1. IBM Institute for Business Value Capitalizing on the Smarter Consumer Global View Understanding and Responding to the Consumers Wants and Needs Retail Industry Perspective Capitalizing on the Smarter Consumer Global View

2. 2 Today’s consumers are fundamentally changing industries, brands, interactions, and relationships “Sales of 4,500,000 iPads in 3Q 2010”* Source: Fortune October 5, 2010 http://tech.fortune.cnn.com/2010/10/05/how-many-ipads-has-apple-really-sold/

3. So what characterizes these smarter consumers? InstrumentedInterconnectedIntelligent 662 million active users on Facebook 5 billion mobile phones connections globally 95 million tweets are sent each day 45% of consumers ask friends before purchasing 75% of people don’t believe that companies tell the truth in advertisements 3 out of 4 business leaders say more predictive information would drive better decisions

4. 4 Mature IBM’s Institute for Business Value (IBV) studied this new consumer taking into account 13 countries in both the mature and emerging markets Total Surveyed Population = 30,624 Canada (2221) Australia (2274) France (2200) UK (2200) Germany (2200) Italy (2200) United States (4121) Emerging Brazil (2200) Colombia (2200) Mexico (2200) China (2200)Argentina (2200) Chile (2200) Source: Institute for Business Value Retail 2011 Global = 30624

5. Website usage continues to rise 75% 68% 20092010 Mobile technologies have almost doubled globally and is already more widely accepted in the growth markets 13% 25% Technology: Instrumentation has increased year-to-year and mobility has increased 92% globally

6. Instrumentation has increased year to year and mobility is 48% higher in Chile than the global percentage Websites have increased 7 % 80% 75% Willingness to use TVs to make purchases is growing as a preferred technology like mobile 37% 24% Source: Institute for Business Value Retail 2011 Global = 30624; Chile = 2200 GlobalChile Mobile technologies has increased 48% globally and is still more widely accepted in the growth markets 25% 37% Kiosks are popular across all countries 43% 39%

7. Influences Expectations The profile of today's Smarter Consumer Technology Attitudes Attitudes

9. Consumers attitudes are optimistic globally but they are not going back to pre-recession spending levels 70% of global consumers are optimistic about the future of their income 46% believe income will stay the same 24% believe income will increase by 20% in the next 5 years Optimism was not limited to the higher income brackets Kiosks are popular across all countries Attitude Toward IncomeAttitude Toward Shopping 20% 19% Spending only on needs Searching out sale items 16% Waiting longer to purchase 12% Buying more online 11% Purchase items to reward yourself 10% Trading up/down in some categories 8% Spend more on travel/entertainment 5% Eating out more Source: Institute for Business Value Retail 2011 Global = 5188

10. Influences

11. 11 Globally, 18% of consumers are influenced by the retailer or manufacturer Who do you trust to provide honest feedback on product information and product reviews? Source: Institute for Business Value Retail 2011 Global = 30624 Trust Ranking Family/Friends 45% 21% Customer Reviews Product experts 16% Retail/Manufacturer 18%

12. While in Chile, 21% of consumers are influenced by the retailer or manufacturer Who do you trust to provide honest feedback on product information and product reviews? Source: Institute for Business Value Retail 2011 Chile = 2200 Trust Ranking Family/Friends 33% 23% Customer Reviews Product experts 23% Retail/Manufacturer 21%

13. 13 From awareness to research, consumers are influenced by numerous consumer media that they control Retailer-Controlled Consumer-Controlled Product AwarenessProduct Research Greatest Influences During Product Awareness and Research Top 5 Influences Friends / Family Search Engine TV/Radio/Billboard Retailer Store Mobile Apps Emails Online Streaming Magazines Social Media Shopping Portal Retailer Website Emails Shopping Portal Online Streaming Magazines Retailer Website Social Media Mobile Apps Search Engine Friends / Family Retailer Store TV/Radio/Billboard Source: Institute for Business Value Retail 2011 Global = 30624 Consumers Moment

14. Social Media Compared to the global average, Chilean consumers are using search engines and online streaming to find new products and do research Retailer-Controlled Consumer-Controlled Product Awareness Product Research Greatest Influences During Product Awareness and Research Top 5 Influences Friends / Family Search Engine TV/Radio/Billboard Retailer Store Mobile Apps Emails Online Streaming Magazines Social Media Shopping Portal Retailer Website Emails Shopping Portal Online Streaming Magazines Retailer Website Mobile Apps Search Engine Friends / Family Retailer Store TV/Radio/Billboard Source: Institute for Business Value Retail 2011 Chile = 2200 Consumers Moment

15. Expectations

16. 16 The Future is about ME Listen to me Know me Empower me Serve me

17. 17 A personalized interaction remains the top demand Serve me Convenience: Top area for retailer innovation Provide the right products and appropriate variety of brands Allow customers to see inventory availability before going to store Loyalty programs that can be used at other retailers Service: Most important loyalty drivers Make it feel like a pleasure to help me Have employees that are knowledgeable about products/services Allow me to return products without hassle or questions asked Easy way to order items not in stock Convenience: Top area for retailer innovation Provide the right products and appropriate variety of brands Allow customers to see inventory availability before going to store Loyalty programs that can be used at other retailers Service: Most important loyalty drivers Make it feel like a pleasure to help me Have employees that are knowledgeable about products/services Allow me to return products without hassle or questions asked Easy way to order items not in stock “Serve me” Source: Institute for Business Value Retail 2011 Global = 30624

18. 18 With which social networks do you have an account? (select all that apply) 45% of consumers have media sharing sites 33% of consumers belong to a social network How often do you visit social media sites? 5% visit social media daily / weekly to post comments 75% casually participate monthly by responding to posts or writing reviews 37% are influenced by external reviews More than half of “connected” consumers state social media interactions influence their spend Consumers are actively engaging with social media and are expecting their voices to be heard Source: Institute for Business Value CRM Global n =1056 Listen to me

19. 19 A personalized interaction remains the top demand Personalize Promotions (#1 purchase influencer) Most likely to increase spend Top consideration when determining where to shop The area retailers need to improve most Personalize Shopping (Most important factors) Provide preferred receipt type Recognize me in the store or online Remember preferred payment method Personalize Assortments (Most important loyalty drivers) High quality/low price private label products New and unique products Manufactured or grown in my country (tied) Environmental friendly/sustainable products (tied) Know me Source: Institute for Business Value Retail 2011 Global = 30624

20. 20 It’s hard to get to know consumers, when 59% of consumers do not provide the retailer their primary email 1.Apply discounts/coupons to loyalty program 2.Notice of upcoming sale or promotion 3.Receive relevant email from a retailer they trust who has products they love 1.Apply discounts/coupons to loyalty program 2.Notice of upcoming sale or promotion 3.Receive relevant email from a retailer they trust who has products they love Top 3 Reasons Consumers Open and Read Emails Check out Shopping Online Loyalty Program 64% 56% 76% Consumer Interaction % that provide secondary emails or decline to provide Source: Institute for Business Value Retail 2011 Global (US, UK, Australia, China, Mexico, Germany only) = Cater Buying = 8680, Household Changes = 2328, Services = 949

21. Retailers have a vested interested in enabling m-commerce “Empower me” I want to opt in! I don’t care Emerging MarketMature Market Promotions in the Store 63% Proactively communicate promotions to me based on what scan 61% Allow me to check prices from other physical and virtual locations Service In The Store 50% Help me find the customer service desk or associate 48% identify myself in store or mobile for help 44% Allow me to order out-of-stock items 43% Provide the most efficient route through store 41% Allow me to take a picture/text to get product information Source: Institute for Business Value Retail 2011 Chile = 2200

22. 22 Responding as a smarter retailer involves listening to the customer, making changes to the organization and improving the shopping experience 1 Listening and Learning Analytics to listen to consumers Learn from consumer controlled content Key factors of influence and motivation 1 Enabling and Executing Single View of Consumer across channels Actionable analytics around merchandising and marketing Make the interaction personalized across channels Change sales to service associates 1 Empowering the Consumer Consumer self select interaction Consumers choice of the interaction channel Consumers providing suggestions

23. 23 Jill Puleri Vice President, Global Industry Leader - Retail jpuleri@us.ibm.com Gracias www.ibm.com/iibv Si desea conocer más sobre las soluciones de negocio de IBM, visítenos en: www.ibm.com/ar/services O escribanos a smart@ar.ibm.com