CONFIDENTIAL

Solving the Online Merchandising Challenge…

1st May 2008

Frank Lombos – VP EMEA, Fredhopper

Who should be interested??

eCommerce Managers

Brand Managers

eMarketing Managers

The Challenge….

Getting the right productsIn front of the right peopleAt the right time….

Merchandising since 1807

The Merchandising Dilemma

Merchandising that Works

Limited Opportunities to Sell

15-30 Product Presentation Opportunities

1. Customers review 3-5 items per page view

2. Shopping trip includes 5-10 search & browse page views

3. Customers review 15-30 items per shopping trip

Selected From Up To 1,000,000’s Products

1. Categories with 100’s of items

2. Various category roles and priorities

3. Fast growing number of SKUs

Reporting

Strategy

Planning

Context

Merchandising Impact on the Business ..

Benefit areas

Higher Conversion Rates from customers

finding what they look for faster

Increases Sales per Customer through

targeted, personalised onsite merchandising

Long Term

Search Merchandising

Pain Killer Vitamins

Short Term

Search Only Search & Merchandising

Online Sales

+10-40%+10-40%

More Repeat Customers due to highly

satisfied customers who become loyal

More Qualified New Traffic coming to the site

via targeted online marketing

Real Results

Real-time global eBusiness in 60+ countries

One global system

35 languages, 50,000 SKUs

Implemented international merchandising collaboration

Delivers superior shopping experience on web and in-store

Superior user-experience, unifying heterogeneous assortment

Deployments on websites, in-store kiosks, and in-store cash registers

Used as core product retrieval system by customers and employees

Online conversion increases by +25%

International home shopping leader

20 million online customer queries per month

€ 150+ million online sales

33% Reduction in lost searches

#1 catalogue retailer UK with £ 500 million online sales

50% reduction in operational cost

Premium Search & Merchandising

Learning Search

Understands what people mean, rather than what they say

Guided Navigation

Intuitive interface to slice & dice through a store in any way you want

Effective Merchandisingcampaigns

Promote relevant promotional ideas throughout the shopping experience

Targeted Marketing

Takes onsite inspiration to online marketing to attract new customers

33 44

2211

Search is evolving into a Merchandising Tool

“adidas”

Search is evolving into a Merchandising Tool

Commercial, Self-Learning Search Results Rankings

Use Guided Navigation as a Sales Tool

User driven Categorisations

Inspirational Merchandising Theme promotions

Inspirational Merchandising Related item promotion

X-sell

Up-sell

What other people bought

Good, better, best strategies

Colour inspiration

Self-Learning Social Search Results

Other People that Searched for this,

Bought this

Customer Popularity = Usefulness

Effectiveness of Linguistic Matching

limited in e-Commerce

Linguistic similarity ≠ Usefulness

Social SearchCurrent

Thank you..

Questions