Capillary Technologies: Be Consumer Ready

Aneesh Ready
Co-Founder & CEO

Retail has never been so unpredictable. The way consumers make purchasing decisions has dramatically altered. They stand in stores and use their smartphones to compare prices & product reviews before narrowing down on the product. Moreover, family and friends instantly weigh in on shopping decisions via social media. When the customer is ready to buy, an ever-growing list of online retailers deliver products directly, sometimes, on the same day. There is a historical precedent for this kind of upheaval, which recasts the industry’s winners and losers. Within the past century, local corner stores gave way to department stores and supermarkets, then to suburban shopping malls, followed by discount chains and big-box retailers. Each of these shifts unfolded faster than the one that preceded it, and each elevated new companies over incumbents. Personalization particularly has maximized with the help of AI to create a shopping experience using analytics and optimized inventory for each consumer. With such a whirlpool of opportunities and scope of trend shifts, one premiere digital evolution enabler for retailers, Capillary Technologies has been assisting retailers to stay 'always consumer ready'.

Envisioned and strategized by Co-founder & CEO, Aneesh Reddy, Capillary has been playing the protagonist for retailers struggling to stay relevant. An engineering graduate from IIT Kharagpur, Aneesh had co-founded an Entrepreneurship Cell in his engineering days. Not long after establishing Capillary, Aneesh was recognized as ‘Forty under 40’ leader by Fortune Magazine. Ever since, Aneesh has worked with leading retail and consumer brands and helped them embrace omnichannel across Asia, which has approximately 2 Billion Internet users.Capillary Technologies has been assisting retailers to get insights on their consumers, drive personalized engagement, help set up omnichannel commerce systems to make the buying experience easy and build relationships with strong loyalty programs. Having established themselves as a CRM/Loyalty partner back in 2008, over the years this retail digital transformation enabler has broadened their product portfolio.

"Capillary has already equipped 1500 stores across APAC with the solution while delivering excellent results in terms of sales growth"

Now,Capillary Zero AI has been doing wonders, laying the foundation for businesses to create great consumer experiences. The AI integrates with Capillary’s core platform to drive personalization, automation, and recommendation.

Ever since the retailers were struck by the existence of an entity called 'data', capturing customer data, identifying consumers visiting their stores and communicating effectively with them, has caught the small and medium retail players swooning for enhancing customer experiences. Call the organization a redeemer, the company built a big data platform, a CRM solution that enabled brands to use their existing infrastructure to identify and understand each consumer, and directly communicate with them through mobile technology. Along with a revolutionary for the time, card-less, mobile first loyalty program, the SaaS solution closed the loop on customer acquisition, engagement, and retention, finding takers across the world.

Four Pillars for Powerful Consumer Experience
Given the shift in demographics, where the internet and mobile functions are native to the experience of today’s buyers, purchasing online and through mobile will continue to dominate the buying experience. Personalization, localization, and customization will be key. No longer can retailers attract customers simply through targeted ads and promotions. To influence purchasing, retailers need tailored communication and shopping experiences. Businesses need to look at what the data is telling them and use those insights to determine the best course of action. For some, evolving might mean exploring new store formats or revamping their selection. For others, it could mean using new technologies or retraining their staff. In all cases, it will be about putting the customer first and creating a more personal in-store experience.

Capillary is standing tall on four pillars of products namely Anywhere Commerce+, Insights+, Engage+, and Loyalty+. These products have lived up to the market’s demands and expectations.

Anywhere Commerce+
Capillary Any where Commerce+ assists brands to go omnichannel, connect with their customers at all possible touch points and augment their shopping experience with convenience. The Anywhere Commerce, ecommerce platform makes it easy for brands to go

online, and makes it easy for their consumers to buy from them. The platform has catered to some of the biggest and most reputed enterprises in the corporate world. Capillary had an encounter with an American brand that specializes in vintage- inspired watches and lifestyle products, operating in around 150 countries across the globe. With their expansion into the Indian territories and South East Asian region, before they could realize, the watch maker was face-to-face with one of the biggest markets due to a surge in e-commerce demands. The dilemma was scaling up to meet the exponentially growing consumers’ expectations. Managing inventory product listings, and orders manually across multiple e-commerce marketplaces throughout the region was leading to errors in fulfilment and consequently affecting their brand.

Capillary Anywhere Commerce+ helped the brand integrate its offline stores and warehouses with all e-commerce market place touch points built for their consumers. The brand now had a real- time, single view of all available inventory and all pending orders across channels. As orders and inventory were being automatically updated in real-time, across channels, the brand got the visibility that enabled to reduce fulfilment errors considerably. Within no time, the organization scaled up to meet online demand and grow, while reduced errors implied great experiences delivered to consumers expectations.

First Identify, then Engage
For delivering personalized experiences that are on point, getting adeep understanding of consumers is the alpha and omega of every effort made towards the same. Capillary Insights+ provides all the tools a business requires to make sense of the data at hand. The platform allows drill downs to any level of data, the creation of your own analytics dashboards and enables all teams in the organization to benefit from the business data. Besides tools to capture customer data and showcase a 360-degree view of customers in the store, brands can also benefit from a range of analytics and insights services, Deep Insights which helps businesses tackle challenges and achieve targets through data.

Capillary is also enabling brands to create an offline-click stream with their proprietary AI and ML powered Visitor Metrix. Highly accurate footfall counter at the base level (>95 percent), it is linked to the brand’s CRM data, enabling the client to capture and analyze store traffic patterns. VisitorMetrix also assists to study the impact of promotional campaigns identifying a situation, whether a customer with an email promotion visited the store over the next few days.

Its ML powered capability of capturing the exact demographics (gender, age group, and group size) of the store traffic has stood out in the swarm of AI products tending to empower retailers. This capability enables brands to design and execute more personalized strategies at store level. Capillary has already equipped 1500 stores across APAC with the solution while delivering excellent results in terms of sales growth. Besides, such a tool in the market, Capillary offers a full range of data capture, analytics and communication tools on their e-commerce and mobile commerce platforms.

The rise of the social Web has led to a fundamental shift in the way businesses of all sizes engage with their customers. Customer engagement is no longer a series of one-off experiences - it's an ongoing dialogue. Capillary campaign personalization module, Engage+, allows brands to run personalized and automated campaigns, allowing the client to engage with consumers one-on one, depending on their preferences of product, purchase channel(whether online, offline), and communication channel (SMS, email, facebook etc.) etc.

In a similar episode as the watch maker's, a leading retailer of consumer electronics and furniture in Malaysia, despite having a huge customer base, were unable to effectively identify and engage customers and turn them into frequent repeat buyers. The CMO decided not to spend a fortune on marketing resources, but to understand customer behavior and purchase patterns, in order to run efficient campaigns targeting the right customer at the right time, with the right message, through the right channel, thereby consistently bringing in repeat sales. Being a consumer durable retailer, their consumer base

"The AI integrates with Capillary’s core platform to drive personalization, automation, and recommendation"

transcended demographics. To effectively target the different kinds of people shopping at their outlet, the customer base was subjected to deep analysis with Insights+. Through the purchase behavior discovered, the firm was able to segment the customers. However, the issue is also to reach out to these segments. Based on the customer segmentation done, with Capillary Engage+, the Malaysian business was able to run targeted, personalized, campaigns where relevant product recommendations and offers were communicated at the right time, through the right channels bringing the customer lifecycle and channel preference into account. The repeat sales increased by 6 percent, response rates increased by 30 percent and the ABV for Responders turned out 44 percent greater than it was before engaging with customers.

Cross-channel Loyalty Rewards
From gaining insights to engaging with the earned leads or potential customers; all are no good if customer retention is sidelined or so much as postponed. Having a product right in place for every node of the customer experience chain, Capillary did not intend to leave any stone unturned with Loyalty+. Consumers can earn or burn loyalty points or discount coupons seamlessly across any channel, whether offline or online. Brands can even extend this and create multibrand loyalty programs.

10 years of Steadfast Focus
“We build to remain a complete and future-ready technology partner for Retail Brands across APAC region, and most importantly empower retailers to continue to stay ready for consumers”, says Aneesh.

Capillary has earned several accolades including Silver for the Direct Marketing Agency of the Year in AOTY, Malaysia, and the Best Technology Company at DMCC Member Awards. A plethora of titles and recognition from several other Tier 1 organizations follow. With 14 global offices and presence in 30+ countries, Capillary Technologies has served an assorted 400+ brands. The company has over 250 marquee customers, 500+ employees, and USD 80 Million worth of capital raised from leading investors like Warburg Pincus, Sequoia Capital, and Norwest Venture Partners. The numbers speak for the trust and awe, Capillary has gathered from clients across the globe.

Exponential Growth & Expansion
In May this year, Capillary reported a growth of its global business by 200percent. While Capillary has a strong presence in India, Southeast Asia, and the Middle East. It is looking to further grow its presence in China and the Middle East, besides penetrating further into Southeast Asia. With one office in Guangzhou, this vigorously expanding retail solution provider is ready to cut the ribbon for offices in Beijing and Bangkok. Having more than trebled its revenue in China in the past financial year, Capillary Technologies, backed by Warburg Pincus, and Sequoia is unfurling its sail to voyage into Thailand, Philippines, and Turkey.

Such a scale of expansion requires Capillary to employ 150 people exclusively to handle their international clients spread across seven countries including China, Indonesia, Malaysia, Thailand, Singapore and Saudi Arabia. Given the stellar and widespread existence in the industry, Capillary Technologies has always and will continue to stick to their ground goals to ‘innovate’ to help retailers stay ‘consumer ready’.

Capillary Zero AI
The Right People And The Right Resources
•250+ Research Team, 10+ PHDS
•Capillary AI Lab At Indian Institute Of Technology, KGP
•25+ Product And Domain Experts
•Terabytes Of Data To Train Models - Over 5 Percent Of Retail In Asia

Examples From Capillary’s Labs
• AI-Led Automated Insights
• Chatbot Commerce
• Offline Store Click stream
• AI Based Personalization & Recommendation