Increase customer acquisition with deeper insights and better channels

The Lines Between Virtual and Physical are Blurring … Disappearing

Outside Store Inside Store

Shopping List

Aisle 3

Aisle 11

Aisle 9

Shopping Becomes Omnipresent

Shopping Becomes Real-Time Aware

The global eCommerce growth rates vary widely, but are all trending upwards and providing exciting opportunities for strategic retailers

The UK growth in sales to international markets reveals even further potential for a global and open locker delivery echo system

Britains Retail E-mpire_30_04_13

Leading market research shows there is clear demand for an eCommerce delivery service like the InPost locker

Retailer_ParcelCarrier_Report

The trends of customer’s delivery concerns are growing in line with that of eCommerce based on IMRG Delivery Survey 2013

Trends based on IMRG Consumer Delivery Survey 2013

Some categories do better than others in e-tailing

Morgan Stanley Blue Paper January 6, 2013

The aesthetic design of the locker complements the store environment whilst providing the required customer ease of use

The eCommerce locker makes shopping easy, flexible and convenient for the customer whilst empowering retailers to compete

InPost Locker

Shop OnlineSelect “Locker”

shipping method and the locker location

Get the parcel from the locker near your house

Receive the locker codeon your cell phone

Retail Benefits Convenient shipping options for the customer that are cost effective

The customer gives you their cell phone # and opts in for notifications

The customer retrieves the parcel from the locker which is available 24x7

The eCommerce locker is based on an open model that all retailers can use; similar to how ATMs are available for customers of any bank

eCommerce Retailer

Physical Store

Locker Operations Locker Infrastructure

InPost sets upcourier networksto be used for retailfulfillment using the lockers

InPost/IBM deploys lockers to locations that are most suitedfor your retail customers and manages the locker service

IBM & InPost installs the eCommerce solution for the retailer

InPost charges the retailera negotiated fee per parcel thatuses the locker in the eCommerce path

Retailers hosting lockersget increased footfall from locker customers

Hosting Retailer get monthly rent paymentsfor hosting the locker

The negotiated fee per parcel paid by retailers covers all of the lockerinfrastructure costs needed to manage purchases using the locker

IBM/InPost manages the entire transaction making it easy for the customer and the retailer to complete the transaction

Returns are simple and convenient for the customer

The retail locker model includes the hosting and eCommerce modules that can be used depending on the retail needs

Hosting Benefits eCommerce Benefits

InPost Locker

• Increased footfall - from eCommerce purchasers picking up parcels from lockers in your store’s parking lots

• Increased store awareness - from continued visits to your store’s parking lot

• Rent payments - from InPost for hosting the locker

• Increased customer convenience - from purchasing products online and picking them up during closed store hours

• New Customers – purchasing from you due to shipping options they were desiring

• Increased purchases - from abandoned baskets and/or referrals enabled by the locker option

• Targeted promotions – from deeper insights about the customer and access to their mobile

• Increased loyalty and brand strength – from frequent and convenient shopping made possible through the use of the Commerce locker

Topline *growth for both online and physical stores can be realized by using the retail locker with Retail Analytics

Retail AnalyticsRetail

Analytics

Geospatial Insights

Geospatial Insights

Locker integration

Locker integration

Net BenefitsNet Benefits

ROI

Solution Costs

* Revenue, margins and brand can all grow with a strategic use of the retail locker and marketing capabilities alongside existing initiatives

eCommerce Sales

eCommerce Sales

New eCommer purchases

New eCommer purchases

Abandoned Baskets

Abandoned Baskets

Click & Collect Customers

Click & Collect Customers

ReferralsReferralsPhysical Store

PurchasesPhysical Store

Purchases

Omni Channel Footfall

Omni Channel Footfall

Store awarenessStore awareness

Promotion Based Impact

Promotion Based Impact

Online promotionsOnline promotions

In Store & Mobile promotions

In Store & Mobile promotions

Volume Operational Efficiencies

Volume Operational Efficiencies

ATMs revolutionized personal cash management as they became an open network to all the banks.

The InPost locker is an open network built on the ATM principles where all retailers can participate.

1967

1971

1975

1979

1983

1987

1991

1995

1999

2003

2007

2015

F0

500

1,000

1,500

2,000

2,500

3,000

‘00

0 u

nit

s

2010 2011F 2012F 2013F 2014F 2015F0

2,000

4,000

6,000

8,000

10,000

unit

s

Number of ATMs worldwide Parcel machine expansion plans 2011-2015

Source: A.Sirocki, ATMdrive jako trend w bankowości samoobsługowej Source: Company data

InPost lockers have a competitive edge

Convenient locations

Choice between locations

Number of locations

Cost Integration with

e-shop

24/7 Pick up

Secure

InPost

Collect+

Amazon Lockers

Local Letterbox

My Hermes

Royal Mail

myByBox

Google (Not available in UK)

Com

petiti

ve st

reng

th f

or e

Com

mer

ce s

hipp

ing

L

H

M

Creative approach to customer service

Ship To Home

Cost (per Parcel) HighDelivery Success Rate 78%

Pick-Up Accessibility Business Hours

eCommerce Locker

Cost per Parcel MedDelivery Success Rate 99%Pick-Up Accessibility 24x7

Click & Collect

Cost (paid by retailer) MedDelivery Success Rate 98%

Pick-Up Accessibility Business Hours

Collection Point Cost (per Parcel) MedDelivery Success Rate 91%

Pick-Up Accessibility Business Hours

Royal MailLogistics Operators (UPS, DHL, etc.)

Physical store retailers with eCommerce offers (Tesco, etc.)

Colect+, Hermes

Rented Lockers

Cost (flat monthly rate) HighDelivery Success Rate 95%Pick-Up Accessibility 24x7

InPost

myBox, Hermes

The £77Bn UK eCommerce market is growing at 12 % YoY (IMRG 2013 Rpt.) with multiple delivery models competing for this business

L HM

The time window available for one or two dominating forces to capture and control the market is short

Integrated Marketing Management with Analytics requires effective integration about all insights of the customer journey

Analyse Execute

Social

Mobile

Capture customer data

Clustering

Next Best Action

Next Best Offer

Pattern Detection

Entity Analytics

Customer Analytics

Call / SMS / Email

Presence & Location

Cloud –Delivered Services

Engaged Interacting Loyal

Aware Transacting Involved

Systems of Record

Off-line Interactions

Social & Mobile

Traffic Sources

Customer Attributes

Lifetime Website Behavior

Consumers are open to share their personal information, with the exception of financial data, when there is perceived benefit

Consumer Maintains Control of DataWhat is your willingness to provide information in exchange for something relevant to you (non-monetary)?

25% 27%41% 41% 44% 46%

63%30% 30%

28% 29% 28% 28%

21%45% 43%33% 30% 28% 26%

15%

0%

20%

40%

60%

80%

100%

Media Usage(e.g. Mediachannels)

Demographic (e.g. age,ethnicity)

Identification(name,

address)

Lifestyle (# ofcars, homeownership)

LocationBased

Medical Financial

Completely Disagree Neutral Completely willing

Source: IBV Retail 2012 Winning Over the Empowered Consumer Study n= 28527 (global) P04: What is your willingness to provide information for each of the following items if [pipe primary retailer] provided something relevant to you in exchange?

IBM’s social data analytics can be combined with locker data to drive growth

“We love our Canon camera and put it to good use, but there are other models you should explore before purchasing”

“Bought the wife a Nikon Coolpix S6300 + waterproof case. Can't wait to play with it.”

“We love our Canon camera and put it to good use, but there are other models you should explore before purchasing.”

“#TodayDeals http://goo.gl/sJz5L The Things I Want To Do Buy a Select Sony NEX Compact System Camera, Save $50 on a Qualifying Lens”

“Enter to win a New Nikon D800 from KEH Camera,  The World's Largest Used Camera Dealer bit.ly/KDVvXi ”

Intent to buy

Sentiment

Results

“Bought the wife a Nikon Coolpix S6300 + waterproof case. Can't wait to play with it.”

“We love our Canon camera and put it to good use, but there are other models you should explore before purchasing”Buzz

“Bought the wife a Nikon Coolpix S6300 + waterproof case. Can't wait to play with it.”

“We love our Canon camera and put it to good use, but there are other models you should explore before purchasing”Ownership

Using 5 months of External Data / Social Adjusted Forecasts came 24% closer to actual, compared with the existing Forecasting methods, thus demonstrating a significant double digit savings and mark down avoidance

IMPACT

CustSat-Shelf Fitavg 3% ↑

Cat/Store Salesavg 7% ↑

Campaign Costavg 12% ↓

Markdownsavg 6 % ↓

GPS location services for customer interaction are being tested by multiple retailers

Source: http://www.engadget.com/2013/11/20/macys-tests-location-specific-store-discounts-using-ibeacon/

IBM’s retail solutions and industry expertise can configure the locker business model as a key competitive strength for today’s retailers

Online Social On Retail Site

Locker at Store

In Store At Register

LargeNetwork

Posts aboutShoes

Her FriendsComment

She TravelsOften

Browses storesite weekly

Uses the basket as a wish List

Spends time onheels category

Often ships to the same location

Used the locker5 times this month

Went into the store3 times this month

Opted in to locker offer for more info

Socially posted locker feedback

Spent most time in makeup

Retrieved in-storemobile coupon

Asked for helpfrom her mobile

Left one Yelpcomment

Purchased oneach visit

$43 averageBasket size

Used mobilecoupon

Posted picof purchaseto Twitter

IBM Confidential