The Present and Future of Unified Commerce

Comprehensive Retail Consulting
2©2015 Boston Retail Partners. All rights reserved
2015 E-Commerce Survey
October 2015

Agenda
§ About BRP
§ Improving the customer experience
§ Unified commerce is critical
§ Mobilization of retail
§ Payment types and security
§ Key takeaways

About BRP

Retail experts with retail backgrounds
Built with unique professional profile
u Managed by industry-recognized leaders
u Recruit experienced retail professionals with process, technology and operations skills
u Recognized expertise in all facets of strategy, selection and deployment of Point of Sale, Payment
Security, CRM/Loyalty, Customer Engagement, Order Management, Merchandising and Supply Chain
solutions
Trusted advisors of acknowledged industry leaders
No exclusive partnerships or alliances with software or hardware providers
u Chanel
u Coach
u Rooms To Go
u MGM Resorts
u Michaels Stores
u Ann Inc.
u Tire and Battery Corp
u Brooks Brothers
u ABC Fine Wine & Spirits
About Boston Retail Partners

Luxury Insights Summit
2015
Media Articles
Thought Leadership
White Papers/Special Reports
Speaking
Engagements/Webinars
Industry-leading Surveys Industry Blog
Luxury Insights Summit

Improving the customer experience

The customer
is now the center
of the universe
Social
Media
Website
Email
Apps
Mobile
Website
SMS
Direct
Mail
Catalog
Employees
Checkout
Kiosk
Signage
Advertising

Source:
eMarketer, August 2015
$349.1B
14.4%(year over year)
2015 Projected E-Commerce Sales

$79.4B
13.9%(year over year)
Source: eMarketer, August 2015
2015 Projected E-Commerce
Holiday Sales – November & December

What does the
customer want?

43%
of retailers are prioritizing a consistent
brand experience across channels

33%
of retailers indicated that improving the user
experience/navigation is a top priority

Top Priorities
§ Customer experience
§ Unified commerce
19%
19%
21%
24%
29%
29%
29%
33%
43%
Enhance content management
Improve personalization of the online …
Share inventory across channels
New/upgraded mobile website
Increase fulfillment options
Increase site traffic
New/upgraded unified commerce platform
Improve user experience/navigation
Consistent brand experience across channels

E-commerce site offerings
83%
76%
76%
73%
63%
61%
56%
46%
44%
41%
39%
FAQs
Order history
Order status
Order tracking status/notifications
Shopper account maintenance (update
profile/contact/payment info)
User reviews
Suggestive selling
Product comparisons
Loyalty status (points, rewards, history, etc.)
Browsing history
Wish list

Customer engagement effectiveness
§ Customers reviews rated as most effective customer
engagement tool however, 39% do not offer customer reviews
on website
23%
10%
5%
5%
3%
31%
18%
25%
36%
24%
29%
22%
23%
36%
43%
33%
42%
41%
44%
15%
15%
15%
19%
24%
20%
15%
8%
21%
13%
7%
8%
10%
20%
Customer reviews
Live chat
Online surveys
Corporate social media page
Instructional videos
Community/forum
Blog
Very effective
Somewhat
effective
Neutral
Somewhat
ineffective
Very ineffective

Guided Selling – Digitizing the Black Book

What did the customer browse?
1060% increase in personalization of shopping experience by
understanding online browsing history within 3 years
5%
10%
20%
23%
25%
41%
53%
51%
56%
40%
51%
Suggested selling based on
social media activity/posts
online browsing history
customer closet
previous purchases
Personalized promotions
Personalized rewards based
on customer loyalty
Tailoring the Customer Experience
Already offer
Offer within 3
years
1060%

What’s in the customer’s closet?
510% more retailers plan to offer associates the ability to
suggestive sell based on the customer’s closet in the next 3 years
5%
10%
20%
23%
25%
41%
53%
51%
56%
40%
51%
customer closet
previous purchases
on customer loyalty
Already offer
Offer within 3
years
510%

What has the customer purchased?
280% more retailers plan to suggestive sell based on the
customer’s previous purchases in the next 3 years
5%
10%
20%
23%
25%
41%
53%
51%
56%
40%
51%
customer closet
previous purchases
on customer loyalty
Already offer
Offer within 3
years
280%

Unified commerce is critical

29%
of retailers indicate a new/upgraded
unified commerce platform is a priority

The Legacy The AspirationThe Reality The Nirvana
Multi-ChannelSingle Channel
Unified
Commerce
Omni-Channel
Channel Evolution – Unified Commerce

Unified commerce offers real-time visibility
§ Unified commerce enables transparency,
or the “glass pipeline,” of real-time visibility
to inventory, product and customer
information. This is the nirvana, or end-
state, that many retailers are trying to
achieve with their customer experience
and unified commerce goals
Customers)
)
Products)
)
Promo-ons)
)
)
)
)
)
)
)
)
)
)
Inventory)
)
Orders)
)
Transac-ons)
New
)Retail)Form
ats)
Real;Time)
Retail)
3
rd )Party)
Inventory)
Single)
Cart)
Seamless)
Experience)
Iden-fy)Customer)

Unified Commerce Platform
Unified Commerce Enterprise
BICRM
FIN
INV
MFG
Mobile
Devices
Web Site
Traditional
POS
Middleware
Social Media Integration
Rules Engine
Associate
POS
Real-time Task Management
Customer &
Associate
Stations
Real-Time
Retail
(AKA the
Cloud)

Technology status
§ Unified commerce platforms are making
traction with nearly one-third of the
respondents currently having implemented a
unified commerce platform
10% 21% 26% 21%
Unified commerce
platform
Implemented and working well
Implemented and needs
improvement
Implement within 2 years
Implement within 3-5 years

Unified commerce services
§ The ability to “buy anywhere, ship anywhere” is gaining
ground with 74% of respondents planning to offer it within 5
years
51%
40%
36%
27%
24%
14%
10%
29%
29%
39%
27%
29%
7%
14%
17%
12%
22%
12%
Buy online, drop ship from vendor
Buy online, ship from store
Buy online, ship to store
Reserve online, pick up in-store
Buy anywhere, ship anywhere
Buy online, same day delivery
Implemented
Implement
within 2 years
Implement
within 3-5
years

Unified commerce capabilities
§ Retailers are gaining real-time visibility to their
customers’ behavior across channels
31%
29%
19%
Track a customer order started on a mobile device, and
then completed online
Track a customer order started online, and then
completed in the store
Track a customer order started on a mobile device, and
then completed in the store

Order management as the single platform
§ An order management solution may be one of
the best approaches to offer a single unified
commerce platform
37% 37% 24% 2%
Order
management
Implemented and
working well
Implemented and
needs improvement
Implement within 2
years
Implement within 3-5
years

Mobilization of retail

Mobile is Changing E-Commerce
§ 191.4 million people in the U.S. own smartphones
(77.1 percent mobile market penetration)1
§ 61% of U.S. Internet usage
is on Mobile2
1 comScore Report: July 2015 U.S. Smartphone Subscriber Market Share, September 3, 2015
2 comScore MMX Multi-Platform, US, Canada, UK, March 2015
Internet&Usage&by&Device&
Desktop Mobile

68%
of retailers expect an increase
in mobile website revenue
by the end of 2016

Additional mobile capabilities
§ More than two-thirds of respondents offer a mobile website and one-third
offer a mobile app but opportunities abound to identify the customer in
the store, offer personalized promotions, and even allow the customer to
use their mobile device to locate products within the store
68%
32%
27%
27%
14%
11%
11%
11%
11%
Mobile website (site specifically designed for mobile access)
Mobile app
Geolocating
Suggestive selling
In-store sign-in via phone
Customer identifying technology within the store
Locate products in store with mobile app/website
Mobile offers within store
Real-time events selling (i.e promotion based on weather event)

Payment types and security

63%
of retailers in BRP’s 2015
POS/Customer Engagement
Survey indicated payment security
is a top priority

Shift of fraudsters to online
§ When EMV has been implemented in other countries, store fraud is reduced and
online fraud rises dramatically
• France – Store fraud was reduced by 35% while online fraud increased by 360%
• UK – Store fraud was reduced by 58% while online fraud increased by 100%
• Australia and Canada saw similar results

Emerging payment acceptance
• Currently, PayPal is the top accepted payment type online
• Retailers plan to support Apple Pay (63%) and/or Google Wallet (48%) in
the next few years
40%
10%
7%
5%
3%
3%
2%
31%
48%
63%
8%
28%
8%
17%
7%
5%
10%
5%
10%
3%
10%
PayPal
Google Wallet
Apple Pay
Samsung Pay
Android Pay
Bitcoin
Amazon Payments
Already accept
Plan to accept
within 2 years
Plan to accept
within 3-5 years

Key takeaways

The new retail paradigm
§ E-commerce continues to expand
• 85% of retailers expect an increase in 2016 e-commerce website revenue
§ Improving the customer experience is the top priority
• 43% of retailers indicate a consistent brand experience across channels is a top priority
§ A unified commerce platform is critical
• 78% of retailers plan to have a unified commerce platform within five years
§ Mobilizing commerce remains a high priority
• 45% of retailers indicate that mobile websites are their top e-commerce retail capability
§ Payment options and security are essential
• 63% of retailers plan to accept Apple Pay within two years

w w w . b o s t o n r e t a i l p a r t n e r s . c o m
Brian Brunk
Principal
Boston Retail Partners
bbrunk@bostonretailpartners.com

Remarkable Experiences Engage and Convert More Shoppers
ü Retailers on Mozu are experiencing a 55% higher conversion rate than industry average
ü Retailers need to be transparent on inventory levels and communicate where customers can find them in-store
ü Sales associates should be empowered with product, inventory and brand information at their fingertips

The Mobilization of Retail
1990s
ECOMMERCE
IS BORN
Early vendors
supplied the basics
of ecommerce:
listing products and
accepting payments
2000s
MOBILE RISES
Mobile devices forced
retailers to maintain
both traditional and
mobile-friendly sites
2010s
MULTI-CHANNEL
EXPLODES
Proliferating sales
channels require
retailers to create a
seamless experience
both on and offline
TODAY
LIMITLESS
COMMERCE
Today’s business is
truly omni-channel,
requiring a modern
platform that provides
limitless extensions
2007
IPHONE ARRIVES
The invention of the
iPhone and rapid
adoption of mobile
devices transforms the
world of online shopping
Consumer Behavior Forever Changed with the Launch of the iPhone

Consistency Across Devices
ü Consumers demand consistent shopping across all devices
ü Shoppers want the ability to begin shopping on one device and end on another or in-store
ü Building, managing and maintaining separate sites for different devices is a thing of the past

Unified Commerce in Action
In-store
Online
Unified Digital Experiences ExtensibilityFaster time-to-market Improved TCO
Modern Technology
Stack
Native Mobile
Responsive Theme
REST API
SaaS
Business Critical
Applications
Commerce
Fulfillment
ERP
POS
Mozu’s flexible SaaS commerce platform is setting a new standard for performance and innovation.

CUSTOMER EXPERIENCE
Stores, Kiosks Call Centers
Mobile, Tablet, PC’s
COMMERCE MANAGEMENT
REST API
Multi-Tenant SaaS
MOZU DEV CENTER
Theme Development
Widget Development
APP DEVELOPMENT
Native App
Integrations
Catalog
Reports
Customers Orders
Publish
Locations
Marketing Site Builder
SDKs
HyprThemeEngine
Applications
Mozu | The Cloud Commerce Platform

Jelly Belly Experiences Sweet Growth
47
Challenges
• Replace homegrown system
• Focus on expanding online sales
• One platform for B2C, B2B and consolidated
content sites WW
Solutions
• Cost efficient SaaS platform
• Consistent experience across mobile
• Scale operations with master catalog
• Empower eBusiness team to quickly update
products, promotions and content
Results
• Mobile revenue increased from 2% to 32%
• Record sales the week after launch
• Happy eBusiness team
“Migrating from our homegrown platform to Mozu has given
Jelly Belly the power and agility to innovate.”
Brandon Finch—Director of eBusiness, Jelly Belly
+

Sigma Beauty. Beautiful eCommerce.
“We knew we needed an enterprise level platform that would accommodate
our growing needs. That was the most important strategic decision. Going
into the project, we felt nervous but were confident in our partners”
Annie Westman—Director of Strategy
+
Challenges
• Engage a younger demographic
• Limited mobile experience
• Wanted to develop custom features
Solutions
• Face Chart: Visual showcase of cosmetics on
virtual face
• Free gift with purchase: personalized and
segmented gifts with different purchases
• Dynamic pricing: unique catalogs and price lists
across customer segments
• Responsive mobile sites
Results
• Unique experiences that disrupt the market
• Marketing is now empowered to create custom
digital experiences
• Consistent, engaging experiences across
devices including mobile
36% 42% 22%
LIFT IN CONVERSION RATE INCREASE IN MOBILE SALES BOOST IN TIME ON SITE

Curious to see how modern technology can help you build
the digital experience your shoppers crave?
Let us show you.
Request a demo at mozu.com

The Present and Future of Unified Commerce

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