Analytics Powered Smarter Merchandising
How Lee Jeans is Leveraging IBM WebSphere Commerce and
Coremetrics
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3
Agenda
Trends Impacting Digital Marketing & Merchandising
IBM Coremetrics data driven applications
Powering Analytics Driven Merchandising
IBM WebSphere Commerce & Coremetrics working in concert
Smarter Merchandising @ Lee Jeans
Analytics driven merchandising decisions
IBM’s
integrated portfolio
for Smarter Commerce
Buy
Market
Sell
Service
Core Business Processes
CORE BUSINESS SOLUTIONS
VALUE CHAIN STRATEGY AND ENABLERS
Advanced Analytics
Store analytics | Purchase analytics | Consumer loyalty | Predictive and prescriptive | Social Analytics | Master data management
Market and customer mgmt
Aligning sales, marketing and operations to engage with customers
Innovation and business value
Innovating and aligning business models to drive value to the customer
• Supplier Integration & Management
• Supply Chain Optimization • Logistics Management • Payments and Settlements
• Customer Awareness • Analytics
• Brand Experience • Social Media Marketing • Cross-channel Campaign Mgmt • Digital Marketing Optimization • Marketing Resource Mgmt
• Cross-channel Selling
• Distributed Order Management • Customer Integration &
Collaboration • Fulfillment • Store Solutions
• Payments & Settlements
• Delivery, Service, & Support • Customer Self-Service • Reverse Logistics • Case Management
Operating and Organization Models
Designing operations, supply chain and the organization model to deliver customer value
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Trends Impacting Digital Marketing & Merchandising
Customer Retention – 52%
7 7
Email Targeting
Email Targeting
Focus on retention requires tools that “make
marketing feel like a service”
Customers at different lifecycle stages require
different communications
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56%
Will increase online
marketing budgets
Branding
Direct Mail
Print/Broadcast
Online
Trend: And to Cheaper Online Mediums
54%
Will increase social
media spend
Paid
Search
Social Media
Display Retargeting
Trend: Spend Shifting Online
10
Despite the investment, 84% of companies
don’t measure Social ROI
47% of the time they are
influenced by what is read
63% research via
social networking
Consumer reviews are 12x more
trusted than descriptions from mfg
83% of holiday shoppers
influenced by reviews
500 million active,
175 million daily users
A ‘Facebook Like’ from a friend carries the same weight as 100 positive reviews from strangers
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Offline
Online
“$5 Billion of in-store sales are influenced by our web
site…Every $1 spent on macys.com influences another
$5.77 spent in-store.”
- Terry Lundgren | Macys at
Shop.org
Understanding online impact on offline will change
your online media buying math
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Kiosks
Mobile Apps
Product Pamphlets
QR Codes
Employee Suggestion
Tablets & Digital Signage
Trend: Mobile & Digital Marketing Change
In-Store Experiences
Global mobile commerce sales
expected to reach $163 billion by 2015
Web
Web
Mobile
Mobile
Display
Display
In-Store
Device
In-Store
Device
Call
Center
Call
Center
Product Recommendations across touch points
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Powering Analytics Driven Merchandising
Analytics solutions specifically
designed for WebSphere
Commerce
Enhanced productivity as
result of deep integration
Jointly developed & tested
technology
Continuous enhancements
Rapid implementation
IBM and Coremetrics Provide Tailored Best-in-Class
Analytics for WebSphere Commerce
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Coremetrics – WebSphere Commerce
Integrations
2006
2007
2008
2009
WC V5.6 and V5.6.1 Integration
Customer Segment Import
WC Extended Sites Support
Auto Tagging Tool
WC Custom Reports
Sales Center Reports
Multi-currency Support
Multi-language Support
Enhanced E-Site Support
WC V6 Integration
Tag Library Integration
2010
2011
Access to Coremetrics dashboards & reports from Mgmt Center
Coremetrics impression tag for WC remote widgets
Improved tagging
Integrated store samples
Enterprise Product Reports
Deep Coremetrics Intelligent Offer integration to WC Management Center
Real-time Coremetrics IO info to WC
Coremetrics IO icon in Mgmt Center
Coremetrics IO delivered to WC eSpots
Since 2006 IBM and Coremetrics Have Been Delivering Value
Through Out-of-the-Box Integrations
WC v7 Support
Web 2.0 Store Support
Customer Benefits
Single Sign-On authentication
between applications
Out of the box WebSphere
Commerce specific analytics
Auto-configured tag library to
speed implementation &
maintenance
Intelligent Offer
recommendations served
through eSpots
Export segment to WebSphere
Commerce for personalized
targeting
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IBM Tag Library
WebSphere
Commerce
Coremetrics for
WebSphere Commerce
Shopping Cart Tag
IBM WebSphere Commerce
Management Center
Coremetrics for WebSphere Commerce
Easy Analysis for Business Users
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• I can define customer segment as: Visitors who have browsed “jeans” and
have been referred from Facebook
• To serve them custom eSpot: I pass customer segment from Coremetrics to
WSC for targeting
Industry Leading Targeting & Personalization
Dynamic Recommendations –
eMarketing Spot Integration
I can maximize cross-sell opportunities by delivering product recommendations through
an eSpot, to further personalize shopping experience
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Smarter Merchandising @ Lee Jeans
Analytics driven merchandising decisions
Kris Aldridge
25
Agenda
•
VF Corporation Overview
•
Lee Jeans Company Overview
•
eCommerce Strategy
•
Merchandising Challenges
•
Solution: Smart Merchandiser
•
Future Enhancements
VF Corporation Overview
VF is the world's largest apparel company
$7.7 billion in annual revenue
30+ dynamic lifestyle brands
780+ retail locations
Sell in 150+ countries
46K+ employees
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Lee Jeans Company
eCommerce Overview
Lee Jeans has had an eCommerce site since 2005. They re-launched
in April 2009 under WC platform
–
Increased net sales
–
Increased AOV
–
Increased conversion rate
We are a manufacturer
–
We are complementary to wholesale, however aiming to provide
excellent product choices, service and value to our consumers online
eCommerce platform heavily utilizes IBM solutions
–
WebSphere Commerce (eCommerce engine)
–
Omnifind (Search)
–
WebSphere Content Management (WCM)
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eCommerce Strategy
The VF success formula:
Blending the art and science of apparel
Our strategy is driven by
–
Passion for our products
–
Deep understanding of our consumers
–
Data-driven insights
–
Expert execution
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Merchandising Challenge
Information Scattered Everywhere
Merchandiser
Merchandising Today
Disjointed and Disconnected from Site
Management Center
33
Our Solution: Smart Merchandiser
Single tool that combines the
intelligence of web analytics and
social media data with the ease
of a graphic, intuitive
user-friendly interface
Designed for business users to
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Immediate Visual Indicators
Unpublished
No Inventory Available
37
Color Management
39
Item Management
1
1
2
2
3
4
Features:
1 – Dynamic Search (display
changes as you type)
Sales Catalog Management
41
43
Informed Decision Merchandising
Analytics (including Inventory)
Pricing Strategy
Social
45
Merchandising Overlay
Analytics and Inventory
Coremetrics
Analytics
47
Merchandising Overlay
Pricing & Profitability
Pricing & Profitability
Merchandising Overlay
Social Insights
49
Smart Merchandiser
Solution Benefits
Streamline workflow for business users
Ideal solution for resource constrained teams
Improved merchandiser efficiency
Happy Merchandiser
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Lee Smart Merchandiser
Future Enhancements
Competitive Data
–
Pricing from other online retailers
–
SEO (keywords, …)
Category Sorting Automation (sales, inventory)
Social Commerce Alerts & Recommendations
–
Filters based on social activities (Likes, Twitter Hits, BZ Ratings)
–
Trend detection (Facebook / Twitter)
–
Sentiment Analysis (Twitter)
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