2016 Holiday Retail Tech Recap

DON DAVISEditor-in-Chief 

Internet Retailer & B2BecNews

MODERATOR

VENKAT RAYAPUDIManager, eCommerce Operations

Neiman Marcus

ARTHUR VIENTEProgram Director,

IBM Watson Commerce Strategy IBM Watson Commerce

DAVID JONESPractice Director 

Dynatrace

A strong holiday season for online retailers

2014 2015 2016$0.0

$10.0$20.0$30.0$40.0$50.0$60.0$70.0$80.0$90.0

$100.0

$73.6 $83.0 $91.7Online holiday sales (in billions)

11%

Source: Adobe Digital Insights

Web growth may have been even stronger

11% 12% 16% 20%

Estimated in-crease

in 2016 online holiday sales

• Store sales increased

2.4%in November-December 2016 over same months in 2015.

Source: U.S. Commerce Department

Stores made a comeback• Store traffic declined 4.4%

during the five days from Thanksgiving and sales were down 4.2%.

•Source: RetailNext• Online sales during those five

days were up 15.2%.•Source: Adobe Digital Insights

Than

ksgiv

ing

Black F

riday

Cyber

Mon

day

50% 45%31%38%

52% 61%

Where consumers planned to shop

Stores OnlineSource: Market Track

Amazon dominates Thanksgiving weekend (sales)…

…and the holiday season (traffic)

Lowe'sMacy'sKohl's

Home DepotBest Buy

TargetWal-MartAmazon

1.30%1.53%1.61%2.10%2.93%3.25%

6.69%33.88%

Percentage of traffic to retail websites

Source: Hitwise, a division of Connexity

Amazon dominates the last weekAmazon’s percentage of web sales

0%15%30%45% 33%38%44%

The Prime Now effect• Prime Now (2-hour delivery) accounted for 13% of Amazon’s late-season sales, versus 10% in 2015.

• Source: Slice Intelligence

More email, and more sales from emailBlack Friday/Cyber Monday campaigns

Black Friday Cyber Monday

01000020000300004000050000

Number of email campaigns

2016 2015

Read rates above 20%

Black Friday Cyber Monday

20% 19%13% 12%

2016 2015

41.9%

28.2%

Source: eDataSource

Search drive most sales

•But ads on social networks are driving more traffic: 3.6% in 2016 versus only 0.25% in 2015.

Source: Hitwise, a division of Connexity

Consumers browse on smartphones…

2016 2015 2014

50% 50% 56%9% 11% 14%

41% 39% 30%

Percentage of visits, by device, 2014-16

Desktop Tablet SmartphoneSource: Adobe Digital Insights

…and they buy on smartphones

2016 2015 2014

69% 73% 78%10% 11% 12%21% 17% 9%

Percentage of sales, by device, 2014-16

Desktop Tablet SmartphoneSource: Adobe Digital Insights

Poll Question:

• Six luxury retailers — Neiman Marcus, Bergdorf Goodman, Last Call, Horchow, CUSP and mytheresa.com — make up the Neiman Marcus Group.

• Founded in 1907

• 42 Neiman Marcus stores across the United States

• Two Bergdorf Goodman stores in Manhattan

• 29 Last Call clearance centers

• 3 Last Call Studios

• four CUSP stores

• Serving online customers including mobile through ecommerce websites for the last 16 years

Key Takeaways

• Focus: • Unique and personal online shopping experience

• Complexity: • Backend integration

• Product filters, pricing, availability, checkout/delivery• Gift registry• Mobile

• Achieving high performance and stability• Load testing• Team readiness—anticipate and rehearsing mitigation processes

Confidential, Dynatrace, LLC

Confidential, Dynatrace, LLC

Confidential, Dynatrace, LLC

Confidential, Dynatrace, LLC

Key Takeaways

Dynatrace US Retail Performance Benchmarks Remarkable alignment to poll results—

Good/OK/Poor distribution by end to end Page Load Time about 60%/30%/10% Industry trends

Better performance! More reliable sites! …despite increasing complexity

More third party connections, larger images, heavier scripting and interactivity On the frontend, interactivity and mobile adaption On the backend, cloud, new application frameworks and services-based approaches

Can’t forget the impact on the customer!

20

We’re drowning in a tidal wave of data…

Every day we create 2,500,000,000,000,000,000 bytes of data

That’s 2.5 QUINTILLION

05/03/2023World of Watson 2016

IBM Cognitive Engagement: Watson Marketing | Watson Commerce | Watson Supply Chain21

Working towards clarity across channels…

…through visibility across data points.

05/03/2023World of Watson 2016 22

Trying to create a seamless experience…

• Retailers don’t suffer from a lack of data• Challenge: how to leverage it!

• Channel multiplicity• Exacerbates the data challenge• Hard to connect around the customer

• Technology can sometimes get in the way of multi-channel journeys• Customers expect seamless, often get bumpy• Cognitive is emerging to help smooth this out

Key Takeaways

Removing performance friction from the experience

• A journey

• Getting the entire business on-board

• Performance #1 feature

Boarding Plane by NinaZed on flickr

Looking ahead

What to think about in 2017• Artificial intelligence is

becoming practical and useful in helping simplify business decisions

• AI also advancing on the IT front—simplify technical complexity

• Cloud platforms will drive increased personalization and agility and Innovation will accelerate

• Anticipate more sophisticated digital experiences

Curves Ahead by Jeremy Bronson on flickr

Confidential, Dynatrace, LLC

Q & A VENKAT RAYAPUDI

Manager, eCommerce OperationsARTHUR VIENTEProgram Director,

IBM Watson Commerce Strategy 

DAVID JONESPractice Director 

Learn More: www.dynatrace.com/trial/

Confidential, Dynatrace LLC

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