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