Prepared for: IIR The Market Research EVENT Lee Shupp Kathleen Chattin Rian Van Der Merwe Date: October 2008 Cheskin Added Value & eBay Driving Change and Innovation

Introductions Who is Cheskin Added Value? A consulting firm that guides innovation through its deep understanding of people, culture, and change. Who is eBay Product Health? A user experience research team that provides ongoing holistic assessment of all areas of eBay’s site.

Who is Cheskin Added Value?

A consulting firm that guides innovation through its deep understanding of people, culture, and change.

Who is eBay Product Health?

A user experience research team that provides ongoing holistic assessment of all areas of eBay’s site.

Approach to innovation Integration of 3 disciplines

Approach to innovation

Integration of 3 disciplines

Approach to Innovation Integrating disciplines for innovative solutions Successful innovation draws upon a powerful combination of disciplines. These synergies deliver results far greater than the sum of their parts. This holistic approach is used to drive customer insights to where they’ll have greatest impact on business outcomes. Design Methods Business Analytics Customer Insights Innovation consulting

Integrating disciplines for

innovative solutions

Successful innovation draws upon a powerful combination of disciplines.

These synergies deliver results far greater than the sum of their parts.

This holistic approach is used to drive customer insights to where they’ll have greatest impact on business outcomes.

3 Perspectives on the Problem Space delivers revenue-generating strategies helps companies tackle their business & organizational issues uncovers customer needs, desires & motivations generates insights that inspire products, services & brand experiences that deeply engage the customer introduces design methods to translate insights into concepts & strategies translates solutions in ways that can be owned & applied by stakeholders Design methods Business analytics Customer insights

delivers revenue-generating strategies

helps companies tackle their business & organizational issues

uncovers customer needs, desires & motivations

generates insights that inspire products, services & brand experiences that deeply engage the customer

introduces design methods to translate insights into concepts & strategies

translates solutions in ways that can be owned & applied by stakeholders

New Synergies at the Convergence of Each Discipline Translating insights into product/service/ brand concepts The integrated approach to innovation leverages the synergies at the intersection of these disciplines Decision tools Reconciling customer insights with industry trends and corporate strategies Design methods Business analytics Customer insights

The eBay Challenge Identifying and synthesizing the most important insights for executive decisions

The eBay Challenge

Identifying and synthesizing the most important insights for executive decisions

Scope of Product Health Studies at eBay Product Health Studies Product Tracker Tracks users’ attitudes and usage. Key Flow Exit Surveys Captures reasons why users exit eBay. Qualitative Based Insights Provides the “why” behind the quant data. True Intent Research Maps actual usage against intended usage. Analytics Provides key metrics for tracking eBay performance. Technical Issues Research Uncovers technical issues experienced by users. Real-Time Online Qual Captures in-the-moment feedback. In-Page Diagnostics Pin points problem areas on eBay. What users say What users do Targeted decisions Long term strategy What it’s best used for Type of data

Product Health Studies

Product Tracker

Tracks users’ attitudes and usage.

Key Flow Exit Surveys

Captures reasons why users exit eBay.

Qualitative Based Insights

Provides the “why” behind the quant data.

True Intent Research

Maps actual usage against intended usage.

Analytics

Provides key metrics for tracking eBay performance.

Technical Issues Research

Uncovers technical issues experienced by users.

Real-Time Online Qual

Captures in-the-moment feedback.

In-Page Diagnostics

Pin points problem areas on eBay.

Product Health Communication Strategy Product Health Synthesis 5 guiding principles for a desirable site experience Distribute findings Executives Desirable site experience Resource allocation Overall product focus Detailed Findings Detailed Findings Detailed Findings Detailed Findings Detailed Findings Detailed Findings Product Tracker Key Flow Exit Surveys True Intent Research In-Page Diagnostics Open Web Research Technical Issues Core Product Health research components Distribute findings Etc SYI & Seller Tools Conversion Shipping Finding E2E GXT Teams Product Health work sessions with GXTs Product strategy Product roadmap

Resource allocation

Overall product focus

Product strategy

Product roadmap

Approach

Approach

Approach Synthesized Product Health research reports Identified guiding principles to address customer pain points Developed site model to identify site experiences Applied guiding principles to improve site experience 1 2 3 4

5 Guiding Principles for Product Development Guiding principles Guiding principles to provide focus and clarity to the site experience design and development process Build Trust Be responsive to customer needs for security and service. Ensure the quality and accuracy of the information available on the site. Build responsibility and accountability in the eBay community. Simplify Streamline and clarify processes, navigation, site performance issues and fees that make the customer’s experience unnecessarily complex and impact commerce. Be Relevant Design an experience around how people naturally explore, evaluate and purchase items. Provide relevant, quality information that supports this experience. Provide value Align buyers and sellers with a common means of determining item value and shipping fees. Treat sellers as “paying customers” who deserve value-added service for the fees they pay. Connect people through commerce Support sellers in using eBay to market their items more effectively to reach their prospective buyers. Leverage My eBay and other areas on the site to connect people with common interests through commerce.

Build Trust

Be responsive to customer needs for security and service.

Ensure the quality and accuracy of the information available on the site.

Build responsibility and accountability in the eBay community.

Simplify

Streamline and clarify processes, navigation, site performance issues and fees that make the customer’s experience unnecessarily complex and impact commerce.

Be Relevant

Design an experience around how people naturally explore, evaluate and purchase items.

Provide relevant, quality information that supports this experience.

Provide value

Align buyers and sellers with a common means of determining item value and shipping fees.

Treat sellers as “paying customers” who deserve value-added service for the fees they pay.

Connect people through commerce

Support sellers in using eBay to market their items more effectively to reach their prospective buyers.

Leverage My eBay and other areas on the site to connect people with common interests through commerce.

eBay Site Experience Model Search results View item Auction + Fixed Price: BUY/SELL PLATFORMS LIST & PROMOTE BUY Visitor, Buyer path Seller path Express Home Core site Register SYI Seller tools Check out Bid Buy it now Watch & track Watch & track Stores Community hub Help hub R&G The typical paths of Sellers and of Visitors & Buyers are shown below. Page sizes indicate relative volume of traffic. B S FIND My eBay V KEY: | Seller path | Visitor, Buyer path | Page size = traffic | Shipping issues appear

eBay Site Experience Model Search results View item Auction + Fixed Price: BUY/SELL PLATFORMS LIST & PROMOTE BUY Visitor, Buyer path Seller path Express Home Core site Register My eBay SYI Seller tools Check out Bid Buy it now Watch & track Watch & track Stores Help hub R&G My eBay is a major nexus that provides a personal space from which to interact with eBay’s marketplace. My eBay is often the starting point for experienced users. V B S FIND Community hub KEY: | Buy/Sell connections | My eBay connections | Seller path | Visitor, Buyer path | Page size = traffic | Shipping issues appear

eBay Site Experience Model Search results View item Auction + Fixed Price: BUY/SELL PLATFORMS LIST & PROMOTE BUY Visitor, Buyer path Seller path FIND Express Home Core site Register SYI Seller tools Check out Bid Buy it now Watch & track Watch & track Stores Help hub R&G The combined Buy/Sell Platforms make up another major nexus where users connect to each other, as well as eBay’s marketplace. B S My eBay Community hub V KEY: | Buy/Sell connections | My eBay connections | Seller path | Visitor, Buyer path | Page size = traffic | Shipping issues appear

eBay Site Experience Model Search results View item Auction + Fixed Price: BUY/SELL PLATFORMS LIST & PROMOTE BUY Visitor, Buyer path Seller path Express Home Core site Register SYI Seller tools Check out Bid Buy it now Watch & track Watch & track Stores Help hub R&G Other pages have the potential to play a more significant role in the relationships among Visitors, Buyers, Sellers and eBay. B S FIND My eBay Community hub V KEY: | Buy/Sell connections | My eBay connections | Seller path | Visitor, Buyer path | Page size = traffic | Shipping issues appear

eBay Site Experience Model Search results View item Auction + Fixed Price: BUY/SELL PLATFORMS LIST & PROMOTE BUY Visitor, Buyer path Seller path Express Home Core site Register SYI Seller tools Check out Bid Buy it now Watch & track Watch & track Stores Help hub R&G V B S FIND My eBay Community hub KEY: | Buy/Sell connections | My eBay connections | Seller path | Visitor, Buyer path | Page size = traffic | Shipping issues appear

Product Health Synthesis | Executive Summary Other sites Search engines Build Trust Connect People Through Commerce Be Relevant Provide quality info on eBay to keep users from going to other sites to do research. Simplify Clarify which selling formats are appropriate for Sellers’ businesses. Provide Value Align Buyers and Sellers on the benefits and value of different selling formats. Connect People Through Commerce Help Sellers and Buyers connect to those with similar interests. Be Relevant Improve the relevancy of Search Results, and design an experience that maps to users’ natural ways of searching and browsing. Simplify Provide Value Be relevant Streamline the Home Page experience so Buyers and Visitors are not overwhelmed. Build Trust Provide Value Provide proactive, responsive customer support, useful help content and better guidance through key flows. Build Trust Provide a clear, trustworthy registration process. Simplify Streamline the registration process. Connect People Through Commerce Leverage the popularity of My eBay to connect users to the larger eBay community. Leverage the user community and partner assets (e.g., ePinions) to provide trustworthy, relevant, quality product information. Leverage the user community to help regulate the site. Provide simple, clear fee structures packaged with useful, easy-to-use selling tools; specific focus needed on shipping costs Simplify Show buyers the information they need to see to make the best buying decision; don’t overload the page

Other sites

Search engines

Be Relevant

Provide quality info on eBay to keep users from going to other sites to do research.

Simplify

Clarify which selling formats are appropriate for Sellers’ businesses.

Provide Value

Align Buyers and Sellers on the benefits and value of different selling formats.

Connect People Through Commerce

Help Sellers and Buyers connect to those with similar interests.

Be Relevant

Improve the relevancy of Search Results, and design an experience that maps to users’ natural ways of searching and browsing.

Simplify

Provide Value

Be relevant

Streamline the Home Page experience so Buyers and Visitors are not overwhelmed.

Build Trust

Provide Value

Provide proactive, responsive customer support, useful help content and better guidance through key flows.

Build Trust

Provide a clear, trustworthy registration process.

Simplify

Streamline the registration process.

Connect People Through Commerce

Leverage the popularity of My eBay to connect users to the larger eBay community.

Leverage the user community and partner assets (e.g., ePinions) to provide trustworthy, relevant, quality product information.

Leverage the user community to help regulate the site.

Provide simple, clear fee structures packaged with useful, easy-to-use selling tools; specific focus needed on shipping costs

Simplify

Show buyers the information they need to see to make the best buying decision; don’t overload the page

Sample Guiding Principle Simplify

Sample Guiding Principle

Simplify

Simplify | Insights Selling can be confusing and difficult Sellers often find it difficult to track their overall eBay business, such as keeping track of eBay fees and calculating profits. Some Store Sellers don’t understand that Auction-style listings increase overall sales more than Store Inventory listings do, yet the benefits of SIF incentivize them to use it. One of the biggest pains for Sellers is revising their listings, often caused by pervasive problems with Turbo Lister. Home Page can be overwhelming and Registration difficult Home Page experiences are correlated with commitment to eBay, yet many Visitors are overwhelmed by it. Registration experiences are also correlated with commitment to eBay, yet: Half of Visitors who try to register don’t complete it. Failed attempts to edit account information is one of the main reasons Buyers exit registration. Some Sellers exit Registration because they aren’t prepared for the type and amount of information required. Technical complexity can cause slowness and errors in key flows 4,12 Tech issues are concentrated in flows critical to commerce (View Item, SYI, My eBay). A technical analysis of the site reveals several back-end issues on these pages that could be the cause of the problems. 12 eBay is unnecessarily complex. “ I am very frustrated with Turbo Lister 2 software. [it] constantly freezes when I try to update or change descriptions. Happens all the time - even though I keep the software updated.” Video testimonials Insert “Simplify” video clip here and resize to fit over this box.

Selling can be confusing and difficult

Sellers often find it difficult to track their overall eBay business, such as keeping track of eBay fees and calculating profits.

Some Store Sellers don’t understand that Auction-style listings increase overall sales more than Store Inventory listings do, yet the benefits of SIF incentivize them to use it.

One of the biggest pains for Sellers is revising their listings, often caused by pervasive problems with Turbo Lister.

Home Page can be overwhelming and Registration difficult

Home Page experiences are correlated with commitment to eBay, yet many Visitors are overwhelmed by it.

Registration experiences are also correlated with commitment to eBay, yet:

Half of Visitors who try to register don’t complete it.

Failed attempts to edit account information is one of the main reasons Buyers exit registration.

Some Sellers exit Registration because they aren’t prepared for the type and amount of information required.

Technical complexity can cause slowness and errors in key flows 4,12

Tech issues are concentrated in flows critical to commerce (View Item, SYI, My eBay).

A technical analysis of the site reveals several back-end issues on these pages that could be the cause of the problems. 12

Simplify | Illustration Selling is confusing/difficult Sellers often find it difficult to track their overall eBay business, such as keeping track of eBay fees and calculating profits. Selling is confusing/difficult One of the biggest pains for Sellers is revising their listings, often caused by pervasive problems with Turbo Lister. S S S Homepage is overwhelming, Registration difficult Home Page and Registration experiences are correlated with commitment to eBay, yet they are sub-optimal and hinder further engagement with eBay. B V Selling is confusing/difficult Some Store Sellers don’t understand that Auctions increase overall sales more than Store Inventory listings do, yet they are incentivized to use SIF. S Technical complexity Tech issues are concentrated around the first few steps in the eBay experience, hindering full engagement in the latter part of the buying and selling process. V B S

Selling is confusing/difficult

Sellers often find it difficult to track their overall eBay business, such as keeping track of eBay fees and calculating profits.

Selling is confusing/difficult

One of the biggest pains for Sellers is revising their listings, often caused by pervasive problems with Turbo Lister.

Homepage is overwhelming, Registration difficult

Home Page and Registration experiences are correlated with commitment to eBay, yet they are sub-optimal and hinder further engagement with eBay.

Selling is confusing/difficult

Some Store Sellers don’t understand that Auctions increase overall sales more than Store Inventory listings do, yet they are incentivized to use SIF.

Technical complexity

Tech issues are concentrated around the first few steps in the eBay experience, hindering full engagement in the latter part of the buying and selling process.

Simplify | Recommendations Implications Complexity can impede selling Complexity from the start can hinder deeper engagement with and commitment to eBay Recommendations Simplify selling formats, fees and usability Streamline Registration Streamline the Home Page experience Simplify for speed and performance Impact Performance metrics that can be improved Strategic initiatives that can be informed

Implications

Complexity can impede selling

Complexity from the start can hinder deeper engagement with and commitment to eBay

Recommendations

Simplify selling formats, fees and usability

Streamline Registration

Streamline the Home Page experience

Simplify for speed and performance

Impact

Performance metrics that can be improved

Strategic initiatives that can be informed

Driving Product Strategy

Driving Product Strategy

Driving Product Strategy Each individual Product Health component is communicated extensively Specific recommendations for product changes Start with leaders of functional teams responsible for change Communicate with each of their teams separately Product Health Synthesis is communicated from the top down and teams are immersed in it Provides guidelines for Product design Start with SVP and above – owners of Product Strategy Communicate with functional teams Workshops and brainstorming sessions to develop product solutions based on product design guidelines Principles for effective communication and change Bring consulting and research partners into your circle – in-person work sessions are essential Be partners with internal teams, not consultants coming in to “set them straight” Tell stories, don’t give presentations Get executive buy-in without alienating functional teams

Each individual Product Health component is communicated extensively

Specific recommendations for product changes

Start with leaders of functional teams responsible for change

Communicate with each of their teams separately

Product Health Synthesis is communicated from the top down and teams are immersed in it

Provides guidelines for Product design

Start with SVP and above – owners of Product Strategy

Communicate with functional teams

Workshops and brainstorming sessions to develop product solutions based on product design guidelines

Principles for effective communication and change

Bring consulting and research partners into your circle – in-person work sessions are essential

Be partners with internal teams, not consultants coming in to “set them straight”

Tell stories, don’t give presentations

Get executive buy-in without alienating functional teams

Thank You 24 Additional information and several relevant case studies can be found at www.cheskin.com .

Thank You