Differen'ate  Instead  Of  Discount  

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#NoMoreDiscounts  

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#NoMoreDiscounts  

About  Retail  TouchPoints  ü  Launched in 2007

ü  Over 30,000 subscribers

ü  To provide executives with relevant,

insightful content across a variety of

digital medium

#NoMoreDiscounts  

Today’s  Panelists  

Lauren Turner Product Marketing Manager,

eCommerce & Retail, SDL

Alicia Fiorletta Senior Editor,

Retail TouchPoints

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Powering  campaigns    

for  400+  global  brands  

   

3200  Employees  Worldwide  

Founded  in  1992  

Driving  $16B  in  annual  online  revenue  with  our  eCommerce  technology  

Leader  in  WCM,  receiving  top  analyst  rankings  since  2001  

Enabling  companies  to  communicate  in  100+  countries  

7  BILLION    words  translated  every  month  

70    offices  

38    countries  

1500    enterprise  customers  

   SDL  powers  over  350  global  retail  brands,  driving  more  than  $16b  in  annual  online  retail  sales.    

400    partners  

#NoMoreDiscounts  

•  CX  is  our  only  business  •  Focus  on  en=re  customer  experience    •  Faster  =me  to  market  •  We  make  global  simple  •  Language  is  our  DNA  

How  SDL  is  Different  

SDL Proprietary and Confidential

Differentiate Instead of Discount Leverage Data To Get Strategic About Couponing And Create More Meaningful Customer Experiences Lauren Turner, SDL P

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More than 75 percent of retail goods were sold at a discount in 2013. --National Retail Federation

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Everyone’s Doing it… but Discounting is Harmful to Your Brand

It squeezes already narrow margins

It attracts primarily price-driven customers

It lowers brand perception

It “trains” customers to wait for deals

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…and Flash Sale and Daily Deal Sites are Really More Bark than Bite

•  Focused more on customer acquisition than retention: once consumers subscribe and have deals sent to them via email, nearly half said they rarely use the daily deals they receive.

•  Mediocre Customer Service: of the 2,776 comments posted across 11 of the top U.S. flash site Facebook pages, 44% were negative

•  Negligible growth of new entrants in 2014 •  None of the current models are profitable

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Plus, One Size Discounting Doesn’t Fit “All” Buys one $10 item

Buys $500 worth of product. Won’t shop again until the next

sale.

“Why not 50% off?”

Buys $1000 worth of product; would have

paid full price

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How to get the Most out of Discounting

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Other Key

Types of Data

•  Social

Media Activity

•  Other sites frequented

•  Reviews posted

•  Size of social network

Step 1: Collect Customer Data

Type of Data Typically Collected by Retailers to Gauge Customer Experience

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Step 2 Leverage Customer Data to Create and Rank Profiles

Savvy Susan

•  Age 25-34 •  Shops on Multiple Devices •  Follows Trends •  $75k income •  Active Twitter user •  Buys online 2x/month

Broke Ben

•  Age 45-54 •  Showrooms •  Lowest price •  $15k income •  Not on social media •  Buys 1x/year

Luxury Lisa

•  Age 35-44 •  Shops mainly in-store •  Quality and Service #1 •  $500k income •  Active LinkedIn user •  Buys online weekly

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Step 3: Tailor Offers to your Most Appealing Profiles

Savvy Susan

•  Suggest a blouse similar to the one she purchased, and offer 15% off

•  Get $10 back when she refers a friend who purchases

•  Free 2 day shipping as a surprise thank-you for writing an online review

Broke Ben

NO DEALS FOR YOU!

Luxury Lisa

•  Suggest shoes to match the suit she purchased, and offer free next-day shipping

•  Sneak preview of products before they become publicly available

•  Emails from company VP’s address

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Step 4: Test and Refine

Only 37% of Retailers

Regularly Test!

Beat the Competition by

Finding the Formula that

Works for You and Your

Customers

Some Testing Variables to

Consider:

•  Product vs Customer Profile

•  Different Offers

•  Product placement on page

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Merchandising and Customer Experience Alternatives to Discounting

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Approximately 8 out of every 10 consumers are consistently looking for deals while they shop

We Know Consumers are Price Sensitive, and use Social Media to Find and Share Deals

•  The majority (64%) use daily deal sites to get a coupon;

•  More than half (54%) use a coupon found on social media;

•  More than one third (39%) share and trade coupons with others via social media

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However, Price Often isn’t the Deciding Factor for Purchases; Customer Experience is.

21 2014 SDL Holiday Shopper Study

The New Customer Mandate: Experience is more important than price

According to a CEI survey, only 1% of customers feel that vendors consistently meet their expectations.-Forbes Surpass their CX expectations, and be rewarded!

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For Stellar CX, You Need to Know This Shopper

Relevant to my needs “In the moment”

Remember all our interactions, including purchases and brand preferences

Know Me

Optimized for my device of choice

I want it fast

What I want…now, and what I don’t know I want yet

Targeted to my Local store

In my language, and culturally correct

Introduce me to cool new stuff

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1. Use Your Data to Drive More Profitable Purchases

Determine your highest margin items, and feature them the most prominently.

Out of stock items are among consumer’s biggest pet peeves when shopping online. When an item is out of stock, remove it from view!

Moving an item one row in your search page can have the same affect as

offering a discount of 6%-21%

on that item.

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2. Show the Right Products to the Right Shoppers

Using data available to you –– you can intelligently

determine the rankings on your

search list page to display the most relevant products

Creating rules to

determine what products get

recommended, and to whom, can boost

average order value by 50%

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3. Combine Content, Commerce and Community

Make your site a destination hub

that goes beyond selling to offer interesting and relevant content that draws traffic, engages visitors

and inspires shopping.

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Example #1 Halfords (460 stores, 30k products)

Navigable content

Content linked to products

Searching for “road bikes” delivers articles and advice on bike selection, in addition to displaying the road bikes for sale.

Combining car data with online search and merchandising for personal experience

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Shoppers can sort and refine by: •  Dress Type •  Dress Shape •  Length •  Color •  Size •  Price Range (slider) •  Brand (alphabetically)

Recommendations/Details Include: •  Accessories to match •  Similar styles •  Fit •  Video of dress on

runway •  Zoom

Example #2 ASOS (9.1M customers, 98M visits/month)

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4. Remain Engaged Throughout the Shopper’s Journey Referred to

eCommerce site from Pinterest

Lands on the vintage section

Filters on “Color”

Selects “retro jeans”

Creates wishlist

Consumer checks the

reviews

Select products are promoted

Signs up to receive deals

Non-relevant items are hidden from consumer in navigation

Unknown à Understood Identified as “Retro Girl”

Targeted with a profile rule to contextualize next visit

Receives and opens the

targeted email

Website experience (video) tailored based on historic

browsing data and profile data

Decides to buys the product

Finishes the checkout process

Understood à Known

Shares her experience on Pinterest and we reward her

Receives confirmation email

Known à Customer

Customer à Advocate

Confirmation email send

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Requirements o  Deliver mass personalization

to over 7 million Loyalty Members

o  Power the omnichannel retail platform with customer data and analytics

o  Create a single view of the customer

Example #3 Specialty Fashion Group 7M customers, 900 stores, 8 websites)

For the first time SFG was able to gain a

single-view of their customers and deliver personalized, targeted

communications based on the behavior of individual customers.

ROI of 2,200% on electronic direct

marketing campaigns.

Winner of Australian Retail Association's 2013 Australian Multichannel Retailer of

the Year award

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Key Takeaways 1.  Blanket discounting leaves money on the table.

2.  Customer experience is the most critical lever retailers can pull

relative to driving revenues and consumer loyalty

3.  Integrate all your sources of customer data for better insight and analysis, then segment your market based on shopping behavior, demographics and profitablility

4.  Strategic visual merchandising and relevant content tailored to your customer will result in higher sales and greater profitability than discounting.

5.  Test your assumptions to find out if a particular ecommerce strategy is working, then adjust accordingly.

6.  Use touchpoints throughout the customer’s shopping journey, not just through the initial conversion

SDL Proprietary and Confidential

Thank You!

#NoMoreDiscounts  

Q  &  A  //  Panelists  

Lauren Turner Product Marketing Manager,

eCommerce & Retail, SDL

Alicia Fiorletta Senior Editor,

Retail TouchPoints

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