Nordan Consulting

Agenda: Who We Are Benefits of our product Challenges, Impact you can expect to your business How are we different – How it works Multi-Channel impacting messaging and offer Estimate on Level Of Effort / Client Time Required

Nordan Consulting Our team makeup is the ideal skills mix for optimal delivery Advanced Leadership Consultant - MBA Harvard Grad Chief Technology Officer – Retail Solutions Enterprise Architect – Retail Strategy and Marketing Advanced Analytics Scientist – Artificial Intelligence PhD

Nordan Consulting Today’s tech and consumer changes are producing many tough marketing challenges that are leaving marketers struggling to respond Financial constraints Decreasing brand loyalty Growth market opportunities ROI accountability Customer collaboration and influence Privacy considerations Global outsourcing Regulatory considerations Corporate transparency Data explosion 1 Social media 2 Growth of channel and device choices 3 Shifting consumer demographics 4 Mean Marketing Priority Matrix Factors impacting marketing Under- preparedness Source: 2011 Global Chief Marketing Officer Study industry

Nordan Consulting How effective is your organization in the key metrics of delivering customer life time value? Forrester report on “The State Of Retailing Online 2013: Key Metrics And Initiatives” 5 Source: The+State+Of+Retailing+ Online+2013+Key+Metric s+And+Initiatives/quicksc an/-/E- RES89902#/The+State+ Of+Retailing+Online+201 3

Nordan Consulting Not all marketing dollars are returning equal results. Its easier said then done to figure the ROI on your marketing dollars so you can do more with less No Previous PurchaseOne Previous PurchaseMultiple Previous Purchases Revenue 59% 41% Visitors 92% 8% 1.Is it allocated correctly? 2.Is it producing the expected results 3.Does it have growth focused marketing attribution How is your Marketing Budget Performing? Source: marketing-to-existing-online-customers.html

Nordan Consulting 7 Source: The way consumers reach purchasing decisions is constantly changing and this requires vigilance with ongoing innovative marketing execution

Nordan Consulting Shoppers want retailers to provide personalized promotions and recommend relevant – based on IBM Global Study across 14 countries with 23,466 respondents 8 From Transactions to Relationships: Connecting With a Transitioning Shopper Global View Interest in retailer offers Use my prior purchasing to offer me promotions 55%43% Use my prior purchasing to recommend new products Invite me to events 43% Involve me in new product ideas 36% Source: IBV Retail 2013 From Transactions to Relationships: Connecting with a Transitioning Shopper Study n= Non-Grocery shoppers

Nordan Consulting According to Forrester, the US retail marketing budget is disproportionately allocated. Effective marketing analytics can provide the necessary alignment Source: marketing-to-existing-online-customers.html

Nordan Consulting Effective use of data enables marketers to target customers with the highest profitability potential, i.e. for 1% of shoppers returning = ~10% increase in revenue US Marketing Spend, 2011 To 2016 Source: marketing-to-existing-online-customers.html /E-RES59379#/US+Interactive+Marketing+Forecast+2011+To+2016/fulltext/-/E-RES59379 Shopper Conversion Estimates 52% 54% 84% 60%

Nordan Consulting Analytics based marketing actions and/or offers can tap into the five times higher conversion rates of the top two quartiles with the right and effective capabilities Source: marketing-to-existing-online-customers.html Capabilities needed to convert profitable purchasers Customer Insights Trend Spotting Customer Value Management Highly Targeted Campaigns

Nordan Consulting Based on our experience we expect our marketing analytics to increase by 50% on the results of current marketing solutions The biggest impact to conversion in the first 12 hours of remarketing Macy’s uses psychological triggers for increased conversions Source: No Re-MarketingWith Re-Marketing

Nordan Consulting Nordan is able to deliver results by applying the experience and skills from the dimensions critical to today’s business needs of engaging customers Nordan Markting Analytics Solutions Capabilities Execution Industry Insights Analytics Accuracy

Nordan Consulting – Product Suggestion Engine Consumer purchasing patterns are changing slower than implied by the media hype

Nordan Consulting – Product Suggestion Engine Traditional Product Suggestion Customer views a product The system finds the items with the highest view rate when other customers have viewed this product Nordan Product Suggestion Customer A Customer B Customer C 70% Similar 30% Similar Customer D 80% Similar Nordan looks at the complete view of the customer – browsing history, purchasing history, and demographic data Nordan then identifies products that customers B, C, and D have Purchased and makes suggestions for the next best offer.

Nordan Consulting The patterns and trends you notice in your market sector can dictate the approach you take towards higher RMI Leverage Point 5: Advocate Compensation Use platforms like Pinterest to complement marketing efforts through the help of the extreme loyalist Leverage Point 6: Application To Person Use of the mobile platform to send intelligent, timely & location focused messages to mobile users

Nordan Consulting What is the anatomy of your customer’s experience and how do you maximize this experience by capturing, analyzing and executing on all the possible info? Transacting / InteractingInvolved / LoyalAware / Engaged Doing ThinkingExperienceFeeling Communication Sources Process Flows Data Extracted Transaction points Process Flows Data Extracted Ongoing conversation Process Flows Data Extracted Triggering thoughtsIntuitive experienceRealized value Triggering FeelingsSupporting messages Positive experience Initial ExperienceVisual assistance Continuous engagement Image Source -

Nordan Consulting Marketing effectiveness driven by business value results drives much higher returns than traditional digital activity metrics Activity Based ApproachValue Based Approach - Key Issues + Key Benefits Exhausts customers Encourages discount hunting / low profitability customers Lost opportunity to move a profitable customer to the next segment Low Margins Possible customer retaliation from spamming effects More relevant to the customer – increase probability of engagement and/or purchase Lower marketing spend – fewer messages, better timed, and personalized Increased margins – pattern detection on moving customers up the profitability segemnt Create advocates for your brand Reward profitable customers with the right incentive for advocacy and future spend

Nordan Consulting The Level of Effort estimate for a 2 month POC – the process flow and LOE will be customized based on the project scoping effort in the Project Kickoff phase Client LOE Impact Phases Project Kickoff Solution Setup Results Analysis Results Presentation Execution Establish scope of the solution (Category, Product, approach, data to be used, project plan creation) Business – 5 hrs Tech – 10 hrs Task requiring assistance LOE (in hrs) Business Alignment Matrix, Data Extracts, Analytics Models Customized, Solution Automation Setup Business – 5hrs Tech – 10 hrs Analytics results validation, campaign execution, technical resolutions to issues Business – 5 hrs Tech – 5 hrs Track execution, run reports, validate results Business – 2 hrs Review results with the business and establish next steps Business – 1 hrs * total attendees

Nordan Consulting Appendix

Nordan Consulting 2. Capture Shopping Data RFM 1 st Time Coupon Sale Items Brand 1. Select Key Shopping Features 3. Create Analytical Data Clusters Luxury Unengaged High Potential Profitable 4. Create Analytical Campaign Models Profitable Luxury High Potential Unengaged ClusterOffer 5. Execute Tagged Campaign6. Track Campaign Results

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