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Empowered customer
The document discusses how Cengage Learning is transforming its business model to meet the challenges of the changing education market and empowered customers. It is enhancing its direct-to-consumer experience and offering more digital options through an innovative online retail solution that allows customers to buy course materials through multiple online channels. This solution integrates various systems and technologies to provide seamless purchasing and service across web, mobile, and social channels.
Empowered customer
- 1. The Empowered Customer: DeliverWhat They Want, When They Want It and Profit Big An InformationWeek Webcast Sponsored by
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- 3. Today’s Presenters Craig Hayman, General Manager, IBM Software Industry Solutions Charles Qian, Director of eCommerce Systems, Technology Services Cengage Learning
- 4. Craig Hayman, GM IBMIndustry Solutions © 2012 IBM Corporation
- 5. We have abig emphasis on being there for our customers; having a great experience focused on being more convenient and having sound advice. Dan Marks, Chief Marketing Officer First Tennessee Bank I love my Mobile apps, lets you pay bills, check your status of your account at your finger tips. First TN even notifies you of any strange activity to verify that it's you. 5 © 2012 IBM Corporation
- 6. Forget everything youthink you know about marketing. Today's marketing is about understanding your customers better than they know themselves. John Lazarchic, VP of eCommerce PETCO Love the versatility and durability. I’ll be surprised if I ever have to purchase another crate again! 6 © 2012 IBM Corporation
- 7. We analyze customerinformation across all channels to gain insight, take action and create loyalty. Dev Mukherjee, SVP and President Home Appliances, Sears Holding Company Sears Social – Kenmore Elite Washer “Brilliant, easy to use design with every thing I want my washer to do and it looks sweet too…It is a work of laundry art!” 7 © 2012 IBM Corporation
- 8. Our value chainmust be agile and transparent, so we can deliver the end-to-end customer relationship. Mark Booth, North America CIO Whirlpool We gotten a generous 35 years out of this workhorse Whirlpool dryer and hopefully we can get lots more! 8 © 2012 IBM Corporation
- 9. Empowered Customers are ReshapingBusinesses 44% of companies use 86% use multiple crowd sourcing channels 4 in 10 smartphone users e Multi channel buyers search for an item spend 4 to 5 times more in a store than average 80% of CEOs think 45% check with a friend they deliver a superior before buying customer experience…8% of their customers agree 78% of consumers trust peer recommendations 9 © 2012 IBM Corporation
- 10. “The purpose ofbusiness is to create and keep a customer” — Peter Drucker …and this has never been more challenging 10 © 2012 IBM Corporation
- 11. 11 © 2012 IBM Corporation
- 12. On average, aretailer failed in the United States last year 12 © 2012 IBM Corporation
- 13. Due to outof stock inventory 13 © 2012 IBM Corporation
- 14. Stockpiled in supplychains 14 © 2012 IBM Corporation
- 15. To gain anew customer than retain one 15 © 2012 IBM Corporation
- 16. We Call thePath Forward Smarter Commerce Places the customer Maximizes Capitalizes on social at the center the insight and mobile Drives growth Synchronizes your entire value chain Increases margins Improves collaboration and visibility 16 © 2012 IBM Corporation
- 17. Smarter Commerce: Transforms theCommerce Cycle Insight Strategy Buy Market Service Sell Engagement 17 © 2012 IBM Corporation
- 18. Smarter Commerce: Ahead ofDemand Analyzes Optimizes sentiment supply and chain anticipates execution behavior Services Creates and exceptional delivers customer flawlessly experience 18 © 2012 IBM Corporation
- 19. What Does SmarterCommerce Look Like at Cengage Learning BUY MARKET SELL SERVICE New Channels The ability to Seamless end to Buy what you end service over open up greater target new offers need, when you the web buying based on need it, and get opportunity for customer access instantly cusatomers behavior 19
- 20. Smarter Commerce atCengage Learning: Reaching B2B and B2C customers through e-Business - Charles Qian, Director of eCommerce Systems
- 21. Cengage Faced SignificantBusiness and Market Challenges Attrition/Arbitrage eroding sales of traditional, new textbooks – Used book market – Textbook Rentals – Parallel importation (overseas pricing) Escalating costs in Higher Education forcing students to make tough purchasing decisions – Reduced government funding in HED – Tuitions and fees rising quickly, especially in public education Legislative pressure forces examination of pricing/delivery models – Many states have passed, or are considering, legislation to limit price increases or bundling – California requiring more use of online, free content in state college system Professors are looking for non-traditional teaching tools – Technology challenges the traditional learning model (Google, Wiki, etc.) – More “free” information available, although less reliable, has become more accepted Cengage Learning reaches B2B and B2C customers through e-business
- 22. The Cengage Approachto These Challenges Enhancing the direct- to-consumer (D2C) experience and offering more digital options using innovative offer models Cengage Learning reaches B2B and B2C customers through e-business
- 23. Cengage Learning OnlineRetail Solution Micro-sites CengageBrain Web Services Marketplace: Cengage.com -Homepage Sealed -Static pages Media Regional -My stuff ERP/WS Other CL websites OLR Digital Rights: Payment -DRM error msg. Gateway Email Campaign SSO Online Selling ePin Organic SEM IBM -Search/browse -Product details Paid SEM -Shopping cart IP Lookup -Checkout -Registration Address Affiliates -Order status -Account profile Validation Central -Redeem prepaid ERP/WS Social Media Tax Payment Credit Gateway Card Nightly Feed School Product Order Picker Meta-Data Orchestration Order Processing/Print Fulfillment Cengage Learning reaches B2B and B2C customers through e-business
- 24. CengageBrain.com Implementation Timeline Launched pilot program for ebooks and echapters in December 2005 Expanded pilot program to iChapters.com storefront in June 2006 Migrated from 3rd party/in-house hybrid to complete in-house storefront in July 2007 Rolled out to 4 International regions between 2008 and 2009 Rebranded to CengageBrain.com in 2009 Added industry-leading rental program in late 2009 Creating a single destination for student customers – First publisher to offer by-chapter purchases – First publisher to offer a rental program with over 1,200 titles – Offers a wide range of buy, rent, and digital options – Consolidated divergent experiences into a single, cohesive brand and user experience – Simplify purchase, registration, and access of products Cengage Learning reaches B2B and B2C customers through e-business
- 25. Homepage with MarketingPods & Social Media Cengage Learning reaches B2B and B2C customers through e-business
- 26. Browse By Category CengageLearning reaches B2B and B2C customers through e-business
- 27. Search Results andFiltering Cengage Learning reaches B2B and B2C customers through e-business
- 28. Product Detail Pagewith All Purchase Options Cengage Learning reaches B2B and B2C customers through e-business
- 29. Up-selling and Cross-sellingin Shopping Cart Cengage Learning reaches B2B and B2C customers through e-business
- 30. QAI Address Validation CengageLearning reaches B2B and B2C customers through e-business
- 31. Digital Dashboard ContentAccess Cengage Learning reaches B2B and B2C customers through e-business
- 32. Rental Options andContract Management Cengage Learning reaches B2B and B2C customers through e-business
- 33. The Results ofthe B2C Strategy D2C online revenue grew on average, over 50% year over year from 2006 to 2011. Digital product sales including e-books, e-chapters, and online study tools, now account for 80% of D2C revenue. Over 5 million visitors, 600K registered users, and 450K purchases in 2010 Over 120K products offered in five regional storefronts – US – EMEA – Latin America – Canada – Australia/New Zealand 2011 Fall Rush saw 100%+ year-over-year increase in traffic and revenue Cengage Learning reaches B2B and B2C customers through e-business
- 34. Keys to MonetizingD2C Digital Content – Closing Thoughts Offer choice and value to offset market challenges – Electronic version of print materials at a significant discount – Offering rentals to reduce up-front customer costs Using digital rights management effectively to drive new business models – ebooks and echapter expire after certain time period – Online course solutions and study tools drive repeat, annualized sales Employ a compelling yet simple to use eCommerce environment to support just-In-time consumer purchase behaviors – Buy what you need, when you need it, and get access instantly – Provides new avenue to deliver non-physical products and content more efficiently, more quickly, and more cost effectively – Opportunity to gain insight into consumer behavior – Creates brand loyalty and social/mobile marketing Experiment with new selling/delivery models Cengage Learning reaches B2B and B2C customers through e-business
- 35. Smarter Commerce: AComplete Portfolio VALUE CHAIN STRATEGY AND SERVICES CORE BUSINESS SOLUTIONS BUY MARKET SELL SERVICE Intelligent and Personalized Customers and Anticipates optimized supply and relevant offers partners buy what behavior and chains based on with unified cross- they want, when delivers flawless demand channel marketing and where customer service Advanced Analytics Workload Optimized Systems 35 © 2012 IBM Corporation
- 36. Smarter Commerce: NewSolution Highlights NEW! Supplier Integration and Management • Optimize and automate supplier interactions with ILOG Supply Chain Optimization, ECM Smarter Commerce on Cloud Case Manager, Sterling B2B Integration and SPSS Digital Marketing Optimization • Transform insights across all digital interactions including social media into relevant and optimized marketing execution with Cognos Consumer Insight, SPSS, Coremetrics and Unica Cross-channel Selling • Sell seamlessly where and how customers want to buy with Websphere Commerce, Sterling Configure, Price, Quote and Customer Experience Suite optimized on Power Systems Smarter Commerce on Cloud 36 © 2012 IBM Corporation
- 37. Get Started onYour Journey.. Supply Chain Marketing Digital Visibility Innovation Transformation www.ibm.com/smartercommerce
- 38. Q&A Session Craig Hayman, General Manager, IBM Software Industry Solutions Charles Qian, Director of eCommerce Systems, Technology Services Cengage Learning