ACTIVATE YOUR RANGE ONLINE DYNAMIC MERCHANDISING

Stefano Girolimetto The North Face & Vans

Jeremy Glass Permission

!   Merchandising: The art of Personalization !   The Social Graph of Shopping !   Implementing personalization

Vans & The North Face case !   Conclusions

TODAY’S PRESENTATION

RELEVANCY DRIVES VALUE

Maximizing revenues for online retailers & brands

while

Minimizing information irrelevancy

for consumers

THE PURPOSE OF PERSONALIZATION

Demographic

!   Age !   Gender !   Location !   Browser

“24 year old Male from Sydney using Internet Explorer”

Behavioral

!   Search !   Click !   Add-to-cart !   Purchase

“Most recent purchase: surfboard”

TWO APPROACHES

Which products are most relevant to this individual

consumer, right now?

Which consumers are likely to be interested in this type of

product or brand?

THE SOCIAL SHOPPING GRAPH

VISITS

CARTS

ORDERS

DISPLAYS

CLICKS

PERSONALIZED COMMERCE

ADVERTISING, MERCHANDISING & RETENTION

RETENTION

NOT JUST FOR MERCHANDISING USE

Launch of The North Face in “startup style” 31% increase Y/Y with 3 local stores Re-launch, expansion in new countries Launch of Vans with 6 local stores

End 2009 End 2011 March 2012 July 2012

Focus on customer centric approach

Personalization of the whole experience

VANS & THE NORTH FACE ONLINE

A Challenge

Two Objectives

Three Goals

Pan-European multichannel project in different languages and currencies

Automate merchandising with a varied assortment Create a personalized and localized experience

Leverage, expose a broader assortment Drive incremental revenue Personalize experience for product research

BUSINESS REQUIREMENTS

BEST PRACTICE ETAILING

ATTRACT

CONVERT

UPSELL

CROSS-SELL

RETAIN

SHOPPERBEHAVIOR

(PERSONALIZEDNEWSLETTERS)

(PERSONALIZEDADVERTISEMENTS)

PERSONALIZEDLANDING PAGES

“People who came here searching for ...,

ended up buying ...”

PERSONALIZEDSEARCH PAGES

“People searching for ...ended up buying ...”

PERSONALIZEDCATEGORY PAGES

“People who viewed the items you have, also considered ...”

PERSONALIZEDPRODUCT PAGES

“People who viewed this item, also considered ..:”

PERSONALIZEDADD-TO-CART PAGES

“People who bought this item, also bought ..:”

PERSONALIZEDCHECKOUT PAGES

“People who bought the items in your cart,

also ordered ..:”

PERSONALIZEDPERSONAL PAGES

“Welcome back! People who bought the items you have,

also bought ...”

!   Improvement in product photos ! Inspirational videos about key

products !   Landing pages with multimedia

elements

EXECUTION & RESULTS - 1 Better user engagement

!   Specific banners per local site in multiple key pages

!   Each local store is managed separately from the others

!   Multiple logic per banner based on customer behavior

How we faced the challenge

EXECUTION & RESULTS - 2

EXAMPLES – Product Pages !   Combination of

browsing and

purchasing history

recommendations

!   Increase visibility,

up-sells and cross-

sells based on user

preferences

EXAMPLES – Category Pages !   Logics restricted to category/gender to increase relevancy

!   Business rules allow to achieve brand-specific goals

!   Recommendations generated 150K banner clicks in 3 months

!   Product visibility greatly improved, 2.5% CTR last 3 months

!   Selling a broader assortment, AOV +15% and UPT +6% Y/Y

!   Contribution to a 115% incremental revenue (90% comp) Y/Y

Results we achieved

EXECUTION & RESULTS - 3

!   Personalization requires dedication and investment...

!   ... but it strengthens the brand across all channels

!   Incremental continuous improvements make the difference

!   Recommendations without strategy are inefficient

!   Tailoring the experience to each user is powerful

WHAT WE LEARNED

!   Explore new areas of use with landing pages, e-mails,

marketing pages, campaigns

!   Leverage new data sources like social media, product

reviews, retailer websites

!   Tailor the experience to the user and exploit new

personalization logic

NEVER STOP EXPLORING

!   You are what you buy

!   Personalization works

!   Never stop exploring

CONCLUSIONS

FIND OUT MORE – ASK PERMISSION

- AVAIL Exclusive Australian partner

- Visit stand 1400 opposite

conference entrance

- Pick-up merchandising report

- Call (02) 8024 5400

- Visit www.avail.net

Thank you