Ruckus Smart Wi-Fi for Retail

1. Ruckus Smart Wi-Fi for Retail

2. Agenda • Retail Market Introduction • Ruckus Retail Solutions • Selling to Retail: Malls vs QSR Ruckus Proprietary and Confidential

3. Shoppers Want and Expect Wireless 80% of people said that the availability of in-store WiFi influenced where they shop. 74% of shoppers are happy for a retailer to send a text or email with promotions while they’re using in-store wi-fi. 69% say their smartphone is a critical tool to have a better shopping experience 70% plan to use their smartphone more to help their shopping experience in the next year 92% of retail purchases occur in physical stores

4. Retail is a Large and Growing Market(s) Number of stores (establishments) by segment (US Census) Only includes stores that are part of companies with > 500 employees Current penetration of enterprise-class Wi-Fi is low Location, customer engagement, and access are becoming key tools to battle online competitors Managed Wi-Fi is an ideal upsell to current customers

5. Ruckus Offers a Complete Retail Marketing Solution • SPoT Ecosystem • Analytics • Mobile apps SPOT SAMs Delivers carrier-class Wi-Fi connectivity for shoppers and staff Provides secure, anonymous analytics Offers easy and secure access management Enables shoppers to opt-in for more services Creates a new, in-store personalized customer touchpoint Supports operational systems including PoS, RFID, IP Video, … Ruckus Proprietary and Confidential

6. Simply Better Wireless for Stores and Malls Stronger Wi-Fi signals at longer ranges Adapts automatically to environmental changes Supports more concurrent users per access point Stable connections and faster speeds Highly scalable, centralized management Interference

7. SCG / vSCG Allow Centralized Management Store 1 … Store n Mobile Devices Mobile Devices Ruckus APs Ruckus APs • Accelerated Time to Market • Efficient use of commodity hardware • Operational simplicity • Lower opex and capex • Multi-tenant option • Services @ scale • Standard and open APIs

8. SCG / vSCG Allow Centralized Management Store 1 … Store n Mobile Devices Mobile Devices Ruckus APs Ruckus APs • Accelerated Time to Market • Efficient use of commodity hardware • Operational simplicity • Lower opex and capex • Multi-tenant option • Services @ scale • Standard and open APIs • Rapid turn-up of new sites • Pricing flexibility • Enable differentiated offers • Deliver reliable service

9. Smart Access Management The first cloud-based, carrier-gradeSmart Wi-Fi Access Management Service Enables ultra-easy design, management and monetization of Wi-Fi hotspot services Combines the scale, efficiencies and cost-effectiveness of cloud-based services with best-in-class Smart Wi-Fi products and technology Scales from large airports, malls and nationwide chains to single store locations Captures customer demographic and contact information to enable online marketing campaigns

10. Introducing Ruckus SPoT™ • Industry's first completely cloud-based Smart Wi-Fi positioning service • Works seamlessly with Ruckus Smart Wi-Fi to deliver: • Shopper / staff location analytics • Real time location data • Includes API and SDK for third-party developers • Active SPoT location ecosystem

11. SPoT Location Application Ecosystem Retail apps with in-store location and associated store-centric features drive five times more shopper engagement than identical apps without these features • Ruckus SPoT has a large and growing location eco-system • …and can easily integrate with your existing apps • Proven solutions can be customized and integrated for specific Managed Wi-Fi needs

12. Ecosystem: Shopper Traffic Analytics • Unprecedented insight into user behavior • Store/mall traffic optimization based on real-time and historical analytics • Shopper count by zone/time • Length of stay • Repeat customer % • Heat maps • Offsets existing expenses • Loyalty offers for repeat customers • Improve new customer traffic

13. Ecosystem: Social Marketing • Leverage Wi-Fi access to collect customer marketing data • Name • Demographics • Email address • Friends

14. Ecosystem: On-Site Customer Messaging Ruckus SPoT ecosystem partners enable retailers and venue operators to communicate to consumers’ smartphones based on location data while they shop.

15. Ecosystem: Advertising Integrate digital ad networks into your shopping mall app Increase CPM and usage with real time location context Enable mall-based promotion and advertising opportunities

16. Ecosystem: Shopper Navigation Real time maps Directions to stores or to specific products in stores Track searches and shopper path

17. SPoT vs Alternative Location Options • GPS – outdoor only, loses accuracy indoors • Other Wi-Fi vendors • Most other vendors only offer ‘presence’, which tracks AP-level accuracy • Inadequate for many use cases beyond basic analytics, (OK for QSR/C-stores) • Beacons • Potentially more accurate, but cover a much smaller range • Requires user to activate an application • Low cost, but is a stand-alone infrastructure • Likely to become complementary to Wi-Fi location/analytics to provide more precise locates when specifically needed Ruckus Proprietary and Confidential

18. Complete Product Line-up For Stores and Malls INDOOR 7982 3X3, 3-streamdual-band 802.11n 7372 Mid-range dual band R300 Entry level 802.11n 7782 3x3:3, 3-stream dual-band T300 Mid-range Dual band 7731 Point to point and multipoint bridges OUTDOOR ---------- Omni or 1200sectorized ---------- ---------------------------------- IP 67 Rated --------------------------------- MANAGEMENT 6 to 50 Aps SME Up to 10K APs vSCG 50 to 500 APs Mid-range 50 to 1000 APs High end

19. How to Sell Managed Wi-Fi Malls / Big Box Stores QSR / Convenience Stores Ruckus Proprietary and Confidential

20. Wi-Fi Offering for Malls and Stores • Single infrastructure for shopper access, store access and operational support including VoWLAN, IP Video signage, and security • 3-5x greater impact from mobile apps • New, in-store/mall touchpoint • Analytics dashboard showing shopper activity and patterns • Sell shopper data to brands • Advertising portal • Opportunity to enable tenant ‘flash promos’ • Social marketing platform • 3G / 4G offload (future)

21. SPoT ROI Net profit using SPoT – $18,000 / Year / Store Relevant Department Store Marketing Spend Footfall counters installed today $12,000/Yr Survey costs for shopper behavior $20,000/Yr Advertisements (print, digital, coupons..) $100,000/Yr

22. Selling to Malls • Initial focus is larger destination malls, typically owned by REITs • Traditionally most marketing staff were at local malls, but central team often charged with Wi-Fi / location solutions • Major care-abouts: • Analytics • SPoT delivers richer data at a much lower cost than current counting techniques • Opportunity to package and sell analytics to brands and mall tenants • Engagement • Creates entirely new targeted, real time marketing platform • Increases relevance and usage of current mall applications • Enhances shopper experience • Wi-Fi performance • Platform that can deliver great customer experience with room to grow • Easy • Future: 3G/4G offload opportunity with Passpoint Ruckus Proprietary and Confidential

23. Mall Example • US-based mall operator with ~20 malls, all major regional centers • Have limited Wi-Fi in all malls, limited coverage or usage • Deployed new Wi-Fi in one mall to test location-related apps • Failed due to poor Wi-Fi connectivity, inaccurate and inconsistent locations, missing apps • REIT CFO charged with finding a solution for all malls • Common solution, with current capabilities and strong future roadmap • Deployment timing driven by local mall GM and marketing • Looking for complete managed service • No IT staff on premises • Wants to defer costs • Hoping a good solution provider can install and operate solution much less expensively • Deploying trial in one mall wing (6 APs), aiming for decision by September Ruckus Proprietary and Confidential

24. QSR / Convenience Stores • Major care-abouts: • Required customer amenity • Analytics • Focus on customer count and duration to do store to store comparisons and AB testing • Ideally with a tool that integrates diverse data, including PoS, weather, … • Brands • Significant opportunity to sell marketing data to major brands • Wi-Fi performance • Not much of an issue – generally a 1 AP hotspot • Some concern with Wi-Fi squatters – need a solution that can limit access during peak hours Ruckus Proprietary and Confidential

25. Objection Handling Ruckus Proprietary and Confidential

26. Ruckus Offers a Complete Retail Marketing Solution • SPoT Ecosystem • Analytics • Mobile apps SPOT SAMs Delivers carrier-class Wi-Fi connectivity for shoppers and staff Provides secure, anonymous analytics Offers easy and secure access management Enables shoppers to opt-in for more services Creates a new, in-store personalized customer touchpoint Supports operational systems including PoS, RFID, IP Video, … Ruckus Proprietary and Confidential

27. Thank You!