Engaging the Digital Connected Customer - with Albert Yip

May 8, 2018
Albert Yip, SAP Hybris
Engaging the Digitally Connected Customer with SAP Hybris

2© 2017 SAP SE or an SAP affiliate company. All rights reserved.
“By 2018, one third of the top
20 in every industry will be
disrupted by digitally
transformed competitors.”
Frank Gens, Chief Analyst, IDC

3INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
WHY IS BUILDING DIGITAL
RELATIONSHIPS WITH
CUSTOMERS AN IMPORTANT
PRIORITY FOR COMPANIES?

ASIA PACIFIC: LOVE DIGITISED
50% of the world’s Internet users
are in APAC
87% of Hong Kong’s population
are Internet users

Choosing a brand is now as easy as swiping right or left.
Time Attention Money

Businesses must understand themselves, but more
importantly, understand consumers’ needs and desires.
ASIA PACIFIC: LOVE DIGITISED
SAP Hybris
commissioned a
survey in March
2017
March
2017
Over 7,000 consumers
across the APAC

SHARING IS CARING: ESTABLISHING TRUST IN A RELATIONSHIP
82% of respondents were willing to share some information with brands,
with Japan being the most shy at 52%.
Shopping history and references
50% 51%
27%
53% 56% 55%
63% 59%63%
68%
32%
66%
57%
51%
Email address

Consumers are now ‘high maintenance’, but they can afford to be with the
brands actively seeking them out.
Consumers expecting response within 24 hours
91% 93%
88%
94%
83% 86%
94%
SHOW ME YOU CARE: DON'T LEAVE ME HANGING

TOP REASONS CONSUMERS BREAK UP WITH BRANDS
Use information
without knowledge
Unresponsive
customer service
Spamming
unnecessarily
Makes mistakes
more than twice
78%
73%
60%
49%

What does it mean?

THE PROGRESSION OF ECONOMIC VALUE
Commodities
Goods
Services
Experiences
Joseph Pine, The Experience Economy
Extract
Make
Deliver
Stage
Commoditized
Commoditized
Availability
Cost
Quality
Authenticity
Transformation

How to Win?

Before we look at how we compete for the best customer experience…
Available when I want it
Price I am willing to pay
Quality that meets my expectation
Enjoyable Experience and Aspiration to Transform

What Differentiate an
Experience?

Authenticity

Be Accountable

Introducing the Sharing Economy
DIGITAL ECONOMY
SHARING ECONOMY

Outcome-based business models are disrupting all industries
TransportationSportswear GPS and
Navigation
Retail
Hardware EnergySoftwareMedia &
Entertainment
Consumer
Products
Food & Beverage

Build Trust

22STRICTLY CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Need: Building trust and transparency in the customer journey
Consideration Conversion Retention Advocacy
Privacy built into Customer Experience by Design
CONVERTCOLLECTCONNECT
users to brands consent and preferences users into brand advocates

Identity is not binary…

Build profile over time by delivering value in exchange for information
ANONYMOUS KNOWN
Awareness Consideration Conversion Retention Advocacy
ANONYMOUS KNOWN

ANONYMOUS KNOWN
ANONYMOUS KNOWN
Anonymous
Interactions
Newsletters
Promotional Offers
From anonymous to known: Opportunities to build profiles progressively
Building rich profiles along the customer journey with privacy at the forefront

Newsletter subscriptions or promotional offers require limited information
…recognizes them
by name.
Consumers are more likely
to buy from a retailer
56%

ANONYMOUS KNOWN
ANONYMOUS KNOWN
Anonymous
Interactions
Newsletters
Promotional Offers
Registration & Login
across brands, sites & apps

Increase conversions by at least 30% with registration or social login

ANONYMOUS KNOWN
ANONYMOUS KNOWN
Anonymous
Interactions
Newsletters
Promotional Offers
across brands, sites & apps Build Permission-based Profiles

Stop guessing what your customers want…just ask!
…knows their history,
likes and interests.
65%
Consumers are more likely
to buy from a retailer

What you need to build profiles progressively
ANONYMOUS KNOWN
ANONYMOUS KNOWN
Anonymous
Interactions
Newsletters
Promotional Offers
across brands, sites & apps Progressive Profiling
Build trusted relationships with preference and consent management
Create a single unified view of customer to share across your business
Deliver an excellent customer experience to connect users to brands1
2
3

Make It Easy

MULTIPLE BUSINESS MODELS AND ROUTE TO MARKET
One Technology Stack
Buying Group
Distributor
Manufacturer Consumer
Retailer Estore
Marketplace
Direct to
Consumer
Traditional
stores
Modern
trade
Marketplace
operator
Indirect
Direct

Keeping Promises

Be Present

Our world is turning conversational
Messaging platforms are the new OS
2,0 billion active users
monthly
Since 2014, the global market for smart machines has been growing at a
CAGR of 19.7% and will reach $41.22 bn in 2024
1,3 billion active users
monthly
900 million active
users
monthly

The customer support
bot offer
Our offer includes
an end-to-end
bot platform
customer support
bots off-the-shelf
a world-class language processing technology
powered by deep learning
We provide a customer support AI solution
to revolutionize your customers’ journeys

Off-the-shelf customer support bots
integratable in a few days!
Our bots can be
integrated in all your
users’ favorite channels
All our off-the-shelf bots
are pretrained and can
be used efficiently right
away
Pre-trained Multi-channel
We support every
language such as
English, Russian, Arabic,
Dutch, etc!
Multilingual
Our bots can understand any
language in the world!
and many more!
and many more!
Insurance, order tracking,
routing, premium account,
etc!

Buyers advisor
The bot helps the customer choose the best tires for
its vehicle through an interactive user interface on
Messenger.
Hi, I need to change the
tires of my Citroen C2
Michelin simplified its buying process
with an AI powered tire advisor
What is the size of your car’s
current tires?
175/65 R14 82T
What is the motorization of
your C2?
1,1 l 60
Thanks! I can suggest
different tires:

Be Innovative

Actionable
events
and dataDark
Data
Take streams of
unused data….
…create meaning… …and empower the
customer experience.

Commerce
Data file and data model
mapping
Product Dynamic Pricing
Product Classification
Suggestion
Commerce Conversational
Interface - Chatbot
Sales
Lead & Opportunity Scoring
Predictive Sales Forecasting
Retail Shelf Imaging
Intelligence
Deal Influencer & Sales
Activity Recommender
Sales Conversational Interface
- Chatbot
SAP
Leonardo
Marketing
Buyer Purchase Likelihood Scoring
Customer Engagement and Loyalty
Scoring
Customer Retention Insight
Product/Offer Recommender
Marketing Channel and Best
Contact Time Recommender
Service
Ticket Intelligence
Ticket Template and Solution
Recommender
Product/Offer Recommender for
Service Agents
Self-service Conversational Interface
Field-service Conversational
Interface
Machine Learning - leveraging the power of SAP

Be Flexible

Agility is required:
organization and
architecture
Low risk, low
cost, fail and
adapt faster.
Evolved
relationship
with vendors
and partners.
Scalable, stable,
integrated,
performant apps
and platform.
A core set
of persistent,
secure data
services.
Ability to run
at multiple
speeds.

COMPLEXITY
MAKES AGILITY
IMPOSSIBLE.
CRM. WEB CMS. MOBILE. MARKETING. OMS.
STORES. CONTACT CENTERS. ETC.

THE COREWE ATTACK OF THE PROBLEM

EXPERIENCE MANAGEMENT
COMMERCE SERVICEMARKETING SALES REVENUE
Shared Core Services
S/4 HANA
Back Office
SAP Hybris
Front Office
Simplifies & differentiates
customer processes
Simplifies & optimizes
core processes
EXTENSIONS
SAP CLOUD PLATFORM
DATA MANAGEMENT (E.G. PRODUCT, CUSTOMER) / ANALYTICS
DIGITAL CORE
SIMPLIFIED FRONT-OFFICE / BACK-OFFICE SYNERGIES
PROCESS MANAGEMENT (QUOTE, ORDER ORCHESTRATION)
MACHINE LEARNING / ARTIFICIAL INTELLIGENCE / INTERNET OF THINGS

TRANSFORM AGAIN
AND AGAIN AND BE
AS AGILE AS YOUR
CUSTOMERS
SAP Hybris helps you
DELIVER
PERSONALIZED
EXPERIENCES
IN CONTEXT
ORCHESTRATE
PROCESSES AND DATA
TO SIMPLIFY YOUR
FRONT OFFICE

Deliver personalized experiences in context
What they may
do
Real-time
individualization
from profile
Personalized experiences
at each touchpoint
What they have done
What they are doing nowThe customer

Orchestrate processes and data to simplify your front office

Transform again and again and be as agile as your customers

Transforming Customer
Engagement by creating a
Connected, Intelligent
Enterprise …

MANAGE FOR TODAY
INNOVATE FOR TOMORROW.

THANK YOU!

Engaging the Digital Connected Customer - with Albert Yip

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