Digital Dominance Benchmark

February 2021

Martin Hermsen Rutger Katz Partner Manager +31 646 82 87 85 +31 652 46 65 35 [email protected] [email protected] The Digital 1. APPROACH Dominance 2.SECTOR RESULTS Benchmark 3. HOW TO REACH DIGITAL DOMINANCE! 5. ABOUT SIA PARTNERS Digital brand strength research by Sia Partners 6. APPENDIX

2 1. Approach

confidential 3 We developed the Digital Dominance Benchmark to measure the digital strength of brands

The Digital Dominance Benchmark (DDB):

• Is the first benchmark that measures the digital strength of brands.

• It started in 2016 in the Netherlands as an annual recurring benchmark to see the state, but also the development of the digital strength of brands over the years.

• Covers 26 sectors and 350 brands.

• Data allows for comparison between brands within and outside the sector.

• Evaluates over 50 KPI’s in 5 different digital channels.

confidential 4 The DDB helps organization to understand their digital performance gap How to bridge the gap between customer expectations and the experience you deliver as brand?

Extended Retain Inspiration Orientation Purchase Use Service relationship

Digital Needs & Wants of consumers ∆ Digital services offered by

brands Digital Engagement Digital

confidential 5 Different methods and approaches exists to measure digital enabled business performance improvement

• KPI tree with inter-connected KPI’s Digital Marketing • Top KPI’s linked to business objectives Performance • Leading indicators above lagging Dashboard • How are we doing and how can we do better?

Marketing Return Predictive & Data analytics and Digital Dominance Customer Journey Customer Journey on Investment Propensity Return on reporting Benchmarking Mining (MROI) Modelling Investment (CROI) • Own data analytics • Cross channel • What will happen? • How does our brand • Touchpoint • How do individual • 3rd party data media (advertising • Next best action compare to others? evaluation in order to customers behave analytics and content) spend • Which customer • How do we compare optimize our budget and travel through • Channel Analytics optimization interaction is best to with direct and allocation their customer • Google analytics • S-curve analysis serve when? indirect competition? • What is the journey? • How do we compare incremental effect of • Where do they flow, • Social media to other sectors? an investment in a where do they halt, analytics touchpoint vs. Other where do they drop- • Touchpoint investments in other out and why? analytics touchpoints? • Continuous customer journey improvement

confidential 6 Why Digital Dominance is important

While the internet may be the best thing to have happened to humanity since the invention of the steam engine, ensuring that brands can compete and win in this digital age isn’t always as simple as it looks.

Here are some of the aspects companies must invest in to create digital differentiation:

A strong web presence, inviting, quick to load, searchable with clear navigation and calls to action for 1 the customer/consumer

Mobile optimization beyond responsive design; also succinct, uncluttered and with a clearly visible 2 value proposition

Emotional engagement with the customer/consumer via relevant content, curation and story telling 3 delivered by a compelling customer experience

4 A proactive social media strategy to engage with customers/consumers and their communities on the social web where they turn to for information, counsel and decision making

5 Paid media advertising to ensure brand visibility, awareness, consideration and customer activation

confidential 7 The Digital Dominance Research Methodology

More than 50 KPIs are analyzed in 5 areas benchmarking you and your competitors, consolidating in the overall index:

• Total visits last 6 months Number of web visits, time visitors spend on • Average time on site website, number of pages visited per visit and how Branded websites • Average page views per visit many people leave after seeing one page. • Bounce Rate

How does the company score on the mobile • SEO score SEO & keyword readiness and other SEO components such as • Mobile readiness speed? What is the company’s score against usage • Usability and speed keywords used by customers?

• Total page likes [Fans] How many fans does the company have and how is • Fan growth YTD the fan base growing, how much does the company • Total interactions YTD (likes, shares + Social Media interact with customers and how effective is the comments) content (and advertising) on Facebook,Twitter • # posts YTD LinkedIn and Instagram? • Average engagement per post YTD • # interactions per 1000 fans YTD

How many videos does the company have on its YouTube channel, how many customers have • Subscribers YouTube watched them, and how many subscribers does the • Video views company have?

How does the company creatively use apps to get • App review score (iOS and Android) Apps (Mobile) close to the consumer and how do consumers rate • # app rankings (iOS and Android) the company’s effort?

confidential 8 Our data collection process follows a structured process to ensure the quality required High quality data is a must to meet our high reporting quality standards

Update Research Tool assessment and Data Collection Data Quality Calibrate Data Pool update

• Define brands in scope ▪ Cutting edge tools used • Collect data from data • Compare owned data ▪ Looking at the bigger • Confirm URL for web and for the data collection providers with benchmark data picture, using data plots social channels process • Make interpretation of ▪ Significant time of the to have a 4-eye principles • Confirm apps ▪ Benchmark performed of data and check validity study consists of data and using common sense the solutions used in the • Build data analysis file sourcing, cleaning and to assess the results previous years • Data integration, validation (~80%) visually ▪ Interviews held with tool validation, cross check ▪ YoY comparison of data ▪ Calibration and providers to understand • QA check on data ▪ Fault-tolerance analysis normalization of global their approach, QA completeness, outliers ▪ Systematic delta data to country specifics process and the data • Sample based quality analysis (incl. outlier (in case of missing context check detection) country data • Validation with other ▪ Extrapolate/interpolate sources to fill the gaps

confidential 9 The Benchmark Pool for the Netherlands covers 23 sectors and 350 brands (1/4)

Cosmetics / Personal Automotive Food & Beverage Kitchen Appliances Luxury Fintech Care

confidential 10 The Benchmark Pool for the Netherlands covers 23 sectors and 350 brands (2/4)

Employment & Government / Oil & Gas / Minerals & Retail Banking Pharmaceuticals Utilities Recruitment General Mining / Chemicals

confidential 11 The Benchmark Pool for the Netherlands covers 23 sectors and 350 brands (3/4)

General Insurance Health Insurance eCommerce Fashion Hotel & Leisure Travel & Booking

confidential 12 The Benchmark Pool for the Netherlands covers 23 sectors and 350 brands (4/4)

Food Retail Non Food Retail Telco Airlines Airports

confidential 13 2. Benchmark Results

confidential 14 Almost all industries were affected by Covid-19 crisis. We have seen the following effect of Covid-19 on digital brand performance

Retail and Health Insurance brands have strengthened their digital dominance driven by an increased 1 online consumer demand and associated traffic.

eCommerce remains the most digital dominant industry overall with Thuisbezorgd (online food ordering and delivery service brand) showing the largest increase in 2020 driven by increased demand 2 during quarantine and remote working which still continues.

Airlines shows the biggest decline in performance. And Airports, the sector that enjoyed steady 3 increase over the last years showed no growth in 2020. Whilst these sectors has been impacted strongly by the C-19, the online dialogue with the Customers stayed relatively on a good level.

IKEA shows a surprising performance improvement, replacing Booking.com in the top 3 the best 4 performers overall versus last year, presumably driven by the demand for home improvements while consumers were forced to stay indoors and work remotely.

Bol.com remains the most digital dominant brand overall, however its growth were marginal at 2% in 5 comparison to other eCommerce brands, such as CoolBlue, which enjoyed the growth of 6% in 2020.

confidential 15 The Digital Dominance Index – Dispersion per sector

• eCommerce have the Dispersion 2020 Industry Average Cross-industry Average highest industry average Automotive Cosmetics / Personal Care Food & Beverage • The highest scoring Kitchen Appliances brand across industries Luxury is in the eCommerce Fintech sector General Insurance Health Insurance • Dispersion in some Retail banking industries is larger than Employment & Recruiting Pharmaceuticals others Public Services, Government Resources • Pharmaceuticals overall Utilities performs below the eCommerce cross-industry average Fashion Food Retail • Food & Beverage Non Food Retail Telco industry average is the Airlines lowest Airports Hotels & Leisure • The lowest scoring Travel & Booking brand across industries 00% 0,110% 0,220% 0,330% 0,440% 50%0,5 60%0,6 0,770% 80%0,8 90%0,9 is in the FinTech sector confidential 16 The average DDB score per channel per industry 2020 (1/2)

Top 3 sectors and their average score: 1) eCommerce (66,2%) 2) TelCo (62,3%) and 3) Food Retail (60,0%)

Non Food Retail Travel & Public Health eCommerce TelCo Food Retail Fashion Airlines Automotive Luxury Retail Banking Booking Services Insurance Website Weight: 25% 60,7% ↑ 55,0% ↑ 46,8% ↑ 51,4% ↑ 52,4% ↑ 49,9% ↓ 48,7% ↓ 52,6% ↓ 44,3% ↑ 42,7% ↓ 45,6% ↑ 38,4% ↓ Social Weight: 30% 67,9% ↑ 52,7% ↓ 63,8% ↑ 63,5% ↑ 63,3% ↑ 54,6% ↓ 58,5% ↓ 58,1% ↑ 57,9% ↑ 58,4% ↑ 49,8% ↑ 66,5% ↑ Online video 53,3% ↑ 56,5% ↑ 43,4% ↑ 31,3% ↑ 39,8% ↑ 40,6% ↑ 35,7% ↑ 29,5% ↑ 41,7% ↑ 43,8% ↑ 28,5% ↑ 37,0% ↓ Weight: 10% SEO Weight: 25% 77,3% ↓ 81,7% ↓ 77,3% ↑ 75,8% ↑ 76,5% ↑ 73,5% ↑ 70,5% ↓ 73,0% ↓ 77,5% ↓ 73,8% ↓ 70,4% ↑ 74,1% ↓ Apps Weight: 10% 64,0% ↑ 65,1% ↓ 62,7% ↓ 62,4% ↑ 48,8% ↑ 66,5% ↑ 66,9% ↓ 47,7% ↓ 44,2% ↑ 53,5% ↑ 73,2% ↑ 53,5% ↑ Overall 66,2% ↑ 62,3% ↑ 60,0% ↑ 59,6% ↑ 59,5% ↑ 57,7% ↑ 57,1% ↓ 56,3% ↑ 55,7% ↑ 55,6% ↑ 53,9% ↑ 53,5% ↑

↑ ↓ → Industry average as compared to 2019 score Best Score 2nd Score 3rd Score

confidential 17 The average DDB score per channel per industry 2020 (2/2)

Hotel & Kitchen General Employment Cosmetics / Pharmaceutic Food & Resources Utilities Airports FinTech Leisure Appliances Insurance & Recruiting Personal Care al Beverages Website Weight: 25% 33,9% ↑ 29,2% ↑ 38,8% ↑ 40,9% ↑ 41,3% ↑ 40,2% ↑ 30,1% ↓ 35,5% ↑ 25,5% ↑ 35,5% ↑ 27,1% ↓ Social Weight: 30% 60,6% ↑ 60,2% ↑ 58,7% ↑ 51,0% ↓ 48,7% ↑ 45,3% ↑ 60,8% ↓ 61,2% ↑ 61,9% ↑ 33,0% ↑ 50,0% ↑ Online video 20,2% ↑ 38,6% ↓ 31,5% ↑ 33,5% ↑ 18,3% ↑ 23,3% ↑ 18,5% ↓ 28,1% ↑ 23,0% ↑ 13,3% ↑ 33,1% ↑ Weight: 10% SEO Weight: 25% 73,4% ↓ 75,3% ↑ 72,2% ↓ 71,8% ↓ 75,8% ↓ 72,4% ↑ 69,7% ↑ 67,7% ↓ 69,3% ↑ 73,2% ↑ 66,3% ↓ Apps Weight: 10% 66,9% ↑ 57,4% ↑ 21,0% ↑ 29,3% ↓ 35,7% ↑ 35,0% ↑ 34,1% ↑ 11,9% ↑ 11,9% ↑ 42,4% ↓ 6,5% ↓ Overall 52,4% ↑ 52,2% ↑ 49,6% ↑ 49,2% ↑ 48,9% ↑ 47,3% ↑ 46,9% ↓ 46,9% ↑ 43,9% ↑ 42,8% ↑ 41,2% ↑

↑ ↓ → Industry average as compared to 2019 score Best Score 2nd Score 3rd Score

confidential 18 The top 3 per sector and the top 10 overall winners (1/2)

Non Food Travel & Public Hotel & eCommerce TelCo Food Retail Fashion Airlines Resources Utilities Airports Retail Booking Services Leisure

1 8 9 2 3 10 1

79% ↑ 69% ↑ 69% ↑ 76% ↑ 74% ↑ 66% ↓ 68% ↓ 62% ↑ 57% ↑ 58% ↑ 62% ↑ 66% ↑ 5 4 2

73% ↑ 68% ↑ 68% ↑ 67% N/A 73% ↑ 65% ↑ 65% ↑ 61% ↑ 55% ↑ 54% ↑ 60% ↑ 52% N/A 7 3

69% ↑ 65% ↑ 65% N/A 67% ↑ 67% ↑ 62% N/A 63% ↓ 60% ↑ 54% ↑ 52% ↑ 59% ↑ 52% ↑ ↑ ↓ → Brand total score change 2020 versus 2019 confidential 19 The top 3 per sector and the top 10 overall winners (2/2)

Retail Health Kitchen General Employment Cosmetics / Pharmaceutic Food & Automotive Luxury FinTech Banking Insurance Appliances Insurance & Recruiting Personal Care al Beverages

6 1

70% ↑ 64% ↑ 62% ↑ 62% ↑ 62% N/A 66% ↑ 62% ↓ 62% ↑ 51% ↑ 59% N/A 55% ↑

2

67% ↓ 62% ↑ 60% ↑ 57% ↑ 58% N/A 63% ↑ 61% ↑ 52% ↑ 49% ↑ 56% N/A 51% ↑

3

66% ↑ 62% N/A 59% → 55% ↑ 58% ↑ 61% ↑ 61% ↑ 51% ↑ 48% ↑ 55% ↑ 50% ↑ ↑ ↓ → Brand total score change 2020 versus 2019 confidential 20 The Top 10 is still being dominated by Retail and eCommerce Marktplaats, KPN, and Albert Heijn are new in the top 10

Web 73% 76% 67% 83% 60% 69% 64% 60% 59% 68% (+3%) (+6%) (+6%) (-7%) (+5%) (+2%) (+1%) (+10%) (+6%) (+4%)

Social 80% 76% 73% 66% 66% 63% 70% 66% 69% 64% media (+9%) (+13%) (+18%) (+3%) (0%) (-3%) (+1%) (+7%) (0%) (-4%) Online 68% 44% 73% 26% 92% 71% 49% 67% 65% 26% video (-1%) (-11%) (-4%) (+26%) (+2%) (-2%) (-34%) (+10%) (-3%) (-1%) 85% 84% 81% 83% 84% 74% 74% 81% 84% 78% SEO (-3%) (0%) (0%) (+2%) (-3%) (-1%) (-4%) (-1%) (-4%) (-5%)

88% 87% 78% 85% 85% 80% 88% 77% 63% 92% Apps (+2%) (+2%) (+21%) (0%) (+28%) (-2%) (+2%) (-2%) (-7%) (0%)

79% 76% 74% 71% 73% 70% 69% 69% 69% 68% Total (+2%) (+5%) (+7%) (+10%) (+5%) (+3%) (+1%) (+15%) (+4%) (-2%)

Ranking 2020 1 2 3 4 5 6 7 8 9 10 Ranking 2019 1 2 9 18 5 8 4 78 12 3 confidential 21 Most accelerating brands over the last year are Marktplaats, KPN and Thuisbezorgd

Growth 2020 compared to 2019 90% SLEEPERS WINNERS 80%

70%

60%

50%

Jun 2020 Jun - 40%

30%

20% DDI score Jan score DDI 10% LOSERS CHALLENGERS 0% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% Relative compounded growth 2020 compared to full year 2019

confidential 22 4. How to reach digital dominance?

confidential 23 Sia Partners can assist Dela to drive sales and market share by improving the digital performance of it’s brand 5 different ways to improve the digital dominance of your brand: Module Activities

• Deep-dive into the benchmark results with a focus on SEO and App Digital dominance • Workshops facilitated and prepared by Sia Consultants to find root-cause and compare with best practices and competition 1 benchmark deep dive • Define improvement areas • Develop improvement backlog and kick-of agile/scrum teams to improve

• Digital (marketing) capability assessment based on a capability model with 46 digital marketing capabilities 2 Digital Capability • Assessment method by evaluating the maturity levels (scale 1/5) with the core team Assessment • Workshop to present and discuss the consolidated assessment results and capability maturity ambition levels • Develop improvement backlog and kick-of agile/scrum teams to improve

• Track customer journey’s and customer behaviour Customer Journey • Analyse critical touchpoints (frequency, recency, value, drop-outs, conversion) 3 Analytics • Define touchpoint improvements • Develop improvement backlog and kick-of agile/scrum teams to improve

• Use available customer segmentation or persona’s and select x high priority segments (define x) Customer Journey • Create customer journey design’s in x design workshops (4 hours each) 4 Design • Define high priority journey touchpoints and define areas for improvement • Develop improvement backlog and kick-of agile/scrum teams to improve

• Evaluate current strategy Refocus your Digital • Define new and/or changed strategies for market and revenue growth 5 Strategy • Define marketing and channel strategy and plan • Develop Business case and mid and longer term improvement roadmap confidential 24 All 5 modules follow 4 logical steps

All 5 modules can be performed independently or jointly. When more then 2 modules are executed the investment decreases due to synergies in work and activity.

1 2 3 4 Module

1 Digital dominance benchmark deep dive

2 Digital Capability Assessment ASSES YOUR KNOW HOW TO DRIVE HOW TO DO IT? EXECUTE OPPORTUNITY VALUE

Customer Journey • Deep dive digital • Define your priorities • Prioritize and plan • Kick-of agile/scrum 3 Analytics dominance results • Set digital ambition improvement backlog teams to improve • Assess digital marketing • Design future customer • Define approach, team, • Continue to measure capability maturity journeys resources • Continue to improve Customer Journey 4 Design • Analyse your customer • Design future capability • Obtain the right Journey’s blueprint mandate • Compare with competition • Develop business case • Prepare kick-off Refocus your Digital 5 Strategy • Review current initiatives • Develop improvement • Review current strategy backlog

confidential 25 5. About Sia Partners

confidential 26 We are a next-generation consulting firm.

We are a global firm that has We invest heavily in tech and We cultivate expertise stemming grown steadily over the past design to stay on cutting-edge from R&D activities and our 20 years and meet our clients' evolving proximity with our clients’ challenges industries

1,800 Consultants 4 AI centers 4% Of our revenue invested in R&D

31 Offices across 18 2 Design Centers Followers on LinkedIn countries 100K+

500 Clients 325M$ in revenue for FY20/21 92% returning

+19% increase in revenue FY19/20 despite C19

confidential 27 A pioneer mindset, enhanced by a unique blend of capabilities...

Delivering results through Business Expertise, the core of Consulting

…to better serve our clients. Leveraging AI, emerging tech, and open innovation for augmented consultants

Reshaping projects and experiences through design & creativity for next-level impact

Making CSR a lever for profitable transformation

confidential 28 We are business experts focused on delivering superior results.

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confidential 29 As the pioneer of Consulting 4.0, we leverage AI, emerging tech and open innovation

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We stay one step ahead of the We boost the transformational impact We develop innovative ecosystems, emerging tech value offer of AI through our solutions both independently and with our clients Disruptive technologies • Heka, our AI ecosystem: RPA | IoT | 5G | Blockchain | DevOps | Quantum • PAAS • STUDIO, our startup investment arm Computing • AI solutions • APIFICATOR, international challenge for tech • AI accelerators (Algorithms/models/APIs B2B startups Advanced AI technology POC & data sets) • Alliances and partnerships bringing added value Voice Recognition/Virtual Assistants | Voice • Production and industrialization of AI projects to our clients recognition | Satellite image recognition | • Helping our clients develop their own innovative Multilingual sentiment analysis | Time prediction | ecosystems Machine Learning on edge

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confidential 30 We believe design and creativity can transform projects and experiences for next-level impact

Creative Agency Design Centers

Designing experiences Creativity through human experience We help our clients develop brand and communication We combine collaboration, design thinking, and user strategies, implement omnichannel customer relationship experience to help our clients develop new ideas and strategies, and digitalize the customer experience. accelerate their projects.

confidential 31 We make CSR a lever for shared, profitable transformation

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confidential 32 Our people work in an integrated way across the Sia Village

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This concept describes our commitment to fostering a sense of community within and among our offices and is an expression of our values. We believe that knowledge sharing is the key, not only to innovation, but to the growth and EXCELLENCE Our global internal network promoting development of our people. Working together Diversity, Equity, Inclusion & Belonging allows us to challenge one another and, as a ENTREPRENEURSHIP result, raise the bar in our commitment to excellence, both individually and collectively. INNOVATION The conception of our offices is, therefore, a focal Our internal training institute point of the Sia Village. Sia Partners office spaces TEAMWORK worldwide follow a cohesive design scheme, intended to facilitate teamwork and encourage community and wellbeing. CARE & SUPPORT

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confidential 33 Abu Dhabi Amsterdam Baltimore Brussels Casablanca Charlotte Chicago Denver Doha Dubai Sia Partners is a next generation consulting firm focused on delivering Dublin superior value and tangible results to its clients as they navigate the Edinburgh digital revolution. Our global footprint and our expertise in more than Frankfurt 30 sectors and services allow us to enhance our clients' businesses Greater Bay Area worldwide. We guide their projects and initiatives in strategy, business Hamburg transformation, IT & digital strategy, and Data Science. As the pioneer Hong Kong of Consulting 4.0, we develop consulting bots and integrate AI in our Houston solutions. London Luxembourg Lyon Milan Montreal New York Follow us on LinkedIn and Twitter @SiaPartners Panama City* For more information, visit: Paris Riyadh Rome sia-partners.com Seattle Singapore Tokyo *Sia Partners Panama, a Sia Partners member firm Toronto