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Panelists   Debbie  Hauss    Editor-­‐  In-­‐  Chief    Retail  TouchPoints  

MODERATOR  

Ravi  Adusumilli  Head  of  Enterprise  Partnerships  

Facebook    

Nikki  Baird  Managing  Partner    

Retail  Systems  Research      

Markus  Semar  Industry  Solu1on  Trading,  Retail  Division  

SAP    

Digital, Personal, Contextual: The Retail Marketing Challenge

NIKKI BAIRD

MANAGING PARTNER

APRIL 2015

Contents

•  Retailers recognize that digital is an important source of growth •  But they are horrible at taking advantage of the opportunities that

digital channels present them for engaging consumers •  The issue is two-fold:

• They don’t fully understand digital’s influence over the consumer journey

• They don’t have strong measures in place – because they don’t have the right technology to support a digital strategy

7

Retailers’ Top 3 Growth Strategies For 2015:

8

#1: Digital presence to augment our

stores

#2: More physical stores

in existing geographies

#3: Generate more sales in existing

markets

Too Bad They’re No Good At Reaching Customers:

1/3 Agree: My company knows who our best shoppers are

<1/4 Agree: My company is

proficient at targeted marketing

9

The Challenges Are Unsurprising:

10

11

Retailers believe anywhere from 50-80% of sales are influenced

by digital.

But survey respondents report that only ~25% of overall marketing

results can be attributed to digital marketing.

Retailer Priorities for Digital:

12

Turn customers into advocates

Leverage new sources of data (social) to meet customer needs

More effective targeting based

on customer insights

Drive in-store traffic

More effective targeting based on customer behavior

Drive sales through engagement

13

35% of Retail Winners say they are not spending enough digital marketing time

on engaging with customers or acquiring new ones.

Lack Of Measures Is A Barrier

14

Top 3 Digital Challenges:

#1: Measuring the effectiveness of different marketing tactics

#2: Knowing which tactics work best in

which channels

#3: Understanding how different segments engage with us

Retail Winners Recognize Technology’s Role

15

Summing It Up

•  Retailers recognize that digital is an important source of growth

•  But they are horrible at taking advantage of the opportunities that digital channels present them for engaging consumers

•  The issue is two-fold: • They don’t fully understand digital’s influence over

the consumer journe

16

•  Retailers recognize that digital is an important source of growth

•  But they need to get more targeted in how they engage with consumers

•  They need digital initiatives that:

•  Help them understand how digital influences the customer path to purchase

•  Help them identify the right measures to use when defining engagement success

17

Thank You! Questions?

www.rsrresearch.com

Nikki Baird nbaird@rsrresearch.com

April 2015 @ Webinar US | SAP hybris Marketing & Facebook

The Data Driven Customer Experience

Markus Semar, Michael Rey

Ravi Adusumilli

©  2015 SAP SE or an SAP affiliate company. All rights reserved. 19

LEGAL DISCLAIMER

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.

©  2015 SAP SE or an SAP affiliate company. All rights reserved. 20

Ravi Adusumilli, Head of Enterprise Partnerships, Facebook

©  2015 SAP SE or an SAP affiliate company. All rights reserved. 21

Markus Semar, Solution Manager for Social Products @ SAP

©  2015 SAP SE or an SAP affiliate company. All rights reserved. 22

Michael Rey, Product Manager hybris Marketing

SAP AND FACEBOOK Partnership

©  2015 SAP SE or an SAP affiliate company. All rights reserved. 24

SAP HYBRIS MARKETING

Insights Agility Experience Develop a deeper understanding of your customers and prospects, understand the real-time intend of each of them.

React quickly to opportunities, align your teams and resources and understand marketing performance.

Engage each customer in an individual way, that nudges them towards conversation.

25 ©  2015 SAP AG or an SAP affiliate company. All rights reserved.

Intelligence through Predictive

Analytics

Personalized targeting &

orchestration

Listen & explore Events & interactions from all channels

Campaign execution in all channels

Plan, measure & optimize

Market data & events

Sales & service data

Financial data

Big data industry

Social media, web Traditional channel

Lead, Opportunity

Interaction center

Personalized commerce

Digital & social channel

SAP hybris Marketing The comprehensive digital marketing process

Capturing response

SAP AND FACEBOOK

Use data to connect with your customers and find more people like them.

FIND LOVE AND GROW …

THE CHALLENGE OF FINDING RIGHT AUDIENCE

Marketers have struggled to find the perfect audience for their brands. Prospect Response rates by channel: Source: DMA http://www.dmnews.com/dma-direct-mail-response-rates-beat-digital/article/245780/

Phone 8.21%

Mail 1.28%

Email 0.03%

Display ad 0.04%

Today with the available data and analytics, it is possible to find the best customers

KEY IS HAVING ENRICHED DATA AND ANALYTICS

•  Develop an enriched view •  Identify your best

customers. •  Narrow your best customers

with predictive analytics •  Find look a-likes to your

best customers •  Deliver personalized ads

that will drive conversions

•  Identify your best customers •  Enhance with social data •  Leverage predictive analytics to further define

your ideal customer profile •  Further enhance the profile with additional

attributes from FB •  And find Look alikes

SAP X FACEBOOK: FIND

•  Create targeted ad campaigns •  Execute the campaign in Facebook •  Facebook executes the campaign to

look alike customers •  Customer clicks through the ad to

commerce site

SAP X FACEBOOK: LOVE

•  Optimize the budget spend •  Set limits on the budgets for each

ad campaign •  Monitor in real-time and make

adjustments as needed •  Maximize your reach

SAP X FACEBOOK: GROW

SAP X FACEBOOK: PERSONALIZED 1.1 MARKETING AT SCALE

1.

2.

4.

5.

6.

3. Create Custom

Audience including FB Lookalikes audience

Build Target Segment

Harvest Data & Merge interactions Impact Analysis

Allocate budget and schedule campaign for

advertising objective CONSUMER

INTERACTIONS

Predictive Analytics

Business used to be personal

The world has changed

Before Now

Massive reach once meant mass message

Audience Your ad

Achieve massive reach while delivering relevant messages

Current customers

Website visitors

High LTV customers

Latent customers

Marketing has changed

Mobile is the primary screen and used throughout the day

Source: Millward Brown AdReaction, March 2014, global data.

0   50   100   150   200  

Smartphone

TV

Laptop

Tablet

Minutes spent per day 35%  

30%  

25%  

20%  

15%  

10%  

5%  

0%  6am  –  9am  

9am  –  12pm  

12pm  –  3pm  

3pm  –  6pm  

6pm  –  9pm  

9pm  –  12am  

Screen use during the day

12am  –  6am  

Mobile apps are taking center stage in the shift to mobile: US

Source: “Apps Solidify Leadership Six Years into the Mobile Revolution” Flurry Blog. April 2014

Total minutes spent on mobile apps vs. mobile web 86%    of time on mobile is

spent in apps

Mar ‘11 Jan ‘12 0

20

40

60

80

100

120

140

160

Apps

Mobile web

Min

utes

spe

nt p

er m

onth

(bill

ions

)

Mar ‘14 Mar ‘13 Aug ‘12

New

Where they are most engaged

Source: US Mobile Total Monthly Minutes, comScore, Dec 2014.

Facebook in Global

Every day Every month

64%  

people daily people daily on mobile

people monthly people monthly on mobile

890M   745M   1.39B   1.19B  

Source: Facebook Internal Data based on stated and inferred data, average for Dec 2014.

of monthly active users return daily

Mobile is disrupting EVERYTHING

of Facebook’s revenue comes from mobile

69%

Source: Facebook Q4 2014 earnings data, December 2014

…this  1me  it’s  personal…

This shift has has allowed us to come full circle

Personalized

Scale

Use data to connect with your customers and find

more people like them.

Data + targeting powers personalization at scale

Email subscriber

In college

Direct mail subscriber

Lives in San Francisco

Visited your mobile app

Has an iPhone 5

Overview of Facebook Targeting

Core Audiences

Lookalike Audiences

Custom Audiences

Sophisticated targeting with unsurpassed accuracy

Reach the people you already know

Find more people like your best customers

Matched targets

CRM data

Your data Direct or through third-party

Intent data

Facebook

People you know on Facebook

Custom Audiences How it works

Data is hashed for privacy

Advertiser’s Browser

Facebook Servers

Target Audience Upload Hashed Data

Hashed Data

Facebook Ad Account

Custom Audience

DELETED

All matched and unmatched hashes are deleted after the

process completes 1,234,567 Matches

Matched users are added to Custom Audience

Lookalike Audiences Find people who look like your customers and prospects

and people who look like them

Fans of your Page

Website visitors

Mobile app users

People you know

Use Custom Audiences across objectives

Cross-sell and upsell

Build brand

Drive intent

Acquire customers

Awareness

Consideration

Conversion

Loyalty

©  2015 SAP SE or an SAP affiliate company. All rights reserved. 50

SAP HYBRIS MARKETING AND FACEBOOK: 1:1 MARKETING AT SCALE

Predictive Analytics Scoring

Golden Segment and Custom Audience

Personalized Offer /

Engagement

Campaign Analytics

hybris Marketing

Enable customers to leverage data and features from hybris Marketing to address the right people with ads on Facebook: • Address existing customers on Facebook for cross- or upselling • Reach out for new customers by addressing people similar to your existing customers • Address people with Facebook ads based on arbitrary events like a contract expiring soon. • Use hybris Marketing predictive capabilities to address people with the highest buying propensity with Facebook ads

Facebook Ads

Campaign Planning Budgeting

Speedemo

KEY BENEFITS 1.  Extend reach and accuracy to target consumers

by correlating information from transactional systems with data from Facebook

2.  Ability to make dynamic changes to Facebook ad campaigns based on real time information

3.  Provide predictive capabilities to better target consumers

4.  Better assess the cost and returns from a campaign, post and pre-launch

Thank You

Markus Semar, Solution Management Social Media Offerings @ SAP markus.semar@sap.com

Dr. Michael Rey, Product Management Digital Marketing michael.rey@sap.com

Ravi Adusumilli Enterprise Partnerships ravia@fb.com

#SAPFB  

Q&A    //    Panelists   Debbie  Hauss    Editor-­‐  In-­‐  Chief    Retail  TouchPoints  

MODERATOR  

Ravi  Adusumilli  Head  of  Enterprise  Partnerships  

Facebook    

Nikki  Baird  Managing  Partner    

Retail  Systems  Research      

Markus  Semar  Industry  Solu1on  Trading,  Retail  Division  

SAP    

Thank  You  For  Joining  Us!  View  this  presenta1on  on-­‐demand  at:  hAp://rtou.ch/sapFweb  

Rethinking  Retail.  Reimagining  The  Customer  Experience.    

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June  16-­‐17    //    NYC  

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