Featuring Naj Uddin, Yoram Greener and Scott Cone, Merkle Retailers face an increasingly difficult business environment with decreased store traffic and weak sales. An analytically-based approach that links marketing strategy, customer insight, predictive analytics, and leading-edge technology can assist retailers in maximizing the return on their marketing investments. In this webinar, Merkle discussed today's retail challenges and their unique solutions.

1. Proprietary – Shared under NDA Addressing Retail Trends Through An Integrated Approach June 18, 2009

5. Database Marketing Agency Structure Strategic Consulting (Boardroom) Database Technology (Power Plant) Data Content (Fuel) Delivery Production & Media (Factory) Creative & Messaging (Studio) Analytics & Insight (Lab)

6. Implementation Gap – Why does it exist? Implementation Gap Marketing Strategy Marketing Execution Over abundance of data, inability to fully utilize Lack of understanding, business intelligence and infrastructure/process High cost and investment of time to implement Lack of clear ROI metrics Organizational silos Abundance of Ideas Available Capacity Lack of Action Surplus of Data Available Infrastructure Lack of Ability

11. The Objective Connecting Customers & Products Across Channels

12. Retail Enterprise: Customer-Centric View Promo Calendar Optimization - Event Specific - Seasonal/Product Category Contact Strategy - Media - Channel of Purchase - Offer - Cadence - Seasonality Lifecycle CRM - New To-File - Active customers - Lapsed/Inactive Media Mix Optimization Category Mix Optimization - Store/Regional Levels - Key Items/Category Basket Analysis - Cross/Up Sells - Category Affinity Product Driven Segmentation - Customer Profile/Segment - Category Consumption - Segment Value Pricing Strategy Full Price vs. Outlet - Site Selection/Trade Areas - Expansion vs. Cannibalization Performance Classifications Clienteling Customers Locations Products Marketing Merchandising Store Operations

16. Strategic Planning Merkle recommends an initial strategic engagement to define key goals and prioritize resulting initiatives accordingly. The strategic engagement would answer the following:

17. Strategic Engagement Process Merkle’s Strategic Engagement Process (SEP) is designed to identify the key areas that need focus via the discovery, assessment and gap process. Once determined, detailed recommended roadmaps and project plans are then constructed.

19. Our Approach to Technology Usability How it will be used Functionality What capabilities are needed Technology TCO Business Driven Approach Best Approach

20. KnowledgeCenter Schematic Offline Channels Content Management Customer SKU Transaction Demographic Email Interactions Data Management : KnowledgeLink  ETL  Data Hygiene  Address Standardization  Matching  Update Process Database Marketing Strategy & Analytics Cross - Sell / Up - sell Acquisition Sequential Survey ( Profiling ) Notifications / Service - oriented Modeling Triggered Messaging Creative Library Deployment Engine Campaign Management : Alterian  Segmentation  Suppressions  List Sizing  List Selection Knowledge Warehouse : MS SQL Sever POS Promotion Web Analytic Online Channels : Dynamic Messenger WEB Loyalty : Merkle’s Solution  Data Management  Reporting  Member Management Reporting :  Standard  Ad Hoc  Dashboards

21. Customer Data Warehouse Key Customer Data Elements Associative Membership Household & Residence Individual Basic Attributes & ID Links to all other tables Communication Channels Location / District Email Text Communication Preferences Opt Outs & Suppressions Transactional Attributes SKUs Payments Discounts Tender Transactional History Purchases Returns Derived Attributes Model Scores Derived Variables Promotional History Campaigns & Segmentation Criteria

23. Segmentation: Becoming Customer-centric Having a customer-centric view of your customers (across the lifecycle) is critical. Segmentation provides the ability to make customer-centric decisions

26. Sample: Strategy Map We use strategy maps to directly link themes and initiatives to desired outcomes. This assures that we work on the right things. Strategic Themes Initiatives Outcomes Develop Merchandise Mix Optimization Customize Retail Specialty and Outlet Targeting by Promotion Optimize Merchandise Mix Cross-Sell Offer Targeting by Segment and Merchandise Mix Targeting and Test Schemes Color and Size Optimization Seasonal Discount Strategy Increase Multi-Channel By 20% New-to-File Strategy Support Store Openings & Closings Trigger Program Engine Custom Retail Trade Areas Store and Regional Level Category Model Optimize Circulation Per Promotion 10% Increase Y-O-Y Same Store Sales Cross Channel Models

29. The goal of the attribution processes is to understand the impact of different marketing interventions at a point in time or over time. These measurements can be relative to one another, absolute, and may take into account other factors including brand and retail presence Match Back / Fractional Allocation Metrics And Attribution

34. Marketing dollars are shifting

35. Most companies have not addressed the marketing data implications Email Site Social Mobile Search Display UGC

38. Email Services Dynamic Messenger Solution Dynamic Messenger APIs Core Deployment Engine Dynamic Messenger User Interface Email Lists Creative Assets Integration of multiple technology and process components to enable design, construction, delivery and analysis of email messages Advanced Analytics & Reporting Content Management Data Management Delivery Optimization Custom Apps & Web Solutions Web Analytics Dynamic Content (DyCE) Subscriber Management

39. Incorporating Interactive Elements into Consumer Database A phased approach to integrating data Customer Database Social Commerce Web Activity Preference Center Phase 3 Ecommerce Email activity Opt-in Data Offline data Demographics Phase I Program Activity 1 Program Activity 2 Wish lists Online Surveys Events Phase 2