1. 1 How to Leverage Multiple Sales Channels to Reach & Retain Cross-Channel Shoppers Welcome! May 13, 2008

2. 2 Before we start  Submitting questions –Submit a question at any time by using the “ask a question” module on the lower right-hand side of your console –We’ll address these questions during the 10 minute Q&A section at the end of our presentation  Technical difficulties –Click on the help button –Use the “ask a question” interface

3. 3 Today’s presentation  Highlights from the Krillion Consumer Survey  Current retailer and manufacturer strategies  Readiness recommendation checklist

4. 4 Today’s presenters Lauren Freedman President the e-tailing group Lauren Freedman President the e-tailing group Joel Toledano CEO Krillion Joel Toledano CEO Krillion

5. 5 5 About Krillion  What we do: –Product-based local search –Driving online users to in-store sales  Who we work with: –Leading manufacturers, retailers, publishers, and search engines

6. 6 About the e-tailing group  14 years of e-commerce consulting  Author, “It’s Just Shopping”  50+ years traditional retail and catalog experience  Fortune 500 client projects ranging from strategic planning, merchandising, marketing, to technology development and messaging  Proprietary research studies on: mystery shopping & merchandising; marketing and multi-channel customer mindset; In-Store Pickup and Gift Registry  E-commerce expert and frequent speaker at industry events, trade associations

7. 7  Survey completed February 2008  1,000 consumers sampled  50% male, 50% female  Spend at least $500 online annually  Purchase online at least 4x per year Purpose and methodology To better understand the mindset of consumers who research products online that lend themselves to purchase at a local store. The study highlights the role of Internet information resources, the retailer channel, and web-to-store convenience options offered online—such as in-store pickup and inventory availability—in shaping consumer purchase decisions.

8. 8 Web-ready buyers are demanding  “Web-Ready Buyers” are demanding, doing their shopping “homework” well in advance of their purchase  “Web-Ready Buyers” who are predisposed to research online are willing to spend at least several days or weeks researching products  They are first and foremost problem solvers who leverage the web’s efficiencies to quickly find the right answers to their shopping needs

9. 9 These customers leverage all channels, seeking complete information  The role of the manufacturer online has been elevated: a visit to their site is often the first stop for savvy online information seekers  The store is an integral part of shoppers’ multi-channel buying experiences  Expectations are high for Web-Ready Buyers regarding:  the number of information sources they seek out  the features they expect to see on any given site  their propensity for using in-store pickup

10. 10 The ‘Local’ proposition is clear  Saving time, convenience and saving money are consistently what matter most to consumers when using a local search engine to research products online  To the consumer, local is getting the right price for an in-stock product at a favored retailer

11. 11 Prior to buying, consumers are spending considerable time online in ‘research mode’ Q3 42 percent of shoppers spend more than half of their total shopping time researching online

12. 12 Shoppers multi-source: 72% look to the manufacturer’s website when researching major branded products online, while 54% seek out favored retailers Q6 Beyond this, shopper styles affect where consumers start their research

13. 13 Consumers are first and foremost needs-driven, with many influences triggering their search for online product information Q11 Women are more traditional: favoring word-of-mouth, catalogs, magazines, newspapers Men are more web- centric: embracing online promotions, banner ads and email Word-of mouth continues to play an important role similarly valued by consumers

14. 14 Depending upon the complexity of the product category, those surveyed invest several days or even months researching prior to making a purchase Q8

15. 15 Top 3 essential online resources: manufacturers, retailers, search engines Q13 Secondary sources include shopping comparison sites, consumer magazines online, portals/directories, and blogs

16. 16 Q6 For complex product categories, manufacturer websites are the #1 destination

17. 17 Online retail experiences take place in many ways

18. 18 Exposing products can be facilitated via a series of different channels and a variety of means

19. 19 Searching is part and parcel of the user experience, where the “best” price is top of mind

20. 20 Saving time (76%), convenience (69%), and saving money (64%) are consistently what matter most Q17

21. 21 Q15 For online shoppers, “local” means the right price for an in-stock product at a favored retailer

22. 22 Shoppers expect websites to aid in research, provide up-to-the-minute information Q16

23. 23 To help make purchasing decisions, consumers embrace peer-based content like product reviews (84%) and consumer surveys/studies (57%) Q14 Women trend higher on image and product reviews Men care more about expert articles and videos Product images (49%) and literature (48%) are expected sources of information that further support decision-making

24. 24 Customer-centric tools foster decision-making

25. 25 When selecting a local store to make a purchase consumers desire a comprehensive website including convenience-centric, store-related services Q9

26. 26 Store promotions and services are evaluated simultaneously

27. 27 The store is an integral part of shopper behavior frequently involving multiple store visits Q7 For information-intensive purchases, consumers are more apt to research online and then complete their purchase at a local store

28. 28 Store visits often start with sophisticated retail locators

29. 29 55% have purchased a product online for in-store pick-up, increasing the role of web-to-store activity Q4

30. 30 Merchants extend their reach, driving traffic to the store via in-store pickup

31. 31 Q5 *Other includes shipping not an option, out of stock online; taking advantage of a discount offered if picked up in-store Buyers who pick up in-store are motivated by shipping savings and convenience benefits Among women saving on shipping is even more of a motivator as it was selected by 63% Note: Beyond saving shipping expenses, immediate needs and convenience will always play an important role in “local” shopping

32. 32 Product locators with inventory access will serve as the ultimate foundation for future cross-channel conveniences

33. 33 Q5 Are you ready?  Comprehensive content must be in place  Category-centric tools should give customers the control they demand to swiftly satisfy and solve shopper needs  Manufacturers must extend their efforts through retail and search partners  Cross-channel conveniences should be clear to shoppers  Merchants must think about both time and cost savings when structuring multi-channel experiences

34. 34 The e-tailing group contact information Lauren Freedman President, the e-tailing group inc 773.975.7280 lf@e-tailing.com www.e-tailing.com

35. 35 Krillion: leveraging product-based local search Joel Toledano CEO Krillion Inc

36. 36 What shoppers care about  Consumers think: “research online  buy offline” –Search on Google –Buy in a physical store  Who carries this product near me?  What does it cost?  Is it in stock right now?

37. 37 Search engines, shopping engines and directories, are not one-stop shops  Search engines don’t provide everything consumers need: –product –location –price –in-store availability

38. 38 In-store pickup is already popular 2007 online sales (est.): $1.5 billion In-store pickup averages $60 more per customer ticket In-store pickup averages $154 more per customer ticket Source: National Retail Federation 55% picked up in store 40% picked up in store 2007 online sales (est.): $1.1 billion

39. 39 1.Online ads remain resilient. 2.Video surge slows. 3.Social-network advertising hits $1.6 billion. 4.Networking goes beyond MySpace and Facebook. 5.YouTube decides the election. 6.Beijing Olympics pumps up ad spending. 7.Buy online, pick up in-store becomes expected feature. 8.Movie downloading hits the mainstream. 9.Music marketers roll out new business models. 10.Dynamic ads heighten gaming revenue potential. And will become mainstream… eMarketer predicts: Multichannel retailers will roll out more “buy online, pick up in-store” services. Forrester Research reports 79% of multichannel retailers ensure consistent pricing across their channels. Internet Retailer finds 75% of retailers link their e-commerce systems to their fulfillment and order management system. Source: eMarketer Inc

40. 40 How Krillion enables web-to-store sales Yellow Pages Product reviews Shopping sites Widget on manufacturer websites Search engines Yellow Pages Product reviews Shopping sites Widget on manufacturer websites Search engines Krillion Localization Engine TM Metadata by category Product categories Local Retailers Krillion has built a huge local shopping dataset of manufacturers, SKUs, store locations & in-stock product availability – more than 700 million data elements, and growing Leads! Ready-to-buy consumers

41. 41 The Home Depot case study: increased click performance Launched: February 2008 Objectives: Increase click performance online with contextual marketing Drive sales through all Home Depot offers on/offline Results: 4x conversions to “see it” locally button 2x average CTR on all ad impressions served

42. 42 Panasonic case study: sales uplift & tighter linkage Launched: March 2008 Objectives: Increase site capabilities to drive more sales to dealers Offer real-time stock information Results: Thousands of new views/month and growing Double-digit conversions to “see it” locally button Increased conversion to sale from Panasonic.com to dealers

43. 43 Bridging the Internet and the store  Mobile coupons will capitalize on the web-to-store opportunity –Offers sent to consumers drive in-store purchasing  Micro-local targeting through location-aware technologies“ What’s next? “Mobile phones are more likely to be used in a multichannel shopping process than to generate m-commerce sales.” –Gartner Group, Feb. 2008

44. 44 Three ways to work with us to grow your web-influenced sales 1.Manufacturers: Krillion Product Locator drives revenue and directs in-store sales to dealers 2.Retailers: enhanced placements and integrated advertising to drive in-store sales 3.Publishers: Leverage Krillion’s product-based local search platform to increase audience engagement revenue opportunities

45. 45 For more information about working with Krillion to power your product locator or support your local in-store sales efforts, contact us at sales@krillion.comsales@krillion.com

46. 46 Q&A

47. 47 Thank You!