© 2019 eMarketer Inc.

Webinar: How Digital Commerce

Has Emerged as the Preferred

Channel for D2C Innovators

Craig Peasley

Director of Product Marketing

Adobe

April 16, 2019

Tech Talk TuesdayBegins at 1:00 PM ET

Nancy Taffera-Santos

SVP, Media Solutions & Strategy

eMarketer

Presented byPRESENTER MODERATOR

Nancy Taffera-Santos, SVP of Media Solutions & Strategy, eMarketer

Craig Peasley, Director of Product Marketing, Adobe

Tech Talk Webinar: How Digital Commerce Has Emerged as the Preferred Channel for D2C Innovators

© 2019 Adobe Incorporated. All Rights Reserved.

Go Digital or Go Home

• Mobility

• Big Data

• AI / Automation

• Social Media

• Customer

• Cloud

Digital as the “hub”

© 2019 Adobe Incorporated. All Rights Reserved.

eMarketer: Key commerce challenges facing brands today

Competition and operating costs are Top 2

concerns

Source: Feedvisor conducted by Morning Consult, Jan 2019

© 2019 Adobe Incorporated. All Rights Reserved.

eMarketer: Consumers spending more time on D2C sites

Time spent on brand sites up 2X

in only 2 years

Source: Comscore Multi-Platform; eMarketer calculations, Dec 2018

© 2019 Adobe Incorporated. All Rights Reserved.

eMarketer: Consumers expect to purchase more from D2C

companies

Consumer purchasing behavior is changing,

generational changes to drive disruption

Source: Diffusion conducted by YouGov, Oct 2018

© 2019 Adobe Incorporated. All Rights Reserved.

eMarketer: What matters most when shopping online

“Value” extends beyond than product &

price

Source: Murphy Research, March 2018

© 2019 Adobe Incorporated. All Rights Reserved.

Source: CMO Club study, 2018.

Brands are preparing themselves for this transition, but are they

ready?

of respondents indicated

their business strategy is

entirely customer centric

and it reflects in their

retention rates.

42%of respondents cited

“growth” as the most

important customer

experience objective.

69%of respondents said that

while they prioritize the

customer experience, there

is still work to do to improve

their strategy.

49%cited “retention” as the

primary driver of customer

experience management.

31%

© 2019 Adobe Incorporated. All Rights Reserved.

Consumer loyalty can no longer be expected, it has to be

earned

87%

Shopped around

13%

Loyalists

29% Vulnerable repurchasers58%

Switchers

100% Consumers

42%

Stuck with incumbent brand58% were tempted away

Source: McKinsey & Company

© 2019 Adobe Incorporated. All Rights Reserved.

In the new environment, how do you drive and maintain customer growth and loyalty?

Digital commerce at the center

© 2019 Adobe Incorporated. All Rights Reserved.

Commerce & Community

Closed-loop Experiences

Product InnovationPersonalization

Data-Driven Fulfillment

Unified Commerce

How leading D2C brands are innovating…

© 2019 Adobe Incorporated. All Rights Reserved.

Personalization to Deepen Brand Engagement

of manufacturers are

embracing D2C- Digital Commerce 360

57

%

o Viral Share-a-Coke campaign led

to new direct-to-consumer model

o Product differentiation and

personalization keys to growth

© 2019 Adobe Incorporated. All Rights Reserved.

Creating & Connecting Community

15

%

of digital commerce

organizations will have

deployed their own

marketplace by 2023- Gartner

o Canon’s goal to be the brand for

like-minded photography

enthusiasts

o Delivered “one-stop shop” for

products and connection to

experiences

© 2019 Adobe Incorporated. All Rights Reserved.

Of products will be

smart and connected by

2018- Capgemini

50%

Moving Beyond Products into Experiences

o BabyNes® first integrated

nutrition system bringing

precision feeding to mom & baby

from pregnancy to 3 years

o MyBabyNes offers parents peace

of mind, solution for larger

problem

© 2019 Adobe Incorporated. All Rights Reserved.

o Mission is to be the most LOVED

baby lifestyle brand in the world

o Lean-start up innovator with

perpetual new product funnel and

services. On average awarded

more than 1 patent per month.

Average year-over-year

growth in sales2X

Innovating with Product

© 2019 Adobe Incorporated. All Rights Reserved.

ideaData-driven Omnichannel Fulfillment

o Multi-brand retailer with 430 stores

across 10 different brands

o Created Centers of Excellence,

Agency & Digital Hub, to manage

content velocity and delivery

of shoppers who’ve

made an additional in-

store purchase while

picking up an online

order- Business Intelligence Insider

85%

© 2019 Adobe Incorporated. All Rights Reserved.

Integrated Shopping Experiences

o Intelligentsia Coffee business

includes retail, distribution, and

direct-to-consumer

o Digital commerce powers 90% of

its wholesale B2B2C business

© 2019 Adobe Incorporated. All Rights Reserved.

Personalizatio

n

Data-Driven

Experiences

Integrated

Shopping

Community

Innovation

BUILD

LOYALTY

REDUCE

COST

GROW

REVENUE

© 2019 Adobe Incorporated. All Rights Reserved. © 2019 Adobe Incorporated. All Rights Reserved.

Common approaches to launching a successful D2C initiative

Call

Centers

Marketing

ERP

INV/SCM

CRM/CX

Distribution

Centers Warehouses

Drop

Shippers

Store

Networks

Social

Online

Stores

Retail

Stores

Business

Intelligence

Order

Management

Enables D2C brands to

• Quickly experiment and test new waters

• Get to market fast

• Innovate continuously

• Get instantaneous feedback

• Engage shoppers/buyers where they are

Commerce

© 2019 Adobe Incorporated. All Rights Reserved.

Shared goals from leading D2C innovators who lean in on “experience”

Personalize experiences across the customer journey

Uncover deep insights with AI to optimize experiences and improve business results

Support global deployments with multiple brands and business models

Automate and optimize commerce operations and execution

© 2019 Adobe Incorporated. All Rights Reserved.

ROI: 242%

18%

Operational Productivity Gains

18%

Customer acquisition and

technology cost savings

64%

Bottom Line Growth

Experience focus satisfies customers and is great for business

© 2019 Adobe Incorporated. All Rights Reserved. © 2019 Adobe Incorporated. All Rights Reserved.

Take action today – to learn more about transition to digital

experience

eBook that highlights five milestones on the journey to

Experience Driven Commerce

Insights from CMO Club on Experience Management best

practices from leaders at Alcon, Chegg, Guitar Center and

PETCO

https://www.adobe.com/commerce/magento

tinyurl.com/adobeCXEE

tinyurl.com/adobeP2X

© 2019 eMarketer Inc.

Craig Peasley

Director of Product Marketing

Adobe

April 16, 2019

Tech Talk Tuesday

Nancy Taffera-Santos

SVP, Media Solutions & Strategy

eMarketer

PRESENTER MODERATOR

Q&A Session: How Digital Commerce Has Emerged as the Preferred Channel for D2C Innovators

Be sure to check out these upcoming eMarketer Webinars:

April 23 | Tech Talk Tuesday: The Changing Face of Optimization

April 25 | Meet the Analyst: The Future of Retail—Top 10 Trends You Need to Know

You can register for our upcoming Tech Talk Tuesday and Meet the Analyst Webinars at emarketer.com/webinars

Be sure to also check out eMarketer’s “Behind the Numbers” podcast for daily, freewheeling conversations about the ways

digital is transforming media, marketing, business and even life. Visit emarketer.com/articles/topics/eMarketer-podcast

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