next generation merchandise recommendation slides 2009

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Next Generation Recommendations The Four Keys To Successful Merchandising Automation Ryan Hoppe Director, Marketing ATG Optimization Services Tom Davis Director of Ecommerce Tommy Hilfiger

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Page 1: Next Generation Merchandise Recommendation Slides 2009

Next Generation RecommendationsThe Four Keys To Successful Merchandising Automation

Ryan HoppeDirector Marketing ATG Optimization Services

Tom DavisDirector of Ecommerce

Tommy Hilfiger

2

Agenda

ATG Background

Why Recommendations

Recommendations or Merchandising Automation

The Four Keys To Successful Automation

Case Study Tommy Hilfiger

Next Steps

QampA

3

The leader in e-Commerce solutions

Over 900 customers worldwide

Headquarters in Cambridge MA with offices throughout North America and Europe

Approximately 500 employees

2008 revenue $1646 million with profitability

1991

Founding

2006

Acquired

1999

IPO

2004

Acquired

(ARTG)

2008

Acquired

ATG Background

4

ATG Product Suite At-a-Glance

Shopping Cart amp Product Catalog

Merchandising amp Searchandising

Commerce Search

Multivariate Testing

Marketing Campaign Manager

Business amp Customer Analytics

Integrated Customer Service

KnowledgeIncident Management

On Demand Commerce Platform

Commerce SuiteLicensed or OnDemand

Automated Recommendations

Click to Call

Click to Chat

Call Tracking

Save amp Send

Form to Phone

Video Connect

e-Commerce Optimization ServicesPlatform-Neutral Services

5

ATG Powers the Worldrsquos Top Brands Online

6

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

What Are Automated Recommendations

7

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

What Are Automated Recommendations

8

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

ldquoLearnrdquo from

customers as they

navigate your site and

refine products based

on changing intent

What Are Automated Recommendations

9

Online Retailers With Personalized Recommendations

100

Why RecommendationsCustomers Like Them

27

Customers Who Like Online Recommendations

76Customers Who Like Personalized Emails

100

63

100

10

November 2008 ldquoThe Impact Of The Economic Crisis On eCommerce Technology Investmentrdquo

Itrsquos a Quick Win

Why Recommendations

11

Why Recommendations

Convert browsers into

buyers by predicting

intent and presenting the

most relevant products

Increase order values

by automating and

personalizing

cross-sells amp up-sells

Retain customers by

personalizing the

cross-channel

shopping experience

Increase Revenue amp Loyalty

Lift Online Revenue Quickly Easily amp Measurably by

Personalizing Product Discovery

12

You Might

Also Likehellip

Others Who

Looked At This

Bought That

Recommendations

Engine

First Gen RecommendersReal Value But Limited Applications

13

Fear of Automating More Than Cross-Sells amp Recommendations

14

Cross-Sells amp

Up-Sells

Personalized

Recommendations

Top Sellers

Gift Guides

Whatrsquos New

On Sale

Automated

Merchandising

Engine

Next Gen RecommendersAutomated Merchandising With Merchants At The Controls

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 2: Next Generation Merchandise Recommendation Slides 2009

2

Agenda

ATG Background

Why Recommendations

Recommendations or Merchandising Automation

The Four Keys To Successful Automation

Case Study Tommy Hilfiger

Next Steps

QampA

3

The leader in e-Commerce solutions

Over 900 customers worldwide

Headquarters in Cambridge MA with offices throughout North America and Europe

Approximately 500 employees

2008 revenue $1646 million with profitability

1991

Founding

2006

Acquired

1999

IPO

2004

Acquired

(ARTG)

2008

Acquired

ATG Background

4

ATG Product Suite At-a-Glance

Shopping Cart amp Product Catalog

Merchandising amp Searchandising

Commerce Search

Multivariate Testing

Marketing Campaign Manager

Business amp Customer Analytics

Integrated Customer Service

KnowledgeIncident Management

On Demand Commerce Platform

Commerce SuiteLicensed or OnDemand

Automated Recommendations

Click to Call

Click to Chat

Call Tracking

Save amp Send

Form to Phone

Video Connect

e-Commerce Optimization ServicesPlatform-Neutral Services

5

ATG Powers the Worldrsquos Top Brands Online

6

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

What Are Automated Recommendations

7

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

What Are Automated Recommendations

8

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

ldquoLearnrdquo from

customers as they

navigate your site and

refine products based

on changing intent

What Are Automated Recommendations

9

Online Retailers With Personalized Recommendations

100

Why RecommendationsCustomers Like Them

27

Customers Who Like Online Recommendations

76Customers Who Like Personalized Emails

100

63

100

10

November 2008 ldquoThe Impact Of The Economic Crisis On eCommerce Technology Investmentrdquo

Itrsquos a Quick Win

Why Recommendations

11

Why Recommendations

Convert browsers into

buyers by predicting

intent and presenting the

most relevant products

Increase order values

by automating and

personalizing

cross-sells amp up-sells

Retain customers by

personalizing the

cross-channel

shopping experience

Increase Revenue amp Loyalty

Lift Online Revenue Quickly Easily amp Measurably by

Personalizing Product Discovery

12

You Might

Also Likehellip

Others Who

Looked At This

Bought That

Recommendations

Engine

First Gen RecommendersReal Value But Limited Applications

13

Fear of Automating More Than Cross-Sells amp Recommendations

14

Cross-Sells amp

Up-Sells

Personalized

Recommendations

Top Sellers

Gift Guides

Whatrsquos New

On Sale

Automated

Merchandising

Engine

Next Gen RecommendersAutomated Merchandising With Merchants At The Controls

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 3: Next Generation Merchandise Recommendation Slides 2009

3

The leader in e-Commerce solutions

Over 900 customers worldwide

Headquarters in Cambridge MA with offices throughout North America and Europe

Approximately 500 employees

2008 revenue $1646 million with profitability

1991

Founding

2006

Acquired

1999

IPO

2004

Acquired

(ARTG)

2008

Acquired

ATG Background

4

ATG Product Suite At-a-Glance

Shopping Cart amp Product Catalog

Merchandising amp Searchandising

Commerce Search

Multivariate Testing

Marketing Campaign Manager

Business amp Customer Analytics

Integrated Customer Service

KnowledgeIncident Management

On Demand Commerce Platform

Commerce SuiteLicensed or OnDemand

Automated Recommendations

Click to Call

Click to Chat

Call Tracking

Save amp Send

Form to Phone

Video Connect

e-Commerce Optimization ServicesPlatform-Neutral Services

5

ATG Powers the Worldrsquos Top Brands Online

6

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

What Are Automated Recommendations

7

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

What Are Automated Recommendations

8

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

ldquoLearnrdquo from

customers as they

navigate your site and

refine products based

on changing intent

What Are Automated Recommendations

9

Online Retailers With Personalized Recommendations

100

Why RecommendationsCustomers Like Them

27

Customers Who Like Online Recommendations

76Customers Who Like Personalized Emails

100

63

100

10

November 2008 ldquoThe Impact Of The Economic Crisis On eCommerce Technology Investmentrdquo

Itrsquos a Quick Win

Why Recommendations

11

Why Recommendations

Convert browsers into

buyers by predicting

intent and presenting the

most relevant products

Increase order values

by automating and

personalizing

cross-sells amp up-sells

Retain customers by

personalizing the

cross-channel

shopping experience

Increase Revenue amp Loyalty

Lift Online Revenue Quickly Easily amp Measurably by

Personalizing Product Discovery

12

You Might

Also Likehellip

Others Who

Looked At This

Bought That

Recommendations

Engine

First Gen RecommendersReal Value But Limited Applications

13

Fear of Automating More Than Cross-Sells amp Recommendations

14

Cross-Sells amp

Up-Sells

Personalized

Recommendations

Top Sellers

Gift Guides

Whatrsquos New

On Sale

Automated

Merchandising

Engine

Next Gen RecommendersAutomated Merchandising With Merchants At The Controls

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 4: Next Generation Merchandise Recommendation Slides 2009

4

ATG Product Suite At-a-Glance

Shopping Cart amp Product Catalog

Merchandising amp Searchandising

Commerce Search

Multivariate Testing

Marketing Campaign Manager

Business amp Customer Analytics

Integrated Customer Service

KnowledgeIncident Management

On Demand Commerce Platform

Commerce SuiteLicensed or OnDemand

Automated Recommendations

Click to Call

Click to Chat

Call Tracking

Save amp Send

Form to Phone

Video Connect

e-Commerce Optimization ServicesPlatform-Neutral Services

5

ATG Powers the Worldrsquos Top Brands Online

6

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

What Are Automated Recommendations

7

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

What Are Automated Recommendations

8

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

ldquoLearnrdquo from

customers as they

navigate your site and

refine products based

on changing intent

What Are Automated Recommendations

9

Online Retailers With Personalized Recommendations

100

Why RecommendationsCustomers Like Them

27

Customers Who Like Online Recommendations

76Customers Who Like Personalized Emails

100

63

100

10

November 2008 ldquoThe Impact Of The Economic Crisis On eCommerce Technology Investmentrdquo

Itrsquos a Quick Win

Why Recommendations

11

Why Recommendations

Convert browsers into

buyers by predicting

intent and presenting the

most relevant products

Increase order values

by automating and

personalizing

cross-sells amp up-sells

Retain customers by

personalizing the

cross-channel

shopping experience

Increase Revenue amp Loyalty

Lift Online Revenue Quickly Easily amp Measurably by

Personalizing Product Discovery

12

You Might

Also Likehellip

Others Who

Looked At This

Bought That

Recommendations

Engine

First Gen RecommendersReal Value But Limited Applications

13

Fear of Automating More Than Cross-Sells amp Recommendations

14

Cross-Sells amp

Up-Sells

Personalized

Recommendations

Top Sellers

Gift Guides

Whatrsquos New

On Sale

Automated

Merchandising

Engine

Next Gen RecommendersAutomated Merchandising With Merchants At The Controls

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 5: Next Generation Merchandise Recommendation Slides 2009

5

ATG Powers the Worldrsquos Top Brands Online

6

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

What Are Automated Recommendations

7

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

What Are Automated Recommendations

8

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

ldquoLearnrdquo from

customers as they

navigate your site and

refine products based

on changing intent

What Are Automated Recommendations

9

Online Retailers With Personalized Recommendations

100

Why RecommendationsCustomers Like Them

27

Customers Who Like Online Recommendations

76Customers Who Like Personalized Emails

100

63

100

10

November 2008 ldquoThe Impact Of The Economic Crisis On eCommerce Technology Investmentrdquo

Itrsquos a Quick Win

Why Recommendations

11

Why Recommendations

Convert browsers into

buyers by predicting

intent and presenting the

most relevant products

Increase order values

by automating and

personalizing

cross-sells amp up-sells

Retain customers by

personalizing the

cross-channel

shopping experience

Increase Revenue amp Loyalty

Lift Online Revenue Quickly Easily amp Measurably by

Personalizing Product Discovery

12

You Might

Also Likehellip

Others Who

Looked At This

Bought That

Recommendations

Engine

First Gen RecommendersReal Value But Limited Applications

13

Fear of Automating More Than Cross-Sells amp Recommendations

14

Cross-Sells amp

Up-Sells

Personalized

Recommendations

Top Sellers

Gift Guides

Whatrsquos New

On Sale

Automated

Merchandising

Engine

Next Gen RecommendersAutomated Merchandising With Merchants At The Controls

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 6: Next Generation Merchandise Recommendation Slides 2009

6

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

What Are Automated Recommendations

7

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

What Are Automated Recommendations

8

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

ldquoLearnrdquo from

customers as they

navigate your site and

refine products based

on changing intent

What Are Automated Recommendations

9

Online Retailers With Personalized Recommendations

100

Why RecommendationsCustomers Like Them

27

Customers Who Like Online Recommendations

76Customers Who Like Personalized Emails

100

63

100

10

November 2008 ldquoThe Impact Of The Economic Crisis On eCommerce Technology Investmentrdquo

Itrsquos a Quick Win

Why Recommendations

11

Why Recommendations

Convert browsers into

buyers by predicting

intent and presenting the

most relevant products

Increase order values

by automating and

personalizing

cross-sells amp up-sells

Retain customers by

personalizing the

cross-channel

shopping experience

Increase Revenue amp Loyalty

Lift Online Revenue Quickly Easily amp Measurably by

Personalizing Product Discovery

12

You Might

Also Likehellip

Others Who

Looked At This

Bought That

Recommendations

Engine

First Gen RecommendersReal Value But Limited Applications

13

Fear of Automating More Than Cross-Sells amp Recommendations

14

Cross-Sells amp

Up-Sells

Personalized

Recommendations

Top Sellers

Gift Guides

Whatrsquos New

On Sale

Automated

Merchandising

Engine

Next Gen RecommendersAutomated Merchandising With Merchants At The Controls

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 7: Next Generation Merchandise Recommendation Slides 2009

7

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

What Are Automated Recommendations

8

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

ldquoLearnrdquo from

customers as they

navigate your site and

refine products based

on changing intent

What Are Automated Recommendations

9

Online Retailers With Personalized Recommendations

100

Why RecommendationsCustomers Like Them

27

Customers Who Like Online Recommendations

76Customers Who Like Personalized Emails

100

63

100

10

November 2008 ldquoThe Impact Of The Economic Crisis On eCommerce Technology Investmentrdquo

Itrsquos a Quick Win

Why Recommendations

11

Why Recommendations

Convert browsers into

buyers by predicting

intent and presenting the

most relevant products

Increase order values

by automating and

personalizing

cross-sells amp up-sells

Retain customers by

personalizing the

cross-channel

shopping experience

Increase Revenue amp Loyalty

Lift Online Revenue Quickly Easily amp Measurably by

Personalizing Product Discovery

12

You Might

Also Likehellip

Others Who

Looked At This

Bought That

Recommendations

Engine

First Gen RecommendersReal Value But Limited Applications

13

Fear of Automating More Than Cross-Sells amp Recommendations

14

Cross-Sells amp

Up-Sells

Personalized

Recommendations

Top Sellers

Gift Guides

Whatrsquos New

On Sale

Automated

Merchandising

Engine

Next Gen RecommendersAutomated Merchandising With Merchants At The Controls

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 8: Next Generation Merchandise Recommendation Slides 2009

8

Utilize data from the

catalog historical

shopping information

click-stream data

Web site and more to

predict each

shopperrsquos intent in

each session

Deliverpersonalized

recommendations

amp merchandise on

your Web site and

in other online

channels

ldquoLearnrdquo from

customers as they

navigate your site and

refine products based

on changing intent

What Are Automated Recommendations

9

Online Retailers With Personalized Recommendations

100

Why RecommendationsCustomers Like Them

27

Customers Who Like Online Recommendations

76Customers Who Like Personalized Emails

100

63

100

10

November 2008 ldquoThe Impact Of The Economic Crisis On eCommerce Technology Investmentrdquo

Itrsquos a Quick Win

Why Recommendations

11

Why Recommendations

Convert browsers into

buyers by predicting

intent and presenting the

most relevant products

Increase order values

by automating and

personalizing

cross-sells amp up-sells

Retain customers by

personalizing the

cross-channel

shopping experience

Increase Revenue amp Loyalty

Lift Online Revenue Quickly Easily amp Measurably by

Personalizing Product Discovery

12

You Might

Also Likehellip

Others Who

Looked At This

Bought That

Recommendations

Engine

First Gen RecommendersReal Value But Limited Applications

13

Fear of Automating More Than Cross-Sells amp Recommendations

14

Cross-Sells amp

Up-Sells

Personalized

Recommendations

Top Sellers

Gift Guides

Whatrsquos New

On Sale

Automated

Merchandising

Engine

Next Gen RecommendersAutomated Merchandising With Merchants At The Controls

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 9: Next Generation Merchandise Recommendation Slides 2009

9

Online Retailers With Personalized Recommendations

100

Why RecommendationsCustomers Like Them

27

Customers Who Like Online Recommendations

76Customers Who Like Personalized Emails

100

63

100

10

November 2008 ldquoThe Impact Of The Economic Crisis On eCommerce Technology Investmentrdquo

Itrsquos a Quick Win

Why Recommendations

11

Why Recommendations

Convert browsers into

buyers by predicting

intent and presenting the

most relevant products

Increase order values

by automating and

personalizing

cross-sells amp up-sells

Retain customers by

personalizing the

cross-channel

shopping experience

Increase Revenue amp Loyalty

Lift Online Revenue Quickly Easily amp Measurably by

Personalizing Product Discovery

12

You Might

Also Likehellip

Others Who

Looked At This

Bought That

Recommendations

Engine

First Gen RecommendersReal Value But Limited Applications

13

Fear of Automating More Than Cross-Sells amp Recommendations

14

Cross-Sells amp

Up-Sells

Personalized

Recommendations

Top Sellers

Gift Guides

Whatrsquos New

On Sale

Automated

Merchandising

Engine

Next Gen RecommendersAutomated Merchandising With Merchants At The Controls

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 10: Next Generation Merchandise Recommendation Slides 2009

10

November 2008 ldquoThe Impact Of The Economic Crisis On eCommerce Technology Investmentrdquo

Itrsquos a Quick Win

Why Recommendations

11

Why Recommendations

Convert browsers into

buyers by predicting

intent and presenting the

most relevant products

Increase order values

by automating and

personalizing

cross-sells amp up-sells

Retain customers by

personalizing the

cross-channel

shopping experience

Increase Revenue amp Loyalty

Lift Online Revenue Quickly Easily amp Measurably by

Personalizing Product Discovery

12

You Might

Also Likehellip

Others Who

Looked At This

Bought That

Recommendations

Engine

First Gen RecommendersReal Value But Limited Applications

13

Fear of Automating More Than Cross-Sells amp Recommendations

14

Cross-Sells amp

Up-Sells

Personalized

Recommendations

Top Sellers

Gift Guides

Whatrsquos New

On Sale

Automated

Merchandising

Engine

Next Gen RecommendersAutomated Merchandising With Merchants At The Controls

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 11: Next Generation Merchandise Recommendation Slides 2009

11

Why Recommendations

Convert browsers into

buyers by predicting

intent and presenting the

most relevant products

Increase order values

by automating and

personalizing

cross-sells amp up-sells

Retain customers by

personalizing the

cross-channel

shopping experience

Increase Revenue amp Loyalty

Lift Online Revenue Quickly Easily amp Measurably by

Personalizing Product Discovery

12

You Might

Also Likehellip

Others Who

Looked At This

Bought That

Recommendations

Engine

First Gen RecommendersReal Value But Limited Applications

13

Fear of Automating More Than Cross-Sells amp Recommendations

14

Cross-Sells amp

Up-Sells

Personalized

Recommendations

Top Sellers

Gift Guides

Whatrsquos New

On Sale

Automated

Merchandising

Engine

Next Gen RecommendersAutomated Merchandising With Merchants At The Controls

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 12: Next Generation Merchandise Recommendation Slides 2009

12

You Might

Also Likehellip

Others Who

Looked At This

Bought That

Recommendations

Engine

First Gen RecommendersReal Value But Limited Applications

13

Fear of Automating More Than Cross-Sells amp Recommendations

14

Cross-Sells amp

Up-Sells

Personalized

Recommendations

Top Sellers

Gift Guides

Whatrsquos New

On Sale

Automated

Merchandising

Engine

Next Gen RecommendersAutomated Merchandising With Merchants At The Controls

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 13: Next Generation Merchandise Recommendation Slides 2009

13

Fear of Automating More Than Cross-Sells amp Recommendations

14

Cross-Sells amp

Up-Sells

Personalized

Recommendations

Top Sellers

Gift Guides

Whatrsquos New

On Sale

Automated

Merchandising

Engine

Next Gen RecommendersAutomated Merchandising With Merchants At The Controls

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 14: Next Generation Merchandise Recommendation Slides 2009

14

Cross-Sells amp

Up-Sells

Personalized

Recommendations

Top Sellers

Gift Guides

Whatrsquos New

On Sale

Automated

Merchandising

Engine

Next Gen RecommendersAutomated Merchandising With Merchants At The Controls

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 15: Next Generation Merchandise Recommendation Slides 2009

15

Value of Automated Merchandising

Customer Use Case

Conversion Rate

Increase Over

Site Average

AOV Increase

Over Site

Average

Retailer 1Cross-Sells on Product

Detail Pages76 8

Retailer 2

Automated Cross-Sells

Up-Sells Top Sellers Null

Search Results Pages

Shopping Cart Cross-

Sells etc

160 20

More Than Double The Impact Of Automating Cross-Sells

Data from two ATG Recommendations customers over a three month period

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 16: Next Generation Merchandise Recommendation Slides 2009

16

Four Keys To Success For Next Gen Recommendations

3

2

4

1

Reach

Can the solution reach across my catalog site and channels

Relevancy

How relevant are the products to each visitor

Relationship

Does the provider offer a relationship focused on my needs as a retailer

Refinement

Can I refine or ldquofilterrdquo products before they are shown

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 17: Next Generation Merchandise Recommendation Slides 2009

17

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 18: Next Generation Merchandise Recommendation Slides 2009

18

1

First Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Fail To Utilize All Data

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 19: Next Generation Merchandise Recommendation Slides 2009

19

1

First Gen Recommenders Fail To Utilize All Data

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 20: Next Generation Merchandise Recommendation Slides 2009

20

1

Second Gen Recommenders

Product

Details

Session

Stats

Historical

Data

Visitor

Behavior

Relevancy

Utilize All Data To Make Predictive Choices

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 21: Next Generation Merchandise Recommendation Slides 2009

21

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Second Gen Recommenders Understand Your Catalog amp Shoppers

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

Relevancy

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 22: Next Generation Merchandise Recommendation Slides 2009

22

Products Viewed

Ratings

Brand amp Manufacturer

Descriptions

Product in Catalog Location

Type of URL Page

Refer URL

Broadband Speed

IP AddressGeography

Past Shopping Behavior

Visitorrsquos Past Searches

Aggregated Past Behavior

Searches

Clickstream

Order of Page Views

Duration of Page Views

Visitor

Behavior

Historical

Data

Product

Details

Session

Stats

1

RelevancySecond Gen Recommenders Get Smarter Over Time

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 23: Next Generation Merchandise Recommendation Slides 2009

23

First Gen Recommenders2

Refinement

Canrsquot Control

The Science

or Execute

Merchandising

Strategy

ldquoBlack Boxrdquo With Limited or No Control

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 24: Next Generation Merchandise Recommendation Slides 2009

24

1

Second Gen Recommenders

CatalogRefinements

Rich Merchant Control amp Refinement

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 25: Next Generation Merchandise Recommendation Slides 2009

25

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

Second Gen RecommendersRich Merchant Control amp Refinement

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 26: Next Generation Merchandise Recommendation Slides 2009

26

1 2

Cross-sell

Up-sell

Page Type

Keyword

Cart Value

Product Value

CatalogRefinements

Blended Refinements

2

Refinement

Category

Brand

Price

Collection

Top Seller

New

Fixed

SessionRefinements

3

Second Gen RecommendersRich Merchant Control amp Refinement

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 27: Next Generation Merchandise Recommendation Slides 2009

2727

3Reach

First gen solutions canrsquot reach into the product catalog

ndash Only learn products through shoppersrsquo activity

ndash Canrsquot recommend new

ndash Biased towards popular items

Or reach customers wherever they shop

ndash Across the site

ndash Across formats

ndash Across channels

First Gen Solutions

First Gen Recommenders Lack of Reach

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 28: Next Generation Merchandise Recommendation Slides 2009

2828

3Reach

Reach across and understand the complete catalog

ndash Form detailed product relationships

ndash Categories brands prices descriptions

ndash Can recommend any product (new niche popular)

Reach customers wherever you sell

ndash Across the online store

ndash Into emails

ndash Into rich media

ndash Across channels

New

Niche

Second Gen Recommenders Reach Across The Catalog Site amp Channels

Second Gen Solutions

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 29: Next Generation Merchandise Recommendation Slides 2009

29

Canrsquot Provide a Total eCommerce

Solution

Start-ups With Limited Resources

Focused On Multiple

Industries

4RelationshipFirst Gen Recommenders Lack a Retail-Focused Relationship

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 30: Next Generation Merchandise Recommendation Slides 2009

30

Tune relevancy

Measure results with AB testing

Demonstrate impact with Web-based reports

Retail-Focused Roadmap

Retail-Focused Client Service

Retail-Focused Statisticians

Monitor impact to improve performance

Analyze trends to inform merchandising strategy

Focused on needs of online retailers

Family of Web optimization services

Next generation personalized cross-channel commerce

4RelationshipSecond Gen Recommenders The Retail Relationship You Need

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 31: Next Generation Merchandise Recommendation Slides 2009

ATG Recommendations

Shoptommycom Holiday 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 32: Next Generation Merchandise Recommendation Slides 2009

ATG Recommendations Webinar | June 18 2009 | Confidential

Tommy Hilfiger

Tom Davis

Director of Ecommerce

tomdavistommy-usacom

Went live with ATG in November 2007

ndash OnDemand client

ndash ATG Recommendations Fall 2008

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 33: Next Generation Merchandise Recommendation Slides 2009

ATG Recommendations Webinar | June 18 2009 | Confidential

Business Case

Shoptommycom represented several full collections including

Sportswear Collection (men and women)

Hilfiger Denim Collection (men and women)

Kids Collections (boys and girls)

Various accessories (men women and kids)

Each new style required recommended products (cross sells up-sells recommendations) associated to it and we didnrsquot have the manpower to keep up

Wanted to take advantage of the holiday season (2008)

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 34: Next Generation Merchandise Recommendation Slides 2009

ATG Recommendations Webinar | June 18 2009 | Confidential

Challenge

THUSA needed an efficient process to offer recommended products to customers -- (cross sells up-sells recommendations)

How could the ecommerce team unlock the hidden value of their entire catalog and create more appropriate recommendations (Reach)

How could the ecommerce team automate the process for improving and introducing updates to their recommendations ie create value (Refinement)

The end goal should be to provide relevant results to the customer (Relevancy)

How could the ecommerce team minimize time and effort inside the BCC by working with ATG and their recommendation team (Relationship)

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 35: Next Generation Merchandise Recommendation Slides 2009

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Product Page

Included ATG recommendation engine on every product page

Optimized the code and catalog feed for 30 days (Fall 2008)

After one month analyzed data and engaged in next steps

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 36: Next Generation Merchandise Recommendation Slides 2009

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 1 Results

Implementation time was less than four weeks

Two weeks to create and approve data feed between our site catalog and the

recommendation engine

Two weeks to gather sitecustomer behavior

Impact was immediate

13 of revenue ldquotouchedrdquo the recommended products

AOV lift was 12

Conversion rate lift was 163

Contributed incremental +135 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 37: Next Generation Merchandise Recommendation Slides 2009

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 38: Next Generation Merchandise Recommendation Slides 2009

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo

checkout

ldquoNo Resultrdquo Search

results page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 39: Next Generation Merchandise Recommendation Slides 2009

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 2 Reach

Spent two weeks analyzing data

and developing new campaigns

Top sales products

Top Sellers

Accessories

Gift Guide

ldquoLast chancerdquo checkout

ldquoNo Resultrdquo Search results

page

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 40: Next Generation Merchandise Recommendation Slides 2009

ATG Recommendations Webinar | June 18 2009 | Confidential

Phased 2 Results

Impact was immediate

35 of revenue ldquotouchedrdquo the recommended products

AOV lift was flat

Conversion rate lift was 204

Contributed incremental +30 top line revenue

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 41: Next Generation Merchandise Recommendation Slides 2009

ATG Recommendations Webinar | June 18 2009 | Confidential

Phase 3 Offsite Programs

Integrating recommendation engine into

ldquooff siterdquo programs

Email

Confirmation emails

Newsletter sign ups

etc

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 42: Next Generation Merchandise Recommendation Slides 2009

ATG Recommendations Webinar | June 18 2009 | Confidential

Conclusion

Reach

Ability to unlock entire catalog

beyond the product pages

Offering recommendations in email

and other outreach programs

Refinement

ATG recommendations ldquolearnsrdquo

constantly refining based on dozens

of variables

Relevancy

Timely and relevant

recommendations creates value in

product relationships that are not

intuitive to merchants

Relationship

Recommendation team works in

tandem to identify and define future

campaigns (rule sets)

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 43: Next Generation Merchandise Recommendation Slides 2009

ATG Recommendations Webinar | June 18 2009 | Confidential

Questions to ask yourself

How are you going to determine

success

AOV

Contribution margin

Conversion

Time on site

Investment

How to measure ROI

Man power v technology

Control

How much control do you want

How far do you want to reach

Product pages

Category pages

Email

Automated campaigns social

media etc

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You

Page 44: Next Generation Merchandise Recommendation Slides 2009

View the ATG Recommendations Demo at

wwwatgcomrecommendations-demo

Or contact us at salesatgcom

Thank You