The document discusses personalized commerce and the role of merchandisers. It notes that while personalization is important to consumers, true 1:1 personalization only covers 25% of users due to data limitations. The future is to leverage segmentation and target merchandising to different customer segments, which can effectively target 70% of users. Key takeaways are that segmentation allows merchants to offer tailored assortments to segments, and a targeted strategy is needed to fully leverage personalization.

1. Merchandisers
in a
Personalized
World

2. UNBXD
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FASHION & APPAREL
PERSONALIZED COMMERCE
SITE SEARCH * CATEGORY PAGES * PRODUCT RECOMMENDATIONS
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3.  Personalization and its limitations
 Power of Segmentation & Targeting
 Types of Customer Segments
 Merchandising to effectively target users
 Key Takeaways
AGENDA
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4. 73% of consumers prefer to do business with brands that use
personal information to make their shopping experiences
more relevant (Digital Trends)
86% of consumers say personalization plays a role in their
purchasing decisions (Infosys)
45% of online shoppers are more likely to shop on a site that
offers personalized recommendations (Invesp)
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5. CONSUMERS EXPECT PERSONALIZATION
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WHY?
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6. WHAT IS PERSONALIZATION?
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7. OVERVIEW – 4 TYPES OF PERSONALIZATION
Personalized
Messaging
Email
Onsite personalization
Retargeting
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8. EMAIL PERSONALIZATION
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9. PERSONALIZED MESSAGING
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Notification for
Out of Stock items
added to
users waitlist
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10. 10
RETARGETING
Ad on Facebook
that a customer
sees after browsing
Expedia.com
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11. 1:1 ON-SITE PERSONALIZATION
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Product
recommendations
based on your prior
purchase history
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12. 1:1 PERSONALIZATION EXAMPLES – CUSTOM PRODUCTS
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Product based
on your
personal
preference
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13. WHAT ROLE DO MERCHANDISERS PLAY?
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14. PERSONALIZATION HAS ITS LIMITATIONS
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15. Addresses
25% of users
Can target
70% of users
1:1 PERSONALIZATION TARGETS UP TO 25% OF ALL USERS
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1:1
Personalization
Segmentation & Targeting
Other Users
Don’t
Ignore
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16. LIMITATIONS OF PERSONALIZATION
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Historical Data Login Now
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17. SEGMENTATION & TARGETING
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18. WHAT IS SEGMENTATION?
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19. 19
SEGMENTATION & TARGETING
Financially dependent
(Age < 18)
Young professional
(18 < Age < 30)
Married professional
(30 < Age < 45)
Empty nesters
(45 < Age < 60)
Retired
(Age > 60)
Behavior determined by
guardians
Good long term potential
Lower ticket sizes
Higher risk taking capability
Additional needs – child, education,
buying first home, increase in
insurance
Prepare for retirement
Possible second home
Low risk taking capability
Pension, annuities
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20. THE FUTURE –TARGETED MERCHANDISING
FOR DIFFERENT CUSTOMER SEGMENTS
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21.  Segment – First Time Visitors
 Data – Low conversion rates for first
time visitors
 Action – Promote products with lower
prices.
 Impact – Higher conversion
SEGMENT # 1 – USER TYPE (NEW USERS)
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22.  Segment – Repeat Visitors
 Data – Repeat visitors typically sort results
by new arrivals
 Action – Boost new arrivals for the repeat
visitors segment
 Impact – Higher conversion & Higher
retention
SEGMENT # 2 – USER TYPE (LOYAL USERS)
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23.  Segment – Device type: Mobile
 Data – High exit rates on search results
pages
 Action – Slot 3 different brands in the
first 20 positions to showcase more
variety
 Impact – Decrease in exit rate and more
mobile revenue
SEGMENT # 3 – DEVICE TYPE (MOBILE)
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24.  Segment – Device type: Desktop
 Data – Calvin Klein shirts have a higher CTR and
top 2 products added to cart are CK1039 and
CK1432
 Action – Boost the Calvin Klein brand and pin
CK1039 and CK1432 to the top positions
 Impact – Greater CTR and More add to cart
SEGMENT # 4 – DEVICE TYPE (DESKTOP)
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25.  Segment – Location – LA
 Data – Visitors are purchasing summer
dresses
 Action: Promote summer dresses on
the dresses category page
 Impact: Higher engagement and
conversion
SEGMENT # 5 – LOCATION (LOS ANGELES)
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26.  Segment – Location – New York
 Data – Visitors are purchasing knit
dresses
 Action: Promote knit dresses on the
dresses category page
 Impact: Higher engagement and
conversion
SEGMENT # 6 – LOCATION (NEW YORK)
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27.  Segment: Source – PPC ad about Vacuum
Cleaners
 Data: Visitors coming in from adwords are
high value customers likely to spend between
$200-$500
 Action: Promote high margin vacuum
cleaners
 Impact: Lower customer acquisition
cost and higher ROI
SEGMENT # 7 – REFERRAL SOURCE (GOOGLE ADS)
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28.  Segment: Source – Social Media
 Data: A particular product is
trending on social media
 Action: Pin this product to the top
position on search results pages
and category page
 Impact: Higher engagement and
Greater CTR
SEGMENT # 8 – REFERRAL SOURCE (SOCIAL MEDIA)
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29.  Segment: Gender - Female
 Data: Marketing team sends a new Nike
product launch email to men and women
 Action: Ensure women arriving on the Nike
brand page see female sports products at
the top
 Impact: Lower bounce rate
SEGMENT # 9 – GENDER (WOMEN)
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30. 1 Users are increasingly expecting a personalized online shopping
experience
2 1:1 personalization has limitations and covers only 25% of users
3 Future of merchandising = Targeted merchandising for customer
segments
4 By leveraging Segmentation, merchandisers can effectively target
70% of their visitors
5 Adopt a targeted merchandising strategy – Offer tailored product
assortments to key customer segments
KEY TAKEAWAYS
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31. DISCOVER THE FUTURE OF PRODUCT DISCOVERY AT
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32. QUESTIONS?
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33. THANK YOU!
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Monal Patel
monal@unbxd.com
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