. And almost no matter how far along your company is, IBM can help enhance, extend or redesign your operations around the chief executive customer, taking you from business as usual to an IBM Smarter Commerce approach.

Why IBM?
With more than 100 years of expertise in business consulting, supply chain, cross-channel commerce, business process outsourcing and industry-specic innovation, embracing an IBM Smarter Commerce strategy can help companies of virtually all sizes transform their business models with measurable results. For the most successful businesses, the Smarter Commerce approach wont just become part of their culture; it will be their culture. Responding with the right offers, services and information at exactly the right moment in the relationship can help companies treat every customer as an individual. The Smarter Commerce approach is designed to allow businesses to synchronize their value chain to drive innovation and engage with customers based on their unique needs, which can result in delighted customers and the prots to match.

For more information


To learn more about the IBM Smarter Commerce approach, contact your IBM sales representative or IBM Business Partner, or visit:
ibm.com/smarterplanet/commerce

Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America June 2013 IBM, the IBM logo, ibm.com, the planet icon, and Smarter Commerce are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at Copyright and trademark information at ibm.com/
legal/copytrade.shtml

This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specic congurations and operating conditions. THE INFORMATION IN THIS DOCUMENT IS PROVIDED AS IS WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided. 1 Forrester Research, Inc., Win Funding For Your Customer Service Project, Kate Leggett, September 10, 2012. 2 Nucleus Research, IBM Smarter Commerce Pays Back USD12.05 for Every Dollar Spent, March 2013.

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