1. Adam SilvermanPrincipal Analyst, Forrester Research, Inc.The evolving digitalconsumer and why the retailstore is changing into adigital experienceJason WallisChief Technology Officer, MozuCritical considerations for aresponsive ecommercestrategy that scales beyonddesign and aligningtechnology with digitalstrategy

2. The pace of change is acceleratingfaster than anticipated a year ago. Blake Nordstrom,president of NordstromApril 2014 2014 Forrester Research, Inc. Reproduction Prohibited 3 3. No indoor malls built since 2006.15% are going out of business.Source: The Atlantic, Cities (theatlanticcities.com) and, Financial Times (www.ft.com)Image source: Flickr (https://www.flickr.com/) 2014 Forrester Research, Inc. Reproduction Prohibited 4 4. Store experiences are antiquated . . .Image source: Flickr (http://www.flickr.com/) 5. . . . but does this meet our customers needs?6 6 6. Agenda The Evolving Digital Customer How retail is changing into digitalengagement New experiences require a modernarchitecture Q&A 2014 Forrester Research, Inc. Reproduction Prohibited 7 7. Mobile connects us wherever we go 2014 Forrester Research, Inc. Reproduction Prohibited 8 8. Consumers have high expectationswhen it comes to channel integrationHow important are the following capabilities while shopping online?Buy online andpickup in store61%Buy online and shipto my home95%View local storeinventory online89%Buy online and shipto a third party73%Buy online and shipmy return back80%ETA for orders tostore or home91%Buy online and shipto a local store73%Buy online andreturn to a store86%Reserve online andpickup in store60%60% of your customers expect omnichannel services.Source: a commissioned Forrester study with Purolator, May 2014 2014 Forrester Research, Inc. Reproduction Prohibited 9 9. Performance Matters !Conversion rate %Data source: Walmart LabsLoad time 2014 Forrester Research, Inc. Reproduction Prohibited 10 10. Empowered customers give rise to anew era. 11. Firms are NOT set up for success74% of businesses think they have a digitalstrategy.34% of executives think their firm has the rightstrategy.16% of executives believe their firm has the skillsand resources necessary to deliver. 2014 Forrester Research, Inc. Reproduction Prohibited 12 12. Agenda The Evolving Digital Customer How retail is changing into digitalengagement New experiences require a modernarchitecture Q&A 2014 Forrester Research, Inc. Reproduction Prohibited 13 13. 1419%70%An Engaging Brand IsImportant To MeThe Store AssociateIs The Best ResourceFor InformationSource: NA Technographics Customer Lifecycle Buy Phase Q1 2012 and NA Technographics Customer Lifecycle Discover Phase Q3 2102 14. Retail becomes connected 15. The store becomes social 16. Promisesdelivery two fulldays quickerthan beforeThe store drives service 17. 52%Digital creates influenceSource: Forrester Research Web-Influenced Retail Sales Forecast 2013 to 2018 (US) 18. Experience Engagement 19. Rock Star Retailers Drive Engagement By:1. Aligning the organization2. Investing in digital technology3. Enabling the associate4. Unifying the entire experience 20. 1. Aligning your organization aroundthe customer. 21. Partnerships are getting better?!Agree and strongly agree: Marketing and IT select and deploy technologies jointly20112013MKTITMKTIT21%37%43%59%Base 185 US IT leaders and 118 US marketing leaders in large corporationsSource: Forrester/Forbes Insights Q3 2011 US Marketing And IT Alignment Online Survey and Forrester/Forbes Insights Q2 2013 US Marketing And IT Alignment Online Survey 2014 Forrester Research, Inc. Reproduction Prohibited 22 22. 2. Investing in digital technology 23. Multichannel excellence requiresinvestment in multiple capabilitiesWhen, if at all, are you planning on implementing thefollowing multichannel capabilities?Base: 49 eBusiness and channel strategy professionals; Source: Forresters May 2013 Global eBusiness AndChannel Strategy Professional Online Survey 2014 Forrester Research, Inc. Reproduction Prohibited 24 24. There is more to the business case forship from store than saving online salesWhy invest in a ship from store program?1. Enable online to sell store-exclusive inventory2. Meet missed demand3. Reduce store markdowns4. Optimize shipping costs5. Reduce delivery time6. Enable same-day delivery 25. High priority for responsive web designSource: 2014 Global eBusiness And Channel Strategy Online Survey. Base: 32 eBusiness And Channel Strategy Professionals 2014 Forrester Research, Inc. Reproduction Prohibited 26 26. 3. Enabling the associate 27. The associate facilitates engagementLearn AssistBuy Operate 28. 66%of luxury shoppers more likely toshop or interact with salesassociates who are equipped withmobile devicesSource: North American Technographics Retail Survey 2013 29. 4. Unifying the experience 30. Customers want a single POVWhich of the following do you expect when making a purchase?Source: North American Technographics Customer Life Cycle Survey, Q1 2013. Base: 4542 US Online Adults 18+ 31. RWD helps drive a unified experience 2014 Forrester Research, Inc. Reproduction Prohibited 32 32. Commerce platform unifies enterprise apps 2014 Forrester Research, Inc. Reproduction Prohibited 33 33. What it means?Omnichannel fulfillment efforts like endlessaisle, ship from store and ship-to-store areessential for retailers and brands in the future Mobile will play a major role in retail both forcustomers and associates Engagement must be elevated, and cannot bechannel focused (must be customer focused) Agility is mandatory! 34. Agenda The Evolving Digital Customer How retail is changing into digitalengagement New experiences require a modernarchitecture Q&A 2014 Forrester Research, Inc. Reproduction Prohibited 35 35. Thank youAdam Silverman+1 415.294.8177asilverman@forrester.com@AdamKSilverman 36. The Acceleration of ChangeYou are here 37. Legacy Technology Limits ChangeCommercePlatformInventoryPOSCRMWebsiteERPMobile SiteCMSStores, Sales Associates,Kiosks, Call CentersMobile, Tablet, PCsCostly Not Responsive IT-Intensive Complex 38. The World Changed with the iPhone1990sECOMMERCEIS BORNEarly vendorssupplied the basicsof ecommerce:listing products andaccepting payments2000sMOBILE RISESMobile devicesforced retailers tomaintain bothtraditional andmobile-friendly sites2010sMULTI-CHANNELEXPLODESProliferating saleschannels requireretailers to create aseamless experienceboth on- and offlineTODAYLIMITLESSCOMMERCETodays business istruly omni-channel,requiring a modernplatform that provideslimitless extensionsWhen was your commerce platform built?2007IPHONE ARRIVESThe invention of theiPhone and rapidadoption of mobiledevices transforms theworld of online shopping 39. Architecture for Modern Customer JourneysCommerce PlatformMerchandisingProducts & CatalogPromotions & DiscountsPricingCheckoutContent ManagementCustomers & SegmentationNavigation & SearchOrder ManagementDevelopmentEnvironmentOpen API Sandboxes IntegrationsCustomExperiencesCustomerTouchpointsInventory & FulfillmentDistribution CentersRetail StoresDrop ShipDirect ShipInventory 40. Responsive is Todays ExpectationAn optimized experience forall digital touch pointsPlus: A single code base to maintain Reduced maintenance Consolidated web team Optimized for SEOIs your existing ecommerce architected to support Responsive? 41. Mobile Invades the Store 42. Digital Completed the New Customer Journey 43. Content is the Heart of Digital ExperiencesEngaging customers consistently requires a unified content experience to multiple channelsPublish across multipletouch pointsManage, develop content from asingle interfaceSuppliersCommunityPartnersInternally CreatedWebMobileIn-store applicationEmailSocialContent receivedfrom multiple sourcesCustomer DataProduct CatalogCreate consistentDigital assetsSearchReduce costs Increase revenueexperiences Engage customers 44. New Experiences Require Modern ArchitectureIn-storeOnlineFaster time-to-marketFosters innovation Rapid development Unified digital experiencewith SaaSModern TechnologyStackNative MobileResponsive ThemeREST APISaaSBusiness CriticalApplicationsCommerceFulfillmentERPPOS 45. Mozu: Commerce Platform Architected for InnovationExperiences blending online and in-store Create unique digital brandexperiences Deliver experiences optomizedfor mobile Shopping journeys movingseamlessly from mobile to in-store Sales associate now part of thedigital experienceDesigned for innovation Modern technology and designphilosophies Open API: Designed API-Firstusing REST API Multi-tenant SaaS deploysquickly and reducesmaintenance Pricing that supports success