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

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

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

4. Merchandising since 1807

5. The Merchandising Dilemma

6. Merchandising that Works

7. Limited Opportunities to Sell 15-30 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 15-30 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

8. 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 +10-40% More Repeat Customers due to highly satisfied customers who become loyal More Qualified New Traffic coming to the site via targeted online marketing

9. 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

10. 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 3 3 4 4 2 2 1 1

11. Search is evolving into a Merchandising Tool “adidas”

12. Search is evolving into a Merchandising Tool

13. Commercial, Self-Learning Search Results Rankings

14. Use Guided Navigation as a Sales Tool

15. User driven Categorisations

16. Inspirational Merchandising Theme promotions

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

18. 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

19. Thank you.. Questions