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retail

TouchP¢ints

Impact of Store Networks
and WiFi on Customer
Experience

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Welcome Webinar Attendees

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& MUTED @ 000000000 |

Q:Am | able to ask questions live or only
through the text Q&A?

A: You are able to ask question live. You can
raise your hand and | will unmute your line.

#ConnectedStore Tauch P@ints

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Follow This Webinar On Twitter

# ConnectedStore

Retail TouchPoints: @RTouchPoints
Earthlink: @Earthlink
AirTight Networks: @Airtight

IHL Group: @gregbuzek

#ConnectedStore Tauch P@ints

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## Page 4

About Retail TouchPoints

¥ Launched in 2007

Y Over 28,000 subscribers

Y To provide executives with relevant,
insightful content across a variety of

digital medium

Now on TouchPoints TV...

Free subscription to our weekly newsletter:

WWW.RETAILTOUCHPOINTS.COM/SIGNUP

retail

TouchP@ints

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MODERATOR

Debbie Hauss
Editor-in-Chief
Retail TouchPoints

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

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HARD DATA, SMART DECISIONS

Impact of Store Networks and
WiFi on Customer Experience

Greg Buzek President

9 Aifight’ =) EarthLink’

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Fundamental Change in
Store Architecture

¢ POS being driven by Distributed
Order Management

* One version of the truth

¢ Enabling Associate and Consumers
via WiFi and Mobile

* Centralized Returns/Return Fraud

¢ Ship from Store and other
Omni-Channel trends

¢ Beacons and Internet of Things

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Infrastructure
Survey Results

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Respondent Demographics

Respondents by segment Respondents by revenue

$500M - $1

Hospitality, Billion, 19%
Hiion, J/0

23%

General
Merchandise &
Specialty, 63%

Over $1 Billion,
Food, Drug, 51%
Conv, Mass, . Under $500

14% Million, 30%

= Hospitality =| Food, Drug, Conv, Mass = General Merchandise & Specialty
= S500M - $1 Billion, 19% @ Under $500 Million, 30% & Over $1 Billion, 51%

i i-| L» Source: |HL Group Store Infrastructure Survey 2015

HARD DATA. SMART DECISIONS

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Status of Infrastructure Update %

Store Infrastructure Technology Update Timeframe

@ Currently Ready Within 12 Months @ 12-24 Months

®@ 24-36 Months
Beacons
Loyalty-Mobile App
EMV Compliance
WiFi-Store Level
WAN Bandwidth/optimization

WAN/LAN Network Security

iHL >» VOIP

HARD DATA SMART DECISONS

® No Plans

~
N

3

zt)

46

40

49

4

W
WwW

54

54

4

12

Source: [HL Group Store Infrastructure Survey 2015

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Who Has WiFi Installed

% RESPONDENTS USING WIFI AT STORES

General Merchandise & Specialty
Food, Drug, Conv, Mass
Hospitality

Overall

iHL >»

HARD DATA SMART DECISONS

l

100

|

Source: /HL Group Store Infrastructure Survey 2015

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In-Store Wi-Fi Use Strategy

How do you use Wi-Fi ?
%
@ Both Company use and customer WiFi access
@ Just for Company Use

B® Just Customer Use

Overall 54 42 3
Food, Drug, Conv, Mass 22 78
General Merchandise & Specialty 51 46 3
Hospitality 85 3 8

iHL >»

HARD DATA SMARTDECISONS Source: IHL Group Store Infrastructure Survey 2015

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## Page 13

Analytics Usage of In-Store Wi-Fi

% RESPONDENTS USING WIFI AT STORES

Demographics

Sales conversion by Wifi
Times of use

Social media conversions
Time in store

Loyalty/repeat visits to store
Hot spots in store

What devices customers use
Guest WiFi session duration

Traffic counting

iHL >>

HARD DATA SMART DECISIONS

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uw

WwW

UW
oO

e

[op]

Source: /HL Group Store Infrastructure Survey 2015

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Differentiated Use of In-Store Wi-Fi

Are you doing promotions to customers over Wi-Fi? %

mYes = No

Overall 24 76

General Merchandise & Specialty 31 69
Food, Drug, Conv, Mass 11 89

Hospitality 15 85

iHL >»

HARD DATA SMARTDECISONS Source: IHL Group Store Infrastructure Survey 2015

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Wi-Fi Vendor Selection Criteria

Top Criteria (1-5, 5 Critical)

Analytics and Social Media integration
Vendor reputation

SLAs

Costs

Centralized Control of company devices
PCI Compliance

Security
iHL >

HARD DATA SMART DECISIONS

3.4

4.0

4

N
Ww
Ww Ww
: 00 ~
~ ~

4

Source: /HL Group Store Infrastructure Survey 2015

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IT Spend on Data Security

% of IT Budget is on

% Data Security taken
up by PCI

Data Security

Overall 14.1%
Tier 1 (Over 1B) 13.8%
Tier 2 (SO00m-1B) 13.3%
Tier 3 (<500m) 15.1%
iHL >>

HARD DATA SMART DECISONS

37.7%

32.6%

40.6%

42.3%

Source: /HL Group Store Infrastructure Survey 2015

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The BIG

More Security or zZ

Diler

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fr}
ors
fost

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Secure Guest Wi-Fi

netTworas

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Secure Guest Wi-Fi

What can you learn from your customers?

netTworas

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Secure Guest Wi-Fi

What can you learn from your customers?

Engagement

Does this man need help?

Do you know his name?

Do you even know he’s here?

netTworas

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Secure Guest Wi-Fi

What can you learn from your customers?

Engagement

Does this man need help?

Do you know his name?

Do you even know he’s here?

Integration

What if your Wi-Fi could feed this
information into your POS, CRM,
and loyalty systems?

netTworas

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Secure Guest Wi-Fi

What can you learn from your customers?

Engagement Would knowing this
Does this man need help? k diff >
Do you know his name? make a altrerence:

Do you even know he’s here? Average Visitors per Store per Day

Integration se Vn ee
What if your Wi-Fi could feed this =

information into your POS, CRM, "
and loyalty systems?

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}

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Sunday Monday uursday urdey

NETWORKS

Tuesday Wednesday Th Friday Sav

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## Page 23

Secure Guest Wi-Fi

What can you learn from your customers?

Engagement Would knowing this
Does this man need help? k diff >
Do you know his name? make a altrerence:

Do you even know he’s here? Average Visitors per Store per Day

Integration se Vn ee
What if your Wi-Fi could feed this =

information into your POS, CRM, "
and loyalty systems?

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

NETWORKS

Tuesday Wednesday Th Friday Sav

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What can go wrong?

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What can go wrong?

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What can go wrong?

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What can go wrong?

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The Roadmap

How to maximize your new guest Wi-Fi

Engage your guests
Use guest Wi-Fi to promote loyalty programs
and interact with customers

Secure your Wi-Fi

Ensure your network is safe from
wireless intrusions and complies
with PCI rules

Close the loop
Integrate Wi-Fi analytics and
guest data with your other in-
store information systems

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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Impact on
Store Network

¢) EarthLink’

e oo ee A

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Applications drive the customer experience

Appealing @ Personalization

Visually interacavevironment
technologies, digital signage,

Quick access to customer
data/records, mobile

free Wi-Fi workers, informed staff
Easy transactions Customer
Self-service and automation, commitment

fast checkout, call routing, . ; .
reliable access to services On-site emp oyee training,
protection of customer data,

disaster recovery

Connection with

e Products/service availability
other customers

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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WAN performance drives applications

SaaS

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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

Loss(%)
——4

>

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Dynamic WAN Selection

oo
Dynamic WAN Selection 2 Xeas
Automatically chooses the best access for each iB a yO tn
application flow to maximize the delivered

aN
performance and continuity, while optimizing
the usage of each available network at the
same time “NS

YY

iw

Branch
Office

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## Page 35

EarthLink Secure Storefront

ot viene Gi sdies aed
gy = CREDIT CARD
mf PROCESSORS

: :

.

r4 .
STORE LOCATION: : : —
Cloud Firewall, End Point Managernent, Mobile . . poner
Device Management, Managed Security Monitoring 4 : ee aa

DIRECT CONNEC POPSET eT SESH SESE TET EH SHEE EEE EES
2

tee So.
= eae °% Trusted S

STORE LOCATION:

gj

3 EarthLink’
MPLS Network

HQ LOCATION:

Managed Secunty Monitonng

IPsec

: 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

PCL Compl Solutiorts,
Managed Secunty Monitoring

‘aE as --B-- idle

MPLS IPsec, Premises Firewall, Managed,
STORE LOCATION: Security Monitoring
IPsec VPN wath Integrated PCI-Compiiant
Firewall Manayed Security Morutoring

é

—@ + + —___+ —__+ —___+ —__+ __+ —__ + —

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## Page 36

What about
Customer Loyalty?

How does WiFi lend itself to Customer Loyalty and what type of
increase does it have on sales?

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## Page 37

Customer Wi-Fi’s Influence on Loyalty/Sales

What percentage say
customer Wi-Fi % Saying impact on

; % Increase in Sales
increases customer Customer Loyalty

loyalty by segment

Overall 28% 2%

General Merchandise 22% 2.2%

Food, Drug, Conv, Mass 0% 3%

Hospitality 61% 2.7%
iHL >

HARD DATA SMARTDECISONS Source: /HL Group Store Infrastructure Survey 2015

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## Page 38

Employee Wi-Fi Impact
on Customer Loyalty/Sales

What percentage say
employee access to
Wi-Fi increases
customer loyalty by

% Saying impact on

0 .
Customer Loyalty % Increase in Sales

segment
Overall 48% 3.4%
General Merchandise 53% 4.3%
Food, Drug, Conv, Mass 11% .6%
Hospitality 61% 2.5%
iHL >»

HARD DATA SMARTDECISONS Source: /HL Group Store Infrastructure Survey 2015

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Impact on Sales/Profitability
for Average Retailer

Avg. EBITA% | Avg. EBITA%

Average increases after

customer and associate WiFi Avg. Sales Rev BEFORE Rev AFTER Increase *
Increase % sae i Ba ; in EBITA

added. WiFi/Mobile WiFi/Mobile

Overall 3.4% 5.5% 6.4% 17.3%

General Merchandise 6.5% 6.2% 8.2% 32.1%

Food, Drug, Conv, Mass 9% 4.8% 5.1% 5.8%

Hospitality 5.2% 6.1% 7.2% 17.4%

GMS retailers can add on average 2 more points to EBITA with WiFi and what that enables.

¢ Leveling the playing field on information
* Upsell opportunities/Offers to customers
¢ Does not include any increase due to increased loyalty

iHL >»

HARD DATA SMARTDECISONS Source: /HL Group Store Infrastructure Survey 2015

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What about an Average Retailer (SMillions)

Average increases after Avg. EBITA Avg. EBITA

customer and associate WiFi | Avg. Sales eee BEFORE AFTER pacha
added. WiFi/Mobile | WiFi/Mobile

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

Survey Respondents by Segment applied to average retailer sizes per segment

* Dependent on efficiency of the supporting systems

iHL >»

HARD DATA SMARTDECISONS Source: /HL Group Store Infrastructure Survey 2015

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## Page 41

Contact Information

* Greg Buzek

* President

¢ +1-615-591-2955

* greg@ihlservices.com

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## Page 42

¢) EarthLink’

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## Page 43

Contact Information

¢ Greg Buzek

* President

¢ +1-615-591-2955

* greg@ihlservices.com

* Kevin McCauley

¢ Director of Retail Market Development

Aiilight

NETWORKS

¢ kevin.mccauley@airtightnetworks.com

¢ Greg Griffiths
¢ Vice President of Product Alliances

(3 EarthLink’ - Gariffiths@eInk.com

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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