Behavioral Merchandising
   Presentation Cloud Nine Jan 30 2013
Apptus The Company



   •   Founded in 2000
   •   Head quarter in Lund, Sweden
   •   Sales office in UK
   •   Number of employees: 45
   •   Turnover 2012: ~50 MSEK




                                      2011   2012   2005
Easy to Work With = Happy Customers
Challenges




     1   Marketing to the online shopper
Evolution of marketing



Face to face




Local




Mass
Customer experience using segmentation




                                         Used to deliver limited
                                            personalisation
But today’s customer is more demanding




                                   A tailored shopping
                                  experience for me for
                                           now!
Challenges




     1   Marketing to the online shopper


     2   Information is power, but context is key
Using multi-dimensional context to improve results

                                             Sales numbers

                                              Timeframe

                                              Conversion

                                             Related sales

                                              Stock level

                                                 Price

                                                Trends

                                                    ..




  Sold: 125        Sold: 90                     Sold: 25     Sold: 110                Sold: 100
  Over: 6 months   Over: 1 week                              Over: 3 weeks            Over: 1,5 week
                   Displays: 240                             Displays: 200            Displays: 600
                   Related: 10 connections                   Related: 4 connections
Challenges




     1   Marketing to the online shopper


     2   Information is power, but context is key


     3   Getting use of all behavioral data
How Apptus delivers “intuitively human” content




        Ʃ Actions = 3                        Ʃ Non-actions = 31




        Universe of actions               Universe of non-actions
Customer Lifetime Value



 Relevance                Relevance   Relevance




                          ££
  Attract                   Convert     Repeat
Detaching Marketing From IT
eSales Main Features

• Search including Autocomplete and Did you mean
• Faceted navigation
• Product recommendations
• Context sensitive banner ad management
• Tools to optimize merchandising
• Reports and analytics with actionable results
• Site overlay with performance rates
• Available as on premise and as cloud service (SaaS)
Search – Find What You Are Looking For



            Match                                  Self-learning
            Behavior           Relevance
                                                  Auto-optimized
                                                   Error tolerant




                                           -50%
           € 7,50      (€15)




           € 15
Autocomplete – Predicts Visitors Intent



                                          Guide visitors
                                           Less errors
                                           No non-hits
Did You Mean – Understands What Visitors Mean



                                          Guide visitors
                                         Error correction
                                         Remove non-hits
Faceted Navigation



                Auto-optimized
              Improved findability
            Increase sales in longtail
Optimizing Search & Navigation



                                  Optimizes
 Same with Faceted               panel order
    Navigation
Recommendations




Present the panel most
 likely to result in sale   Recommendation zone
Ads on Start Page




  Static Ads
   3 specific ads

                     Behavior Driven
                       Format specific
                          Carousel




Behavior Driven
  Format specific
Ads on Search Page, ’high heels’




                                   Search Driven
                                    Search specific
Ads - Live Banner




          BOOTS     Banner background
                    static. Live products
                       placed on top.
Dash board and metrics
eSales Manager
Web based toolkit for merchandisers




                                      Folder-like system
                                        Drag and drop
eSales Manager
Site overlay with live performance rates




                                               See how your
                                           merchandising zones are
                                                performing
Search statistics with suggestions for improvement




                                                       There should be a
                                                         synonym for
                                                           ’ripassa’
 See your top and
 worst performing
search phrases and
act on suggestions
for improving your
     conversion




Proposal for words to                                       Proposal of
  buy from Google                                          products that
                                                         could be valuable
                                                          to have in stock
Information from behavioral data

Self-learning business intelligence driven by realtime behavioral data:

•   What products/ads/campaigns/content am I not showing enough – right now?
•   What products/ads/campaigns/content am I exposing too much – right now?
•   What is the persona/profile of this user – based on observed history/behavior?
•   Which micro-segments are boosting/lowering my conversion rate – right now?
eSales Manager
Synonym editor




                  Synonyms can be added
                    globally or for each
                         language
Channel Independent
Example of What eSales Can Do
My page / Personalized start page




                                    Personalized recommendations based on visitor
                                     history. New products that have been added
                                     since last visit. Recently viewed products and
                                            recommendations based on this.
Example of What eSales Can Do
Price range depending on shipping rules




                                          You get free shipping if you spend
                                           an additional 21kr so let’s show
                                           recommendations based on cart
                                              within a range of 30-130kr.
Example of What eSales Can Do
Search also for other than products




                                      Search also for other content besides products.
                                        This example from IKEA.com where you get
                                       search results from Customer service, About
                                                   IKEA, Newsroom etc.
Testimonials
Nelly – The Fashion Giant
Challenges
• Extreme growth
• Continuously need of expanding assortment
• Rapid expansion to new markets
• Low conversion rate

Results with Apptus eSales
• Almost unlimited scalability
• Great language support has helped expand to Sweden, Norway, Finland,
  Denmark, Germany, Holland, Austria, England and EU                                            Mikael Olander, CEO
• Increased conversion and lowered return rate by relevant presentation and
  filtered navigation
                                                                                             Jarno - Founder




                                                                              • 4.000% growth 2007-2011
                                                                              • Over 800 brands
                                                                              • 3rd fastest growing company in Sweden
IKEA
                                                                                  EKTORP Armchair €259
Challenges
• One solution to handle 42 different countries
• Overloaded IT organization with long release cycles
• Need for customized functionality for Colour Search
• Performance issues in both queries and update flows

Results with Apptus eSales
• Outsourced solution that offloads internal IT and speeds up
  time to market for new business critical functionality
• A uniform solution for managing colours in all 42 countries
• Better accessibility to relevant product exposures through
  a simple API accessed by numerous satellite applications
  in a multi-channel environment




                                                                • 210.000 base products
                                                                • Over 20.000.000 visits per day
                                                                • Over 7 million queries per day, with
                                                                  a peak of 85 concurrent queries/sec
CDON – The Amazon of the Nordics
Challenges
• Slow response times
• Unstable IT environment and service disruptions at peak load
• Irrelevant products shown to visitors

Results with Apptus eSales
• Lightning fast response time regardless of load
• 99.97% uptime and excellent reliability during peak hours
• Record sales thanks to relevant products exposed to the
  visitors in different contexts                                                   Mikael Olander, CEO




                                                                 • 12 million products
                                                                 • 4.2 million searches/day;
                                                                   peak 2,000 searches/sec
                                                                 • 5 million attribute updates/day
Said about Apptus and eSales
"When you decide to outsource a critical part of the system, you need to find a partner that is as passionate about
your business as yourself. For CDON, Apptus has proven to be that partner.“
CDON.COM - Mikael Olander, CEO


"Being the Scandinavian leader in e-commerce solution development for retailers, we needed a partner with
technology that we could rely upon to deliver exceptional performance and functionality, regardless of the size of
the client. After extensive market research we selected Apptus as our ideal partner. Since joining forces we have
implemented several online stores together and our clients really appreciate their superior technology and
professional commitment. The results speak for themselves as our clients are now experiencing higher
conversion rates, increased order values, reliable performance, intuitive navigation and happy customers.“
Avensia - Robin Gustafsson, CEO


”Apptus technology help customers to get a unique and personalized shopping experience where they instantly
find what they are looking for.”
Nelly.com - Peter Rosvall, CEO


“With more than 7.000 of our own products and 5.000 external products we provide accessories for, it is extremely
important that customers immediately find what they’re looking for. We chose Apptus because it gives our
customers fast, accurate responses: it shortens their search by suggesting relevant products based on what other
consumers with similar interests have bought. Apptus reinforces Kjell & Company as Sweden’s best site for home
electronics accessories.”
Kjell & Company - Ulrika Klinkert, Head of Marketing
For more information contact:
        Louise Burman
 louise.burman@apptus.com
   Partner Manager, Apptus



    THANK YOU!

Care Day 130130 Apptus

  • 1.
    Behavioral Merchandising Presentation Cloud Nine Jan 30 2013
  • 2.
    Apptus The Company • Founded in 2000 • Head quarter in Lund, Sweden • Sales office in UK • Number of employees: 45 • Turnover 2012: ~50 MSEK 2011 2012 2005
  • 3.
    Easy to WorkWith = Happy Customers
  • 4.
    Challenges 1 Marketing to the online shopper
  • 5.
    Evolution of marketing Faceto face Local Mass
  • 6.
    Customer experience usingsegmentation Used to deliver limited personalisation
  • 7.
    But today’s customeris more demanding A tailored shopping experience for me for now!
  • 8.
    Challenges 1 Marketing to the online shopper 2 Information is power, but context is key
  • 9.
    Using multi-dimensional contextto improve results Sales numbers Timeframe Conversion Related sales Stock level Price Trends .. Sold: 125 Sold: 90 Sold: 25 Sold: 110 Sold: 100 Over: 6 months Over: 1 week Over: 3 weeks Over: 1,5 week Displays: 240 Displays: 200 Displays: 600 Related: 10 connections Related: 4 connections
  • 10.
    Challenges 1 Marketing to the online shopper 2 Information is power, but context is key 3 Getting use of all behavioral data
  • 11.
    How Apptus delivers“intuitively human” content Ʃ Actions = 3 Ʃ Non-actions = 31 Universe of actions Universe of non-actions
  • 12.
    Customer Lifetime Value Relevance Relevance Relevance ££ Attract Convert Repeat
  • 13.
  • 14.
    eSales Main Features •Search including Autocomplete and Did you mean • Faceted navigation • Product recommendations • Context sensitive banner ad management • Tools to optimize merchandising • Reports and analytics with actionable results • Site overlay with performance rates • Available as on premise and as cloud service (SaaS)
  • 15.
    Search – FindWhat You Are Looking For Match Self-learning Behavior Relevance Auto-optimized Error tolerant -50% € 7,50 (€15) € 15
  • 16.
    Autocomplete – PredictsVisitors Intent Guide visitors Less errors No non-hits
  • 17.
    Did You Mean– Understands What Visitors Mean Guide visitors Error correction Remove non-hits
  • 18.
    Faceted Navigation Auto-optimized Improved findability Increase sales in longtail
  • 19.
    Optimizing Search &Navigation Optimizes Same with Faceted panel order Navigation
  • 20.
    Recommendations Present the panelmost likely to result in sale Recommendation zone
  • 21.
    Ads on StartPage Static Ads 3 specific ads Behavior Driven Format specific Carousel Behavior Driven Format specific
  • 22.
    Ads on SearchPage, ’high heels’ Search Driven Search specific
  • 23.
    Ads - LiveBanner BOOTS Banner background static. Live products placed on top.
  • 24.
  • 25.
    eSales Manager Web basedtoolkit for merchandisers Folder-like system Drag and drop
  • 26.
    eSales Manager Site overlaywith live performance rates See how your merchandising zones are performing
  • 27.
    Search statistics withsuggestions for improvement There should be a synonym for ’ripassa’ See your top and worst performing search phrases and act on suggestions for improving your conversion Proposal for words to Proposal of buy from Google products that could be valuable to have in stock
  • 28.
    Information from behavioraldata Self-learning business intelligence driven by realtime behavioral data: • What products/ads/campaigns/content am I not showing enough – right now? • What products/ads/campaigns/content am I exposing too much – right now? • What is the persona/profile of this user – based on observed history/behavior? • Which micro-segments are boosting/lowering my conversion rate – right now?
  • 29.
    eSales Manager Synonym editor Synonyms can be added globally or for each language
  • 30.
  • 31.
    Example of WhateSales Can Do My page / Personalized start page Personalized recommendations based on visitor history. New products that have been added since last visit. Recently viewed products and recommendations based on this.
  • 32.
    Example of WhateSales Can Do Price range depending on shipping rules You get free shipping if you spend an additional 21kr so let’s show recommendations based on cart within a range of 30-130kr.
  • 33.
    Example of WhateSales Can Do Search also for other than products Search also for other content besides products. This example from IKEA.com where you get search results from Customer service, About IKEA, Newsroom etc.
  • 34.
  • 35.
    Nelly – TheFashion Giant Challenges • Extreme growth • Continuously need of expanding assortment • Rapid expansion to new markets • Low conversion rate Results with Apptus eSales • Almost unlimited scalability • Great language support has helped expand to Sweden, Norway, Finland, Denmark, Germany, Holland, Austria, England and EU Mikael Olander, CEO • Increased conversion and lowered return rate by relevant presentation and filtered navigation Jarno - Founder • 4.000% growth 2007-2011 • Over 800 brands • 3rd fastest growing company in Sweden
  • 36.
    IKEA EKTORP Armchair €259 Challenges • One solution to handle 42 different countries • Overloaded IT organization with long release cycles • Need for customized functionality for Colour Search • Performance issues in both queries and update flows Results with Apptus eSales • Outsourced solution that offloads internal IT and speeds up time to market for new business critical functionality • A uniform solution for managing colours in all 42 countries • Better accessibility to relevant product exposures through a simple API accessed by numerous satellite applications in a multi-channel environment • 210.000 base products • Over 20.000.000 visits per day • Over 7 million queries per day, with a peak of 85 concurrent queries/sec
  • 37.
    CDON – TheAmazon of the Nordics Challenges • Slow response times • Unstable IT environment and service disruptions at peak load • Irrelevant products shown to visitors Results with Apptus eSales • Lightning fast response time regardless of load • 99.97% uptime and excellent reliability during peak hours • Record sales thanks to relevant products exposed to the visitors in different contexts Mikael Olander, CEO • 12 million products • 4.2 million searches/day; peak 2,000 searches/sec • 5 million attribute updates/day
  • 38.
    Said about Apptusand eSales "When you decide to outsource a critical part of the system, you need to find a partner that is as passionate about your business as yourself. For CDON, Apptus has proven to be that partner.“ CDON.COM - Mikael Olander, CEO "Being the Scandinavian leader in e-commerce solution development for retailers, we needed a partner with technology that we could rely upon to deliver exceptional performance and functionality, regardless of the size of the client. After extensive market research we selected Apptus as our ideal partner. Since joining forces we have implemented several online stores together and our clients really appreciate their superior technology and professional commitment. The results speak for themselves as our clients are now experiencing higher conversion rates, increased order values, reliable performance, intuitive navigation and happy customers.“ Avensia - Robin Gustafsson, CEO ”Apptus technology help customers to get a unique and personalized shopping experience where they instantly find what they are looking for.” Nelly.com - Peter Rosvall, CEO “With more than 7.000 of our own products and 5.000 external products we provide accessories for, it is extremely important that customers immediately find what they’re looking for. We chose Apptus because it gives our customers fast, accurate responses: it shortens their search by suggesting relevant products based on what other consumers with similar interests have bought. Apptus reinforces Kjell & Company as Sweden’s best site for home electronics accessories.” Kjell & Company - Ulrika Klinkert, Head of Marketing
  • 39.
    For more informationcontact: Louise Burman louise.burman@apptus.com Partner Manager, Apptus THANK YOU!

Editor's Notes

  • #3 B
  • #4 Byggmax, Hi-fi klubben, Menigo, TOFS
  • #16 Advanced self-learning search engine that adapts to history and remembers every new search, display, click, add-to-cart and purchase made on the site.