Before We Get Started, a Few Housekeeping Items:

Copyright 2008 Demandware, Inc. - Confidential

Before We Get Started, a Few Housekeeping Items: • To Join the Teleconference: Tel. 866-469-3239 or 650-429-3300 # #• Presentation Content:

Slides and Webinar recording will be made available for download at www.demandware.com. Email will be sent to notify you of its availability.

• Questions: Please ask questions via the chat function.

Lauren Freedman, President , the e-tailing groupScott Todaro, Senior Director of Product Strategy, Demandware

Webinar:


Webinar AgendaWebinar Agenda


About Demandware


14 years e-commerce consulting

Author, It’s Just Shopping

50+ years traditional retail and catalog experience

Fortune 500 client projects ranging from strategic planning, merchandising, marketing, to technology development and messaging

Proprietary research studies on mystery shopping and merchandising, marketing and EMC (Evolving Multi-Channel Consumer), In-Store Pickup and Gift Registry

E-commerce expert and frequent speaker at industry events, trade associations

About the e-tailing groupAbout the e-tailing group


Today’s Agenda

I. Why good content matters

II. Telling the content story

III. Content best practices

IV. The e-tailing group checklist for best-in-class content `


I. Why good content matters

Consumers are reliant on robust contentreliant on robust content (text, images, and tools) to research across channels and make confident buying decisions

Good content educates shopperseducates shoppers about the product and the category boosting their perception of your brand in the process

Knowledge acquired via content gives customers the confidence to buyconfidence to buy

The right information integrated contextually drives conversionconversion

Smart content reduces return rates return rates as customers buy the “right” product

Ideally, content can serve to replicate the best of personal personal shopping shopping


Detailed product information is critical across categories

When shopping online, in which categories is having detailed product information available most important?

Please select your "top 5" categories - where you would be unable to complete your purchase without having this detailed product information.

64%

52%

49%

39%

36%

31%

28%

28%

26%

26%

20%

17%

16%

16%

14%

12%

Clothing and accessories (men's, women's, kid's)

Computer hardware and software

Consumer electronics

Books/Magazines

Music/DVD/Videos

Furniture, home and garden, home improvement, tools and appliances

Health and beauty items

Toys/Video games

Gifts and collectibles

Tickets (movies, concerts, theatre)

Automotive

Jewelry/Watches

Food

Gift Card/Certificates

Pet supplies

Sporting goods

Q3

from clothing (64%) to computers (52%) to consumer electronics (49%)

the ARS eCommerce /e-tailing group Online Content Impact Survey


The quality of a site’s content matters77% of consumers are “very to somewhat” significantly influenced by the quality of online content

Q7

To what degree does the quality of the content found at a particular site (descriptions, images, copy) influence your interest

in buying from that merchant?

31%

23%

0% 0%

46%

Very significantly Somewhatsignificantly

Depends on theitem of interest

Not verysignificantly

Not at all a factor



Shoppers are impatient when information is lacking72% of consumers will abandon your site to go to a competitor or research further online; few return - for the lowest price

Q10

When you encounter incomplete product information, what is your typical behavior?

32%

19%

19%

10%

1%

72%Abandon the site to go to a competitor or research further online

Email for more information

Use their live chat when available

Contact the merchant's call center by phone

Make the purchase and hope the product works out

Go to a retail store



II. Telling the content story

D. INTEGRATED MERCHANDISING

Offers

Customer-service

Branding

B. RICH MEDIA

Zoom

Alternative Views

Video/Audio

3D

Product Tours

A. PRODUCT PAGE ESSENTIALS

Imagery

Text

Product Descriptions

Related products

Ratings/reviews

C. CATEGORY/CHANNEL-CENTRIC Product compare Syndicated manufacturer content Category content Rich media tools (view in a room, shop by

outfit) Cross-channel content


Merchants rank merchandising features that deliver ROI Content plays an important role respective to imagery and education while category-centric elements receive lower marks

Q7

Keyword Search 94% Exclusives 67% Color Change 45%

Sales or Specials 90% Customized Content 65% Brand Boutiques 44%

Cross-sells 89% Email-a-Friend 65% Contests 44%

Seasonal Promotions 88% Affilliate Programs 64% Shop by Outfit/Solution/ View in a Room 43%

Email as a Merchandising Vehicle 86% Zoom 62% Pre-Orders 43%

Free Shipping - Conditional 80% Email Customer Service Alerts 61% Product Comparisons 42%

Top Sellers 78% Gift Center/Suggestions 60% Wish Lists 40%

What's New 78% Gift Certificates/Cards 58% Video 40%

Up-Sells 75% Search/Order by Catalog Number 58% Frequent Buyer Programs 39%

Alternative Views 74% Free Shipping - Unconditional 57% Deferred Payment Plans 38%

Merchandised Search Landing Pages 74% Product Ratings & Reviews 57% Live Chat 38%

Advanced Search 73% Alternate Payment Methods 52% As Advertised 37%

Promotional Incentives to Buy 71% Multiple Ship To's 50% Limited Hour Promotions 35%

Coupons/Rebates 70% Online Outlet 50% Interactive Tools 34%

Custom/ Personalized Products 49% Gift or Wedding Registry 28%

Community Features 48% 3D Visualization 23%

Recently Viewed 46% In-store Product Locator/ Look-up 23%

In-store Pick-up and/or Returns 22%

Audio 20%

2008 VALUE RANKING OF MERCHANDISING FEATURES (TOP 3)94% - 70% Value Ranking 67% - 46% Value Ranking 45% - 20% Value Ranking

The e-tailing group 7th Annual Merchant Survey; 2008


The product page is a destination for consumers that should incorporate the best in

text, imagery, tools, plus customer service information

III. Content Best Practices

Product Page Essentials


Consumers value the product page52% spend 6 minutes or more on the product page when purchasing online

How much time do you typically spend on a product page when purchasing a product online?

1%

11%

36%

28%

13%11%

Less than aminute

1-2 minutes3-5 minutes6-10 minutes11-20 minutesMore than 20minutes

Q6



Product page rankings reveal informational hunger“Very important” ranking of all 26 features and functionalities charted in descending order of importance for selecting and ultimately purchasing a product

Q14 (Top ranking out of 5)

• Confirming the need for qualitative text, the most highly ranked is the product overviewproduct overview (76%)(76%)

• Ranking next, the merchant’s guarantee merchant’s guarantee (73%)(73%) reinforces the consumer’s need to trust before they buy

• Third ranking, stock status (69%)stock status (69%) reflects the need for products to be available when shoppers want them

• Fourth ranking is quality of the image (67%)quality of the image (67%) to ensure shoppers can visualize their potential purchase

VERY IMPORTANT TOTALProduct overview 76%Merchant's guarantee 73%Stock status/availability 69%Quality of the image 67%Customer service links 65%Product specific information 63%Long description 54%Size chart 54%Toll-free telephone number 54%Ratings and reviews 53%Alternative views 42%Product guides 42%Zoom 41%Item specific image 38%Short description 38%Product comparisons 34%Color change 28%View on a model 26%View in a room 18%Product demonstrations 18%Video 17%Recently viewed 13%Audio 11%Live chat 10%Wish list 10%Email a friend 6%

When visiting a merchant's product page, how important are the following to selecting and

ultimately purchasing a product?


15 Copyright 2008 Demandware, Inc. - Confidential

All the content bells and whistles must be in place

Content ElementsMore viewsClose UpFull SetFabric ContentMatching StyleColorsOther Products from the BrandCustomer Service Links



55% of consumers almost always or frequently (36%) click for more information if they find a product of interest


Complete information engenders confidence

Content ElementsRatings/ReviewsProduct DescriptionSpecificationsDiscussion forumAccessoriesWarranty informationInstallation and setupHow to get itReturnsSpecial Offers


Images of related products add appeal72% feel viewing related products along with the product they intend to buy is “very to somewhat” important to their shopping experience

Q19



Creativity in deployment reinforces brand proposition

Content ElementsThe FactsWhy We Love ItCustomer ReviewsCareZoomAdditional Views


Information means product details as well as stock status

-All content elements on the product page matter -Time is spent viewing text (43%), followed by images (31%) and tools (26%)

Content ElementsOverviewHands-on researchFeatures and specsAccessoriesReviews


B. Rich Media Merchants have adopted a myriad of “rich” techniques that visually engage, sell and

support shopping initiatives


Rich media plays an important role in enhancing the customer experience

Q8

How has rich media impacted each of the following:

Very Effective

Somewhat Effective

NeutralSomewhat Ineffective

Not at all Effective

ResponseResponse%%

Enhancing the customer experience 22% 30% 12% 1% 1% 65%

Increasing conversion rates 13% 28% 20% 1% 1% 63%

Increasing average order size 10% 19% 30% 2% 0% 61%

Reducing return rates 7% 13% 33% 2% 1% 56%

Among those using Rich Media it is still most effective for enhancing the customer experience although the percent ranking it as such dropped to 79% from 85% LY

2008 2007

• Enhancing the customer experience 79% 85%• Increasing conversion rates 66% 65%• Increasing average order size 47% 47%• Reducing return rates 35% 38%

The e-tailing group 7th Annual Merchant Survey; 2008


A picture is worth a 1000 words 94% consider it “very to somewhat important” when selecting and ultimately purchasing a product

Q12 (Top 2 ranking out of 5)

VERY TO SOMEWHAT IMPORTANT TOTAL WOMEN MENQuality of the image 94% 96% 92%Alternative views 88% 91% 83%Zoom 85% 86% 81%Item specific image (i.e. pillow vs. entire bedroom or shirt vs.complete outfit) 77% 79% 74%Color change 65% 72% 51%View on a model 61% 65% 55%View in a room 50% 52% 44%

When visiting a merchant's product page, how important is the following image related information to selecting and ultimately purchasing a product?

• Alternative views (88%) and Zoom (85%) rank next in importance

• Women also rank all of these tools higher than men



Content ElementsColor changeAudioAlternative viewsRatings/ ReviewsProduct TourBrowse more itemsYou may also like recommendations

Rich media resonates with shoppers


The views make the sale


When looking at rich media tactics such as video demonstrations and flash images 30% of shoppers are somewhat more likely to buy that product


Adopt video successes from the web and turn into selling vehicles


Ensure customers are part of the action


C. Category/Channel-centric ToolsOne’s category is a critical factor moving

beyond investing in the basics that can be used to differentiate and elevate your brand


Tools are essential to facilitate the buy Ratings and reviews (88%), product guides (87%) and comparison tools (81%) rank most important

Q14 (Top 2 ranking out of 5)

VERY TO SOMEWHAT IMPORTANT TOTAL WOMEN MENRatings and reviews 88% 90% 88%Product guides 87% 87% 84%Product comparisons 81% 80% 82%Product demonstrations 55% 56% 54%Video 51% 49% 53%Audio 38% 38% 40%Email a friend 22% 23% 19%

When visiting a merchant's product page, how important are the following tools to selecting and ultimately purchasing a product?

• Over half of those surveyed also rely on demonstrations (55%) and video (51%),both of which we anticipate growing with greater merchant penetration

• Although the differences are minor, women and men favor different kinds of tools



Customer control favors edit capabilities

Beyond search compare’s ability to refine the assortment is welcome by shoppers


Learning aids make your site a cross-channel resource


Syndicated brand content makes selling efficient where brand execution is consistent


Consumers gravitate to tools that save timewhile merchants enjoy an increased AOV


D. Integrated Merchandising ContentIntegrating strategic elements on the product

page and throughout the site experience extends their cross-channel value


Branded content can reinforce your value proposition at many customer touch points


Integrated offers inspire shoppers


Take advantage of retail locators to promote cross-channel activity

From promotions to store events and ultimately inventory access the locator is a multi-purpose destination for cross-channel shoppers


Selling should be wisely integrated into your content

42 percent of shoppers spend more than half of their total shopping time researching online

Krillion/e-tailing group Web/Store Cross-ChannelShopping Survey; 2008


Shoppers seek out customer service information Merchant’s guarantee (95%), helpful links (92%) and stock status (91%) top the list

VERY TO SOMEWHAT IMPORTANT TOTAL WOMEN MENMerchant's guarantee 95% 96% 92%

Customer service links 92% 93% 90%Stock status/availability 91% 92% 90%Size chart 87% 96% 80%Toll-free telephone number 84% 86% 80%Recently viewed 45% 44% 43%Live chat 41% 42% 41%Wish list 34% 36% 32%

When visiting a merchant's product page, how important is the following customer service information to selecting and ultimately purchasing a product?



Elevate customer service via visual cues


Checklist for Comprehensive E-Commerce Content

Product Page EssentialsProduct Page Essentials

Start with a clear overview of the product

Follow up with a long description for those who seek “more information”

The quality of the image must be crisp and clear to give a true sense of the merchandise

Suggest relevant products via premium real estate including the product page and shopping cart

User-generated ratings/reviews add a personal dimension to the shopping experience

Stock status should be shown to address any availability challenges

Rich Media and Category/Channel-Centric ToolsRich Media and Category/Channel-Centric Tools

Take advantage of rich media incorporating alternative views, zoom and color change

Relevant tools can embellish the basics where product compare and video should be assessed on a category basis

Leverage manufacturer content through syndication and other means to extend customer experience

Embellish retail locator to drive cross-channel traffic

Integrated MerchandisingIntegrated Merchandising

Offers can be integrated effectively throughout the site to trigger the sale

Branding and customer service messaging reduces the risk for first time shoppers making your brand more accessible


Can you bank on your content?

Lauren Freedman

President

the e-tailing group, inc

773-975-7280

[email protected]

www.e-tailing.com

Documents

Before We Get Started, a Few Housekeeping Items: