Retail TouchPoints & SDL bring you retail webinar Differentiate Instead Of Discount #NoMoreDiscounts

1. Differen'ate
Instead
Of
Discount
WEBINAR
SPONSORED
BY:
#NoMoreDiscounts

2. #NoMoreDiscounts
On24
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3. #NoMoreDiscounts
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4. #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

5. #NoMoreDiscounts
Today’s
Panelists
Lauren Turner
Product Marketing Manager,
eCommerce & Retail,
SDL
Alicia Fiorletta
Senior Editor,
Retail TouchPoints

6. 6
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

7. #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

8. 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

9. 9
More than 75 percent of retail goods were sold at a discount in 2013.
--National Retail Federation

10. 10
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

11. 11
…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

12. 12
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

13. 13
How to get the Most out of Discounting

14. 14
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

15. 15
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

16. 16
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

17. 17
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

18. 18
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.

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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

23. 23
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.

24. 24
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%

25. 25
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.

26. 26
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

27. 27
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

29. 29
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

30. 30
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

31. SDL Proprietary and Confidential
Thank You!

32. #NoMoreDiscounts
Q
&
A
//
Panelists
Lauren Turner
Product Marketing Manager,
eCommerce & Retail,
SDL
Alicia Fiorletta
Senior Editor,
Retail TouchPoints

33. Thank
You
For
Joining
Us!
View
this
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