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Today’s Tablets Mean Bigger Consumer Engagement

Connected Customer Strategies Track

Linda Brown, Wolverine World WideJoaquín Ruiz, Catalog Spree

Over 150 retail brands including: L.L. Bean Nordstrom West Elm Horchow Boston Proper Merrell Bare Necessities Coldwater Creek Woolrich Hanna Andersson

What is Catalog Spree?iPad and Mobile Web “Digital Mall”

• Digital window shopping• Brand & product discovery• Fun

• Customer prospecting• Path-to-purchase funnel• Asset leveraging

Points of View

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Who is Wolverine World Wide?APPAREL

& ACCESSORIESCONSUMER

DIRECTFOOTWEARWHOLESALE

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A Tale of Four Disruptions

Music Books Retail Magazines

PastPresent

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Yet Again: Omni-Channel• Be where your customers are...

and tie it all togetherDiscover NurtureEngage SellIncent RewardSurprise Re-engageLink, link, linkTrack, track, track

• Build to and measure your company’s Path-to-Purchase

• Offline meets Online

Mostly Online; 42%

Combined; 45%

Mostly

Stores;

12%

Primarily Mobile; 1%

Methods US Online Shoppers Plan to Use to Shop in 2012% of respondents

Source: PriceGrabber, “2012 Shopping Outlook”

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Portable, Instant Access

IDC: Worldwide smartphone shipments already more than PCs

350m PCs492m smartphones

2011500m PCs

1,600m smartphones

2016

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A Tidal Wave of Tablets

• Tablets growing 19 times

faster than PCs.

• Tablets growing 60% faster

than the smartphone.

• By 2016, 126m tablets will

be in use by US consumers.

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Unbelievable (but true) Forecast

NPD Group: Tablets to overtake notebooks in 2016

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PC Mobile0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Dec-11 Apr-12

iPad iPhone Other (Android)0%

1%

2%

3%

4%

5%

6%

7%

8%Dec-11 Apr-12

The iPad alone accounts for half of traffic from mobile devices

Source: Catalog Spree Retailer Survey, April 2012

Mobile Share of E-commerce Traffic Doubled in Less Than 6 Months

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• Design for mobile first… at the very least test on mobile

– 40%-60% of retail email opened on smartphone

– Optimize “first click”

• Highest value retail customers are– iPad owners– Shop in stores– Use catalogs

…Leveraging and integrating all your channels is vital

Omni-channel Implications

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Regarding Mobile:“Not since the dot-com boom has a

consumer trend single-handedly turned the retail industry upside

down…

Customers are demanding mobile-centric solutions that personalize

and improve the shopping experience.”

Source: NRF Stores, Nov 2011

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Product Demo: iOS & Web

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Monday; 12%

Tuesday; 12%

Wednesday; 13%

Thursday; 14%Friday; 15%

Saturday; 17%

Sunday; 17%

Monday 0:00MondayMondayMondayMondayMondayMondayMondayMondayMondayMondayMondayMonday 12:00MondayMondayMondayMondayMondayMondayMondayMondayMondayMondayMondayTuesday 0:00TuesdayTuesdayTuesdayTuesdayTuesdayTuesdayTuesdayTuesdayTuesdayTuesdayTuesdayTuesday 12:00TuesdayTuesdayTuesdayTuesdayTuesdayTuesdayTuesdayTuesdayTuesdayTuesdayTuesdayWednesday 0:00WednesdayWednesdayWednesdayWednesdayWednesdayWednesdayWednesdayWednesdayWednesdayWednesdayWednesdayWednesday 12:00WednesdayWednesdayWednesdayWednesdayWednesdayWednesdayWednesdayWednesdayWednesdayWednesdayWednesdayThursday 0:00ThursdayThursdayThursdayThursdayThursdayThursdayThursdayThursdayThursdayThursdayThursdayThursday 12:00ThursdayThursdayThursdayThursdayThursdayThursdayThursdayThursdayThursdayThursdayThursdayFriday 0:00FridayFridayFridayFridayFridayFridayFridayFridayFridayFridayFridayFriday 12:00FridayFridayFridayFridayFridayFridayFridayFridayFridayFridayFridaySaturday 0:00SaturdaySaturdaySaturday

SaturdaySaturdaySaturdaySaturdaySaturdaySaturdaySaturdaySaturdaySaturday 12:00SaturdaySaturdaySaturdaySaturdaySaturdaySaturdaySaturdaySaturdaySaturdaySaturdaySaturdaySunday 0:00SundaySundaySundaySundaySundaySundaySundaySundaySundaySundaySundaySunday 12:00

0

0.5

1

Data: Shoppers spend 95+ minutes/month on app

traffic breakdown by day Usage per time and day of the week

• Saturday/Sunday are biggest shopping days• Peak shopping time is between 6-9 PM PST

Source: Catalog Spree data, April 2012

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45 million people, 47% of all

smartphone owners, used mobile apps in the Nielsen-defined Shopping/Commerce category in June

2012.

It was Nielsen's first study of a particular category of mobile app.

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Most of the top 10 apps in the category just

help users find deals

or organize their shopping.

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What does mobile mean to WWW?

eCommerce Mobile Revenue Share by Period

P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 P1 P2 P3 P4 P5 P6 P7 P80.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

eCommerce Mobile Revenue Share by PeriodEurope United States

2011 2012

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What does mobile mean to WWW?

Distribution of Mobile Visits & Sales by Device

Apple iPad Apple iPhone Droid (Any) Other Apple iPod Touch

0%

10%

20%

30%

40%

50%

60%

70%

80%% Visits % Revenue

% o

f eCo

mm

erce

Bus

ines

s

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Community vs. Affinity

Own Apps+ Brand-immersed + Loyalty Builder– Costly– Maintenance

Commitment– Platform choice± Awareness± User experience

Aggregation Apps+ Branded experience+ Large Distribution+ Easy MultiChannel:

Web, App, Own-site+ Ease of social

integration+ Scaled expense± One of a crowd

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Community

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Community

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Community

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Community

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Affinity (Aggregation) App• Objectives

– Prospecting– Participating– Positioning

• Challenges– Low Awareness– User-Experience Limits– Lack of Personalization

• Cost Structure – 3-15% Commission per Sale– Other fees

• Setup Charge• Cost Per View• Cost Per Lead/Subscription

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Vendor Selection

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Leverage your assets to provide a unified point of view.

Don’t overcomplicate things.

Make it easy to use.

Meet expectations before you exceed them.

Design

http://thoughtleadershipleverage.com/wp-content/uploads/2011/09/leverage11.jpg

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Design

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Page Processing Systems:Single pages (not spreads)• CMYK or RGB• 300 x 300 dpi• Editable

“Design for Mobile” • Landscape to portrait• Fold out spreads to singles• Products that cross spreads

may need adjusting• Avoid distortion by translating

to a uniform page size.

The Nitty-Gritty

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Data Feed SystemsBefore “go live”• May use GAN feed• May use your own web site for

sales or separate channel. • Be proactive • Determine all needed fields• Provide test files for review• Confirm meets specifications

After ‘go live’• Babysit• Changes cause “Item Not

Available”• Coordinate updates around

catalog publishing cycles

The Nitty-Gritty

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Beyond Response: KPIs

Catalog Spree Calculated KPIsMerrell Spring x100Unique Viewers 2,718 271,800Total View Time 155 hours 15,500View Time per Person 2 min 2 minTime per page 5-6 seconds 5-6 secAvg # Products Zoomed 2.25 2.25% of Zoomed to See More Button 8% 8%Number of Viewers to Website 225 people 22,500Actual Direct Conversion 1 person 100Actual Direct Revenue $125 $12,500

Potential 2% Conversion 5 people 500Potential Revenue $625 $62,500

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0.6%

Beyond Response: Attribution

All Attribution Merrell Spring ’12 Catalog; 400K Circ.

GWP promocode (i.e. RetailMeNot.com) +$0.17/book

Website catalog request +$0.03/book

Visit website catalog & buy +$0.002/book

Merrell B&M stores +$0.27/book

All Digital Catalogs (Combined) +$0.003/book

$0.475/book

Spring ’12 Added Revenue Contribution = $190,000

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External Promotion• Ongoing promotion on all channels:

– B&M signs including driver QR codes– Social Media including contests– Emails regularly as primary story– Emails always in footer

Internal Promotion• Who owns it?• Small team focus• Report KPIs

Be the Cheerleader

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• Cookie tracking

• Social Shopping

• Use eCatalog sweepstakes for email growth

• More brands / more creative look & feel

What’s Next?: WWW Perspective

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Electronic Omni-channel:• “Social Shopping”

• Tight integration with social and interest networks

• Community annotations

• Demographic prospecting & VIP services

• Targeted recommendations• Targeted promotions• In-store services• Phone-centric offers & updates

• HTML5 distribution• More platforms

The Future: Spree’s Perspective

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Conclusions• The acceleration of digital space creates opportunity.• The tablet creates a unique marketing opportunity.• Experiment on multiple platforms

– Make sure user-experience fits your brand– Set up a data and learning discipline– Use 1 or more of the community apps

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Q&A

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THANK YOU

Linda.Brown@wwwinc.comJoaquin@catalogspree.com