How Macy's does Mobile: Deepening Retail Engagement with Salesforce

Yasir Anwar, GVP, Macys.com & Bloomingdales.com

@yasiranwar79

Margaret Francis

Senior Director Product Management margaret@heroku.com@margaretfrancis

Retail@

Featured Retail Sessions

17 Leading Retailers across 23 Sessions

TODAY

Innovation Showcasewith Amazon 11:00am - 11:40am

European Wax Fuels Growth with Salesforce2:30pm - 3:10pm

Design Within Reach:Retail Disruption2:30pm - 3:10pm

Macy's does Mobile 3:30pm - 4:10pm

TOMORROW

TOMS Engages Customers While Doing Good8:30am - 9:10am

Key Innovation Trendswith Ocado9:30am - 10:10am

Highly Scalable Appswith Macy’s3:30pm - 4:10pm

Shopper Engagement with Suit Supply3:30pm - 4:10pm

George Zimmer: His Next Big InnovationThursday 12:30pm - 1:10pm

Spotlight Session

Salesforce for RetailTOMS’ Pop-up Experience

All Week!

Customer Success Showcase

Bloomingdale’s at Westfield Mall

Wednesday, 9/16/156:30 pm

Check the Session Chatter Page

Store Innovation Tour & Reception

featuring

Design Within Reach & Retail End to End Demo

Westfield Mall Bespoke Area, 4th

floor

Moscone West:

Sponsored by

• Introductions

• Business Challenges: Retail Innovation in an Omnichannel World

• The Mobile Imperative

• The Innovation Challenge

• The Customer Centered Future

• Q & A

How Macy’s Does Mobile: Deepening Engagement with Salesforce

Agenda

Introductions

• Founder of Macy’s Labs

• Formerly Director of Engineering with WalMart Labs

• Passion for innovation & entrepreneurship- from inside the enterprise

• Experience building delivery teams

• Experience building great products

• Launched multiple consumer facing products, both new product and business transformation initiatives

• Look for him on Twitter @yasiranwar79

• Recent Sponsor of the AT&T Hackathon

• Upcoming attendee at the Grace Hopper event for women in technology

GVP, All Customer Applications & Platforms @ Macys.com & Bloomingdales.com

Yasir Anwar

Macy's is the largest department store and the 14th largest retailer in the US by sales

Macy's operates both the Macy's and Bloomingdale’s brands, and generated $27.9 billion in sales in 2014, with 800+ stores globally and 170,000+ employees

The Macys.com division operates Macy’s digital experiences, including web, mobile, and exploring the next generation of engagement with customers

Macy’s: Storied Brand, Leading Retailer

Macy’s was awarded

2014 Mobile Retailer

of the Year

Business Challenges

• Consumer shift to mobile

• Better omnichannel customer experiences

• Increasing customer satisfaction and deepening engagement

• Improving business agility to keep up customer & market trends

• Driving online revenue growth

Retail Innovation in an Evolving Industry

The Mobile Imperative

Shopping is MultiChannel

http://services.google.com/fh/files/misc/multiscreenworld_final.pdf

The Mobile First World is Here

Desktop49%

Mobile51%

Users Spend More Time on Mobilethan Desktop

comScore Media Metrix Multi-Platform Total Desktop Audience and Mobile Audience

http://www.telegraph.co.uk/technology/google/11549615/Google-search-

overhaul-could-cause-Mobilegeddon.html

Macy’s Mobile Responsive Ecommerce Experiences

• m.macys.com & m.bloomingdales.com

• No brochureware; mobile ecommerce properties

• Omnichannel integrations including Buy Online, Pickup in Store; My Wallet; Push notifications for sales and promotions

Awarded 2014 Mobile

Retailer of the Year

Integrate with Back End Systems Via Unified Services Layer

Business Agility with Customer Engagement Apps on Heroku

Macys.com

(Node.js)

Bloomingdales.com

(Node.js)

Inventory Systems

(Domain Services)

Product Catalog

(Domain Services)

Payments

(Domain Services)

Customer Data

(Domain Services)

Experimentation

Framework (Java)

macysbackstage.com

Un

ifie

d A

PI

Ma

na

ge

me

nt

(Ja

va

) Macy’s

Back End

Systems

Where We Started

Macy’s Journey on Heroku

Where We Are Now

• Mission critical, highly strategic, revenue generating properties

• Small applications and services, nonmission-critical applications

• Leveraging Heroku to meet peak annual traffic levels on Thanksgiving, Black Friday & Cyber Monday

• Limited volumes of traffic

• Platform for retail innovation, customer engagement apps, internal services and emerging concepts

• Experimental services for new apps

The True Test for Scalability: Black Friday & Cyber Monday

• Thanksgiving Day 2014: First day that smartphones and tablets

accounted for majority (52.1%) of all online traffic

• 9.5 % YOY growth in internet traffic from mobile devices

• Mobile devices accounted for one-in-four of all online purchases

The Innovation Challenge

Customer Behavior

Innovate with the customer

How do we build an innovation culture that is focused on:

Output

Outcome

Culture

The strategy: “More, Better, Faster!”

…in doing so, we’re:

Developed a methodology to evaluate, prioritize, and productionalize some of the

millions of good ideas that we have within the company

Candidate

Vendor

Employee

Idea Lab

Lean Dev Teams

| TEST a Hypothesis |

| SMALL Empowered teams |

| CUSTOMER @ the center of decisions |

| MINUMUM Viable product |

| QUICK Build-Measure-Learn cycles |

| Eliminate WASTE |

The Journey

Pitch made to EC | Feb 2013

First Idea challenge published | March 2013

Kicked off first Idea lab | April 2013

Till now | 20 ideas built via Idea Lab

Launched to production | 12 ideas

The Impact: More Better Faster

Ideation to working code| 9 months to to 2 ½ Weeks

Ideation to production| 12 months to 1 month

Average feature cost| reduced to ½

2 Lean Dev Team in 2014| 10 Lean Dev Teams in 2015

the

sandbox VENDOR i-Challenge

sourcing

testing

scaling

How it all works together

Domains

MacysLabs

The Customer Centered Future

• Buy online, pick up in store

• Digital Coupon Wallets

• Virtual fitting room events

• Digital signage in stores

• Mobile navigation

• iBeacons

• Thanksgiving Parade App

• Star Gifts

• Believe-o-Magic (App for Kids)

• Visual search (mobile app)

Macy’s Continues to Drive Omnichannel Retail Innovation

Q & A

The flexibility and scalability of Heroku

enabled Macy’s to test, learn, and move

forward quickly with their ideas.

Macy’s built an experience that makes

shopping more convenient and fun for

their customers.

“Heroku gives us a powerful, flexible platform that enables us to test, learn

and proceed aggressively with new mobile ideas that excite our customers, making shopping more convenient and

fun.”

– Shawn L. Morrissey, VP, Mobile Engineering, Macys.com & Bloomingdales.com

Macy's sought greater innovation and agility for their online business and built a

shopping experience on Heroku that grows with their customers.

heroku.com/customers/LEARN MORE AT: macysC L O U D A P P L I C A T I O N P L A T F O R M

Shopper Acquisition & EngagementConnected Shoppers & AssociatesOmnichannel Customer Service

Clienteling 1-to-1 Shopper JourneysSmart Service

Customer Experience

Industry Experience

Partner Experience

Visit the Design Within Reach Shopper Success Experience

Everyday from 9 until 5

Moscone West

1After each session, open the Dreamforce App to ‘My Agenda’

2 Tap the bell to see your surveys to be completed

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Dreamforce ‘15 Mobile App

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