Life Takes Your Customers Everywhere. Engage with Them Anywhere

Life Takes Your Customers Everywhere. Engage with Them Anywhere.

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© 2011 SAP AG. All rights reserved. 2

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

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Today’s Presenters

Mickey Haynes

Mobility Solutions Executive - Global Business Development for Mobile in Retail, CPG, Hospitality, SAP

Rakesh Gandhi

Director, Mobile Solution Management, SAP

Bhushan Khadpe

Director, Product Management, Mobile Applications, SAP


Successful retailers…… recognize that change is the only constant

Must rapidly seize technology and adapt to change

Online competition

Showrooming

Smartphones

Consumerization of IT

Trends… Loss of….

Basket size

Gross margin

Customer retention

Tolerance for error

Attract new customers

Skilled/experienced labor


Successful retailers…… adapt and seize the opportunity

Growth, sustainability, transformation

Response ResultsEmpower associates with customer and product information

Enhance and personalize customer interaction

Collaborate with supply chain and other partners

Reduce customer churn

Reduce lost sales opportunities

Reverse margin shrinkage

Reduce losses/delays in productivity



consumers used smartphoneswhile in store. Up 134% fromlast year

of showrooming consumersask for better prices onfuture purchases

of retailers expectshowrooming to impact theirbusiness with an averagesales loss of 5%

of retailers have a strategyaddressing showroomingthis year

Online-only retailers continue to focus on price,winningover consumers, even when they are ina competitor’sphysical store


increase in mobilesearches in 2012

conversion rate for mobilevs. print coupons

of people conductedshopping related searches

of people who see amobile ad take action.35% visit advertiser’s site

Mobile is a bright spot, enabling retailers to drive storetraffic, and empowering consumers to complete

their transaction, anywhere and anytime


prefer reatilers that usepersonal information toimprove online shopping

want “relevant” adson their mobile device

want offers based on pastpurchases, on their phones,while in the store

Boost the store experience by empowering in-storeemployees – online retailers don’t have this opportunity


Challenges of consumer mobility in retail

Complex & Constantly Evolving LandscapeMultiple mobile operating systems and device form factors increases complexity of design, development, testing and rollout

Continuous InnovationNew technologies such as mobile payments, NFC, barcodes, etc., require specialized skillsets

App FatigueConsumers do not want to download a single app from every brand with which they interact

Numerous Solutions & StakeholdersA successful mobile strategy includes web, apps, SMS, and third party integrators and incorporates direction from many stakeholders such as eCommerce, marketing, store experience, payments, sales, etc.

The Mobile Shopping Experience


Mobile is shaping the shopping experienceMaking consumers more demanding

Mobile innovation has taken consumer expectations to another level

Immediate insight

Instant gratification

Personalized experiences

Social connections


Consumers will become loyal to brands thatExceed their expectations by making them

Informed and empowered by relevant data

Comforted and confident as they transact in the moment

Rewarded by and closer to the brands they love

Inspired to evangelize


Customer mobile strategyConsumer mobile commerce maturity lifecycle

Internet Shopping

Mobile

WebsiteTransact

Analyze & Market

Value Add Services

Engage

Mobile Loyalty & Wallet

Basic shopping list

Offers and Coupons

Store locator

Advanced shopping list with family collaboration

Product catalog, digital assets, recipes, search, scan, store prices & inventory

In-store Mobile POS & Check out

On device ordering, Mobile Payments, Mobile Wallet & Digital Receipts, Store pick up

Omni Channel integration

Personalized & relevant recommendation

Personalized, and location based offers & coupons

Personalized product catalog

Social sharing

Location based services & Instore location service

QR Code, Barcode Scan, NFC

Augmented reality

Consumer Self service, product registration, returns, etc.

Social Media – ratings, etc.

SAP Mobile Platform

365 Messaging

SAP customer Loyalty

SAP Mobile Platform

365 Messaging

Mobile Payment & Wallet

Extensible Shopping solution

SAP Mobile Platform

365 Messaging

SAP Precision Retailing

SAP Mobile Platform & Partner solution

Re-usable platform services

Mo

bil

e E

vo

luti

on

SAP Offerings

© 2012 SAP Canada. All rights reserved. 15Confidential

Enroll

Store Locator

Product catalog & digital content Push Messaging,

Alerts and SMS

Loyalty Account Management

Mobile Instore and Out of store

Shopping

Mobile Payment/Wallet

SAP Customer Loyalty 1.0.0Introduction to consumer mobile loyalty solution

Analyze & Personalized

Marketing

Offers, CouponsMobileServices

SAP Customer Loyalty


Consumer Enrolls

Illustrative use-case:Drive consumer loyalty

Consumer registers and gets loyalty card

online

Consumer learns about special

offers

Consumer enrolls with Retailer or Manufacturer

program

Receives Special Offer

Manage Loyalty & Wallet

ABC Retailer provides simple to use shopping list

with check off feature to drive

convenience

ABC Retailer creates

opportunities to cross-sell

consumers and increase basket

size

ABC Retailer personalizes the

shopping experience and

enrollment process with secure

registration or log on with Facebook

Consumer creates shopping list and plans shoppings

Shopping list

ABC Retailer strengthens consumer loyalty through reward program. Provides rich

experience to get loyalty card online and

store it in digital wallet.

Store locator

Consumer uses this feature to find

nearest store location l

Consumer locates nearest store and goes in store for

shopping.


SAP Customer Loyalty mobile solution








































































Tue12th Dec

Redeemed 140

Mon10th Dec

Bonus 50Bonus

Wed12th Dec

Earned 250$125 spend

Fri14th Dec

Earned 1502 Refills

Sat15th Dec

Redeemed 200

Sun16th Dec

Earned 300$150 spend





Enhance consumer shopping experience

SAP Customer LoyaltyDrives Business Value

Repeat consumer

Increase consumer satisfaction and loyalty

Grow wallet share

Digitize coupons and Increase offer conversion rates

Maximize return on marketing spend


Q & A

?

Thank you

Rakesh GandhiDirector, Consumer Mobile Solution ManagementEmail: [email protected]

Contact information:

Bhushan KhadpeDirector, Consumer Mobile Product ManagementEmail: [email protected]

Michael “Mickey” HaynesMobile Center of ExcellenceEmail: [email protected]

Closing and Q&A

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Life Takes Your Customers Everywhere. Engage with Them Anywhere