2. TODAY S PRESENTATION
! Merchandising: The art of Personalization
! The Social Graph of Shopping
! Implementing personalization
Vans & The North Face case
! Conclusions
4. THE PURPOSE OF PERSONALIZATION
Maximizing revenues
for online retailers & brands
while
Minimizing information irrelevancy
for consumers
5. TWO APPROACHES
Demographic Behavioral
! Age ! Search
! Gender ! Click
! Location ! Add-to-cart
! Browser ! Purchase
24 year old Male Most recent purchase:
from Sydney using surfboard
Internet Explorer
6. THE SOCIAL SHOPPING GRAPH
Which products are most
relevant to this individual
consumer, right now?
Which consumers are likely to
be interested in this type of
product or brand?
7. NOT JUST FOR MERCHANDISING USE
DISPLAYS
CLICKS
VISITS
CARTS RETENTION
ORDERS
PERSONALIZED COMMERCE
ADVERTISING, MERCHANDISING & RETENTION
8.
9. VANS & THE NORTH FACE ONLINE
End 2009 Launch of The North Face in startup style
End 2011 31% increase Y/Y with 3 local stores
March 2012 Re-launch, expansion in new countries
July 2012 Launch of Vans with 6 local stores
Focus on customer Personalization of the
centric approach whole experience
10. BUSINESS REQUIREMENTS
A Challenge Pan-European multichannel project in different
languages and currencies
Automate merchandising with a varied assortment
Two Objectives
Create a personalized and localized experience
Three Goals Leverage, expose a broader assortment
Drive incremental revenue
Personalize experience for product research
11. BEST PRACTICE ETAILING (PERSONALIZED (PERSONALIZED
NEWSLETTERS) ADVERTISEMENTS)
PERSONALIZED PERSONALIZED
PERSONAL PAGES LANDING PAGES
“Welcome back! People who
RETAIN ATTRACT “People who came here
bought the items you have, searching for ...,
also bought ...” ended up buying ...”
SHOPPER
BEHAVIOR
PERSONALIZED PERSONALIZED
CHECKOUT PAGES SEARCH PAGES
“People who bought
CROSS-SELL CONVERT
“People searching for ...
the items in your cart, ended up buying ...”
also ordered ..:”
PERSONALIZED UPSELL PERSONALIZED
ADD-TO-CART PAGES CATEGORY PAGES
“People who bought this item, PERSONALIZED “People who viewed
also bought ..:” the items you have,
PRODUCT PAGES also considered ...”
“People who viewed this item,
also considered ..:”
12. EXECUTION & RESULTS - 1
Better user engagement
! Improvement in product photos
! Inspirational videos about key
products
! Landing pages with multimedia
elements
13. EXECUTION & RESULTS - 2
How we faced the challenge
! Specific banners per local site in multiple key
pages
! Each local store is managed separately from
the others
! Multiple logic per banner based on customer
behavior
14. EXAMPLES – Product Pages
! Combination of
browsing and
purchasing history
recommendations
! Increase visibility,
up-sells and cross-
sells based on user
preferences
15. EXAMPLES – Category Pages
! Logics restricted to category/gender to increase relevancy
! Business rules allow to achieve brand-specific goals
16. EXECUTION & RESULTS - 3
Results we achieved
! Recommendations generated 150K banner clicks in 3 months
! Product visibility greatly improved, 2.5% CTR last 3 months
! Selling a broader assortment, AOV +15% and UPT +6% Y/Y
! Contribution to a 115% incremental revenue (90% comp) Y/Y
17. WHAT WE LEARNED
! Personalization requires dedication and investment...
! ... but it strengthens the brand across all channels
! Incremental continuous improvements make the difference
! Recommendations without strategy are inefficient
! Tailoring the experience to each user is powerful
18. NEVER STOP EXPLORING
! Explore new areas of use with landing pages, e-mails,
marketing pages, campaigns
! Leverage new data sources like social media, product
reviews, retailer websites
! Tailor the experience to the user and exploit new
personalization logic
19. CONCLUSIONS
! You are what you buy
! Personalization works
! Never stop exploring
20. FIND OUT MORE – ASK PERMISSION
- AVAIL Exclusive Australian partner
- Visit stand 1400 opposite
conference entrance
- Pick-up merchandising report
Thank you
- Call (02) 8024 5400
- Visit www.avail.net
