The Canadian Multichannel ShopperSponsored by: Presented by: Steve Bielawski Rosalina Lin-Allen eCommerce Practice Director Director, Client Strategy Tenzing Delvinia www.tenzing.com www.delvinia.com

Webinar Agenda Introduction Steve Bielawski, Tenzing The Canadian Multichannel Shopper - Rosalina Lin-Allen, Delvinia Q&A If you have questions during the webinar, please input them in the Q&A panel on the right side of your screen and we will address them at the end of the presentation.

About TenzingCompany Privately owned, Founded: 1998 Tenzing Data Centers Fully Managed IT Service Provider Disaster Recovery Production Environment Environment 3 Customer service centers: BC, ON, India 3 Datacenters: Toronto, Kelowna, Vancouver Profit 200 Ranking 6 years in a row 80 employees (60 in operations) APAC EMEAProvide Managed Services For Ecommerce Platforms SaaS Applications Web & Enterprise Applications

Ecommerce Managed Services Experience Multiple Ecommerce Implementations Apply the right delivery strategy Reduce time, effort and risk Collaborate: Ecommerce Systems Integrators Manage all infrastructure components Manage Ecommerce platform environments Seasonal & Peak Load Management Scalability

Ecommerce Managed Services We Host & Manage All Of This So You Can Manage & Grow This

Tenzing Partial Client List Ecommerce Software as a Service Enterprise Web

Business Digital Strategy & Customer Experience Design Firm. End Consumers Delvinia370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

Searched trusted sites Visit store Product ratings & reviews What it takes to install a shed Talk to friends & family Buy Online ONLINE OFFLINE370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

What is a Multi-Channel Shopper?Definition Shop across different channels Retail customers who shop across multiple channels tend to spend 2-4 times moreCharacteristics More sophisticated & educated consumers than single channel shoppers. Peppers & Rogers Group Wants CHOICE More demanding More loyal & more profitable Multi-channel shoppers spend 50% moreExpectations than a single channel shopper Channel agnostic see the retailer as a unit and expect and are typically the highest the experience across channels to be consistent and integrated value customers. McKinsey Marketing Solutions370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

Heighten Importance for Multichannel Integration More skeptical about corporations and their Multichannel integration is no. 2 on the Top 100 Retail messaging Movers & Shakers list More scrutiny and active researching on compared to no. 54 in 2009. 2011 Top 100, RetailCustomerExperience.com their purchases More aggregator sites available (e.g. Red Flag Deals) Multi-channel integration will be a strategic priority over the More reliance on peers next 5 years. Addition of channels that supports impulse Walmart Executives shopping (e.g. mobile, tablets)370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

How Do Multi-Channel Shoppers Behave? Digital dominates pre-purchase research Brick-and-mortar dominates purchase 60% of Canadian shoppers say their choice of retailer is influenced by their ability to conduct pre- purchase research online At least half of all shoppers report the Internet as their preferred pre-purchase research channel370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

What do multi-channel shoppers care about?VALUE is top of mind 85% of consumers research price online370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

What do multi-channel shoppers care about? VALIDATE their decision 65% Canadians look for customer ratings & reviews 48% look for expert opinions & recommendations370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

What do multi-channel shoppers care about?LOCATE product 50% look for product availability One of the most dissatisfying channel to complete this transactional task370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

What features do they use? When you shop on a retail website, how important is each of the following features?370 King Street West, 5th Floor, Box 4 Source: AskingCanadians Dec 2010, n=500Toronto, OntarioM5V 1J9

What is the approach to meetthe needs of multi-channel shoppers?370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

Approach Accessibility to store Comfort with technology P eople Time available Value social experience Decision Cycle Objectives What is the nature of your product/channel? What are you trying to accomplish? S trategy Define how to get your target audience to do what the business wants them to do. T actics Tactics & technology to realize the strategy370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

People & Objectives Most useful channel for pre-purchase information gathering on a specific product by category: Persona Development Source: AskingCanadians Dec 2010, n=500370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

Strategy Support & Research Purchase Community370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

Tactics Perceived Risk Storytelling Store/agent Locator Facility to multiple visits Example: car, travel Example: degree Decision Making Tools (e.g. product recommender, calculators) Click-to-Call Zoom/Rotate Product Inventory Lookup Scenario Comparison Peer Ratings & Reviews Robust Search Engine FAQ Example: Example: books & music smart phone /plan Complexity370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

Low Complexity & Low Perceived Risk Pick up at store Numerous retailers reported success in up-selling when customer come into the store. Robust search engine through faceted search370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

Low Complexity & High Perceived Risk Decision Making Tool Facility for multiple visits370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

High Complexity & Low Perceived Risk Cel phone/plan are complex in the sense that you have to determine several things: Telecom you prefer/trust Compare options, line item by line item Usage needs Minutes, time of call Internet needs Phone features370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

High Complexity & High Perceived Risk Push prospects to speak to Ivey and to their experiential events Decision making tools Story telling through interactive elements and videos370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

In sum P eople Start by understanding your customers & clearly defining your business objectives Objectives Offer consistency across your channels Many Canadian retailers are not meeting the expectations of S trategy multichannel shoppers. Theres an opportunity to stand out by doing it right. Mobile (impulse) channels to take into consideration T actics including smart phone, touch pad370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

In sum People + Objectives Tactics Strategy370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

Up Next 40% 65% of Canadian smartphone owners of Canadians look for consumer have used their phone in the reviews and recommendations process of shopping. when researching products online. Join us for the Join us for the Mobile Shopper Webinar Social Shopper Webinar 2PM, Wednesday, October 26, 2011 2PM, Wednesday, November 30, 2011370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

The Canadian Multichannel Shopper Sponsored by: Presented by: Steve Bielawski Rosalina Lin-Allen eCommerce Practice Director Director, Client Strategy Tel. 877-767-5577 x436 Tel.416-364-1455 X271 Email. steve.bielawski@tenzing.com Email. rlinallen@delvinia.com Tenzing Delvinia370 King Street West, 5thToronto, Ontario www.tenzing.com Floor, Box 4 www.delvinia.comM5V 1J9