| ## Page 1 |
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| retail |
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| TouchP¢ints |
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| Impact of Store Networks |
| and WiFi on Customer |
| Experience |
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| ## Page 2 |
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| Welcome Webinar Attendees |
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| Audio Mode: © Use Telephone |
| @® Use Mic & Speakers |
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| & MUTED @ 000000000 | |
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| Q:Am | able to ask questions live or only |
| through the text Q&A? |
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| A: You are able to ask question live. You can |
| raise your hand and | will unmute your line. |
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| #ConnectedStore Tauch P@ints |
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| --- |
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| ## Page 3 |
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| Follow This Webinar On Twitter |
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| # ConnectedStore |
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| Retail TouchPoints: @RTouchPoints |
| Earthlink: @Earthlink |
| AirTight Networks: @Airtight |
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| IHL Group: @gregbuzek |
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| #ConnectedStore Tauch P@ints |
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| ## Page 4 |
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| About Retail TouchPoints |
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| ¥ Launched in 2007 |
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| Y Over 28,000 subscribers |
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| Y To provide executives with relevant, |
| insightful content across a variety of |
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| digital medium |
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| Now on TouchPoints TV... |
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| Free subscription to our weekly newsletter: |
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| WWW.RETAILTOUCHPOINTS.COM/SIGNUP |
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| retail |
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| TouchP@ints |
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| --- |
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| ## Page 5 |
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| MODERATOR |
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| Debbie Hauss |
| Editor-in-Chief |
| Retail TouchPoints |
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| Panelists |
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| p |
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| aad |
| Greg Buzek Kevin McCauley Greg Griffiths |
| Founder & President Director of Retail Market Vice President of Product |
| IHL Group Development Alliances |
| Airtight Networks EarthLink |
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| retail |
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| --- |
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| ## Page 6 |
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| HARD DATA, SMART DECISIONS |
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| Impact of Store Networks and |
| WiFi on Customer Experience |
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| Greg Buzek President |
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| 9 Aifight’ =) EarthLink’ |
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| --- |
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| ## Page 7 |
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| Fundamental Change in |
| Store Architecture |
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| ¢ POS being driven by Distributed |
| Order Management |
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| * One version of the truth |
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| ¢ Enabling Associate and Consumers |
| via WiFi and Mobile |
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| * Centralized Returns/Return Fraud |
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| ¢ Ship from Store and other |
| Omni-Channel trends |
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| ¢ Beacons and Internet of Things |
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| ## Page 8 |
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| Infrastructure |
| Survey Results |
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| ## Page 9 |
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| Respondent Demographics |
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| Respondents by segment Respondents by revenue |
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| $500M - $1 |
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| Hospitality, Billion, 19% |
| Hiion, J/0 |
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| 23% |
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| General |
| Merchandise & |
| Specialty, 63% |
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| Over $1 Billion, |
| Food, Drug, 51% |
| Conv, Mass, . Under $500 |
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| 14% Million, 30% |
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| = Hospitality =| Food, Drug, Conv, Mass = General Merchandise & Specialty |
| = S500M - $1 Billion, 19% @ Under $500 Million, 30% & Over $1 Billion, 51% |
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| i i-| L» Source: |HL Group Store Infrastructure Survey 2015 |
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| HARD DATA. SMART DECISIONS |
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| ## Page 10 |
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| Status of Infrastructure Update % |
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| Store Infrastructure Technology Update Timeframe |
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| @ Currently Ready Within 12 Months @ 12-24 Months |
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| ®@ 24-36 Months |
| Beacons |
| Loyalty-Mobile App |
| EMV Compliance |
| WiFi-Store Level |
| WAN Bandwidth/optimization |
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| WAN/LAN Network Security |
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| iHL >» VOIP |
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| HARD DATA SMART DECISONS |
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| ® No Plans |
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| ~ |
| N |
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| 3 |
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| zt) |
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| 46 |
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| 40 |
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| 49 |
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| 4 |
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| W |
| WwW |
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| 54 |
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| 54 |
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| 4 |
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| 12 |
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| Source: [HL Group Store Infrastructure Survey 2015 |
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| ## Page 11 |
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| Who Has WiFi Installed |
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| % RESPONDENTS USING WIFI AT STORES |
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| General Merchandise & Specialty |
| Food, Drug, Conv, Mass |
| Hospitality |
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| Overall |
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| iHL >» |
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| HARD DATA SMART DECISONS |
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| l |
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| 100 |
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| | |
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| Source: /HL Group Store Infrastructure Survey 2015 |
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| ## Page 12 |
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| In-Store Wi-Fi Use Strategy |
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| How do you use Wi-Fi ? |
| % |
| @ Both Company use and customer WiFi access |
| @ Just for Company Use |
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| B® Just Customer Use |
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| Overall 54 42 3 |
| Food, Drug, Conv, Mass 22 78 |
| General Merchandise & Specialty 51 46 3 |
| Hospitality 85 3 8 |
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| iHL >» |
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| HARD DATA SMARTDECISONS Source: IHL Group Store Infrastructure Survey 2015 |
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| ## Page 13 |
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| Analytics Usage of In-Store Wi-Fi |
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| % RESPONDENTS USING WIFI AT STORES |
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| Demographics |
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| Sales conversion by Wifi |
| Times of use |
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| Social media conversions |
| Time in store |
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| Loyalty/repeat visits to store |
| Hot spots in store |
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| What devices customers use |
| Guest WiFi session duration |
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| Traffic counting |
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| iHL >> |
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| HARD DATA SMART DECISIONS |
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| N |
| ~ |
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| nus |
| ~ |
| Ww |
| Nm |
| BY te) |
| uw |
|
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| WwW |
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|
| UW |
| oO |
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| e |
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| [op] |
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| Source: /HL Group Store Infrastructure Survey 2015 |
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| ## Page 14 |
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| Differentiated Use of In-Store Wi-Fi |
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| Are you doing promotions to customers over Wi-Fi? % |
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| mYes = No |
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| Overall 24 76 |
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| General Merchandise & Specialty 31 69 |
| Food, Drug, Conv, Mass 11 89 |
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| Hospitality 15 85 |
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| iHL >» |
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| HARD DATA SMARTDECISONS Source: IHL Group Store Infrastructure Survey 2015 |
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| ## Page 15 |
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| Wi-Fi Vendor Selection Criteria |
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| Top Criteria (1-5, 5 Critical) |
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| Analytics and Social Media integration |
| Vendor reputation |
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| SLAs |
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| Costs |
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| Centralized Control of company devices |
| PCI Compliance |
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| Security |
| iHL > |
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| HARD DATA SMART DECISIONS |
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| 3.4 |
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| 4.0 |
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| 4 |
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| N |
| Ww |
| Ww Ww |
| : 00 ~ |
| ~ ~ |
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| 4 |
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| Source: /HL Group Store Infrastructure Survey 2015 |
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| ## Page 16 |
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| IT Spend on Data Security |
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| % of IT Budget is on |
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| % Data Security taken |
| up by PCI |
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| Data Security |
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| Overall 14.1% |
| Tier 1 (Over 1B) 13.8% |
| Tier 2 (SO00m-1B) 13.3% |
| Tier 3 (<500m) 15.1% |
| iHL >> |
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| HARD DATA SMART DECISONS |
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| 37.7% |
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| 32.6% |
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| 40.6% |
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| 42.3% |
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| Source: /HL Group Store Infrastructure Survey 2015 |
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| --- |
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| ## Page 17 |
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| The BIG |
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| More Security or zZ |
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| Diler |
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| GU |
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| fr} |
| ors |
| fost |
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| --- |
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| ## Page 18 |
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| Secure Guest Wi-Fi |
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| netTworas |
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| --- |
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| ## Page 19 |
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| Secure Guest Wi-Fi |
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| What can you learn from your customers? |
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| netTworas |
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| --- |
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| ## Page 20 |
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| Secure Guest Wi-Fi |
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| What can you learn from your customers? |
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| Engagement |
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| Does this man need help? |
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| Do you know his name? |
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| Do you even know he’s here? |
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| netTworas |
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| --- |
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| ## Page 21 |
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| Secure Guest Wi-Fi |
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| What can you learn from your customers? |
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| Engagement |
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| Does this man need help? |
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| Do you know his name? |
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| Do you even know he’s here? |
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| Integration |
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| What if your Wi-Fi could feed this |
| information into your POS, CRM, |
| and loyalty systems? |
|
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| netTworas |
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| --- |
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| ## Page 22 |
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| Secure Guest Wi-Fi |
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| What can you learn from your customers? |
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| Engagement Would knowing this |
| Does this man need help? k diff > |
| Do you know his name? make a altrerence: |
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| Do you even know he’s here? Average Visitors per Store per Day |
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| Integration se Vn ee |
| What if your Wi-Fi could feed this = |
|
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| information into your POS, CRM, " |
| and loyalty systems? |
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| Foot Traffic Trend per Day |
| 4 Week Cycle |
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| @ Week 1 (1-7 days} @ Week 2(8-14 days} © Week 3 (15-7 days) te Week 1 (1-7 days} |
|
|
| ~ o 4 zr — Me i |
| 58 s s 8 &§ 2 |
| tite e238 , Se ~2 § 883 3 |
| rs SRE Siem FRE E~ = « . = |
|
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| AON % oe ~ = bl ra |
| Sunday Monday uursday urdey |
|
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| NETWORKS |
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| Tuesday Wednesday Th Friday Sav |
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| --- |
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| ## Page 23 |
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| Secure Guest Wi-Fi |
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| What can you learn from your customers? |
|
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| Engagement Would knowing this |
| Does this man need help? k diff > |
| Do you know his name? make a altrerence: |
|
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| Do you even know he’s here? Average Visitors per Store per Day |
|
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| Integration se Vn ee |
| What if your Wi-Fi could feed this = |
|
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| information into your POS, CRM, " |
| and loyalty systems? |
|
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| Foot Traffic Trend per Day |
| 4 Week Cycle |
|
|
| @ Week 1 (1-7 days} @ Week 2(8-14 days} © Week 3 (15-7 days) te Week 1 (1-7 days} |
|
|
| ~ o 4 zr — Me i |
| 58 s s 8 &§ 2 |
| tite e238 , Se ~2 § 883 3 |
| rs SRE Siem FRE E~ = « . = |
|
|
| AON % oe ~ = bl ra |
| Sunday Monday uursday urdey |
|
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| NETWORKS |
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| Tuesday Wednesday Th Friday Sav |
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| ## Page 25 |
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| What can go wrong? |
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| --- |
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| ## Page 26 |
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| What can go wrong? |
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| --- |
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| ## Page 27 |
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| What can go wrong? |
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| --- |
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| ## Page 28 |
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| What can go wrong? |
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| ## Page 29 |
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| The Roadmap |
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| How to maximize your new guest Wi-Fi |
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| Engage your guests |
| Use guest Wi-Fi to promote loyalty programs |
| and interact with customers |
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| Secure your Wi-Fi |
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| Ensure your network is safe from |
| wireless intrusions and complies |
| with PCI rules |
|
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| Close the loop |
| Integrate Wi-Fi analytics and |
| guest data with your other in- |
| store information systems |
|
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| Observe your space |
| Presence analytics can show you how many mobile users are in or |
| near your store, how long they stay, and how often they come back |
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| --- |
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| ## Page 30 |
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| Impact on |
| Store Network |
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| ¢) EarthLink’ |
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| e oo ee A |
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| --- |
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| ## Page 31 |
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| Applications drive the customer experience |
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| Appealing @ Personalization |
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| Visually interacavevironment |
| technologies, digital signage, |
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| Quick access to customer |
| data/records, mobile |
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| free Wi-Fi workers, informed staff |
| Easy transactions Customer |
| Self-service and automation, commitment |
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| fast checkout, call routing, . ; . |
| reliable access to services On-site emp oyee training, |
| protection of customer data, |
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| disaster recovery |
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| Connection with |
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| e Products/service availability |
| other customers |
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| Data analytics, real time |
| Access to reviews, access to a single view of |
| connection via social media data, information to support |
| decision making |
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| —@—____+ —_+ —_+ —_+ __+ —__+ __+ __ + — |
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| ## Page 32 |
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| WAN performance drives applications |
| |
| SaaS |
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| --- |
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| ## Page 33 |
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| Application Visibility and Control |
| |
| Application Visibility |
| Provides customers with a full |
| understanding of bandwidth usage at |
| the application level for each location. |
| |
| Application Control |
| |
| Provides customers with the ability to |
| dynamically adjusts network behavior and |
| resources to application traffic demand. |
| |
| Delay (ms) Jitter (ms) |
| _———. oe |
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| Loss(%) |
| ——4 |
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| > |
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| --- |
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| ## Page 34 |
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| Dynamic WAN Selection |
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| oo |
| Dynamic WAN Selection 2 Xeas |
| Automatically chooses the best access for each iB a yO tn |
| application flow to maximize the delivered |
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| aN |
| performance and continuity, while optimizing |
| the usage of each available network at the |
| same time “NS |
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| YY |
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| iw |
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| Branch |
| Office |
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| --- |
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| ## Page 35 |
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| EarthLink Secure Storefront |
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| ot viene Gi sdies aed |
| gy = CREDIT CARD |
| mf PROCESSORS |
|
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| : : |
|
|
| . |
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| r4 . |
| STORE LOCATION: : : — |
| Cloud Firewall, End Point Managernent, Mobile . . poner |
| Device Management, Managed Security Monitoring 4 : ee aa |
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| DIRECT CONNEC POPSET eT SESH SESE TET EH SHEE EEE EES |
| 2 |
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| tee So. |
| = eae °% Trusted S |
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| STORE LOCATION: |
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| gj |
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| 3 EarthLink’ |
| MPLS Network |
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| HQ LOCATION: |
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| Managed Secunty Monitonng |
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| IPsec |
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| : Secure WiFi with Intecrated Firewall, |
| . Managed Security Monitoring |
| : |
| . |
| = |
| 4 |
| . |
| eee eeeees . — |
| e . |
| . |
| = e * |
| STORE LOCATION: PTerererty Remote User: |
| IPsec VPN with Integrated Firewall, Secure Remote Access |
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| PCL Compl Solutiorts, |
| Managed Secunty Monitoring |
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| ‘aE as --B-- idle |
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| MPLS IPsec, Premises Firewall, Managed, |
| STORE LOCATION: Security Monitoring |
| IPsec VPN wath Integrated PCI-Compiiant |
| Firewall Manayed Security Morutoring |
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| é |
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| —@ + + —___+ —__+ —___+ —__+ __+ —__ + — |
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| --- |
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| ## Page 36 |
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| What about |
| Customer Loyalty? |
|
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| How does WiFi lend itself to Customer Loyalty and what type of |
| increase does it have on sales? |
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| --- |
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| ## Page 37 |
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| Customer Wi-Fi’s Influence on Loyalty/Sales |
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| What percentage say |
| customer Wi-Fi % Saying impact on |
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| ; % Increase in Sales |
| increases customer Customer Loyalty |
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| loyalty by segment |
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| Overall 28% 2% |
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| General Merchandise 22% 2.2% |
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| Food, Drug, Conv, Mass 0% 3% |
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| Hospitality 61% 2.7% |
| iHL > |
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| HARD DATA SMARTDECISONS Source: /HL Group Store Infrastructure Survey 2015 |
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| --- |
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| ## Page 38 |
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| Employee Wi-Fi Impact |
| on Customer Loyalty/Sales |
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| What percentage say |
| employee access to |
| Wi-Fi increases |
| customer loyalty by |
|
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| % Saying impact on |
|
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| 0 . |
| Customer Loyalty % Increase in Sales |
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| segment |
| Overall 48% 3.4% |
| General Merchandise 53% 4.3% |
| Food, Drug, Conv, Mass 11% .6% |
| Hospitality 61% 2.5% |
| iHL >» |
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| HARD DATA SMARTDECISONS Source: /HL Group Store Infrastructure Survey 2015 |
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| --- |
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| ## Page 39 |
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| Impact on Sales/Profitability |
| for Average Retailer |
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| Avg. EBITA% | Avg. EBITA% |
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| Average increases after |
|
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| customer and associate WiFi Avg. Sales Rev BEFORE Rev AFTER Increase * |
| Increase % sae i Ba ; in EBITA |
|
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| added. WiFi/Mobile WiFi/Mobile |
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| Overall 3.4% 5.5% 6.4% 17.3% |
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| General Merchandise 6.5% 6.2% 8.2% 32.1% |
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| Food, Drug, Conv, Mass 9% 4.8% 5.1% 5.8% |
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| Hospitality 5.2% 6.1% 7.2% 17.4% |
|
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| GMS retailers can add on average 2 more points to EBITA with WiFi and what that enables. |
|
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| ¢ Leveling the playing field on information |
| * Upsell opportunities/Offers to customers |
| ¢ Does not include any increase due to increased loyalty |
|
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| iHL >» |
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| HARD DATA SMARTDECISONS Source: /HL Group Store Infrastructure Survey 2015 |
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| --- |
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| ## Page 40 |
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| What about an Average Retailer (SMillions) |
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| Average increases after Avg. EBITA Avg. EBITA |
|
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| customer and associate WiFi | Avg. Sales eee BEFORE AFTER pacha |
| added. WiFi/Mobile | WiFi/Mobile |
|
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| General Merchandise $850M $55.2M $52.7M $74.1M $21.4M |
| Food, Drug, Conv, Mass $8,000M $72.0M $384.0M $410M $26.1M |
| Hospitality $1,100M $57.2M $67.1M $83M $15.8M |
|
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| Survey Respondents by Segment applied to average retailer sizes per segment |
|
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| * Dependent on efficiency of the supporting systems |
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| iHL >» |
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| HARD DATA SMARTDECISONS Source: /HL Group Store Infrastructure Survey 2015 |
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| --- |
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| ## Page 41 |
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| Contact Information |
|
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| * Greg Buzek |
|
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| * President |
|
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| ¢ +1-615-591-2955 |
|
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| * greg@ihlservices.com |
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| --- |
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| ## Page 42 |
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| ¢) EarthLink’ |
|
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| --- |
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| ## Page 43 |
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| Contact Information |
|
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| ¢ Greg Buzek |
|
|
| * President |
|
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| ¢ +1-615-591-2955 |
|
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| * greg@ihlservices.com |
|
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| * Kevin McCauley |
|
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| ¢ Director of Retail Market Development |
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| Aiilight |
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| NETWORKS |
|
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| ¢ kevin.mccauley@airtightnetworks.com |
|
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| ¢ Greg Griffiths |
| ¢ Vice President of Product Alliances |
|
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| (3 EarthLink’ - Gariffiths@eInk.com |
|
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| --- |
|
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| ## Page 44 |
|
|
| MODERATOR |
|
|
| Debbie Hauss |
| Editor-in-Chief |
| Retail TouchPoints |
|
|
| Q&A// Panelists |
|
|
| p |
|
|
| aad |
| Greg Buzek Kevin McCauley Greg Griffiths |
| Founder & President Director of Retail Market Vice President of Product |
| IHL Group Development Alliances |
| Airtight Networks EarthLink |
|
|
| retail |
