Cognizant Technology Solutions Corporation · NASDAQ:CTSH
Cognizant Technology Solutions — Investor Presentation (2012)
32 slides from Cognizant Technology Solutions's investor presentation, Nov 25, 2012
Slide 1: 2012 Shopper Study Overview: Retail Without Boundaries
2012 Shopper Study Overview Retail Without Boundaries ©2012, Cognizant
Slide 2: Study Summary
Study Summary | ©2012, Cognizant
Slide 3: 2012 Shopper Experience Study respondents reflect typical mix of retail shoppers
Our third annual, 2012 Shopper Experience Study respondents reflect the typical mix of retail shoppers 4,000 Shoppers Around the World Respondent Geography Respondent Income Group US Canada Low Income UK Middle Australia Income Hong Kong High Income China Respondent Age Group Respondent Gender 18-33
Slide 4: ONE size does NOT fit all
Retailers must devise their shopper experience strategies based on the shoppers they serve ONE size does NOT fit all 4 | ©2012, Cognizant
Slide 5: Retail without Boundaries is about knocking down the walls
Retail without Boundaries is about knocking down the walls. | ©2012, Cognizant
Slide 6: Shoppers love to shop anytime, anywhere, especially at stores
Shoppers love to shop anytime, anywhere and through any channel, but especially at stores 4 out of 5puchases occur in stores and the most influential factors are: #1 Price #2 Product “Showrooming” (browsing in a store and then purchasing online through a smart phone, tablet or PC) is the number one
Slide 7: Shoppers have high expectations for in-store execution
Shoppers have high expectations for in-store execution “How much do you dislike each of the following when shopping in a store for products?” Some of the highest scores across the study are related to how much customers dislike when stores fall short on execution. | ©2012, Cognizant
Slide 8: Sales in digital channels are growing and influencing in-store sales
Sales in digital channels are growing— varied by category—and influencing in-store sales. “What percentage of your annual purchases for each of the following types of goods do you make through the following channels?” Although the lion share of sales still take place in stores, retailers must create
Slide 9: Higher income shoppers are most inclined to use digital channels
Higher income shoppers are most inclined to use digital channels % of Purchases by Channel % of Purchases by Channel Split by Type of Product for High Income Shoppers 80% 60% 60% 40% 40% 20% 20% 0% ld r y ty el ic s o ce u ar n eh ro a p o 0% us G Be Ap c tr Lower Income Middle Income Higher Income
Slide 10: Basics for digital experiences are similar to stores
The basics for creating digital experiences that shoppers want are similar to stores “How much do you dislike each of the following experiences when shopping online?” Cannont return the product to a store 3.8 Payment method you like is not available 3.6 Too many steps or too much information is requ
Slide 11: Key Shopper Study Themes
Key Shopper Study Themes 11 | ©2012, Cognizant
Slide 12: Four themes essential to becoming a retailer without boundaries
There are four themes essential to becoming a retailer without boundaries Showrooming can be a retailer’s “frenemy” Store Are you associates are keeping up Retail a retailer’s with the Jones' or Without brand Boundaries ambassador… investing in for better or the future? worse How personal can you ge
Slide 13: With the right shopper strategy showrooming can become your frenemy
Show- roomin With the right shopper strategy g showrooming can become your Jones’? Retail without Bounda Associa tes ries “frenemy” Person alizatio n Differentiated Experiences Customer Service Product, Price, Promotion Location 13 | ©2012, Cognizant
Slide 14: Factors influencing purchase decisions are consistent across segments and channels
Factors that influence purchase decisions are consistent across segments and channels The top five influencers Rank Order of in-store purchase Competitive price, promos, etc. 1 decisions are Right product selection 2 unanimously agreed Customer Service (quality/access) 3 Fast, easy check-out 4 upon
Slide 15: How purchase decisions are influenced is changing
How purchase decisions are being influenced is changing and varies based on product type “In a typical month, how often do you use the following resources to help you make informed purchase decisions of products in the following category(s)?” TV is continuing to lose ground Significant differences b
Slide 16: The best way to stop showrooming is to give shoppers what they want
The best way to stop showrooming is to give shoppers what they want. The two essential elements to combat the risk of showrooming is to match prices and provide exceptional customer service. 29% 35% Of shoppers want store Of shoppers want store associates to associates to match prices have better cu
Slide 17: Experimenting with new shopper experiences will differentiate retailers
Experimenting with new shopper experiences will endear shoppers and differentiate retailers “For the product category(s) shown below, how important it is for you that your favorite stores work with the following types of partners to provide you with better experiences, more products, or more special
Slide 18: Store associates are a retailer's brand ambassador
Store associates are a retailer’s Show- roomin g brand ambassador… Jones’? Retail without Bounda Associa tes for better or worse ries Person alizatio n Help with purchase decisions Help find product “Go to” person for issues 18 | ©2012, Cognizant
Slide 19: Shoppers rely on traditional resources, excluding store associates
Shoppers rely predominantly on traditional resources to help with purchase decisions, excluding store associates Resources Used to Help with Purchase Decisions Digital Resources Store Associates Store Signs Product Packaging Word-of-Mouth Traditional Advertising Store associates is the only traditio
Slide 20: When shoppers can't find what they want, they look elsewhere
When shoppers can’t find what they want, most likely they’ll look elsewhere At first glance, it’s affirming that nearly 50% of shoppers ask for help when they can’t find what they’re What do you do when you looking for…on the can't find what you want? other hand more than 25% buy the product elsewhe
Slide 21: When shoppers have a problem, retailers might never know
When shoppers have a problem, retailers might never know about it. “When you have a problem while shopping in a store (e.g. product availability, poor customer service, out of stocks, etc.) indicate whether you are unlikely to report it.” 65 and 11% over 46-64 10% Younger shoppers are unlikely to re
Slide 22: When shoppers seek help, nothing beats a live person
When shoppers do seek help, nothing beats a live person. In-store associates are “When you need assistance while shopping, how likely are you to the most likely use the following customer service options?” resource for shoppers to seek when they need help. Younger shoppers especially are increasingl
Slide 23: How personal can you get without being creepy?
Show- roomin g How personal can you get Retail without Associa without being creepy? Jones’? Bounda tes ries Person alizatio n #1 Personalized in- Resistant to store - Versus - sharing personal experiences information 23 | ©2012, Cognizant
Slide 24: Personalization is a proven tactic to increase engagement
Personalization is a proven tactic to increase shopper engagement. Personalized in-store experiences (e.g. promotions, #1 offers, preferences customized based on past purchases or status etc.) was ranked the most desired feature by shoppers in North America 24 | ©2012, Cognizant
Slide 25: Shoppers want to be recognized and uniquely appreciated in stores
Above all, shoppers want to be recognized and uniquely appreciated while in stores. “When shopping for specialty products, how much would each of the following techniques to personalize your shopping experience influence your shopping choices, if available?” - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00
Slide 26: Shoppers are skeptical about sharing information
Shoppers are skeptical about sharing information “How willing are you to share the following information with stores in order to have a more personalized shopping experience?” 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 Information tracked by loyalty number 2.89 Name, address, e-mail for
Slide 27: Are you keeping up with the Jones' or investing in the future?
Show- roomin g Are you keeping up with the Jones' or investing in the future? Retail Jones’? without Associa Bounda tes ries Person Retailer mobile and alizatio n In APAC social tablet apps are the media is a leading least favored influencer of resources purchase decisions Everyone LOVES Facebook Di
Slide 28: Shoppers go to digital resources first for specialty products
Shoppers go to digital resources first when shopping for specialty products. Rank order of resources used to make purchase decisions for specialty products Retailers’ investments Other Internet searches and websites 1st in mobile phone and Store’s website 2nd tablet apps aren’t Print materials Infor
Slide 29: Digital trends are moving east to west; APAC is an indicator
Many digital trends are moving east to west--APAC has become an indicator of where to invest 5 4 3 2 1 Although North American 0 China Hong Kong Shopper’s social influence lags North America Australia APAC, there’s every evidence that U.K. the influence of social will only grow in North America. 4.5
Slide 30: Leveraging digital assets in stores is the next frontier
Leveraging digital assets in stores is the next frontier Although cross channel integration and interactive experiences are not yet demanded by shoppers, customers will respond to them—especially those who are ages 18-45. 3.5 3.3 3.1 2.9 2.7 All Shoppers Shoppers Age 18-34 Unclear Information 1 Cann
Slide 31: Shoppers expect retailers to extend brands through social media
Shoppers expect retailers to extend their brands through social media, especially Facebook It is important for shoppers’ favorite stores to have a presence on social networking sites to provide better experiences, more products, and specials/promotions Other 2.9 3.0 2.8 Facebook is the only MySpace
Slide 32: Thank You
Thank You Please contact Rachel Cosby at [email protected] to request a customized briefing of the Shopper Study results or a copy of the detailed global shopper research results. 32 | ©2012, Cognizant
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