Leveraging Experience-Driven

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The Omnicommerce Insight Series

LeveragIng experIence-DrIven

cOmmerce TO BuILD BranDS OnLIne

Strategies for Tailoring Digital experiences that

captivate Shoppers and elevate Brand value

In cooperation with

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Executive Summary

3

Creating Compelling Customer Experiences

5

Personalization 6

Rich Media

7

Editorial-Style Content

8

Augmented Reality

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Social Curation and Crowdsourcing

10

Emotional Connection

11

Mobile Payments

12

Fulfillment 13

Experience-Driven Commerce in Practice

14

Taking a Omni-Channel Approach

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The Power of the Personal Experience

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age 2 / / Le ver aging Experienc e-Driv en Commer ce t o Buil d Br ands Online

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The rapid acceleration of online technology is radically

and forever changing the game for the traditional retail

industry. Once representing a digital diversion from our

offline lives, the Internet has evolved to play a central role

in how the world communicates, interacts, and shops.

Ac-cording to Forrester’s most recent Online Retail Forecast

1

,

U.S. consumers will spend $327 billion online in 2016, up

45% from a projected $226 billion in 2012 and 62% higher

than the $202 billion they spent in 2011 – a trajectory that

reflects a powerful shift.

This explosive growth applies equally to the mobile

com-merce arena, with payment provider PayPal recording

daily mobile transactions of $10 billion

2

per day, and

Forrester observing that tablet ownership is registering

compound growth of 46% per year. These statistics

pro-vide vital insights into commerce growth, and also paint a

compelling picture of the

new breed of customer – agile,

highly-informed, and able to swing effortlessly between

devices

. Importantly, hyper-connected customers don’t

differentiate between brand and channel, opting instead to

engage with retailers via multiple touch points.

Omni-channel shoppers expect seamless dialogue across

every channel and a highly personalized customer

experi-ence that delivers a powerful expression of the brand. For

retailers, this is rewriting the rules for building customer

relationships, sparking loyalty, and driving repeat

busi-ness and sales.

1_{Forrester Research. U.S. Online Retail Forecast, 2011 to 2016.}

2_{Mobile Marketing Watch. “PayPal to reach 10 billion in mobile transactions a day.” June 2012.}

$ 202

+45%

+62%

$ 226

$ 327

billion spent in 2011 billion spent in 2012 billion spent in 2016

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In Welcome to the Era of Agile Commerce

3

,

Forrester analyst Brian Walker outlines this

predicament and makes a case for a

cus-tomer-centric strategy. “With the advent of

agile commerce, organizations need to

re-configure resources and capabilities to stay

ahead of the rate of change, as consumer

technology adoption and behaviors change.

The customer is now at the center, and

de-livering content, commerce, and service is

the key to delivering on the new reality,

” he

writes.

This paper explores the growing

relation-ship between experience-driven commerce,

conversion and repeat business. It also

highlights strategies for tailoring

experi-ences that captivate shoppers and bring

brand values to light. It combines

action-able advice and best practice insights on

various tools of experience-driven

com-merce, from personalization technology

and social sharing to video marketing, rich

content and augmented reality. Most

im-portantly, it suggests a foundation for a

commerce strategy that consolidates brand

awareness and paves the way for

exponen-tial growth.

3 _{Forrester Research. Welcome to the Era of Agile Commerce. March 2011.}

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If the first wave of online commerce was about providing digital storefronts that were convenient, practical, and cost-effective, then the second wave is about producing compelling, customer-focused, online experiences that accent the pleasures of shopping offline.

In the new retail frontier, the ability to create experiences that reinforce brand values and resonate with the customer is critical to commerce success. Although price was once assumed to be the primary catalyst for online shopping, retailers who use tech-nology to drive brand narratives and weave compelling customer experiences now hold a competitive edge.

Under this new paradigm, experience-driven commerce – the way a customer encounters a brand online and across multiple channels – is the main driver for conversion and sales. But combining technology and strategy to capture the connected customer can prove elusive.

The new era of commerce is characterized by a shift away from static online shop-ping catalogs and toward websites that harness technology to create immersive and engaging customer experiences. This shift is being driven by a new type of shopper, who demands that online encounters are as personalized and pleasurable as those found offline.

Retailers must cultivate rich online experiences that spark sustained conversations with shoppers to turn browsers into buyers – a fact that drives order values, customer relationships and repeat sales. But, choosing the right tools and technology to exe-cute a winning commerce strategy is not without its challenges.

The digital-savvy customer is highly connected, time-poor and inundated with retail options. Securing their business calls for equal parts art and science as well as a commitment to delivering a brand message that is consistent across every touch point. The following tools and technologies are helping seasoned retailers create commerce experiences that consolidate brand values while resonating powerfully with customers.

creating compelling customer experiences

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Personalization

Building productive customer relationships depends on an intimate knowledge of the shopper – and an ability to serve up retail offers that are closely attuned to their tastes and interests. In the world of online commerce, personalization has traded in its novelty status to play a central role in shaping dynamic and engaging customer experiences. International hear-ing aid manufacturer Phonak is a case in point. This omni-channel retailer owes much of its success to the way its spins customer data into a commerce experience that is as seamless as it is intuitive. Shop-ping with Phonak is akin to sitting with an audiologist who has a nuanced understanding of her customer’s

medical history as well as personal style, thanks to its heavy focus on personalization, along with merchan-dising technology that builds a hearing aid based on a customer’s particular hearing problems.

The innovative hearing aid configurator offered by Phonak is a study in the art of online selling. It spotlights a crisp image of a product sure to reso-nate with that customer’s personal taste as well as their medical needs. This commitment by Phonak to customer experience has powerful implications for brand credibility and demonstrates experience-driven commerce at its best.

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Rich Media

Engaging, interactive and highly immersive, few tools rival the customer experience possibilities offered by online video. Video content can forge powerful con-nections between retailers and customers by serving as a vehicle for telling stories about the brand.

Luxury retailer Burberry recently capitalized on the potential of online video with the launch of Burberry World – a microsite that weaves the drama of the label’s catwalk shows into a commerce experience that brings brand values to life.

Burberry World blends interactive content, video, product stories and behind-the-scenes footage to turn online shopping into a sensory journey. The microsite also deepens the relationship between Burberry and its core customer by creating a seam-less brand experience in which the customer takes center stage. age 7 / / Le ver aging Experienc e-Driv en Commer ce t o Buil d Br ands Online

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Editorial-Style Content

The commerce arena is increasingly drawing on “magazine-logic” by using editorial content to foster customer relationships and demonstrate the voice of their brand. Content strategy plays a major role in creating rich, engaging customer experiences, especially in the case of premium brands that call for greater investment.

Mr Porter, the menswear offshoot of e-tail giant Net-a-Porter, regularly publishes The Journal, an online magazine that speaks to the style and interests of its customers by combining feature articles with style advice. Each piece of content includes a “Buy Now” button, a feature that showcases the brand’s seam-less approach to the relationship between content and conversion.

Sears is also a powerful advocate of this strategy. The omni-channel giant recently launched FitStudio, an online hub featuring blogs by fitness experts, along with tips on health and wellness. Sears’ attempts to create a richer customer experience through content marketing boosted sales across its health/fitness ver-tical and significantly boosted customer engagement and ROI. age 8 / / Le ver aging Experienc e-Driv en Commer ce t o Buil d Br ands Online

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Augmented Reality

Sensory experiences are a powerful influence on consumer desire and a major factor in the appeal of shopping offline. The ability to pick up a garment, try it on and forge an emotional connection that triggers the purchase is a vital

phase of the customer journey, and one that

online retailers often struggle to replicate on-line. However, a breed of augmented reality and virtual fitting applications are bridging this gap by reinventing the tactility and precision of the brick-and-mortar shopping experience for the online customer.

Last year, Macy’s made a major effort to create a customer-centric online experience by launching True Fit, a virtual fitting technology that offers shoppers sizing advice in real-time. The application asks customers to create a user profile based on items in their wardrobe that fit well and include details of problem areas. The True Fit technology springs to life when a shopper elects to “try on” an item. The applica-tion then ranks how closely the item reflects the perfect fit.

Ray Ban has also harnessed the power of augmented reality to create a compelling expe-rience for its style-conscious target customer. The iconic sunglasses maker embraced an experience-driven commerce best practice by introducing a virtual mirror that allows shop-pers to try on and admire various sunglasses before buying. age 9 / / Le ver aging Experienc e-Driv en Commer ce t o Buil d Br ands Online

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Social Curation and Crowdsourcing

When it comes to successful online retail models,

brands that promote dialogue, curation and co-cre-ation are eclipsing those that still insist on delivering a one-way message to their customers. The success of up-and-coming social shopping sites such as TheFancy and Clothia, as well as established online brands such as GHD Hair, are proof that customer engagement is at the heart of experience-driven commerce best practice.

Taking cues from the magazine-style feel of Pinter-est, New York startup Fancy (thefancy.com) offers customers cash incentives each time a customer purchases a product they share. The innovative online retailer is also heavily focused on the customer expe-rience – a commitment that has attracted one million users since launch.

Omni-channel retailer GHD Hair solves the tricky problem of selling to both consumers and businesses from a single online presence by combining products that appeal to both classes of buyers. Interestingly, they promote the shared interests of these very differ-ent types of buyers by inviting their B2B customers - professional stylists - to crowd source tips and advice that benefit both consumers and other B2B buyers. This savvy move capitalizes on the ability of user-gen-erated content to build a community around a brand.

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Emotional Connection

Luxury brands have long understood that emo-tional connection and aspiration serve as

cat-alysts for inspiring customers to buy. Although

this idea has always played a central role in Tiffany’s marketing offers, the brand’s recent “What Makes Love True” campaign proves that this mastery extends to the online sphere. In January of 2012, Tiffany launched What-MakesLoveTrue.com, a microsite that invited photographers and consumers to upload impromptu photos that express what love means to them. These images served as the focal point for the site, along with real-life videos and curated content, such as love stories shared by customers and a map pinpointing the

location of critical relationship moments. The campaign also drew on the celebrity appeal of fashion bloggers Scott Schuman and Garance Doré, who contributed personal images using the popular social-sharing app Instagram, now owned by Facebook.

This powerful example of experience-driven commerce works by aligning Tiffany with the feelings associated with “true love,” as well as the creation of a branded lifestyle that custom-ers are invited to emotionally invest in.

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Mobile Payments

Experience-driven commerce isn’t just about delivering rich, customer-centric online expe-riences – it is also about using technology to integrate channels and cultivate a seamless customer journey.

Apple’s recent rollout of EasyPay offers a com-pelling case in point. The innovative in-store payment system allows customers to skip wait-ing in line by uswait-ing their iPhones to purchase Apple products and accessories with a credit

card linked to their iTunes account. The system goes one step further by letting customers schedule a personal pickup at any Apple store and monitor the progress of their order via their smartphone.

This example of omni-channel integration highlights the relationship between customer experience and brand presence – in this a case, the fluid nature of the customer journey rein-forces the credibility of Apple’s brand.

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Fulfillment

Perhaps the most overlooked aspects of online retail are also the ones that can have the big-gest impact on the customer experience. Many retailers forget to acknowledge the role of ful-fillment in sparking conversion, strengthening brand presence and forging intimate customer relationships.

“The Last Mile” usually represents the cus-tomer’s last – and most potent – interaction with a brand, and it needs to reflect the brand’s core values. 1800Mattress.com offers a strong example of fulfillment best practice. The U.S.-based pure play retailer invites shoppers to check inventory in real-time before purchasing online, and allows delivery to be scheduled within a four-hour window – two features that put the customer experience at the center of the fulfillment process. This focus on flexibility and customer service during the shipping phase of the purchase process invites the customer to associate these values with those of the brand.

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Although brands understand the need to prioritize the customer experience, implementing a custom-er-centric strategy may spark new problems. Major retailers can often suffer from channel conflict and the drawbacks of a top-down management approach.

These are issues that hinder the success of their online presence, as well as the potential of online com-merce to build brand awareness and drive growth. Despite this, the biggest obstacle brands face when tailoring a winning commerce strategy is reluctance to adopt a customer-centric mindset.

experience-Driven commerce in practice

Traditional e-commerce

experience-Driven commerce

a stand-alone channel part of a omni-channel strategy product-centric experience-centric

Fact driven emotionally driven

Focused only on selling Focused on informing, educating and entertaining which all drive sales content resides on one site content is distributed across many sites

relies predominantly on text and images relies on video, augmented reality and other rich media as well as text and images expresses the voice of the retailer expresses the voice of the customer and the retailer

Success hinges on price Success hinges on brand _{age 14 /}

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The right Technical Foundation

Implement a Best-Of-Breed commerce platform– The technology platform is one of the most critical elements of a successful commerce strategy. It’s important that the tech-nology platform is highly scalable and promotes a rich and immersive brand experience. It’s also imperative that it is user-friendly, customer-focused and integrates seamlessly across every channel. Investing in best-of-breed technology can also accelerate content strategy. The right platform should have built-in capabilities for microsites and support various types of content.

ensure channel consistency– Whether brick-and-mortar, web, mobile or tablet, it’s vital that every channel delivers a consistent and compelling brand experience. However, this is impossible without a single customer view. It’s important to swap data silos for systems based on a centralized repository of customer information, so that seamless dialogue can be achieved through every brand interaction and touch point. It’s also vital that brick-and-mortar and online teams are incen-tivized equally and work toward the same key performance indicators (KPIs). This prevents profits from being cannibal-ized across different channels.

Leverage up and coming channels– Mobile and social channels are critical to experience-driven commerce, but it’s important that these channels are embraced strategically.

Omni-channel thinking is essential to commerce success. Here are some strategies for building an agile, customer-centric business:

The right Organizational Foundation

It’s essential that a company’s organizational structure reflects its long-term digital goals. That’s why it’s crucial to select a commerce manager who works as part of the core management team, as well as a content executive responsible for building content to progress the brand. The online and offline teams should work collaboratively toward a customer-centric vision.

Taking an Omni-channel approach

For instance, luxury brands should focus their efforts on a solid “t-commerce” strategy, as tablets are fast gaining cur-rency with high-end customers. Social media also needs to be aimed at engaging customers and driving brand dialogue. Lack of authenticity across social channels can do more harm than good.

IT and marketing agility– Look for out-of-the-box agile commerce components that speed implementation time for new and updated commerce sites. There should also be merchandizing and marketing tools that enable business users to perform rapid and flexible customization of product pages, shopping cart and checkout options based on target visitor segmentation and evolving merchandising strategies. Ask vendors about advanced shopping experience optimiza-tion tools such as behavior tracking, web, mobile and offline customer analytics, user experience testing and optimiza-tion, dynamically targeted search results, promotions and rich media delivery.

Strong search integration for your customers– Unified search for all product and content data of the entire brand appearance gives merchandisers the option of displaying product data search results with corresponding web content

such as brochures, blog posts, videos and other supporting Page 15 /

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The power of the personal experience

Winning the commerce game hinges on a retailer’s ability to deliver a compelling customer experience. The power of personal experience works to consolidate brand awareness and create positive and intimate customer relationships that drive profits and reap long-term rewards.

From flash sales site Gilt Groupe, a retailer that built its brand on exclusivity and customer engagement, to Zappos, a shoe and apparel retailer that embeds the customer ex-perience into its organizational approach, online commerce is increasingly ruled by businesses that put the customer at the heart of their brand.

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About Acquity Group

Acquity Group is a leading global Brand eCommerce™ and digital marketing company, creating award-winning dig-ital experiences for global brands. Our multi-disciplinary approach brings together strategy, design, and technology to create brand-unique experiences that build unbreakable customer relationships. Acquity Group works with leading brands like Adobe, AT&T, General Motors, Motorola, and Saks Fifth Avenue through offices in North America and Asia. For more information, visit www.acquitygroup.com.

About Adobe

Whether it’s a smartphone or tablet app, a game, a video, a digital magazine, a website, or an online experience, chances are that it was touched by Adobe technology. Adobe’s tools and services enable its customers to create groundbreaking digital content, deploy it across media and devices, and then continu-ally measure and optimize it based on user data. By providing complete solutions that combine digital media creation with data-driven marketing, Adobe helps businesses improve their communications, strengthen their brands, and ultimately achieve greater business success. Adobe’s content authoring solutions lead the industry, enabling its visitors to more effec-tively produce, distribute, and monetize digital content. Adobe also delivers the most innovative solutions for optimizing mar-keting campaigns and maximizing return on every marmar-keting dollar.

For more information, visit www.adobe.com.

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about hybris, an Sap company

hybris helps businesses around the globe sell more goods, services and digital content through everytouchpoint, channel and device. hybris delivers OmniCommerce™: state-of-the-art master data management for commerce and unified commerce processes that give a business a single view of its customers, products and orders, and its customers a single view of the business. hybris’ omni-channel software is built on a single platform, based on open standards, that is agile to support limitless innovation, efficient to drive the best TCO, and scalable and extensible to be the last commerce platform companies will ever need. Both principal industry analyst firms rank hybris as a “leader” and list its commerce platform among the top two or three in the market. The same software is available on-premise, on-demand and managed hosted, giving merchants of all sizes maximum flexibility. Over 500 companies have chosen hybris, including global B2B sites W.W.Grainger, Rexel, General Electric, Thomson Reuters and 3M as well as consumer brands Toys“R”Us, Metro, Bridgestone, Levi’s, Nikon, Galeries Lafayette, Migros, Nespresso and Lufthansa. hybris is the future of commerce™. www.hybris.com | sales@hybris.com