IBM Commerce Overview Presentation

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C2BCustomer to BusinessThe Future of Commerce

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What has changed in theWorld of Commerce

Customers expect you to understand them and for each experience to make them happy, really happy.

Speed of business leaves no room for error in value chains.

New entrants embracing a C2B paradigm are disrupting business at every turn.

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of companies say they have or are close to having a holistic view of their customers

of consumers say their favorite retailer understands them

Source: The Consumer Conversation – eConsultancy Report

4 Source: The Consumer Conversation – eConsultancy Report

…WHAT CUSTOMERS SAY

of brands are satisfied with their ability to resolve conflicts with customers

of consumers who had a significant customer service issue in the last twelve months say that the company resolved their conflict "very effectively."

WHAT BRANDS THINK…

Satisfaction gap exists as well …

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By 2018, organizations who offer personalization will outsell companies who don’t by more than 30%

VoC initiatives that don't share data across the enterprise will compromise customer satisfaction and loyalty measures by 30%.

94% of Procurement Execs in leading organizations are in tune with the voice of the company’s end customer

Customer-to-Business paradigm sets a higher bar

Source: Gartner Research, IBM IBV Study

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Deliver personalized content in context to drive customer engagement

Collaborate and engage with partners and suppliers with speed and flexibility

Deliver secure, intelligent and authentic interactions

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Winning needs an integrated approach

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Sources: Internet Retailer Top 500, IBM and Nucleus Research Provided for illustrative purposes and is not intended to be a guarantee of future growth rates or market opportunity.

350,000+ Global trading entities connected

91 billionBehavioral interactionsIn the last 12 months

110 million Messages a day are transferred via IBM Payments

11% savings Companies report an average with IBM Procurement solutions

$100 billion Commerce transactions analyzed Holiday Benchmark Reports

$65 billionSales in the Internet Retailer Top 500 powered by WebSphere Commerce

IBM Commerce delivers nearly 15x ROI for every dollar spent

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Marketing

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Digital Marketing

Lead Management

CustomerExperienceAnalytics

JourneyDesign

Omni-ChannelMarketing

Real-TimePersonalization

IBM Marketing Cloud IBM Marketing Software

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BanorteBanorte is using IBM Marketing and Customer Analytics Solutions to deliver personalized content in context across all channels to drive customer engagement.

40%

20%

Improvement in operating efficiencies

Return on equity 200

M

USD expected bottom line benefit in the first 24 months

eCommerce and Merchandising

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B2CCommerce

B2BCommerce

Omni-ChannelMerchandising

Cloud and Software Solutions

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hhgregghhgregg uses IBM eCommerce to capture sales in real-time to deliver a consistent experience across all channels.

Of traffic from mobile devices

Enables mobile and desktop customers to execute product purchases

25% Seamless

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Customer Analytics

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Digital Analytics

SocialAnalytics

PredictiveAnalytics

CustomerExperienceAnalytics

CustomerService

Optimization

Cloud and Software Solutions

Octagon InsuranceOctagon, an early-stage European insurance company used IBM Marketing Solutions to enable the online marketing team to review replays of specific user sessions and quickly uncover why customers were dropping out of the online application process.

22%

40%

increase in conversion rates

reduction in validation errors 330%

Overall ROI

Procurement

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EnterpriseContract

Management

Cloud and Software Solutions

EnterpriseSource to Pay

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Anheuser-Busch InBevAnheuser-Busch InBev is using IBM Procurement solutions to drive the value of an extensive supplier base, ensure compliance and mitigate risks.

eAuctions over 6 years to purchase materials, products and realizing the best available value100k Countries to manage a

streamlined and automated contract lifecycle process25

B2B Integration

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B2BIntegration

ManagedFile

Transfer

Cloud and Software Solutions

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Irish Dairy Board

Improved speed 90

Irish Dairy Board is using IBM B2B Integration solutions to ensure timely and accurate information is flowing through a centralized supply chain.

Countries receiving goods on time, requiring visibility across the supply chain with real-time tracking and reporting

Of onboarding suppliers and customers faster – reducing the onboarding process from days to hours

Payments

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CommercialPayments

Cloud and Software Solutions

Retail Payments

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ScotiabankScotiabank uses IBM Business Consulting Services and IBM Payments Management to implement an integrated-payments-service system that supports ongoing growth.

350 %

Increasein online-report volumes

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75 %Reduction in new customer setup time

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Why choose IBM Commerce?

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Design & Analytics Integration

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Industry Expertise

Join the conversationBlog, YouTube, Twitter, LinkedIn and Facebook

The Future of Commerce is Now

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Additional Slides

Our Ecosystem: 1,738+Digital Agencies & Mktg Svc Providers

Complementary Solutions & ISVs

Systems Integrators

Resellers & SaaS Providers

eCOMMERCE MARKETING

PROCUREMENT B2B INTEGRATION

CUSTOMER ANALYTICS3 of 9

Leadership

6 of 9Strong Performer

6 of 7Leadership

1 of 2Leadership

3 of 3Leadership

2 of 2Leadership

Analysts perspective

1 of 7Strong Performer

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Winning in Commerce takes an integrated approach

Partner and SupplierEngagement

CustomerEngagement

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Key capabilities for customer engagement

Convert and Retain Digital Customerswith digital marketing

Ignite and Grow Customer Relationshipswith omni-channel marketing

Deliver Personal Experiences with mobile customer engagement

Curate Personal Interactionswith real-time personalization

Understand Your Customerswith customer experience analytics

Serve and delight customerswith Watson Engagement Advisor?

Sell and Fulfil Products, Services, Configurable Bundles with B2B Commerce

Deliver Seamless and Personalized Omni-Channel Sellingwith B2C Commerce

Maximize Sales Profits and Shopper Loyaltywith omni-channel merchandising

Customer Analytics Marketing eCommerce & Merchandising

Analyze social media trendswith social media analytics

Capture, qualify and nurture leads with lead management

Predict customer desires with predictive analytics

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Key capabilities for partner & supplier engagement

Effective cost management, supplier insight and risk mitigation with Enterprise Source to Contract

Quickly, securely, and reliably exchange files and data with Managed File Transfer

Structure more profitable contracts and improve compliancewith Enterprise Contract Management

Enable seamless and secure integration with

B2B Integration

Orchestrate transactions for real-time processing with Commercial and Retail Payments Management

Procurement PaymentsIntegration

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IBM Commerce Clients Realizing Results

Marketing: Banorte, Celcom, Humana, ING Bank, Luxottica, OCBC Bank, Orvis, Sephora, Telefonica Vivo

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BanorteBanorte is using IBM Marketing and Customer Analytics Solutions to deliver personalized content in context across all channels to drive customer engagement.

40% 20%Improvement in operating efficiencies

Return on equity 200

M

USD expected bottom line benefit in the first 24 months

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CelcomCelcom is using IBM Marketing solutions to improve customer loyalty, increase revenue per customer and reduce churn through personalized campaigns and messaging.

80% 70%Reductionin campaign launch times

Improvement in campaign performance 98%

Engagementrating among customer-facing employees

HumanaHumana is using IBM Marketing solutions to engage their members with personalized, meaningful, timely and relevant communications.

180%

Increase in email open rates 12M

Members provided with relevant communications

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ING Bank

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3xweek reduction in campaign cycle times

increase in customer responses 35%reduction in overall

marketing costs

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Dutch bank ING has transformed its marketing effectiveness over five years through a focus on personalization and use of IBM Marketing Solutions to determine, prioritize, and deliver next-best actions to customers across multiple marketing channels.

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LuxotticaLuxottica is using IBM Marketing solutions to have an omni-channel view of its customers and their brand preferences and buying patterns, so they can create highly targeted, relevant campaigns.

4%Uplift in incremental revenue

Estimated increase in campaigning50%Reduction in

operating costs 500%

OCBC Bank

273% 45%increase in campaigns deployed

increased conversion rates 138

%

growth in hidden revenues

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OCBC Bank is using IBM Marketing solutions to understand customer behavior and improve customer targeting and segmentation to increase cross-sell rates resulting in engaged customers across all channels.

OrvisOrvis uses IBM Marketing Solutions to employ powerful flowchart logic, segmented offers, offer assignment, and channel selection.

88% 2yrsreduction in digital andnon-digital campaignand reporting costs

record profitsafter solutionimplementation 40%

reduction in emailcosts versus prioroutsourced solution

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SephoraSephora is using IBM Marketing, Mobile Customer Engagement solution with digital reminders of in-store services such as free make-overs to VIP members to bring them in to their stores.

And location based offers with a mobile enhanced in store experiencePersonalize

d

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Telefonica | VivoTelefonica Vivo is using IBM Marketing to reach beyond demographics and target segments with the right offers realizing tremendous results.

30%Increase in revenue generated from direct marketing efforts

Increase in opt-in rate for customers who receive marketing messages5X

Increase in sales on days that campaigns are launched 70%

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Leading Beverage MakerA Leading Beverage Maker is using IBM Marketing solutions to analyze consumer behavioral data and create persona-level campaign messages that help drive brand loyalty.

2XIncrease in loyalty program membership

View of consumer trends, preferences and patterns360°

eCommerce and Merchandising: Beijing Wangfujing, Coop Danmark, Homebase, hhgregg, Klarna, Lindt, Marks & Spencer, Performance Bicycle, Office Brands

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Beijing Wangfujing Department StoreBeijing Wangfujing Department Store uses IBM eCommerce to create better product mix offers that leverages insight from customer sentiment.

90%Of time saved on outfit coordination used for cross-selling by eliminating manual work

Of products and inventory leading to improved merchandising 360°

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Coop DanmarkCoop Danmark uses IBM Omni-channel Merchandising solution to increase sales and profitability by identifying variations in customer preferences and adjust markdowns as needed.

10%Increase in gross margins by maximizing the effectiveness of local markdowns

HomebaseHomebase uses IBM eCommerce solutions to provide highly personalized shopping experiences that are designed to meet the needs of today's consumer.

Customers now shopping online

Increase in online traffic driving double digit sales growth40% 30%

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hhgregghhgregg uses IBM eCommerce to capture sales in real-time to deliver a consistent experience across all channels.

Of traffic from mobile devices

Enables mobile and desktop customers to execute product purchases25% Seamles

s

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KlarnaKlarna is using IBM eCommerce to deliver secure and intelligent interactions for their customers, to increase retailers’ sales by allowing online shoppers to see and touch products before paying for them.

Increase in Klarna's customers' conversion rates

Risks and costs associated with online transactions for retailers and consumersReduced20%

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LindtLindt is using IBM eCommerce solutions to enable direct relationships with consumers and offer highly personalized seasonal promotions to drive loyalty and revenues.

3XIncrease in mobile revenue

Increase in conversion rate on first Black Friday upon implementation2X

Increase in conversion rates 200

%

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Office BrandsOffice Brands is using IBM eCommerce and IBM Marketing to drive sales with a B2B2C platform for their members to deploy tailored offerings to their customers.

114%

Increase in conversion rates by deploying finely tailored sales strategies 20K

New products added overnight to more than 150 member stores

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Performance Bicycle Performance Bicycle is using IBM eCommerce and IBM Customer Analytics to drive customer engagement and sales.

300%

Increase in traffic to the Learning Center in its first four months online

Increase in conversion rates from the Learning Center compared to other referrers

20%

Customer Analytics: Dollar Bank, FreshDirect, Octagon Insurance

Dollar BankDollar Bank is using IBM Customer Analytics to provide a high level of service to their customers by having rapid resolution of sticking points in the customer journey.

25SReduction in average contact call center times 30%

Fewer call escalations, increasing customer satisfaction

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FreshDirectFreshDirect is using IBM Customer Analytics and IBM Marketing solutions to drive campaigns that are personalized with the best offers based on customer insights.

40%Lift in order rates with new customers 10X

Increase in transaction rates from cart abandonment communications

Octagon InsuranceOctagon, an early-stage European insurance company used IBM Marketing Solutions to enable the online marketing team to review replays of specific user sessions and quickly uncover why customers were dropping out of the online application process.

22%

40%

increase in conversion rates

reduction in validation errors 330%

Overall ROI

Procurement: ABInBev, Financial Services Provider

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Anheuser-Busch InBevAnheuser-Busch InBev is using IBM Procurement solutions to drive the value of an extensive supplier base, ensure compliance and mitigate risks.

eAuctions over 6 years to purchase materials, products and realizing the best available value100k Countries to manage a

streamlined and automated contract lifecycle process25

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Financial Services CompanyA Financial Services Company in Canada is using IBM Procurement solutions to ensure growth and profitability by maximizing volume discount opportunities and consolidating purchasing activity.

12%

Reduction in procurement spend expected through supplier consolidation

B2B Integration: Bonnie Plants, CEVA Logistics, Irish Dairy Board, Lenovo, Taishin Bank, Watts Water

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Bonnie PlantsBonnie Plants is using IBM B2B Integration solutions to collaborate and engage with partners and suppliers with real-time visibility into inventory, enabling them to anticipate needs of an individual store.

Of their business occurs in 3 monthsfrom March to May

USD realized growth by reducing costs and increasing reliability of their B2B operations10-20M 70%

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CEVA LogisticsCEVA Logistics is using IBM B2B Integration to orchestrate an extensive network of clients, suppliers and logistics partners flawlessly.

90%Increase in speed to add additional EDI capacity 40%

Estimated reduction in time to market to bring new clients on board

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Irish Dairy Board

Improved speed 90

Irish Dairy Board is using IBM B2B Integration solutions to ensure timely and accurate information is flowing through a centralized supply chain.

Countries receiving goods on time, requiring visibility across the supply chain with real-time tracking and reporting

Of onboarding suppliers and customers faster – reducing the onboarding process from days to hours

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LenovoLenovo is using IBM B2B Integration solutions to deliver authentic interactions with their global supply chain partners.

1M USD reduction in yearly costs

Reduction in cycle time to onboard a new partner2X

Speed to integrate new partners quickly to meet demand 85%

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Taishin International BankTaishin International Bank uses IBM B2B Integration solutions to deliver secure transactions and offer new services.

Productivity and improved customer relationshipsIncreased

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Watts Water Technologies Watts Water Technologies uses IBM B2B Integration solutions to share data with trading partners via EDI in the cloud.

7 Months to achieve ROI through substantially reducing operational expenditures

Availability for all EDI systems

Documents processed monthly 99%92k

Payments: JCC Payment Systems

JCC Payment SystemsJCC Payment Systems is using IBM Payments solutions to deliver SEPA transaction processing as a service to creditors and banks across Cyprus.

SEPA 250 K

Transaction processing to creditors and banks – enriching its service offering and driving growth

SEPA Direct Debits processed daily at peak times

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ScotiabankScotiabank uses IBM Business Consulting Services and IBM Payments Management to implement an integrated-payments-service system that supports ongoing growth.

350 %

Increasein online-report volumes

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75 %Reduction in new customer setup time