RetailAcceleration

April 2016

Digital Transformation

The Extremes

For retailer who have bet too much on real state, cost-cutting is as tempting as it is dangerous. Four quick routes to the bottom

ROADS TO RUIN

Globant - *Source: I F**king love this company, by Bayard Winthrop and Randy Komisar

CHOICE 1SHUTDOWN

STORES

CHOICE 2REDUCE

MARKETINGBUDGET

CHOICE 3REDUCESTAFF

CHOICE 3MAKE

CHEAPERPRODUCTS

REDUCEACCESS

REDUCEINTEREST

REDUCEINTER-ACTION

REDUCEQUALITY

REDUCESALES

DEATHReduce cost by removing obsolete expenses

UNSUNK COST

Rent

OLD NEW

Insurance utilities, etc

Hourly staff

Inventory,Write-off, Markdowns

Marketing costs to drive

People to stores

Product,Service, Brand Values

Invest in product, service and brand values

RETAIL PRICE

$89 $59 $89

Getting free from Brick and mortar can give retailers substantial savings to plow into other parts of their business

Digital Jargon

Globant Proprietary

?

then WhatWhy,

What’s in it for me?

Your

Save money by reducing the opportunity costs and competitive jeopardy caused by your current sub-standard customer journeys

New revenue created by the new business models made possible by frictionless journeys

Globant Proprietary

“why” is:

Yes, they are responding with a round of store closures but only 14 poorly performing stores from its over 800 store network...

Macy’s steps up its online

investments

Mobile salesdouble for

Macy’s in fiscal 2015

The web is a bright spot in a tough

quarter for Macy´s

Terry J. Lundgren CEO & Chairman at Macy's

“Our business is a rapidly evolving in response to changes in the way customers are shopping across stores, desktops, tablets and smartphones, we must continue to invest in our business to focus

on where the customers is headed, to prepare for what's next.”

* Source: Macy´s annual report

The world of retail is changing and even the once untouchable stalwarts of the industry are feeling the heat.

* Source: Macy´s annual report

The retailer has been hit by factors such as the rise of rivals like T.J Maxx and weak mall traffic

Macy´s comparable sales have been in decline

2012 2013 2014 2015

3,7%

1,90%

6,70%

-3%

Comparable sales include sales at stores open at least a year and e-comerce

Measurable Change

More importantly Macy’s is placing its bets on omnichannel which is really a focus on creating cohesive full ecosystem journey’s for customers.

A familiar example: the tip of the iceberg

A familiar example:the tip of the iceberg

* Source: Public Internet

Specific self-centric UIVarious media

Decentralized decisionsMultiple data sources

The WebStore CRMs Finance ERP

Globant

Reality Check

Globant Proprietary

Smart Digital Journey Engine

Store ERPs CRMs Finance Fulfillment

big data fast data

Maximizing the interaction - the first Journey

Syst

ems

of R

ecor

dSy

stem

s of

Eng

agem

ent

Globant Proprietary

The beginning of a journey...

* Source: public internet

When thinking about the experience becomes part of the experience… magic delivered!

* Source: public internet

Customer Delightedness is a Never-Ending Journey that Yields Competitive Differentiation

Digital touchpoint take part in ongoing conversations between the brand and consumers. Create holistic journeys of direct interaction.

Adding surprise, based on anticipating of the customer’s potential needs. (Yes, we can do that today!)

In an environment of Play which evolves with observation and behavioral analysis.

Globant Proprietary

Sell Experiences and Lifestyle over Products

A Digital Journey

Enabling Acceleration…

simultaneously creates value for the customer and the business

A Digital Journey is a discrete path of smart, relevant and context aware interactions, where content is generated by or delivered to a customer, while she/he is interacting with a product or service. This content anticipates and satisfies needs while engaging, surprising and thrilling users.

The anticiation and absence of friction and the introduction of surprise creates an emotional connection with lasting impact.

Globant Proprietary

But how can we get many diverse teams working together effectively?

Making it all work

Architecture

Let’s “Podify”

Engineering

Business

Design

Globant Proprietary

journeys through pods Some quantitative results enabling

Design Iterations

1/2

Velocity

3X

Conversion

3X 30% Lower cost per

point

Globant Proprietary

sentinel.globant.com/

Globant Proprietary

Learn more...

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Gracias!@aangelani