Welcome!
How to Leverage Multiple Sales
Channels to Reach & Retain
Cross-Channel Shoppers
May 13, 2008
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Before we start
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Today’s presentation
 Highlights from the Krillion Consumer Survey
 Current retailer and manufacturer strategies
 Readiness recommendation checklist
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Today’s presenters
Lauren Freedman
President
the e-tailing group
Joel Toledano
CEO
Krillion
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About Krillion
 What we do:
– Product-based local search
– Driving online users to
in-store sales
 Who we work with:
– Leading manufacturers,
retailers, publishers, and
search engines
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About the e-tailing group

14 years of e-commerce consulting
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Author, “It’s Just Shopping”
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50+ years traditional retail and catalog experience
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Fortune 500 client projects ranging from strategic planning, merchandising, marketing, to
technology development and messaging
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Proprietary research studies on:
mystery shopping & merchandising; marketing and multi-channel customer mindset; In-Store
Pickup and Gift Registry
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E-commerce expert and frequent speaker at industry events, trade associations
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Purpose and methodology
To better understand the mindset of consumers who research products online
that lend themselves to purchase at a local store.
The study highlights the role of Internet information resources, the retailer
channel, and web-to-store convenience options offered online—such as in-store
pickup and inventory availability—in shaping consumer purchase decisions.
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Survey completed February 2008
1,000 consumers sampled
50% male, 50% female
Spend at least $500 online annually
Purchase online at least 4x per year
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Web-ready buyers are demanding

“Web-Ready Buyers” are demanding, doing their shopping
“homework” well in advance of their purchase

“Web-Ready Buyers” who are predisposed to research online
are willing to spend at least several days or weeks researching
products

They are first and foremost problem solvers who leverage the
web’s efficiencies to quickly find the right answers to their
shopping needs
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These customers leverage all channels,
seeking complete information

The role of the manufacturer online has been elevated: a visit to their site is often the first
stop for savvy online information seekers
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The store is an integral part of shoppers’ multi-channel buying experiences

Expectations are high for Web-Ready Buyers regarding:
 the number of information sources they seek out
 the features they expect to see on any given site
 their propensity for using in-store pickup
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The ‘Local’ proposition is clear
 Saving time, convenience and saving money are consistently what
matter most to consumers when using a local search engine to
research products online
 To the consumer, local is getting the right price for an in-stock
product at a favored retailer
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Prior to buying, consumers are spending
considerable time online in ‘research mode’
What percent of the time you spend shopping
(store/web/catalog) involves researching products online?
25%
26%
21%
16%
12%
1-14%
15-29%
30-49%
50-74%
% of time spent researching products online
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Q3
More than 75%
42 percent of shoppers
spend more than half of
their total shopping time
researching online
Shoppers multi-source: 72% look to the manufacturer’s
website when researching major branded products
online, while 54% seek out favored retailers
Beyond this, shopper styles affect where consumers start their research
When shopping for a specific manufacturer's product (i.e. GE dishwasher, HP Printer or
Panasonic HDTV) which online resources will you typically use to conduct your research?
Select all that apply.
72%
Visit the manufacturer's website
Go to one of my favorite retailers online to learn more about what they
have to offer and their prices
54%
Go to a comparison shopping engine to check out prices of the products
in which I'm interested
50%
47%
Conduct a search online and look at a handful of search listings found
Visit a store or several stores to preview the product and then go online
to learn more
38%
Go to a search engine that has brands I'm looking for and local
information about availability and pricing
Other*
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Q6
30%
4%
Consumers are first and foremost needs-driven,
with many influences triggering their search
for online product information
Word-of mouth continues to play an important role
similarly valued by consumers
What are the leading media and other influencers that typically trigger
your search for product information online? Select all that apply.
To solve an immediate need
58%
Word of mouth
56%
TV commercial
50%
Prior visit to a store
49%
Catalogs/Direct mail
44%
Magazine or newspaper ads
44%
Article about the product
42%
Newspaper circulars
38%
Consumer Reports Magazine
38%
Online promotion or banner ad
Email
28%
26%
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Q11
• Women are more
traditional: favoring
word-of-mouth,
catalogs, magazines,
newspapers
• Men are more webcentric: embracing
online promotions,
banner ads and email
Depending upon the complexity of the product
category, those surveyed invest several days or even
months researching prior to making a purchase
Several days to weeks or even months are typically spent
researching these product categories prior to making a purchase.
80%
76%
73%
63%
45%
ea
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G
ea
r
37%
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Q8
Pa
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Ca
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ud
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Ap
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38%
Top 3 essential online resources:
manufacturers, retailers, search engines
Secondary sources include shopping comparison sites,
consumer magazines online, portals/directories, and blogs
Please rate each of the following web resources based on how
essential they are to your online product research.
Most
Somewhat
Least
essential
essential
essential
Manufacturer websites
61%
35%
4%
Retailer websites
Search engines
Shopping comparison sites
Consumer magazines online
Portals and other directories
Blogs
54%
53%
39%
37%
25%
10%
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Q13
42%
41%
43%
43%
53%
25%
4%
6%
18%
20%
22%
65%
For complex product categories,
manufacturer websites are the #1 destination
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Q6
Online retail experiences take place in many ways
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Exposing products can be facilitated via a
series of different channels and a variety of means
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Searching is part and parcel of the user experience,
where the “best” price is top of mind
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Saving time (76%), convenience (69%), and
saving money (64%) are consistently what matter most
Given the ability to research products online using
a local product search engine, what 3 aspects of this kind
of experience do you find most appealing?
It saves me time
76%
It's more convenient; allows me to comparison shop with context
including product information and customer reviews
69%
64%
It saves me money
It allows me to efficiently do my research prior to store visits
38%
It lets me know what product is available at retailers in my
neighborhood
Allthe information across many local retailers is available at one site
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Q17
30%
23%
For online shoppers, “local” means the right price
for an in-stock product at a favored retailer
What do you see as drawbacks you have experienced that may inhibit
purchasing products at a local retailer using online information
resources? Select all that apply.
Finding the best price for purchase locally vs. buying
through an online reseller
59%
53%
Finding local retailers that have the product in stock
52%
Finding local retailers that carry the product near me
The time it takes researching/searching for the right
product near me
30%
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Q15
Shoppers expect websites to aid in research,
provide up-to-the-minute information
Please rate the importance of the following website features, information or tools to
selecting a product you have researched online but intend to purchase at a local store.
Rating of very to somewhat important
88%
Inventory/stock status
87%
Special offers
Ability to sort & refine by brand, price, product feature, etc.
83%
Ability to compare products side by side in a grid format
83%
Customer ratings/reviews
83%
80%
Search website by keyword or product number
79%
Price history/price tracking
75%
Complete list of local stores
69%
Pickup in-store options
48%
Recently viewed
43%
Relevant advertising
35%
Wish list
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Q16
To help make purchasing decisions, consumers embrace
peer-based content like product reviews (84%) and consumer
surveys/studies (57%)
Product images (49%) and literature (48%) are expected sources
of information that further support decision-making
What types of online content do you most frequently read, download
or pass on to help you make a purchase decision?
84%
Product reviews
57%
Consumer surveys/studies
49%
Product images
48%
Product literature
39%
Product news
28%
Articles written by journalists or experts
26%
How to guides
17%
Videos
Other*
2%
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Q14
• Women trend higher
on image and
product reviews
• Men care more about
expert articles and
videos
Customer-centric tools foster decision-making
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When selecting a local store to make a purchase
consumers desire a comprehensive website
including convenience-centric, store-related services
Website features that are "very to somewhat important" as they relate to
purchasing decisions when selecting a store in one's local area
to make a purchase (top 2 on a 5-point scale).
87%
In-store returns
Current store promotions
85%
Detailed store information
81%
Delivery options
80%
Manufacturer rebates
79%
76%
Product locator w/inventory access prior to store visit
69%
In-store pickup options
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Q9
Store promotions and services are
evaluated simultaneously
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The store is an integral part of shopper behavior
frequently involving multiple store visits
For information-intensive purchases, consumers are more apt to
research online and then complete their purchase at a local store
When thinking about purchasing products in the following categories, which of the following best describes your research and shopping
process? Please select your top two most likely scenarios for each category.
APPLIANCES
CONSUMER
LAWN/PATIO
ELECTRONICS
/GARDEN
COMPUTERS
PERSONAL &
CAR AUDIO
BABY GEAR
A combination of store visits and online
research where final purchase would be
at the local store
57%
69%
56%
53%
59%
51%
48%
Research online and buy at a local store
52%
69%
50%
51%
53%
48%
48%
Go to a local store to research, make my
final selection and purchase
35%
29%
42%
43%
50%
40%
44%
Research online and buy online
30%
17%
32%
29%
20%
32%
38%
A combination of store visits and online
research where final purchase would be
online
26%
16%
20%
24%
18%
29%
22%
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Q7
SPORTS/
OUTDOOR
GEAR
Store visits often start with
sophisticated retail locators
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55% have purchased a product online for in-store pick-up,
increasing the role of web-to-store activity
Have you ever purchased a product online
and picked it up in-store?
Yes
55%
No
45%
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Q4
Merchants extend their reach, driving
traffic to the store via in-store pickup
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Buyers who pick up in-store are motivated by
shipping savings and convenience benefits
What was your primary motivator for choosing to pick up
a product purchased online vs. having it shipped?
Select one.
Save shipping
expense
50%
22%
Convenience
Immediate need
Other*
• Among women saving on
shipping is even more of a
motivator as it was
selected by 63%
Note: Beyond saving
shipping expenses,
immediate needs and
convenience will always
play an important role in
“local” shopping
18%
4%
Enjoy visiting the
store
3%
Not home to receive
product
3%
*Other includes shipping not an option, out of stock online; taking advantage of a discount offered if picked up in-store
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Q5
Product locators with inventory access will serve as the
ultimate foundation for future cross-channel conveniences
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Are you ready?
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Comprehensive content must be in place
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Category-centric tools should give customers the control they demand to swiftly satisfy
and solve shopper needs
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Manufacturers must extend their efforts through retail and search partners
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Cross-channel conveniences should be clear to shoppers
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Merchants must think about both time and cost savings when structuring multi-channel
experiences
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Q5
The e-tailing group contact information
Lauren Freedman
President, the e-tailing group inc
773.975.7280
lf@e-tailing.com
www.e-tailing.com
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Joel Toledano
CEO
Krillion Inc
Krillion:
leveraging product-based local search
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What shoppers care about

Consumers think:
“research online  buy offline”
– Search on Google
– Buy in a physical store
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Who carries this product near me?
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What does it cost?
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Is it in stock right now?
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Search engines, shopping engines and
directories, are not one-stop shops
 Search engines don’t
provide everything
consumers need:
– product
– location
– price
– in-store availability
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In-store pickup is already popular
2007 online sales (est.):
$1.1 billion
2007 online sales (est.):
$1.5 billion
55%
picked
up in
store
40%
picked up
in store
In-store pickup averages $60
more per customer ticket
In-store pickup averages $154
more per customer ticket
Source: National Retail Federation
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And will become mainstream…
eMarketer predicts:
1.
2.
3.
4.
5.
6.
• Multichannel retailers will roll out
more “buy online, pick up in-store”
services.
Online ads remain resilient.
Video surge slows.
Social-network advertising hits $1.6 billion.
Networking goes beyond MySpace and Facebook.
YouTube decides the election.
Beijing Olympics pumps up ad spending.
7. Buy online, pick up in-store becomes expected
feature.
8. Movie downloading hits the mainstream.
9. Music marketers roll out new business models.
10. Dynamic ads heighten gaming revenue potential.
• Forrester Research reports 79%
of multichannel retailers ensure
consistent pricing across their
channels.
• Internet Retailer finds 75% of
retailers link their e-commerce
systems to their fulfillment and
order management system.
Source: eMarketer Inc
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How Krillion enables web-to-store sales
Krillion has built a huge local shopping dataset
of manufacturers, SKUs, store locations & in-stock
product availability – more than 700 million data
elements, and growing
• Yellow Pages
Leads!
Ready-to-buy
consumers
• Product
reviews
• Shopping sites
Local
Retailers
• Widget on
manufacturer
websites
• Search engines
Krillion Localization
EngineTM
• Metadata by category
• Product categories
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The Home Depot case study:
increased click performance
Launched: February 2008
Objectives:
• Increase click performance online
with contextual marketing
• Drive sales through all Home
Depot offers on/offline
Results:
• 4x conversions to “see it” locally
button
• 2x average CTR on all ad
impressions served
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Panasonic case study:
sales uplift & tighter linkage
Launched: March 2008
Objectives:
• Increase site capabilities to
drive more sales to dealers
• Offer real-time stock
information
Results:
• Thousands of new
views/month and growing
• Double-digit conversions to
“see it” locally button
• Increased conversion to sale
from Panasonic.com to
dealers
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Bridging the Internet and the store
What’s next?
 Mobile coupons will capitalize on the
web-to-store opportunity
– Offers sent to consumers drive
in-store purchasing
 Micro-local targeting through location-aware
technologies“
“Mobile phones are more likely to be used
in a multichannel shopping process than to
generate m-commerce sales.”
–Gartner Group, Feb. 2008
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Three ways to work with us to grow
your web-influenced sales
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Manufacturers: Krillion Product Locator drives revenue and
directs in-store sales to dealers
2.
Retailers: enhanced placements and integrated advertising to
drive in-store sales
3.
Publishers: Leverage Krillion’s product-based local search
platform to increase audience engagement revenue opportunities
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For more information about working with Krillion to power
your product locator or support your local in-store sales
efforts, contact us at sales@krillion.com
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Q&A
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Thank You!
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