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Webinar: Lauren Freedman, President , the e-tailing group

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1 Webinar: Lauren Freedman, President , the e-tailing group
Scott Todaro, Senior Director of Product Strategy, Demandware Before We Get Started, a Few Housekeeping Items: To Join the Teleconference: Tel or # # Presentation Content: Slides and Webinar recording will be made available for download at will be sent to notify you of its availability. Questions: Please ask questions via the chat function.

2 Webinar Agenda

3 About Demandware Now let me introduce Demandware. We were founded by Stephan Schambach, an eCommerce pioneer since 1994 and former CEO of Intershop. He brought together the best and brightest from the eCommerce industry – our employees all have 5 years+ experience from companies such as ATG, GSI, Intershop, Oracle Retail, Siebel and Navisite. Stephan brought them together to take everything we learned about eCommerce and make a fresh start, building the leading On-Demand eCommerce platform. To date, we run more than 30 brands and 50 customer sites. We focus on high-growth brands and while our solution can be adapted to any vertical, we have most of our customers in Apparel, Toys & Games, Cosmetic and Specialty. We are 100% dedicated to eCommerce and merchandising excellence; in fact we have more software developers than any other vendor dedicated to eCommerce features. Our product is the first complete Software-as-a-Service platform for eCommerce. It is the only platform to provide free, automatic upgrades; infusing an endless stream of revenue-enhancing features into our customer’s eCommerce operations. We have solved the scalability problem once and for all with our unique, patent-pending grid computing architecture. We have been operating at 99.97% availability and provided an industry-first 100% availability over the 2006 Holiday season. 3 3

4 About the e-tailing group
14 years 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 and merchandising, marketing and EMC (Evolving Multi-Channel Consumer), In-Store Pickup and Gift Registry E-commerce expert and frequent speaker at industry events, trade associations

5 Today’s Agenda Why good content matters Telling the content story
Content best practices The e-tailing group checklist for best-in-class content `

6 I. Why good content matters
Consumers are reliant on robust content (text, images, and tools) to research across channels and make confident buying decisions Good content educates shoppers about the product and the category boosting their perception of your brand in the process Knowledge acquired via content gives customers the confidence to buy The right information integrated contextually drives conversion Smart content reduces return rates as customers buy the “right” product Ideally, content can serve to replicate the best of personal shopping

7 Detailed product information is critical across categories
from clothing (64%) to computers (52%) to consumer electronics (49%) the ARS eCommerce /e-tailing group Online Content Impact Survey Q3

8 the ARS eCommerce /e-tailing group Online Content Impact Survey
The quality of a site’s content matters 77% of consumers are “very to somewhat” significantly influenced by the quality of online content the ARS eCommerce /e-tailing group Online Content Impact Survey Q7

9 the ARS eCommerce /e-tailing group Online Content Impact Survey
Shoppers are impatient when information is lacking 72% of consumers will abandon your site to go to a competitor or research further online; few return - for the lowest price the ARS eCommerce /e-tailing group Online Content Impact Survey Q10

10 II. Telling the content story
B. RICH MEDIA Zoom Alternative Views Video/Audio 3D Product Tours A. PRODUCT PAGE ESSENTIALS Imagery Text Product Descriptions Related products Ratings/reviews C. CATEGORY/CHANNEL-CENTRIC Product compare Syndicated manufacturer content Category content Rich media tools (view in a room, shop by outfit) Cross-channel content D. INTEGRATED MERCHANDISING Offers Customer-service Branding

11 Merchants rank merchandising features that deliver ROI Content plays an important role respective to imagery and education while category-centric elements receive lower marks The e-tailing group 7th Annual Merchant Survey; 2008 Q7

12 Content Best Practices Product Page Essentials
The product page is a destination for consumers that should incorporate the best in text, imagery, tools, plus customer service information

13 the ARS eCommerce /e-tailing group Online Content Impact Survey
Consumers value the product page 52% spend 6 minutes or more on the product page when purchasing online the ARS eCommerce /e-tailing group Online Content Impact Survey Q6

14 the ARS eCommerce /e-tailing group Online Content Impact Survey
Product page rankings reveal informational hunger “Very important” ranking of all 26 features and functionalities charted in descending order of importance for selecting and ultimately purchasing a product Confirming the need for qualitative text, the most highly ranked is the product overview (76%) Ranking next, the merchant’s guarantee (73%) reinforces the consumer’s need to trust before they buy Third ranking, stock status (69%) reflects the need for products to be available when shoppers want them Fourth ranking is quality of the image (67%) to ensure shoppers can visualize their potential purchase the ARS eCommerce /e-tailing group Online Content Impact Survey Q14 (Top ranking out of 5)

15 All the content bells and whistles must be in place
Content Elements More views Close Up Full Set Fabric Content Matching Style Colors Other Products from the Brand Customer Service Links the ARS eCommerce /e-tailing group Online Content Impact Survey

16 Complete information engenders confidence
55% of consumers almost always or frequently (36%) click for more information if they find a product of interest Content Elements Ratings/Reviews Product Description Specifications Discussion forum Accessories Warranty information Installation and setup How to get it Returns Special Offers the ARS eCommerce /e-tailing group Online Content Impact Survey

17 the ARS eCommerce /e-tailing group Online Content Impact Survey
Images of related products add appeal 72% feel viewing related products along with the product they intend to buy is “very to somewhat” important to their shopping experience the ARS eCommerce /e-tailing group Online Content Impact Survey Q19

18 Creativity in deployment reinforces brand proposition
Content Elements The Facts Why We Love It Customer Reviews Care Zoom Additional Views

19 Information means product details as well as stock status
-All content elements on the product page matter -Time is spent viewing text (43%), followed by images (31%) and tools (26%) Content Elements Overview Hands-on research Features and specs Accessories Reviews

20 B. Rich Media Merchants have adopted a myriad of “rich” techniques that visually engage, sell and support shopping initiatives

21 How has rich media impacted
Rich media plays an important role in enhancing the customer experience How has rich media impacted each of the following:  Very Effective Somewhat Effective Neutral Somewhat Ineffective Not at all Effective Response % Enhancing the customer experience 22% 30% 12% 1% 65% Increasing conversion rates 13% 28% 20% 63% Increasing average order size 10% 19% 2% 0% 61% Reducing return rates 7% 33% 56% Among those using Rich Media it is still most effective for enhancing the customer experience although the percent ranking it as such dropped to 79% from 85% LY Enhancing the customer experience 79% % Increasing conversion rates 66% % Increasing average order size 47% % Reducing return rates 35% % The e-tailing group 7th Annual Merchant Survey; 2008 Q8

22 the ARS eCommerce /e-tailing group Online Content Impact Survey
A picture is worth a 1000 words 94% consider it “very to somewhat important” when selecting and ultimately purchasing a product Alternative views (88%) and Zoom (85%) rank next in importance Women also rank all of these tools higher than men the ARS eCommerce /e-tailing group Online Content Impact Survey Q12 (Top 2 ranking out of 5)

23 Rich media resonates with shoppers
Content Elements Color change Audio Alternative views Ratings/ Reviews Product Tour Browse more items You may also like recommendations

24 The views make the sale

25 the ARS eCommerce /e-tailing group Online Content Impact Survey
Adopt video successes from the web and turn into selling vehicles When looking at rich media tactics such as video demonstrations and flash images 30% of shoppers are somewhat more likely to buy that product the ARS eCommerce /e-tailing group Online Content Impact Survey

26 Ensure customers are part of the action

27 C. Category/Channel-centric Tools
One’s category is a critical factor moving beyond investing in the basics that can be used to differentiate and elevate your brand

28 the ARS eCommerce /e-tailing group Online Content Impact Survey
Tools are essential to facilitate the buy Ratings and reviews (88%), product guides (87%) and comparison tools (81%) rank most important Over half of those surveyed also rely on demonstrations (55%) and video (51%), both of which we anticipate growing with greater merchant penetration Although the differences are minor, women and men favor different kinds of tools the ARS eCommerce /e-tailing group Online Content Impact Survey Q14 (Top 2 ranking out of 5)

29 Customer control favors edit capabilities
Beyond search compare’s ability to refine the assortment is welcome by shoppers

30 Learning aids make your site a cross-channel resource

31 Syndicated brand content makes selling efficient where brand execution is consistent

32 Consumers gravitate to tools that save time while merchants enjoy an increased AOV

33 D. Integrated Merchandising Content
Integrating strategic elements on the product page and throughout the site experience extends their cross-channel value

34 Branded content can reinforce your value proposition at many customer touch points

35 Integrated offers inspire shoppers

36 Take advantage of retail locators to promote cross-channel activity
From promotions to store events and ultimately inventory access the locator is a multi-purpose destination for cross-channel shoppers

37 Selling should be wisely integrated into your content
42 percent of shoppers spend more than half of their total shopping time researching online Krillion/e-tailing group Web/Store Cross-Channel Shopping Survey; 2008

38 the ARS eCommerce /e-tailing group Online Content Impact Survey
Shoppers seek out customer service information Merchant’s guarantee (95%), helpful links (92%) and stock status (91%) top the list the ARS eCommerce /e-tailing group Online Content Impact Survey

39 Elevate customer service via visual cues

40 Checklist for Comprehensive E-Commerce Content
Product Page Essentials Start with a clear overview of the product Follow up with a long description for those who seek “more information” The quality of the image must be crisp and clear to give a true sense of the merchandise Suggest relevant products via premium real estate including the product page and shopping cart User-generated ratings/reviews add a personal dimension to the shopping experience Stock status should be shown to address any availability challenges Rich Media and Category/Channel-Centric Tools Take advantage of rich media incorporating alternative views, zoom and color change Relevant tools can embellish the basics where product compare and video should be assessed on a category basis Leverage manufacturer content through syndication and other means to extend customer experience Embellish retail locator to drive cross-channel traffic Integrated Merchandising Offers can be integrated effectively throughout the site to trigger the sale Branding and customer service messaging reduces the risk for first time shoppers making your brand more accessible

41 Can you bank on your content?
Lauren Freedman President the e-tailing group, inc


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