What E-Retailers Must Know About How Shoppers Use Their Sites MarketLive Performance Index July 2007

Web Analytics in Use Overwhelming volume of data Identifying actionable metrics Taking action on findings Establishing concrete benchmarks to measure progress and improvements Site Specific Competitive Landscape Daily Challenges for Web Merchants

Overwhelming volume of data

Identifying actionable metrics

Taking action on findings

Establishing concrete benchmarks to measure progress and improvements

Site Specific

Competitive Landscape

Web Analytics in Use “ The Conversion Rate is seriously flawed in that it does not lead directly to any kind of tangible improvement in a Web site's customer experience. It's too ambiguous and too binary — it's either ‘up’ or ‘down’ — to be directly relevant.” Forrester Research

Competitive Benchmark: Pulse of E-retailing Provides e-commerce benchmark data from robust set of MarketLive merchants Online Revenue Earning from $2M - $200M Business Type Cataloger Brand Manufacturer Brick & Mortar Retailer Online Pure Play Categories Apparel, Accessories & Footwear Home Furnishing & Decor Health & Beauty Gifts MarketLive Performance Index Source: MarketLive 100 Index, June 2007

Provides e-commerce benchmark data from robust set of MarketLive merchants

Online Revenue

Earning from $2M - $200M

Business Type

Cataloger

Brand Manufacturer

Brick & Mortar Retailer

Online Pure Play

Categories

Apparel, Accessories & Footwear

Home Furnishing & Decor

Health & Beauty

Gifts

Competitive Benchmark: Pulse of E-retailing Provides a holistic view of consumer behavior online Benchmarks standard KPIs Exposes under valued and overlooked metrics Publicly available, published quarterly at www.marketlive.com Highlights specific verticals and categories Tied to Intelligent Selling Tactics MarketLive Performance Index Source: MarketLive Performance Index, June 2007

Provides a holistic view of consumer behavior online

Benchmarks standard KPIs

Exposes under valued and overlooked metrics

Publicly available, published quarterly at www.marketlive.com

Highlights specific verticals and categories

Tied to Intelligent Selling Tactics

Reducing the “1-and-Out”

Reducing the “1-and-Out” 1-and-Out Rate Percentage of single-page visits on the site Goal: A low number Factors Affecting the 1-and-Out Customer expectations (4-second rule) Site/Brand Credibility Site Design & Performance Meeting user goals Can target users easily recognize whether visit goals can be met? Source of traffic Consistent marketing/promotional messaging on landing page 33% of visits end after just one page

1-and-Out Rate

Percentage of single-page visits on the site

Goal: A low number

Factors Affecting the 1-and-Out

Customer expectations (4-second rule)

Site/Brand Credibility

Site Design & Performance

Meeting user goals

Can target users easily recognize whether visit goals can be met?

Source of traffic

Consistent marketing/promotional messaging on landing page

Reducing the “1-and-Out” Home Page Effectiveness Home page typically represents the highest percentage of single-page visits on Web site Cater to multiple shopping behaviors and needs Intelligent Selling Tactic #1 … consistently provided a broader mix of relevant merchandising targeted at core customer segments. Top MarketLive Performers

Home Page Effectiveness

Home page typically represents the highest percentage of single-page visits on Web site

Cater to multiple shopping behaviors and needs

… consistently provided a broader mix of relevant merchandising targeted at core customer segments.

Reducing the “1-and-Out” MarketLive Index Top Performer Do you know how your most value customers like to shop?

Do you know how your most value customers like to shop?

Reducing the “1-and-Out” MarketLive Index Top Performers Merchandising must convey directive call-to-action; focus on specific user benefits Intelligent Selling Tactic #2

Merchandising must convey directive call-to-action; focus on specific user benefits

Reducing the “1-and-Out” Beyond the Home Page *Source: MarketLive Performance Index, June 2007 Look for spikes in single-page visits that might signal an ineffective paid search campaign, natural search results link or affiliate referral. Intelligent Selling Tactic #3 75% of single page visits occur beyond the home page*

Beyond the Home Page

Look for spikes in single-page visits that might signal an ineffective paid search campaign, natural search results link or affiliate referral.

Reducing the “1-and-Out” Marketing Effectiveness - Paid Search Analysis Highly targeted search term: “skort” Strong/elevated paid ad placement Effective ad copy *Source: MarketLive Performance Index, June 2007 Paid Search result for “skort”

Marketing Effectiveness - Paid Search Analysis

Highly targeted search term: “skort”

Strong/elevated paid ad placement

Effective ad copy

Reducing the “1-and-Out” Marketing Effectiveness -Paid Search Analysis Skorts category page has site’s highest “1-and-out” rate Issue: existing category landing page does not effectively express the merchants depth of product selection Landing page for paid search ad: “skort”

Marketing Effectiveness -Paid Search Analysis

Skorts category page has site’s highest “1-and-out” rate

Issue: existing category landing page does not effectively express the merchants depth of product selection

Reducing the “1-and-Out” Marketing Effectiveness - Paid Search Analysis Linking directly to the product detail page supports the paid ad promise of available “…in a variety of colors…” Take advantage of cross-sell opportunities to promote additional print styles Lead your users to the most relevant landing page Intelligent Selling Tactic #4

Marketing Effectiveness - Paid Search Analysis

Linking directly to the product detail page supports the paid ad promise of available “…in a variety of colors…”

Take advantage of cross-sell opportunities to promote additional print styles

Lead your users to the most relevant landing page

Reducing the “1-and-Out” Marketing Effectiveness - Paid Search Analysis Highlight the variety of colors & prints available, with merchandising text or additional imagery Call out availability of additional SKU options on the directory page: “More Colors Available” Consistently communicate marketing/promotional messaging on landing pages Intelligent Selling Tactic #5 Available in a dozen colors and prints More colors available

Marketing Effectiveness - Paid Search Analysis

Highlight the variety of colors & prints available, with merchandising text or additional imagery

Call out availability of additional SKU options on the directory page: “More Colors Available”

Consistently communicate marketing/promotional messaging on landing pages

Converting Browsers to Shoppers

Visit-to-Cart Rate (Customer Engagement Rate) Measures the percentage of visits that lead to an open cart Why it is important Converting Browsers to Shoppers What are the shoppers’ expectations? Do paid search or email marketing campaigns match messaging that’s actually on the site? Does merchandising match shoppers’ needs? Does the site engage users beyond the home page? Is product content relevant and useful? Are promotions timely & targeted to key customer? Does the shopper trust the brand? Does the shopper have concerns about security and online shopping? Is pricing in line with customer expectations? Are shipping and handling charges appropriate? Does the checkout process allay shoppers’ privacy and security concerns? What are the return policies? Does the shopper have concerns about security and online shopping? Is pricing in line with customer expectations? Are shipping and handling charges appropriate? Does the checkout process allay shoppers’ privacy and security concerns? What are the return policies? Can shoppers easily find the products most relevant to their needs? Does the merchandising engage multiple types of shoppers? Does the site engage the user from the home page onwards? Is product content relevant and useful? Are promotions timely and targeted to key customer interests? A pure indicator of the effectiveness of your site’s design, product mix, merchandising, and content to engage the user

Visit-to-Cart Rate (Customer Engagement Rate)

Measures the percentage of visits that lead to an open cart

Why it is important

What are the shoppers’ expectations?

Do paid search or email marketing campaigns match messaging that’s actually on the site?

Does merchandising match shoppers’ needs?

Does the site engage users beyond the home page?

Is product content relevant and useful?

Are promotions timely & targeted to key customer?

Does the shopper trust the brand?

Does the shopper have concerns about security and online shopping?

Is pricing in line with customer expectations?

Are shipping and handling charges appropriate?

Does the checkout process allay shoppers’ privacy and security concerns?

What are the return policies?

Does the shopper have concerns about security and online shopping?

Is pricing in line with customer expectations?

Are shipping and handling charges appropriate?

Does the checkout process allay shoppers’ privacy and security concerns?

What are the return policies?

Can shoppers easily find the products most relevant to their needs?

Does the merchandising engage multiple types of shoppers?

Does the site engage the user from the home page onwards?

Is product content relevant and useful?

Are promotions timely and targeted to key customer interests?

Converting Browsers to Shoppers Factors Affecting Visit-to-Cart Effective Product Discovery Methods Navigation Search Merchandising Product Page Effectiveness Pricing Stock Availability Less than 10% of visits lead to a cart What are you doing to engage your customers?

Factors Affecting Visit-to-Cart

Effective Product Discovery Methods

Navigation

Search

Merchandising

Product Page Effectiveness

Pricing

Stock Availability

Converting Browsers to Shoppers Navigation Effectiveness By offering many paths to products, merchants connect shoppers with products more efficiently – and provide a richer, more engaging experience Offer many paths to products. Intelligent Selling Tactic #6 MarketLive Index Top Performer

Navigation Effectiveness

By offering many paths to products, merchants connect shoppers with products more efficiently – and provide a richer, more engaging experience

Offer many paths to products.

Converting Browsers to Shoppers MarketLive Index Top Performer

Converting Browsers to Shoppers Product Page Effectiveness Low visits-to-carts from the product page signals that customer expectations are not being met

Product Page Effectiveness

Low visits-to-carts from the product page signals that customer expectations are not being met

Product Page Effectiveness Converting Browsers to Shoppers Design a more effective product detail page for “Information Needy Shoppers” Intelligent Selling Tactic #7 … consistently implement effective selling tactics on product pages: Comprehensive product information In-Stock Messaging Visual hierarchy with prominence to “Add the Cart” Alternative Images Image Zoom Top MarketLive Performers Fold

Product Page Effectiveness

Design a more effective product detail page for “Information Needy Shoppers”

… consistently implement effective selling tactics on product pages:

Comprehensive product information

In-Stock Messaging

Visual hierarchy with prominence to “Add the Cart”

Alternative Images

Image Zoom

Product Page Effectiveness Converting Browsers to Shoppers

Product Page Effectiveness

Easing Checkout

Easing Checkout Checkout Abandonment Rate Measures the number of open carts that begin the checkout process compared with the number of actual completed orders. Factors Affecting Checkout Abandonment Forced account registration Shipping Fees & Sticker Shock Availability of vital information when needed Clear & streamlined checkout process Privacy & Security Concerns

Checkout Abandonment Rate

Measures the number of open carts that begin the checkout process compared with the number of actual completed orders.

Factors Affecting Checkout Abandonment

Forced account registration

Shipping Fees & Sticker Shock

Availability of vital information when needed

Clear & streamlined checkout process

Privacy & Security Concerns

Easing Checkout Forced Account Registration Alarming trend : merchants requiring customers to register an account in order to complete their purchase Forced registration increases fall-off by 187% Require only what you need Guest Checkout: 8% Fall-off at this stage Forced Registration: 23% Fall-off at this stage

Forced Account Registration

Alarming trend : merchants requiring customers to register an account in order to complete their purchase

Guest Checkout:

8% Fall-off at this stage

Forced Registration:

23% Fall-off at this stage

Easing Checkout Forced Account Registration Sites that required mini-registration (email only) experienced a 12% higher fall-off rate at that step of checkout versus sites that allowed guest checkout Implement “Mini-registration” model when requiring registration. Intelligent Selling Tactic #8 Mini-registration: 9% Fall-off at this stage

Forced Account Registration

Sites that required mini-registration (email only) experienced a 12% higher fall-off rate at that step of checkout versus sites that allowed guest checkout

Implement “Mini-registration” model when requiring registration.

Mini-registration:

9% Fall-off at this stage

To Do List…Start Tomorrow Reducing the “1-and-Out” Cater to multiple shopping behaviors and needs Merchandising must convey directive call-to-action; focus on specific user benefits Look for spikes in single-page visits that might signal an ineffective paid search campaign, natural search results link or affiliate referral. Lead your users to the most relevant landing page Consistently communicate marketing/promotional messaging on landing pages Turning Browsers into Shoppers Offer many paths to the same product. Design a more effective product detail page for “Information Needy Shoppers” Easing Checkout Implement “Mini-registration” model when requiring registration And more…available in the research report Ensure that search results pages are more engaging and actionable. Move information back up the purchase path to prevent last-minute snags in checkout. Attaching ROI to Customer Reviews Use Signposts to Drive Shoppers to Completion Intelligent Selling Tactics That Drive Results

Reducing the “1-and-Out”

Cater to multiple shopping behaviors and needs

Merchandising must convey directive call-to-action; focus on specific user benefits

Look for spikes in single-page visits that might signal an ineffective paid search campaign, natural search results link or affiliate referral.

Lead your users to the most relevant landing page

Consistently communicate marketing/promotional messaging on landing pages

Turning Browsers into Shoppers

Offer many paths to the same product.

Design a more effective product detail page for “Information Needy Shoppers”

Easing Checkout

Implement “Mini-registration” model when requiring registration

And more…available in the research report

Ensure that search results pages are more engaging and actionable.

Move information back up the purchase path to prevent last-minute snags in checkout.

Attaching ROI to Customer Reviews

Use Signposts to Drive Shoppers to Completion