CUSTOMER EXPERIENCE AND WEB TRANSFORMATION SHEARMAN & STERLING LLP

CUSTOMER EXPERIENCE AND WEB TRANSFORMATION SHEARMAN & STERLING LLP

EMPOWERING RETAILERS

Eliminate the Gap Between the Physical and Digital WorldNovember 16, 2016

Empowering Retailers: Eliminating the Gap Between Physical and Digital

Create, manage and measure a more captivating in store experience for customers1

OFFERING UNIQUE EXPERIENCES TRULY MAKES A DIFFERENCE

Implications of consumerismWe fell in love with buying new things, lots of thingsSharing meant demonstrating conformity = same is betterShared experiences, one-way through mass media (Elvis, Beatles, Man on Moon) (Mad Men-era of marketing/advertising = more is better)We absorbed and adopted new communication technologies at a record pace (TV, LP/CD, VHS, PC, DVD, Cellphone, Streaming)

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How Does Targeted In Store Communication Influence Customers?It has a direct impact on shopping behavior:According to McKinsey, great customer insight analysis can increase sales by 43%POPAI's research reveals that brands using digital signage are found to have sales increased by 30%According to research by Accenture, customers spend an average of 13% more on brands who offer a great personalized experience3

2016 Tahzoo

Emotionally Intelligent Spaces

Bad, Humourous Example: Last week, Big Box Retailer Treat Yourself email to Jens friends for diapers.

Lets see an example of a unique, seamless experience

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This Big Idea

2016 Tahzoo

Emotionally Intelligent SpacesShow me what I like.

Connecting with customers: Not just online, but also in stores

Promote your product based on the anonymous passers by...

No self registration, mobile apps or QR codes are needed

Matches this person to a predefined profile, content matched to you will be displayed on screen...

Conversions increase enourmously...

All this data is stored, highly relevant information about types of customers...4

HOW WE DO IT

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The MethodologyCreate measurable magic

Define & DesignDeliver & DeployMeasure & DevelopOpportunities& strategyDeep dive for Consumer Insights12345

EXPLOREIMMERSEDELIVERDESIGNCLOSED LOOP

2016 Tahzoo

Through the Tahzoo Experience Design methodology, we create Experience platforms where employees, suppliers and customers continuously improve the shopping experience to attract, engage, convert, and retain shoppers

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Targeted In-Store Promotions (TIP)

2016 Tahzoo

Blend creativity with technology to deliver visibly transformational, multi-sensorial experiences that are both compelling for consumers and manageable & measurable for clients.From the moment they step in, technology is centered around the movements and moods of your customer.Reacting to your customers behavior and movements; interacting with their needs. Aligning imagery, sounds and experiences to create attractive and cohesive shopping experiences.

Story: Intersection of online and physical world: Using sensor networks to understand patterns of behavior ie Tahzoo DC website to show relationship between color and weather, etc circles on Tahzoo website depicted colors worn while passing our HQ (Image of shirt, API to color, display on website) most wore black (Circles turned into unicorns with a konami cheat code)

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Imagine......you could promote, based on somebodys profile

Woman24 years oldMan40 years old

2016 Tahzoo

Enliven the Shopping ExperienceHow its done:Interactive experience designExpertise in different sensory elements (sounds, imagery, interactivity) and their effectCarefully constructed and scripted scenarios which create deep engagement with customersContinuous measuring and quantification of results so they are linked to your business goalsKnowledge of what works and what doesnt

And Continuously Improve ItOur Tahzoo Software and technology expertise enables us to do this, over and over againWe create and re-create the experience in a way that keeps it relevant and freshResults can be achieved not only in flagship stores but duplicated across the entire chainWe are unique because we offer experience creation, management and measurement in one package!

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Provide insights in actual store trafficServe products and promotions that match customer needsImprove the overall performance of storesNo customer effort neededCustomers personal data is not stored

With [this] approach we saw a 30% to 40% increase in sales within six weeks

LOccitane en ProvenceThe Benefits

2016 Tahzoo

Highly immersive experiences; not a gimmick, not simple display adsThese digital experiences are improving brick and mortar.

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What Is TIPTIP (Targeted In-store Promotions) is the umbrella name for the in-store campaign solution of Tahzoo.

The total solution consists of three parts:The configuration of the software at HQThe hardware and software in the storeThe reports & analysis at HQ10

2016 Tahzoo

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Behind The Scenes

ConfigurationPlayerProfilingsoftwareReporting &analysis

2016 Tahzoo

Collect more data about interactions, how their face responds

Establish a 2 way connection with in-store + online

Where augmented reality and VR encumbers customers, with TIPS there is no QR code, no user intervention, no headset it seamlessly responds to customers in a highly personalized way. As experience adds value, it creates the opportunity to become more engaged.

Example 1: Example: What type of cup is customer holding? Clear plastic cup = recommend iced drink

Base off inventory levels at local store, etc

Demo (guess your age) testing Harvey the dog

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The ConfigurationIn one central system:Define the personasDecide which experiences will be used for which personaDecide which experiences will be used in which shopLanguage basedDemographic differencesGeographic differences

At the start, this can be done based upon existing knowledge.

The TIP Report and Analysis tool provide concrete, actionable data.

2016 Tahzoo

Future state: Microfacial recognition and microphones; automate human to human interaction

Imagine:A highly immersive experienceViewing product in 3D (ie House on Zillow, Furniture online), quickly manage transaction and iris scan to pay

Incorporating Sound: Ambient background convo to gain a composite of the conversation around a particular thing/product i.e. long ling at coffee shop operational feedback usually takes 2 months to see if theres a problem. If you gain real-time insight that your sales are off by 33%, you can more quickly identify operational inefficiencies and respond.

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Set Globally Differentiate LocallyNetherlandsUSSingaporeShopShopShopShopShopShopShopShopShopShopShopShopShopShopShopShopShopShopDutchFrenchVillageCityFrenchGerman

Global Configuration

2016 Tahzoo

Central control, local flexibility Unify delivery of experienceConsistent look, feel, experience with localization

Increase in-store sales, tie to inventory and feature product accordingly an optimization effect

Example 2: What type of shirt? Imagine eventually a Siri/Echo/Cortina experience display a blue gingham shirt, face lights up then you interact in Human 2 Human (H2H) type experience do you have this size? Is it on sale? tied to back-end inventory/CRM. An extension of the content hub.

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Lets go be great!

Create, manage and measure a more captivating shopping experience for customers.

Tahzoo Examples:LOccitane FranceAveda USLuxotica Belguim 14