"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 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 – 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