"Consumers and New Technologies: A Marketing Perspective"

Course 3 Product management on the Internet: Personalisation

and customisation

Jacques Nantel Ph.D

May 2003

Nature of the information collected

• A site can identify– Country of the server– Type of server– Type of browser– I.P adress

For the computer not the consumer• Cookies• Extended cookies• File• Passport• Combination of various sources

What we can follow with logs

• Nb of clicks

• Click streams

• Average time per page

• Links between sites

• Buying patterns

• More if information is kept on an adv. server

What can be done with the information

• Nothing

• Ad. placement

• Data base analysis and reselling of info

• Personnalisation– «Customization (rules-based systems)– Collaborative filtering– Open Profiling Standards

                      

My Virtual Model

My Virtual Model offers :

1. My Virtual Model Dressing Room Personalization, visualization, garment try-ons, mix &

match

2. My Virtual Model Fit Size/Fit recommendations to decrease uncertainty and

product returns

3. My Virtual Model Imail Interactive Communication Tool with personalization and

visualization for rapid conversion

4. My Virtual Model Network & Data Shopping behavior data from a network of 3.5 million users

My Virtual Model Experience

•My Virtual Model Dressing Room

• • Visualization and product sampling with garment try-on

(average of over 20 garments try-on per session).

• Mix & match of different brands

• Personalization through Model creation and collection

of shopping behavior data

My Virtual Model experience

•My Virtual Model Fit : o

• Size/Fit recommendation tool to reduce uncertainty about shopping for apparel on-line, and to increase customer satisfaction

• Reduces product returns (over half of product returns are attributed to incorrect size/fit)

•

My Virtual Model experience

•My Virtual Model Imail

• Communication Tool providing product visualization and try-on within a customer’s email

• Targeted marketing with customized product offers

My Virtual Model experience

•My Virtual Model Network and Data

• Data on customers (model characteristics, height, weight, measurements)

• Shopping behavior information (style, color, try-on

frequency, garment type/characteristics)

• Multi-dimensional, multi-layer product categorization

(coded as part of the 3D rendering process)

My Virtual Model experience

Needs, Benefits ,Solutions

Product sampling, Visualization with mix & match

Increases conversion rate (+34% with Lands’ End) Increases Average Order Value, with enhanced shopping experience (+66% with Lane

Bryant, +11% with Lands End)

Solution : My Virtual Model Dressing Room

Size/Fit problems relating to variations between retailers and garments direct impact on net revenues with reduction in total return costs (handling,

restocking, seasonal perishability, markdowns) increase in customer loyalty and satisfaction, decrease in uncertainty about shopping,

decreased fear of returns, increase in likelihood to buy Solution : My Virtual Model Fit

Benefits analysis

Needs, Benefits ,Solutions

Customer communication tool with targeted message

Accelerates Amazon customer conversion to Apparel purchases Accelerates the Customer Profile creation with shopping behavior information Increases Customer Retention

Solution : My Virtual Model Imail

Product recommendations based on consumer preferences Increases customer satisfaction and buying through more appropriate

recommendations based on try-ons (style, color, characteristics) Provides multidimensional shopping behavior data for targeted style advice Enables rich data analysis of customer profiles

Solution : My Virtual Model Network and Data

Benefits analysis

Land’s end

Web-based Personalization

• Personalized services

–My Virtual Model

–My Personal Shopper

–E-Mail

• Personalized products

–Lands’ End Custom

My Virtual Model

• 13% of landsend.com visitors use it

• 34% higher conversion rate

• 7% higher average order value

My Personal Shopper

• 80% higher conversion rate

• 10% higher average order value