Mobile Commerce – The New Must Have

Scott Todaro, Sr. Director Product Strategy, Demandware Brian Walker, Principle Analyst, Forrester Research Larry Promisel, VP eCommerce, Barneys New York A Few Housekeeping Items Before We Get Started:
• To Join the Teleconference: 1 (916) 233-3087 or Use Microphone and Headset • Access Code: 263-406-747 • Presentation Content:
• • Will be made available for download at www.demandware.com Email will be sent to notify you of its availability

Questions: Please ask questions via Chat

1

Copyright 2009 Demandware, Inc. - Confidential

Agenda

Demandware Mobile Scott Todaro, Demandware Mobile Landscape Brian Walker, Forrester Research Mobile in Action Larry Promisel, Barneys New York

2

Copyright 2010 Demandware, Inc. - Confidential

Demandware Solution
Demandware combines the leading, on-demand ecommerce platform, a community of knowledge contributors and assets, and a marketplace of pre-built ecommerce integrations to empower retailers to deliver the most effective and tailored shopping experiences for consumers across all digital channels.

On-Demand eCommerce Platform
• Feature-rich, enterprise-class • Industry leading merchandising • Continuous innovation through automatic upgrades • Secure, reliable, scalable • Highly-extensible • Standards-based

Community and Knowledge Assets

Integrated 3rd Party Extensions & Applications
• • • • • Email Recommendations Analytics Marketing Ratings & Reviews

• • • • •

Documentation APIs Knowledge base Forums Expertise

Copyright 2010 Demandware, Inc. - Confidential

Demandware Mobile
The First Browser-Agnostic Mobile Storefront
“Our customers are using their phones to check their email, look up information and shop, so a mobile storefront is a great opportunity for us to broaden the ways our consumers can interact with our brand”
Paul Zaengle, Sr. Director eCommerce, Columbia Sportswear

Core Features
• • • • •
4

Unique Features
• Works with all major smartphone browsers • Active Merchandising® • Present personalized content • Dynamic search results and ordering • Tailored promotions • Experience optimization with A/B tests

Search Store Locator Navigation Catalog Pricing

• • • • •

Checkout Content Security Inventory HTML 5

Copyright 2010 Demandware, Inc. - Confidential

Brian Walker, Principle Analyst, Forrester
Research Focus • Brian serves eBusiness & Channel Strategy professionals • He researches the effect that technology advancements, operational needs, and changing consumer behaviors have on the online retail industry Previous Work Experience • Brian is a seasoned Internet and eCommerce leader with extensive experience working with a wide range of commerce platforms and related technologies • Brian has more than 13 years of experience in eCommerce and online marketing: – Amazon.com – Classmates Online – Eddie Bauer – Expedia.com

5

Copyright 2010 Demandware, Inc. - Confidential

All rights reserved. Walker Principal Analyst. Commerce Forrester Research June 15. . 2010 Entire contents © 2009 Forrester Research.Mobile Commerce: Getting started and mapping out your strategy Brian K. Inc.

Inc.Agenda •The state of mobile commerce today •A look at the mobile ecosystem •Getting started •Integrating Mobile into your eCommerce environment •Recap Entire contents © 2009 Forrester Research. All rights reserved. .

. Inc. All rights reserved.The State of Mobile Commerce Entire contents © 2009 Forrester Research.

9 Entire contents © 2009 Forrester Research. Inc. 2010 “2009: The Year Of High-End Phones” report. All rights reserved.One in four Gen Yers owns a smartphone See the January 14. .

Inc. All rights reserved.Daily Usage Of Mobile Data Soars Among US Smartphone Users Entire contents © 2009 Forrester Research. January 2010 “Engaging Smartphone Users” .

All rights reserved.Broad spectrum of categories have been purchased via mobile commerce 11 Entire contents © 2009 Forrester Research. . Inc.

But Customers Use Devices For Multichannel Scenarios 12 Entire contents © 2009 Forrester Research. All rights reserved. . Inc.

88% of US smartphone owners were satisfied with their most recent purchase via their phone Entire contents © 2009 Forrester Research. Inc. . All rights reserved.

a Shop.Mobile Presence Of Retailers Today “Which of the following best describe your mobile eCommerce?” 14 Entire contents © 2009 Forrester Research. Inc.org report conducted by Forrester Research . Source: The State of Retailing Online 2010: Marketing Report. All rights reserved.

org report conducted by Forrester Research . Alerts for online sales & specials 4. a Shop.Types Of Mobile Content & Capability Offered By Retailers “What kind of information and alerts does your company currently offer customers via its mobile app/site?” Most popular 1. Customer ratings and reviews 5. Store information 3. Product and price information 2. Source: The State of Retailing Online 2010: Marketing Report. Coupons 6. Inc. All rights reserved. Shipping notification Other less popular features • Store maps/layouts • In-store product availability • User manuals and other product information • Expert reviews • Gift registry access • Easy payment options • Loyalty program access in stores 15 Entire contents © 2009 Forrester Research.

The Mobile Traffic Is Already There “What percent of your company's online traffic comes through mobile browsers?” Web Tenure Web Revenue Channels of Operation Young: <4 years in operation. Mature: 10 years+ in operation Small: <$10MM revenue. Inc. Source: The State of Retailing Online 2010: Marketing Report. catalogs. Medium: 4-10 years in operation. Medium: $10-100MM revenue. television and other channels 16 Entire contents © 2009 Forrester Research. a Shop. Large: $100MM+ revenue Multichannel includes bricks and mortar.org report conducted by Forrester Research . All rights reserved.

Large: $100MM+ revenue Multichannel includes bricks and mortar. Mature: 10 years+ in operation Small: <$10MM revenue. Medium: 4-10 years in operation. catalogs. a Shop. Medium: $10-100MM revenue. television and other channels 17 Entire contents © 2009 Forrester Research. All rights reserved.Percent of Revenue from Mobile “What percent of your company's total online revenue do you expect to be transacted via mobile apps/devices in 2010?” Web Tenure Web Revenue Channels of Operation Young: <4 years in operation. Inc.org report conducted by Forrester Research . Source: The State of Retailing Online 2010: Marketing Report.

Inc. implemented it. developing a strategy Don’t have a strategy Less mature 18 Entire contents © 2009 Forrester Research.Most Retailers Are Very Early In Their Mobile Planning “Which of the following best describes your mobile strategy today?” More mature Have a strategy. a Shop.org report conducted by Forrester Research . now refining it Have a strategy and starting work Have a strategy Early stage. Source: The State of Retailing Online 2010: Marketing Report. All rights reserved.

Source: The State of Retailing Online 2010: Marketing Report.org report conducted by Forrester Research .Planned Mobile Investment Levels For 2010 “What kind of investment in mobile has your company planned for 2010?” 000s Web Tenure Web Revenue Channels of Operation Young: <4 years in operation. Medium: 4-10 years in operation. Mature: 10 years+ in operation Small: <$10MM revenue. Inc. catalogs. All rights reserved. a Shop. television and other channels 19 Entire contents © 2009 Forrester Research. Large: $100MM+ revenue Multichannel includes bricks and mortar. Medium: $10-100MM revenue.

The Mobile Ecosystem Entire contents © 2009 Forrester Research. All rights reserved. . Inc.

Source: Gizmodo. All rights reserved.5% 21% 9% (WM) 2% 46% (Symbian) N/A Entire contents © 2009 Forrester Research. Device Mkt Share 18% 3. Morgan Stanley Research. Forrester Research . Distimo.Apps Ecosystem iPhone App Store Android App Mkt Blackberry’s AppWorld Windows Phone Marketplace Palm App Catalog Nokia Ovi Samsung Mobile Applications Launched 7/2008 11/2008 4/2009 11/2009 6/2009 11/2009 1/2009 Number of Apps > 185K >30K >3K < 1K <1K <1K .<5K Apps Downloaded > 3B > 100M N/A N/A >1M N/A Approx. jkontherun.com. Inc.

All rights reserved. January 2010 “The Splinternet” by Josh Bernoff .The Information Age Enters A New Era 22 Entire contents © 2009 Forrester Research. Inc.

All rights reserved. 23 Entire contents © 2009 Forrester Research. maybe optimized for multiple browsers. Inc. .In the past eCommerce was focused on one site.

But now that investment and effort is splintered across multiple platforms. . All rights reserved. 24 Entire contents © 2009 Forrester Research. Inc.

files. Inc.wordpress.com/2010/04/evolution.jpg .We Are Early In The Evolution Of Mobile Commerce Un-optimized website Mobile Web optimized site Mobile Web optimized sites with detection iPhone App Android App Windows Mobile App RIM App HTML 5? Entire contents © 2009 Forrester Research. Image Source: http://nearemmaus. All rights reserved.

Getting Started Entire contents © 2009 Forrester Research. All rights reserved. . Inc.

Service App or no app. The ability to transact 3. Information 2. Inc. not necessarily important to the customer Source: “Using Digital Channels To Create Breakthrough Multichannel Relationships” by Henry Hartevelt Entire contents © 2009 Forrester Research. .Consumers have three needs that must be met across channels: 1. All rights reserved.Remember .

All rights reserved.The Mobile Web Is Where You Should Focus Today •Serves a majority of customer use cases •Does not require a customer download •Lower development and service costs •Easier to manage the changes happening to the applications ecosystem •Interesting customer experiences are possible on the mobile web too Entire contents © 2009 Forrester Research. . Inc.

for most it will make sense to focus on iOS – Largest share of the smartphone market – Simplify execution by focusing Entire contents © 2009 Forrester Research. offline use • If apps make sense. All rights reserved. Loyalty. . & Enhance Speed • Examine what your brand and products and examine if an application is needed to support that customer experience • Particularly suited to very sticky sites with frequent visitors • Other benefits include improved speed or the interaction. Experience. Inc.Build Apps to Drive Brand.

Average order value 4. Number of customers who have opted in for SMS. Mobile site/app satisfaction Entire contents © 2009 Forrester Research. Product searches via mobile devices 7. daily deals. Inc. All rights reserved. *Ranked in order of usage . 6. coupons. Repeat visits/log-ins 8.Measurement: Key Mobile KPIs Closely Mirror eCommerce KPIs 1. Number of mobile app downloads 5. etc. Mobile site traffic 3. Revenue transacted through mobile devices 2.

. Inc. All rights reserved.Integrating Mobile Into Your eCommerce Environment Entire contents © 2009 Forrester Research.

Device/Browser Detection WAP Site iPhone/ Android Site Windows Mobile Site orders Regular Website content content content eCommerce Platform / Services content 32 customer Orders Entire contents © 2009 Forrester Research.Don’t make this mistake when implementing mobile websites. Inc. replicating data & causing mgmt challenges. . All rights reserved.

All rights reserved. . Inc.Build a scalable approach to serving your mobile web sites which leverages your eCommerce ecosystem. Device/Browser Detection WAP Site iPhone/ Android Site Windows Mobile Site Regular Website eCommerce Platform / Services content customer Orders 33 Entire contents © 2009 Forrester Research.

Device App Device App Mobile Web Sites eCommerce Sites mCommerce Shopping WebServices eCommerce Platform / Services 34 Entire contents © 2009 Forrester Research. this same approach is a requirement. .And as you develop applications. Inc. leveraging a services based approach. All rights reserved.

Source: The State of Retailing Online 2010: Marketing Report. a Shop.Mobile Reporting Structure “Who owns mobile strategy and management within your organization?” 35 Entire contents © 2009 Forrester Research. All rights reserved. Inc.org report conducted by Forrester Research .

Final thoughts Entire contents © 2009 Forrester Research. All rights reserved. Inc. .

Inc. .is now… Entire contents © 2009 Forrester Research. All rights reserved.

Inc. All rights reserved.Entire contents © 2009 Forrester Research. .

.As a result. All rights reserved. eCommerce is now… eCommerce Entire contents © 2009 Forrester Research. Inc.

eCommerce Entire contents © 2009 Forrester Research. Inc. . All rights reserved.

Develop an approach where you can serve customers in context 41 Entire contents © 2009 Forrester Research. All rights reserved. Inc. .

All rights reserved.Context Customer Content Capability Entire contents © 2009 Forrester Research. . Inc.

forrester. Inc. .com/brian_walker twitter. All rights reserved. Walker blogs.Thank You Brian K.com/bkwalker Entire contents © 2009 Forrester Research.

VP eCommerce • • • • Leads the ecommerce team at Barneys New York Incredible growth rates at Barneys New York Industry speaker and panelist Seasoned veteran with luxury ecommerce at Bluefly.Larry Promisel. Coach. and Bloomingdales .

Barneys.com Going Mobile .

Mobile Assessment • Prior to Q4 2009 – Users presented with full site – Mobile presence difficult to shop – Opportunity and landscape • Strategy – Compelling presence and brand extension • Upwardly mobile – Easy to shop – Accessible – Mitigate technical and management resources .

Buy or Build? • Several compelling 3rd party vendors – Similar offerings – Cost & integration – Management & resources • Demandware – Mutually beneficial – Built in and upgrades – Cost and resource effective .

To App or not to App? • Decided on multi platform – Cast wide net – Build with potential extensions – Experience/ branding vs. selling .

Launch Q4 2009 • Phase I – Full catalog – Active inventory – Intuitive navigation • Mimics full site • One handed – – – – – Searchable Tailored images Secure checkout Shared cart Configurable • By device • By browser .

Post Launch • Innovate and integrate – Phase II – Restaurants – Social media – Marketing • Google • Partners • Email – Direct to mobile – Optimize by device – Lifestyle – Shortcodes/ SMS • Phase III – IPhone/ IPad App – Location based – Service/ feedback .

Bberry users – Email to promote • Partners • Marketing collateral • Site .Marketing • Email – Link .

Average Order Devices. Browsers. Conversion. Measure. Sales. Operating Systems Marketing Sources Search Store Drivers Loyalty . Compare – – – – – – Traffic.Analytics • Consider.

Thank You! Q&A via GoToMeeting Copyright 2010 Demandware.Confidential . . Inc.