CONFIDENTIAL Solving the Online Merchandising Challenge… 1 st May 2008 Frank Lombos – VP EMEA, Fredhopper

Who should be interested?? eCommerce Managers Brand Managers eMarketing Managers

The Challenge…. Getting the right products In front of the right people At the right time….

Merchandising since 1807

The Merchandising Dilemma

Merchandising that Works

Limited Opportunities to Sell Product Presentation Opportunities 1.Customers review 3-5 items per page view 2.Shopping trip includes 5-10 search & browse page views 3.Customers review items per shopping trip Selected From Up To 1,000,000’s Products 1.Categories with 100’s of items 2.Various category roles and priorities 3.Fast growing number of SKUs Reporting Strategy Planning Context

Merchandising Impact on the Business.. Benefit areas Higher Conversion Rates from customers finding what they look for faster Increases Sales per Customer through targeted, personalised onsite merchandising Long Term SearchMerchandising Pain KillerVitamins Short Term Search Only Search & Merchandising Online Sales % More Repeat Customers due to highly satisfied customers who become loyal More Qualified New Traffic coming to the site via targeted online marketing

Real Results Real-time global eBusiness in 60+ countries  One global system  35 languages, 50,000 SKUs  Implemented international merchandising collaboration Delivers superior shopping experience on web and in-store  Superior user-experience, unifying heterogeneous assortment  Deployments on websites, in-store kiosks, and in-store cash registers  Used as core product retrieval system by customers and employees Online conversion increases by +25%  International home shopping leader  20 million online customer queries per month  € 150+ million online sales 33% Reduction in lost searches  #1 catalogue retailer UK with £ 500 million online sales  50% reduction in operational cost

Premium Search & Merchandising Learning Search Understands what people mean, rather than what they say Guided Navigation Intuitive interface to slice & dice through a store in any way you want Effective Merchandising campaigns Promote relevant promotional ideas throughout the shopping experience Targeted Marketing Takes onsite inspiration to online marketing to attract new customers

Search is evolving into a Merchandising Tool “adidas”

Search is evolving into a Merchandising Tool

Commercial, Self-Learning Search Results Rankings

Use Guided Navigation as a Sales Tool

User driven Categorisations

Inspirational Merchandising Theme promotions

Inspirational Merchandising Related item promotion  X-sell  Up-sell  What other people bought  Good, better, best strategies  Colour inspiration

Self-Learning Social Search Results Other People that Searched for this, Bought this Customer Popularity = Usefulness Effectiveness of Linguistic Matching limited in e-Commerce Linguistic similarity ≠ Usefulness Social SearchCurrent

Thank you.. Questions