What Does Web 2.0 mean to retailers? This presentation takes a look at the related technologies, vendors and products; looks at the related themes; implications for retailers; and some real examples.

1. What does Web 2.0 mean to retailers?
Chris Hoskin
Chief Marketing Officer
Salmon
Prepared January 2009

2. What does Web 2.0 mean to retailers?

3. What does Web 2.0 mean to retailers?
The term ‘Web 2.0’ means very little. But
what Web 2.0 enables will have significant
bearing on retail in 2009 and beyond.
Inventory management, store systems,
logistics, and CRM will all be affected in one
way or another.

4. What does Web 2.0 mean to retailers?
The term ‘Web 2.0’ means very little. But
what Web 2.0 enables will have significant
bearing on retail in 2009 and beyond.
Inventory management, store systems,
logistics and CRM will all be affected in one
way or another. And in eCommerce, it already
is having an impact.

5. Who are Salmon?
Established, global systems integrator Diverse interests and practice areas
Global SI, Operations in London, New Interests in retail, finance, insurance
York, Beijing, Sydney and utilities
Successful track record over 19 years Focus on enterprise architecture , IT /
Business Change
c. 170 staff, c 100 in eCommerce team
Focus on Business impact
£16.8M turnover
Application management and support
Privately owned, Financially sound
- 25% of the business
Open, honest and responsive approach
Strong delivery-focused culture and
Focus Innovative risk reward models
Mission critical systems Fixed price
Managed Risk
Broad and deep expertise in web based
applications and technologies Shared Reward
Specialist skills in highly transactional
systems and solutions e.g. B2B and B2C
eCommerce, multi-channel integration,
insurance underwriting
Customer experience / design

6. Salmon
Delivering solutions for market leading & challenger retail brands

7. Agenda
What does Web 2.0 mean to retailers?
> What is Web 2.0?
> Related technologies / vendors / products
> Trends & themes
> Implications for retail
> Real examples
> Web 2.0 in retail demo (eCommerce)
> Q&A

8. Agenda
What does Web 2.0 mean to retailers?
> What is Web 2.0?
> Related technologies / vendors / products
> Trends & themes
> Implications for retail
> Real examples
> Web 2.0 in retail demo (eCommerce)
> Q&A

9. Quick Video

10. What is Web 2.0?
Clearly 1.0 to 2.0
Static
Central publication control
Single site content
Slow bandwidth
Page refresh
“web as a platform”
“users add value”
(Tim O’Reilly)
Tools
+
Technologies
+
Business Strategies
+
Cultural and Social trends

11. Agenda
What does Web 2.0 mean to retailers?
> What is Web 2.0?
> Trends & themes
> Related technologies / vendors / products
> Implications for retail
> Real examples
> Web 2.0 in retail demo (eCommerce)
> Q&A

12. Trends & Themes
Survivors of 2001 bubble burst had similarities
Mashups
Attitude, not technology
Wikis
The long tail
Blogs
Data is the “intel inside”
RIAs
Hackability
Podcasts
Perpetual Beta
RSS
Right to remix (some rights reserved)
Tagging
Software that gets better the more
Cloud Computing
people use it
Social Networking
Granular addressability of content
Cloud Computing
Rich user experience
Architecture of Participation
Small pieces loosely joined
Standards
Trust your users
Decentralisation
Reputation
Open to > devices
Creation v Consumption
Modularity
Web as components
Identity
Emergent: User behaviour not
‘Services’ not ‘Software’
determined
Source: http://www.oreillynet.com, Web 2.0 Meme Map

13. Trends & Themes
Personified
2005
Has a good specked PC in the spare room
Uses email
Uses Next.co.uk and Argos.co.uk in combination with a catalogue
Researches a bit, mainly for holidays
Starts to send and receive some pictures
Watches TV
Uses her mobile to arrange meetings
2008
Has a very high specification laptop, with speakers
Uses it all round her flat via wireless broadband
Still uses email but also instant messaging with a webcam
Does virtually all her research online
Buys far more on impulse e.g Nike+
All her music is online
Banks on-line
She posts her photos to her family on-line
She watches BBC iPlayer on-line, and has a favorite youtube channel
Has started a blog on her trek round Europe
Subscribes to several on-line fashion magazines
Has a Facebook and My Space account. Is trialing Twitter
Regrets a very dodgy video appearing on YouTube from a girls night out
And she still goes out to shop and talk to people despite meeting a man
online!!!!!

14. Agenda
What does Web 2.0 mean to retailers?
> What is Web 2.0?
> Trends and themes
> Related technologies / vendors / products
> Implications for retail & retailers
> Real examples
> Web 2.0 in retail demo (eCommerce)
> Q&A

15. Related technologies / vendors / products
AJAX
Ruby on Rails
APIs
Tools / IDEs
XML
Web Services
RSS
Python
Flash & Flex & Air
Aggregation
Embedding
Folksonomy
Remixing
Virtual Architecture
Widgets

16. Related technologies / vendors / products
Digg
37 Signals
ZoHo
Naymz
Technorati
Wordpress
Twitter
Facebook
Second Life
Del.cio.us
flickr

17. Related technologies / vendors / products
Digg
37 Signals
ZoHo
Naymz
Technorati
Wordpress
Twitter
Facebook
Second Life
Del.cio.us
flickr
Google (Apps, Docs, Knol, youtube)
Yahoo (Flickr, Pipes, Zimbra)
MS (Facebook, Office Live, Live Writer, Popfly, XBOX Live, Surface,
Silverlight, Sharepoint)
IBM (Bluehouse, Support for core technologies)
Apple (iPhone, iTunes, iPod Touch, iWeb)
Cisco (Five Across, Webex, Holographic video conferencing)
Oracle (web 2.0 ready)

18. Related technologies / vendors / products
Digg
37 Signals
ZoHo
Naymz
Technorati
Wordpress
Boing Boing
Twitter
Facebook
Second Life
Google (Apps, Docs, Knol, youtube)
Yahoo (Flickr, Pipes, Zimbra)
MS (Facebook, Office Live, Live Writer, Popfly, XBOX
Live, Surface, Silverlight, Sharepoint)
IBM (Bluehouse, Support for core technologies)
Apple (iPhone, iTunes, iPod Touch, iWeb)
Cisco (Five Across, Webex, Holographic video
conferencing)
Oracle (web 2.0 ready)

19. Agenda
What does Web 2.0 mean to retailers?
> What is Web 2.0?
> Trends and Themes
> Related technologies / vendors / products
> Implications for retail
> Real examples
> Web 2.0 in retail demo (eCommerce)
> Q&A

20. Implications for retail
Different segments, different adoption
1. Consumer electronics & entertainment
2. Apparel & footwear
3. Specialty
4. Catalogue & mail order
5. Home improvement
6. Department & discount
7. Drug stores, health & beauty
8. Supermarkets & grocery

21. Implications for retail
but patterns emerging
Web 2.0 features/functionalities adopted most by retailers
RIA based user interfaces
Static Mashups
Qualitative as well as quantitative product reviews
Web 2.0 features/functionalities finding limited adoption by retailers
Blogs
Discussion Forums
Data Feeds (RSS, Atom etc.)
Live Agent Chat
Dynamic Mashups (live data feeds)
Podcasts
Videocasts
End user product customisations
Product Tagging
Synchronous chat
Web 2.0 features/functionalities adopted least by retailers
Wikis
Bookmarks sharing
Collaborative product customizations
Comparison shopping across multiple retailers
End user contributed content
VoIP based customer support
Source: Adapted from an Infosys blog post

22. Implications for retail
but patterns emerging
Web 2.0 features/functionalities adopted most by retailers
RIA based user interfaces
Static Mashups
Qualitative as well as quantitative product reviews
Web 2.0 features/functionalities finding limited adoption by retailers
Blogs
Discussion Forums
Data Feeds (RSS, Atom etc.)
Live Agent Chat
Dynamic Mashups (live data feeds)
Podcasts
Videocasts
End user product customisations
Product Tagging
Synchronous chat
Web 2.0 features/functionalities adopted least by retailers
Wikis
Bookmarks sharing
Collaborative product customizations
Comparison shopping across multiple retailers
End user contributed content
VoIP based customer support

23. Implications for retail
Ajax-ified UIs: indifferent to engaged
Far better customer orientation
Better support for customer goals
Research
o
Search
o
Browse
o
Navigation
o
guided sales
o
Hyper-personalisation
Convergence of ‘brand’ & ‘community’
Web 2.0 will put some Web 1.0 retail companies out of business
Moving beyond eCommerce 2.0 into Retail 2.0 will bring more
challenges

24. Implications for retail
2009 Projects
Enhanced checkout flow (i.e. embedded AJAX cart, richer controls)
Quick pick modals with inventory integration (i.e. dynamic)
Second generation product reviews (leveraging product reviews as
affiliate marketing; adding rich media (audio and video))
Linking social networking with commerce controls (playing off
social sites and/or adding social aspects to existing commerce
sites)
Increasingly-granular personalisation (issues with geog)
More editorial syndication: RSS & XML
CSS + MV Testing: Modals / widgets (x-sell, upsell, reviews etc)
to increase AOV
> ASP, SaaS / Multi Tennant > White labelling
Alternative Payment Services – “BillMeLater”, Google, PayPal, and
Amazon v bespoke virtual wallets
>> 2009 + Web 2.0 outside eCommerce
Magic Mirror, 2D Bar Codes, GPS, Live Agent

25. Implications for retail
Bottom up ROI led to negative press
increase sales
higher average order value & units per transaction
increase conversion
foster loyalty and increase lifetime value
better merchandising
deliver better customer experience
drive more traffic and unique and new visitors

26. Implications for retail
but ‘evidence’ mounting, broadly positive, some still too
loosely coupled with CX
Reviews drive 23% higher revenues per session, 28% more items per order: QVC-
UK
Shoppers who quot;read all reviewsquot; converted much higher, and had a 67% higher
average order value: Boden
20% increase in conversions with just dynamic zoom: Bealls Department Stores
Increased sales by 300%, reduced image production time and costs by over 60%:
Macy’s
“We believe co-browsing provides the ‘missing link’ and is a very effective solution to
not only ‘delight’ consumers but can help us further boost conversion. People who
view our video convert at around 30% higher then the site average: Thomas Cook
Although it is category dependant, you can expect anywhere in the region from a
20% to 70% increase in conversion rates (ajax): econsultancy.com
The number of subscribers using mobile Internet services will rise from 577 million
currently, to top 1.7bn by 2013, spurred by demand for collaborative applications
known collectively as ‘web 2.0’, and greater 2.5/3G penetration: Juniper Research
Polyvore has 4,553 monthly active users on Facebook

27. Agenda
What does Web 2.0 mean to retailers?
> What is Web 2.0?
> Trends & Themes
> Related technologies / vendors / products
> Implications for retail
> Real examples
> Web 2.0 in retail demo (eCommerce)
> Q&A

28. Real Examples
Tiny url, Live IM, Video testimonials, blog platform,
twitter channel

29. In 8 years $1B 2008 revenue (2005: $370M 2006: $597M: 2007:
$850M)
Stocks 1100 brands, 3m pairs of shoes
Orientation to customer service: “A service company that
sells ‘x’”
e.g. Free shipping both ways, 365 day return
Diversification into handbags, clothing, eyewear, watches,
accessories + anything else
When recently asked about future?
Facebook application
Twitter
YouTube
Lifestyle sites e.g. running.zappos.com

30. Real Examples
Rich Interfaces
Timberland
Threadless

31. Real Examples
Rich Interfaces
Nike
Halfords Ralph Lauren Rugby

32. Real Examples
Rich Interfaces
Borders

33. Real Examples
Rich Interfaces
AmazonWindowShop

34. Real Examples
Mash Ups
oSkope

35. Real Examples
Mash Ups, RSS, Social Bookmarking, Social Networking, AJAX
Polyvore

36. Real Examples
Mash Ups, RSS, Social Bookmarking, Social Networking, AJAX

37. Real Examples
Customer Reviews, Q&A, Dynamic Imaging,
Halfords

38. Agenda
What does Web 2.0 mean to retailers?
> What is Web 2.0?
> Trends & Themes
> Related technologies / vendors / products
> Implications for retail
> Real examples
> Web 2.0 in retail demo (eCommerce)
> Q&A

39. A day in the life of Amy
Retail & Web 2.0

40. Agenda
What does Web 2.0 mean to retailers?
> What is Web 2.0?
> Trends & Themes
> Related technologies / vendors / products
> Implications for retail
> Real examples
> Web 2.0 in retail demo (eCommerce)
> Q&A

41. Chris Hoskin
Chief Marketing Officer
Salmon
64 Clarendon Road
Watford
Hertfordshire
WD17 1DA
tel: +44 (0) 1923 320 000
mob: +44 (0) 7903 804 554
email: choskin@salmon.com
Unique Approach • Unique Solutions
Salmon LLC Salmon China Limited
Salmon Asia Pacific
220 Old Country Road 605 Zhongchen Building
(Pty Limited)
Mineola Lize Zhongerlu #1
Level 1, 299 Elizabeth Street
NY 11501-4271 Wangjing Science & Technology Park
Sydney NSW
United States of America Chaoyang District
Australia
Beijing 100102
2000
Tel: 001 516 742 7888 China
Fax: 001 516 742 9169 Tel: +61 (0)2 8251 0044
Tel: +86 (0) 10 6439 8779
Fax: +61 (0)2 8251 0097
Fax: +86 (0) 10 6439 8665

42. 3.0
(Tim Berners Lee)
Semantic web
“I have a dream for the Web [in which computers] become
capable of analyzing all the data on the Web – the content, links,
and transactions between people and computers. A ‘Semantic
Web’, which should make this possible, has yet to emerge, but
when it does, the day-to-day mechanisms of trade, bureaucracy
and our daily lives will be handled by machines talking to
machines. The ‘intelligent agents’ people have touted for ages will
finally materialize.”