1500 Avail Intelligence

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18 Νοε 2013 (πριν από 3 χρόνια και 8 μήνες)

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1

SOCIAL BEHAVIORAL MERCHANDISING

BY AVAIL


Confidential Analyst Briefing

2008
-
04
-
22, Version 1.0

©Copyright Avail Intelligence

2001
-
2008

2

STORY LINE

The eCommerce and Online Marketing Landscape


… is shifting focus from Marketing to Merchandising


… at which ‘Social Behavioral Merchandising’ excels


… and in which Avail is the global leader


Eventually though, marketing and merchandising will have to
become seamlessly integrated


3

Our Market

-

eCommerce and online
marketing

4

ACCELERATION OPPORTUNITIES

OUR MARKET
-

THE eCOMMERCE MARKET

The US market is about as large as the entire European market (in value, but
not volume, due to the recent decline in the USD).

Recently somewhat stagnant growth, at about 20% year
-
on
-
year.


Avail will be launching operations

in the US towards end of 2008

In 2008, European eCommerce will surpass 150 bn EUR and
represents 30% of the world eCommerce market.

The UK, Germany and France makes up 2/3 of that.

Growth rates of up to 60% year
-
on
-
year in some markets.


Avail has operations and customers

in all major European markets

5

THE MARKET & THE OPPORTUNITY

HUGE SPEND ON INTERACTIVE MARKETING...



Search engine marketing the biggest chunk



CPC the dominating pricing model



In particular popular with mid
-
market retail



Because that’s what it does best

6

THE MARKET & THE OPPORTUNITY

CPC
-
PRICES ARE HIGH, AND NOW STABILIZING…

DEVELOPMENT

TO
-
DATE

AVERAGE

MARKET CPC

WHY?

7

The Economics of
eCommerce is forcing us
to shift focus from
Marketing to

Merchandising

8

THE MARKET & THE OPPORTUNITY

ECONOMICS IS DRIVING FOCUS ON MERCHANDISING

MARKETING

SPEND

COST PER CLICK
-

THROUGH (CPC)

NUMBER OF

VISITORS

CONVERSION

RATE (CR)

NUMBER OF

ORDERS

AVERAGE

ORDER VALUE

(AOV)

SALES

REVENUE

AVG COST OF

GOODS SOLD

MARGIN (%)

NET PROFIT

(AFTER

MARKETING)

MARKETING

MERCHANDIZING

PURCHASING

9

THE MARKET & THE OPPORTUNITY

WHAT ON
-
SITE MERCHANDISING IS ALL ABOUT!

CONVERSION

RATE

AVERAGE ORDER

VALUE

SALES

REVENUE

ADVERTISING

SPEND

10

Social Behavioural

Merchandizing

is proving to be the most
effective

11

THE PRODUCT: AVAIL eMARKETING SUITE™

SOCIAL BEHAVIORAL MERCHANDISING
BY AVAIL

”Other users suggest you
refine your search with the
following criteria...”

”People who bought

this item, also bought...”

”People who bought
what you have in your
basket, also bought...”

”People who navigated

our site the way you
have, usually bought... ”

”Welcome! Those who
came here from ...
searching for ...,
usually liked ...”

Order Confirmation email:
”Thanks for your order!
People who bought what
you just ordered, usually
added one of the following
items...”

”Welcome back! Based on
your history with us,
other customers think
you’d like ...”

”We have included hits on
’synonym words’ based on
advice from others in the
search results...”

”Others who searched for
..., usually liked ...”

”Rate & write a review
on this product, and find
out what others think
about it...”

Personal news
-
letter: ”Our
community of users think
you might be interested in
coming back to look at ...”

CONVERSION

RATE + 20%

AVERAGE ORDER

VALUE + 10%

12

AVAIL DEMO SITE

EXAMPLE ON SEARCH RESULTS PAGE

”Those who searched for... eventually bought…”

13

AVAIL DEMO SITE

EXAMPLE ON MY
-
PAGE AND SHOPPING
-
CART

”Welcome back! Based on your previous

visits, our community of users think you’d be interested in...”

”Based on the contents of your

cart, our community of users

thinks you may also consider...”

14

THE PRODUCT: AVAIL eMARKETING SUITE™

TYPICAL eCOMMERCE BUSINESS CASE
-

BEFORE

100 mUSD ADVERTISING

~ buys 400 m visitors / year

2% CONVERSION RATE

~ 8 million orders / year

TOTAL SALES

~ 800 mUSD/y

100 USD AVERAGE ORDER VALUE

~ Total sales of 800 mUSD/y

ADVERTISING

SPEND

SALES

REVENUE

15

THE PRODUCT: AVAIL eMARKETING SUITE™

TYPICAL eCOMMERCE BUSINESS CASE
-

AFTER

100 mUSD ADVERTISING

~ buys 400 m visitors / year

2%*1,2=
2,4%

CONVERSION RATE

~
9,6 million orders / year

TOTAL SALES

~
1056 mUSD/y

(+32%)

100*1,1=
110 USD

AVERAGE ORDER VALUE

~ Total sales of
1056

mUSD/y

ADVERTISING

SPEND

SALES

REVENUE

16

BEHAVIORAL vs OTHER APPROACHES

0
100
200
300
400
500
600
Best-seller
approach
Manual &
Rules based
approach
Avail Social
Behavioral
approach
RELATIVE CONTRIBUTION TO SALES REVENUE PER VISITOR

(Index 100 = Best Seller Approach to merchandising’s contribution to sales)

Source: Avail Intelligence Customer Research, Business Case X, 2007

> 3 times as

effective.

Fully automated.

17

… and Avail is

the global leader

18

THE PRODUCT: AVAIL eMARKETING SUITE™

AVAIL IS THE GLOBAL LEADER

Most complete coverage of the
Customer Interaction Cycle™


Greater documented contributions to
conversion rate and average order
values


Fastest and easiest to install and use,
across any interaction channel (multi
channel)


More customers, in more product
categories, in more countries than
any other


Available on purely performance
based terms (5% of incremental
uplift in sales)

19

THE PRODUCT: AVAIL eMARKETING SUITE™

SaaS DELIVERY ENABLED

1.
Sign
-
up for Avail Service

2.
Download Web Service Request scripts for insertion on
web
-
pages of web
-
site

3.
Create frames on web
-
pages where results from Avail are
to be displayed

Avail Server

Customer Web Server

http://asp.avail.net/<methodcall><methodname>getRelatedActions</meth
odname><ActionId value=”” + sProductId +””/><SessionId value==""+
sSessionid + ""/></methodcall>

http://asp.avail.net/<methodcall><methodname>logPurchase</methodname
><ActionIdList value=""+ sProductIds + ""/><Prices value="" +
sPriceList + ""><SessionId value=""+ sSessionid+ ""/></methodcall>


Request to Avail

(with anonymous data about

Customer behavior)

Results from Avail

(What products to display)

Sign up now >

20

THE PRODUCT: AVAIL eMARKETING SUITE™

REAL
-
TIME ADMIN & REPORTING

By automatically and continously allocating a small
fraction (typically 0,1%) of visitors to customer
websites into a control group (B
-
group) that is NOT
shown Avail merchandizing, Avail’s built
-
in metrics tool
can calculate and report Avail’s exact contribution to
CR, AOV and total sales in real
-
time


(red line = result WITH Avail, blue line = result
WITHOUT Avail, scaled to entire visitor base

21

THE PRODUCT: AVAIL eMARKETING SUITE™

CORE TECHNOLOGY


UNIQUENESS & VALUE

Key Characteristic of Avail Core
Technology

Unique value add to customers

Delivers
truly relevant product
recommendations

for the consumer


Achieves
maximum contribution

to
Conversion Rate and Average Order Value

Fast enough to be applicable in real
time

(handles 3000 Web Service requests
per second, running on a single standard
Intel
-
based PC server)

Maximizes conversion rates and average
order values,
without compromizing
visitor’s browsing experience

Follows and even breaks the linear
scalability

between required computational
power and the size of underlying data sets


Reduces necessary Capex

spend to
achieve maximum commercial results

The ability to combine all three

of the above is vital for successful application of collaborative filtering
to actual eCommerce situations and
is what makes Avail core technology unique & successful
.

22

Eventually, merchandising
and marketing will
combine to form
“Integrated eMarketing”

23

SALES

REVENUE

THE MARKET & THE OPPORTUNITY

EVENTUALLY


INTEGRATED eMARKETING™

MARKETING

BUDGET

TRAFFIC SITE
-
ENTRY

MARKETING

COST
-
PER
-

VISITOR

($/visitor)

MERCHANDIZING

REVENUE PER

VISITOR

($/visitor)

INTEGRATED

eMARKETING

SALES $ PER
MARKETING $

(Multiple)

Click
-
through

Conversion

TRAFFIC

24

Contact information



Avail Intelligence AB


HQ, SWEDEN

Engelbrektsgatan 6, SE
-
21133 Malmo, Sweden

Phone: +46
-
40
-
12 12 17

Email: info@avail.net


www.avail.net