SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

Strategic drivers for sustainable growth Continuing the Group’s digital transformation

Saint-Gobain Research data scientists have developed a method for systematic study of the semantics of customer reviews on TripAdvisor. Using this method, hotels and restaurants with poor acoustics can now be identified, allowing the Habitat specification teams to target these establishments and offer them appropriate solutions. Measuring the presence of online 2.1.4 activities By measuring the effectiveness of the digital strategy, a certain number of trends can be highlighted. For the Building Distribution Sector, the effectiveness of the digital approach is measured by volume of online sales (e-commerce) as well as by sales generated indirectly, through processes that start online and finish in-branch (Web to Store). On this basis, online traffic grew continuously since 2014. For the Group’s manufacturing Activities, the digital strategy is not so much to increase sales as to provide sales support for the Activities, by increasing website traffic and over and above this, the engagement of visitors on the Group’s sites. When a visitor downloads a document from a site, and asks a question or tries out the brand, they become a potential identified customer, with whom it is possible to interact. For all the Activities, industry and distribution, the traffic of Saint-Gobain’s main websites increased by 13% in 2017 to achieve a number of connections around 130 million annually. Social networks allow new ways of communication with customers and brand promotion. Social media presence has become critical both for Saint-Gobain’s Activities and for the Group. For its corporate presence alone, Saint-Gobain had nearly 200,000 LinkedIn followers, 16,000 on Twitter and 180,000 on Facebook at the end of 2017. The different Activities have in the region of 300,000 followers on LinkedIn, 270,000 on Twitter and 2 million on Facebook.

All Activities have rolled out digital strategies to differentiate their products and ensure brand visibility. In Distribution, Saint-Gobain is adopting an omnichannel approach to develop e-commerce services, supported by state-of-the-art logistics. The wealth of information available online, real-time inventory checks by customers, the organization of logistics networks, and speed of product delivery are key factors in the success of retail sites. The aim of all the digital tools developed by the Group’s brands is to foster better knowledge of the customer, as well as making the process easier for them and meet for their needs more easily and directly. Analyzing customer data and 2.1.3 anticipating customer needs: from Big Data to Smart Data Customer activity online or in-store generates significant amounts of data. The statistical analysis of these data forms the basis for predictive models that enable a better response to end customer expectations. Once analyzed, the mountain of data – or Big Data – becomes Smart Data, a useful, intelligent data set concerning both the brand and the customer. Tailored services and communication are key to this. The first challenge in the Smart Data approach is to strengthen relationships with customers, getting to know them better to provide them with a better service. Consequently, the Building Distribution Sector’s main e-commerce sites in France and Scandinavia now make systematic use of suggestion-based selling: when a visitor is interested in a product, they are provided with a list of recommendations based on the product combinations seen in shopping baskets. This automatically increases basket values. In 2017, more highly developed approaches emerged; these are likely to become more widespread in 2018. In this regard,

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