Personalization Key Themes 2018

CONFIDENTIAL
Personalization in retail –
ComCap discussion materials
December 2017

CONFIDENTIAL
▪ In the following slides, we have synthesized our views on personalization and its implications for retail
▪ ComCap is a premier boutique investment bank focused on the intersection of commerce and capital, with key focus
on B2B SaaS, B2C ecommerce (DNVBs, beauty, health, and wellness), B2B services for retail technologies (IT and
marketing services, in-store, fulfillment, logistics, call center, analytics, personalization), payments, mobile
commerce and marketplaces
▪ Headquartered in San Francisco with an office in Singapore, our firm works with mid-cap public companies on
buyside initiatives and public and private growth companies on financing and strategic M&A
▪ In addition to being the only boutique focused on disruptive commerce models, we differentiate by:
‒ Bringing bulge bracket techniques to emerging models;
‒ A strong and uncommon buyside/strategy practice;
‒ Deep understanding of industry drivers and synergy analyses;
‒ Deep relationships across the sector; and
‒ Worldwide coverage with closed transactions in the United States, Japan, China, the ASEAN region, Western
and Eastern Europe and Latin America
▪ If you'd like to connect with us over the phone and / or meet in person to be included in this report or to discuss your
strategic initiatives, please contact us:
We are pleased to present our views on personalization in
retail
Aron Bohlig
Managing Partner
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E: aron@comcapllc.com
Steve Terry
Managing Director
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E: steve@comcapllc.com
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Senior Advisor
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Fermin Caro
Director
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E: fermin@comcapllc.com
Chris Nealey
Analyst
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Swetha Vijay
Director
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1
Carlos Gonzalez
Director
M: +7 915-413-1911
E: carlos@comcapllc.com

CONFIDENTIAL
ComCap’s current thematic focus areas
Theme Description Select companies
Personalization Emerging players in the ecommerce personalization space
Digitally Native Vertical
Brands (DNVBs)
D2C digitally native brands covering clothing, accessories, personal care,
home and kitchen, furniture, and other consumer-focused products.
Beauty, health and
wellness
Universe of beauty companies, including product manufacturers, retailers,
disruptors and new entrants.
Analytics
Focus on disruptors in the analytics space focused on ecommerce,
logistics, retail, predictive, payment, risk and marketing
Marketing Suites Emerging platforms in the digital marketing space
Mobile
Focused on mobile solution providers optimizing the mobile experience
from desktop-to-mobile website conversions, targeted mobile marketing, to
simplifying the mobile checkout experience.
Fintech
Retail and commerce-related disruptors in the fintech universe. Current
focus areas include payments, risk analytics, false declines and retail POS.
Outsourcing and service
providers
Companies that provide outsourcing and end-to-end ecommerce services,
such as contact centers, platform, marketing, photo services, logistics,
warehousing etc.
System Integrators
Focus on large SIs covering multiple platform as well as smaller SIs
covering just one or a handful of platforms.
Ecommerce SaaS Emerging and disruptive SaaS businesses in the ecommerce sector.
Other (IoT, SMB, POS)
We are constantly evaluating new themes and evolving our focus. Other
categories currently include logistics, shipping, IoT, and SMB.
2

CONFIDENTIAL
$672.0
$340.6
$99.4 $89.6 $61.8 $42.6 $38.9 $26.8 $19.5 $19.0 $18.9 $15.9 $14.0 $13.4 $10.5 $9.6 $9.4 $9.4 $8.5 $6.9 $5.7 $5.0 $3.2
Retail Ecommerce Sales Worldwide – 2015 (In $B)
3
ComCap – active in 13 countries, including 11 of the top 22 global
ecommerce markets
Source: eMarketer December 2015
M&A
Strategy
Financing
B2C
Services
SaaS
Fintech

CONFIDENTIAL
ComCap’s perspectives on Personalization in retail is
shared with 250+ financial and 100+ strategic investors
▪ ComCap’s perspectives on various industries, including personalization in retail, is being shared with our large
network of strategic and financial investors globally
▪ This facilitates a better understanding of sweet spots for these investors; and ultimately helps to better position a
mandated client with selected players
▪ Unique disruptors are gaining additional global coverage via ComCap’s reach
4

CONFIDENTIAL
Personalization disruptors are emerging across a wide range of sectors, representing an
attractive investment opportunity for financial and strategic investors
Personalization is quickly becoming a cornerstone of corporate marketing strategy
Personalization is evolving rapidly as retailers react to consumer demand to provide a
“frictionless” customer experience
Consumers are prepared to pay a premium for a customized product or service
Personalization is bridging the gap between online shopping and in-store experience
Data is transforming how companies approach personalization
The CMO is wielding more power when it comes to technology spend, with
personalization becoming a focus area
Retailers are engaging with customers through personalized in-store technologies
including beacons and in-store ads
5
4
7
1
2
3
6
8
5
Personalization in Retail – Key themes for 2018

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6
Organizations employ a variety of personalization tools to
drive consumer engagement
Email and social media personalization
Consumers tend to identify themselves to a business by signing up for some form of notification such as
a newsletter or following the business on social media. As a result they will provide information about
themselves and their preferences. This allows targeted communication using segmentation based on the
data the consumer provided. For example this might occur through targeted email campaigns or
Facebook advertising.
Campaign personalization
Campaign personalization describes website content personalised to support online and offline
campaigns. This typically involves the creation of a custom landing page to support the campaign. These
pages would include a call to action such as making a donation or signing up for an event.
Geographical personalization
Geographical personalization customises content based on the consumer’s geographical location. The
technology can also send consumers geo-located messages about special offers or discounts close-by.
Internet protocol address customisation
IP customisation attempts to identify the user through their IP address. Knowing where a user comes
from allows the customisation of content to reflect their needs. It involve changing homepage content to
provide quick links to content of specific interest to that consumer.
Account customization
The consumers can personalise content once personalise content once they have created an account.
By logging in the consumer identifies himself and so content can be tailored according to the
requirements. It is possible to do account customization without a consumer logging in by relying on
cookies.
Related content personalization
This type of personalization is used by Amazon. It refers to recommendations based on what content a
consumer has previously viewed and the behaviour of other consumers.

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7
Organizations are quickly implementing personalization
strategies
▪ Personalization is widespread, but techniques remain relatively basic: roughly 90% of senior marketers worldwide
are implementing personalization strategies, but only 6% rate their strategy as advanced
▪ Email remains the most common channel that retail marketers personalize: two-thirds of US marketers
personalized email content, followed by 56% that personalized elements of their website
▪ 48% of US marketers reported that personalization on their websites or apps lifted revenues in excess of 10%;
only 11% reported no lift
▪ Integration of data across devices, channels and functions is essential, but most companies lack this capability:
data from customer relationship management systems is often the hardest to tap for personalization purposes
▪ A recent survey from eMarketer, found that 55% of US internet users ranked Amazon as the digital platform
having the best personalized customer experience
Implementation of Personalization StrategyOrganizations define Personalization Differently
According to Senior Marketers Worldwide, Dec 2016
(% of respondents)
In process,
56%Just
starting
out, 28%
Not doing
anything,
10%
Advanced, 6%61%
View personalization as a
business strategy
80%
Feel that personalization has
gotten more complex in last
3 years
75%
View segmentation as the
minimal effort to claim
“personalization”
View personalization as a
marketing tactic
39%
Source: eMarketer

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Personalization is evolving rapidly as retailers react to consumer
demand to provide a “frictionless” customer experience
Plans to implement personalization services among North American Retailers
Most retailers expect to implement a personalization strategy within the next 3 years
9% 4% 2%
27%
18% 21%
16%
38%
60%
44%
42%
Personalized rewards
based on customer
loyalty
Suggested selling
based on previous
purchases
Personalized
promotions
Personalized digital
content
Implemented and working well
Implemented and needs improvement
Implement within 3 years
▪ Personalization of the eCommerce
experience is proven to increase sales
▪ 60% of US consumers want to receive
real-time promotions and offers
▪ Yet many North American retailers have
not implemented a personalization
strategy
− Vendor integration problems
− Additional analytics required
− Inability to create personalized
content
8Source: Boston Retail Partners
(% of respondents)

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Marketers view personalization as critical to drive their most
important metrics…
24% 24%
22%
20%
17%
15%
14%
12%
10% 10%
0%
5%
10%
15%
20%
25%
30%
Returnvisits
Conversionrate(e.g.,
purchase)
Timeonsite
Pageviews
Registration/signups
Numberofleads
Downloads(e.g.,whitepapers)
AverageOrderVolume(AOV)
LifetimeValue(LTV)
Bounce/exitrate
▪ Web personalization is becoming
democratized and is providing ROI for
large, medium, and small businesses
▪ Web personalization has proven to affect
bounce rates, time-on-site, page views,
conversions, etc.
▪ Over 85% of marketers report seeing a
lift of at least 5% in their most important
metrics
− Roughly 40% have seen increases of
at least 20% in their metrics
What are the primary metrics marketers use to improve web personalization efforts?
9Source: VentureBeat

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10
…and consumers are prepared to pay a premium for a
customized product or service
34%
31%
26%
25%
24%
23%
22%
22%
21%
21%
19%
16%
15%
14%
12%
33%
34%
36%
36%
35%
36%
38%
32%
33%
33%
32%
29%
28%
27%
31%
10%
15%
19%
17%
19%
18%
21%
21%
20%
18%
23%
20%
22%
24%
25%
7%
3%
7%
6%
8%
9%
9%
7%
8%
12%
11%
14%
12%
12%
11%
3%
4%
2%
4%
3%
3%
2%
5%
5%
3%
4%
5%
4%
5%
5%
3%
5%
3%
4%
4%
5%
2%
4%
6%
5%
6%
9%
10%
11%
9%
10%
8%
7%
8%
7%
6%
6%
9%
7%
8%
5%
7%
9%
7%
7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Soft drinks
Books, music & entertainment
Restuarants
Beer, wines & spirits
Hotels
Flights
Food & groceries
Electrical products
Health & Welness
Beauty products
Holidays
Fashion accessories & jewellery
Furniture, homeware & DIY
Footwear
Clothing
0% more 10% more 20% more 30% more 40% more Over 50% more Don't know
Premium consumers are willing to pay for a customized product or service
Source: Deloitte

CONFIDENTIAL
The CMO is wielding more power when it comes to
technology spend, with personalization becoming a focus area
Overview CIO vs. CMO Spending (% Revenue)
CMOs (Chief Marketing Officers) emerge as the
primary technology consumer in the Enterprise
▪ CMOs are wielding increasing purchasing power and
influence over marketing software solutions
─ CMO-directed IT budgets are expected to grow at 11%
per year, compared to 4% for CIO (Chief Information
Officer) - directed IT budgets
─ Solutions that demonstrate rapid time-to-value and
robust integration will be beneficiaries of the CMO-
directed spend
▪ According to Gartner CMO Spend Survey 2016-2017,
CMOs oversee or heavily influence customer experience,
technology spending and P&L performance as means to
deliver growth
─ Digital commerce continues to be an important driver
of growth, with 62% of companies reporting that digital
commerce rolls up to CMO
─ Marketers have started to spend heavily on
technology. This has narrowed the gap between IT
spending by CIOs and CMOs
Data and personalization becoming a focus area:
▪ Personalization is rooted in tracking and analyzing every
customer interaction point, identifying the next best action
and triggering that action through engagement applications
▪ The majority of marketing organizations are personalizing
content in social media and owned web, email, and
eCommerce channels
Source: Gartner, Wall Street Research
Digital Marketing Market Size (In $bn)
3.2%
3.8%
2.5%
3.8%
2013 2017
CIO IT Spend CMO IT Spend
$14.2B
$20.2B
$33.3B
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
2010 2012 2016
eCommerce Sales CRM Automation Email
WCM Social CRM Analytics
11

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The consumer and the data they generate is driving mass
personalization
▪ Direct input from the customer is
key to creating compelling and
relevant personalized retail
experiences
▪ Retailers can use information from
online buying behaviour to serve
customers at the point of sale
based on the relevant input he or
she requires
─ This closes the gap between
online and physical shopping
experiences that previously
created headaches for a lot of
retail brands
▪ Email and website personalization
allows retailers to deliver a hyper-
relevant online experience to every
customer
▪ Hyper personalization relies on
additional dimensions about the
customer; these dimensions relate
to their activity, interest, opinion
(AIOs), attitudes, values and
behaviour.
▪ The loyalty program allows customers to set up a profile in
which they input specific attributes relevant to a provider of
beauty products, such as skin tone
▪ This information is then used to serve special offers to the
customer relevant to their requirements
▪ In addition, shoppers can save ‘loves’ and purchases in a
‘beauty bag’ both online and in store. This information in
available across devices, including in store via the provision of
iPads at store counters.
Source: Smart Insights; ComCap analysis
Case Study: Sephora’s Beauty insider loyalty programme
12
Need for Customer Input

CONFIDENTIAL
Data is transforming how companies approach personalization
Source: 2017 Customer Experience / Unified Commerce Survey
▪ Today retailers have unprecedented access to data
that can potentially enhance customer experiences
─ Data from devices (such as smartphones and
tablets), ecommerce and point-of-sale systems,
loyalty programs, inventory systems, contact
centres, geographic, demographic, social
behavioural and others
─ The larger the amount of data a retailer can
collect and analyse, the better the possibilities
are to deliver a better and relevant omnichannel
experiences
▪ In 2017, Gartner predicted that 89% of marketing
leaders expect customer experience to be their
primary basis for competitive differentiation
─ The main aim of the companies is to create
focused direct-to-customer relationships, both to
protect profits and raise the barriers to new
market entries
▪ Companies do face significant hurdles in realizing
the full benefits of personalization, such as:
─ Technical barriers such as poor data
centralization
─ Legacy technology that does not support one-to-
communication at scale
─ Insufficient measurement capabilities
37%
52%
61%
64%
67%
69%
Use data extracted from loyalty and customer value
programs to create relevant personalized offers
Use behavior-based data to develop the right content based
on insights and emotions
Use customer data to create individualized content and
offers on a channel-specific basis
Integrate customer data to create individualized content and
offers that span across channels
Use customer data to create targeted content and offers by
demographics
Use demographic categories to create at least some level of
personalization for unidentified prospected customers
13
Approaches to personalized marketing according
to senior marketers in the US and Western Europe

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Personalization is bridging the gap between online
shopping and in-store experience
Retailers can combine online buying behaviour with in-store location data gathered via
beacons to serve customers with relevant information or offers right at the point sale. This
helps cross sell and up-sell as well as enhances customer experience
▪ Direct input from the customer is a key
to create compelling and relevant
personalized retail experiences
▪ Retailers can use information from
online buying behaviour to serve
customers at the point of sale based on
the relevant input he or she requires
─ This closes the gap between online
and physical shopping experiences
that previously created headaches
for a lot of retail brands
▪ Email and website personalization, the
retailers can can deliver a hyper-
relevant online experience to
behaviour.
▪ The customer experience is manifested
by who you are - your people; what you
do - your products and services; and
how you do it - your business
processes, methodologies & service
levels.
▪ The goal marketing leaders is to attract
and grow customer relationships, earn
customer loyalty, and activate their
advocacy.
Source: Gartner
ValueVoice
Valence
Product
PeopleProcess
What you do
Customer
feedback and
sentiment
How you do it
Lifetime
value of the
customer
Who you are
Positive or
negative affinity
over time
Attraction
Growth
Loyalty
Advocacy
Content
14

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15
Retailers and brands are using beacons for marketing
campaigns
Retailers Description
• Macy’s introduced beacons technology in combination with ShopKick, an iPhone app that offers
location-based coupons
• This technology recognizes consumers as they enter or pass one of their stores
• Shoppers receive personalized deals, discounts and product recommendations
• Even reward points can be generated for entering their stores or buying a product
• Lord & Taylor launched a beacon program to offer more personalized approach of targeting the users
with specific sections of store sales in addition to short range for individualized products based on past
information collected on the visitors shopping preferences
• The technology anticipates what the customer will like about the products while they are near the store
• Target is implementing beacons across 50 selected stores
• It plans to limit the number of beacon notifications to two push notifications per shopping trip, so as not
to overwhelm customers with alerts
• Carrefour has extensive iBeacon networks across a range of its hypermarkets in Romania through
which the retail chain offers its consumers an app for orientation inside hypermarkets from area to area
• The app p automates the commercial content delivery and collects essential data about in-store
consumer behaviour
• Eat, the food-to-go chain, partnered with Weve’s beacon-enabled consumer loyalty app, Pouch,
designed to store a retailer’s loyalty cards and push out offers to customers
• The action allowed the company to access more information about customer behaviour and drive
business intelligence to make precise decisions about how consumer behaviour can be influenced
• Hammerson rolled out beacons across their shopping centres to improve personalization of consumers’
shopping experience
• Currently, over 80,000 customers have downloaded the Plus app already and Hammerson has over
6,000 beacons situated throughout its shopping centres in the UK and France

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16
campaigns (cont’d)
• In 2016, Rite Aid has installed beacons in over 4,500 US stores for retargeting and personalization of
user experience
• It plans to employ these beacons to focus on creation of a digital infrastructure base that will enable the
drug-store chain to link its stores to IoT, collection of beacon-level proximity data to strategize their
retargeting plan, and achieve personalization capabilities similar to those that have been used in
eCommerce
• Woolworths has implemented iBeacon technology to improve customer service around click-and-collect
• In 2016, Woolworth announced its plans to roll out beacons across all of its 254 click-and-collect stores
with the aim of allowing consumers to place their order online and pick them up in-store
• American Eagle Outfitters partnered with Shopkick, to launch beacon networks in more than 100 of its
top performing stores located in states such as Chicago, Dallas, Miami, New York, and San Francisco
• The main purpose was to implement iBeacon technology at the stores with highest traffic levels and best
traction with Shopkick
• Waitrose started using iBeacon technology at its relatively new experimental Swindon store to deliver
price promotions to consumers when they were near a particular aisle or food counter
• The app also allows a consumer to scan barcodes, read customer reviews of products, add items to a
virtual shopping basket, and pay via a mobile wallet
• Tesco launched its “biggest trial” of iBeacon technology, in partnership with consumer goods company
Unilever, by deploying beacons in 270 stores across London
• They launched the ‘Mpulse app’ as a part of the Pink and Black marketing campaign
• Alex and Ani used beacons in all of its 40 stores to optimize store layouts and product placement
• It used beacons to educate consumers about its jewellery. 30% of the customers who saw the
notifications, visited the store
• The brand’s focus was primarily to capture analytics and enhance store layouts for better business.

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campaigns (cont’d)
• American Eagle and Aerie introduced beacons across its various stores to target people with
promotional offers
• The company will use pre-populated orders via beacons to get people ordering without even opening
the app itself
• Neiman Marcus has adopted a strategy for beacon implementation is to focus on in store events
• The high end fashion retailer will use their beacons to alert customers of events in store where they can
learn fashion tips, find specials or learn about clothing care and others
• The company can also pair up a personalized offer that relates to the event to an to attract more
participation and engagement from the consumers
• Best Buy has implemented a beacon strategy to drive its sales and gain more business with a person
touch
• It has implemented beacons through their application as well as Shopkick retailing app to offer rewards
to shoppers, simply for stepping foot in the door
• Meadowhall Shopping Centre used iBeacon technology to gamify the Ladies’ Night event with brands
providing offers, discounts, freebies, and prize giveaways
• Customers had to download Meadowhall’s beacon-enabled app to receive a notification on their
smartphone whenever they came into range of a beacon
• McDonald’s planned to enhance personal relationships with customers as well as promote a new line of
coffee-flavored beverages by leveraging a new proximity marketing strategy via beacons at its 15 cafés
in Istanbul
• The chain tapped a popular Turkish loyalty app called Shopping Genie, to target customers while they
were around the premises of a local McD Café
• Kenneth Cole is using beacons to create more compelling, personalized customer experiences with an
aim to “provide value and offers at the time of need when customers are in the store”
Source: Styla.com, blog.beaconstac.com

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Showrooms are getting personal
▪ A customer that spends a considerable
amount of time in a single area of a store
can be picked up by Beacon’s, which
then cross-check that information with the
store's floor plan and ascertain what
product they are interested in
− The customer can then be messaged
later on with relevant offers based on
what products they were researching
in store
▪ Beacons provide a way to bricks-and-
mortar retailers to deliver offers and
notifications to consumers' smartphones
via a Bluetooth low energy (BLE) signal
while they're in-store
− The devices provide a unique
advantage for bricks-and-mortar
businesses as they continue to try
to deflect the threat from
eCommerce-only retailers
− They won't keep people from using
their smartphones to price compare
but they could send people the kind
of incentives that will entice them to
convert in-store
Beacons allows retailers to send personalised messages which link the in-store and online
shopping experience.
A customer may plan to buy a Smart TV may spend a
considerable amount of time looking at the different
Smart TV options in Currys PC World, then go home
and do a bit more research online. Later that day they
get an email from Currys PC world with special offers
on the TVs the customer spent time browsing in-store.
The customer then purchases a TV online, which is
then delivered to their home.
Source: Smart insights.com, Business Insider 18

CONFIDENTIAL
Personalized in-store ads are increasing in prominence
Retailers are engaging with customers through personalized in-store ads based on demographic information
and preferences
▪ Snack food giant, Mondelez, makers of Oreo, Ritz crackers, Wheat Thins and
other snacks has invented Smart Shelves
▪ Smart Shelves can identify basic demographic information about the shopper as
they browse the store
─ Smart shelves use the information to display personalized ads on video displays
near the checkout that customers would see when queuing before purchase
▪ Smart shelves can also detect when a shopper picks an item up from a shelf to
get a closer look
▪ Ads are also targeted based on items almost bought, and special offer coupons
are displayed to close the deal
▪ Coca-Cola has collaborated with Google Technologies to target consumers in US
grocery stores
─The system is powered by Google Cloud technologies and works on any HDMI-
ready display that serves as grocery store aisle “end caps” (a term used to describe
advertisements at the front of grocery store aisles)
▪ These endcaps, using a combination of Google’s DoubleClick and location-based
technologies, serve ads and e-coupons to passing consumers based on their
smartphone data
▪ The data includes anything from consumer’s basic gender or age demographic to
previous browsing history
─An ad could change from Coke Zero to Glacéau Smartwater, if it recognizes a
preference for healthier products
▪ The aim is to connect and engage with consumers to drive sales of the brand in retail
stores
Mondelez’s Smart Shelves
Coca Cola’s personalized in-store displays
Source: Smart insights, Business insider, Netimperative.com 19

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Mobile is the key to customer engagement
Mobile apps can help drive sales by engaging with the customer through personal experiences by providing
special promotions or recommendations based on buying behaviour
▪ According to a mobile marketing
study conducted by Vibes, 89%
people agreed to sign up for mobile
messaging if they were
personalised based on their
preferences, location, timeliness
and others
▪ 86% of consumers say
personalization influences their
purchasing decisions, and 53%
think it is important for retailers to
recognize users in all the channels
available
− Retailers must offer cross-
channel personalization in
order to combat showrooming
▪ According to Rich Relevance
Survey:
− 52% are open to receiving pop
up offers on their mobile
device, triggered when they
enter a store
− 43% would like to receive a
digital coupon for a product
they looked at but didn’t buy
after leaving the store
50%
20% 13%
8%
Uses consumer’s
preferences –
favourite
shopping
categories,
brands, sizes
Timeliness –
when consumers
are getting ready
to purchase that
item
Location –
when
consumers are
in the store or
around the
store
Uses
consumer’s
name
Most important
aspects of
personalization
186%
Year-over-year increase in consumers who make purchase
based on in-store text message or QR code scan
89% of
consumers would
sign up for mobile
messages if they
were personalized
18%
of consumers
frequently see
personalization from
retailers and brands
Source: Vibes Mobile Consumer Survey
20

CONFIDENTIAL
Beauty players are actively focusing on personalizing their
mobile strategy
▪ L’Oréal’s luxury brand Kérastase made a move into the
IOT with the world’s first smart hairbrush, to prove its
innovation credentials and attract “hundreds of
thousands” of new customers
▪ This will allow the beauty brand to communicate
directly with consumers and provide “much more
personalised marketing”
▪ It uses algorithms to score the quality of the user’s hair
and to monitor the effects of different hair care routines
▪ An app that provides additional insights and
customised product recommendations
▪ The product aims to drive traffic to salons, with certain
treatments only available in store
▪ Benefit Cosmetics launched eyebrow-related invention,
a mobile optimized site that details how users should
style their brows, to promote its brow-shaping products
and services
▪ It has planned to rolled out a range of services &
promotions all in relation to eyebrows, to take
advantage of the trending beauty theme
▪ The Brow Genie is mobile optimized and allows users
to take or upload a selfie to the site where it uses face-
mapping technology to decipher where and how the
user’s brows should be shaped and styled
▪ The company has essentially put a department store
makeup counter in the palm of every woman’s hand,
with only their products stocked on the shelves
21
L’Oréal Benefit Cosmetics

CONFIDENTIAL
“Hyper personalization” is growing rapidly
Digital technologies, Omni channel growth and rising consumer expectations are driving
hyper personalization across various industries
Attribute Analysis uses a map to describe a customer,
using demographic, physical, psychological, functional,
professional, aspirational attributes. Each attribute is
mapped to a product, service, or piece of communication
which helps in making recommendations that go beyond
product and service
Event Sequence Analysis observes the sequence of
events a customer goes through to understand the lead
indicators for certain positive action or negative action
Computational Techniques
Clustering
Bayesian
Systems
Timeseries
Modeling
Regre-
ssion
She works as a teacher in
the local primary school
She lives in St. Louis
Television is her
primary media
influence
They like traditional
family sit down dinners
She is a health freak
Statistical
Model
She transacts at
multiple stores
Her average
basket size is $45
She is Brand Loyal
She lingers the longest
in section which have
promotions/offers
On an average she
spends 63 minutes
per trip in the store
Source: Wipro.com 22

CONFIDENTIAL
Financial and corporate investors
US
Stage
agnostic
Buyout /
Alternate
Early
stage
Late
stage
Corp.
VC
International
Investors with personalization investments
23

CONFIDENTIAL
24
Active investors
Investor Representative InvestmentsFund Overview
HQ: Boston, MA
Founded: 1983, Funds raised: $5.6bn
# of personalization transactions: 13
Note: (1) Represents AUM for India only; (2) Gotham is part of the Draper Fisher Jurvetson Global Network, which has $6 billion in assets under management
Source: Capital IQ with transactions over $6m since 2013
HQ: Menlo Park, CA
Founded: 1995, Funds raised: N/A
HQ: Palo Alto, CA
Founded: 1984, Funds raised: $75bn
HQ: San Francisco, CA
HQ: Menlo Park, CA
Founded: 1972, Funds raised: $3bn(1)
HQ: Menlo Park, CA
Founded: 1911, Funds raised: $3.6bn
HQ: New York, NY
HQ: New York, NY
Founded: 1999, Funds raised: $6bn(2)
HQ: Palo Alto, CA
Founded: 2010, Funds raised: $700m
HQ: New York, NY
HQ: Tel Aviv, Israel
4 rounds
4 rounds
1 round
4 rounds 2 rounds 1 round
1 round1 round3 rounds
4 rounds 1 round 1 round 1 round
3 rounds
3 rounds 2 rounds1 round
3 rounds2 rounds 1 round
3 rounds 2 rounds4 rounds
1 round each 1 round1 round1 round 2 round 2 round
3 rounds2 rounds2 rounds
1 round
each

CONFIDENTIAL
Selected private placements in the personalization sector
25
Closed
Date
Investor Company Deal Value
($m)
13-Oct-15 IDG Ventures; Sequoia Capital; Lightspeed Venture Partners; Lakestar Advisors GmbH; Hommels Holding GmbH EverString Technology Inc. 65
30-Sep-15 Battery Ventures; Benchmark; Index Ventures; Bain Capital Ventures; Tenaya Capital; Correlation Ventures; Andreessen Horowitz LLC; Citi Ventures, Inc.; Danhua Capital; Salesforce Ventures;
Pharus Capital Management, LLC
Optimizely, Inc. 59
21-Apr-14 Benchmark; Bain Capital Ventures; Andreessen Horowitz LLC Optimizely, Inc. 57
21-Jan-15 Goldman Sachs Group, Merchant Banking Division; Zodius Advisors India Private Limited Antuit Holdings Pte. Ltd. 56
shea 29-Jan-16 Battery Ventures; New Enterprise Associates; Lightspeed Venture Partners; Bain Capital Ventures; Salesforce Ventures BloomReach, Inc. 56
06-Apr-16 K1 Investment Management, LLC CrownPeak Technology, Inc. 50
02-Sep-15 Warburg Pincus LLC; Norwest Venture Partners; Sequoia Capital India Capillary Technologies Pvt Ltd. 45
05-Aug-15 EDB Investments Pte. Ltd.; Flare Capital Partners; Georgian Partners Welltok, Inc. 45
22-Feb-16 Accel; Goldman Sachs Group, Merchant Banking Division; Sapphire Ventures LLC; Salesforce Ventures QuBit Digital Ltd 40
22-Aug-17 Kleiner Perkins Caufield & Byers; Jump Capital Tulip Retail, Inc. 40
05-Nov-15 Propulsion Ventures Inc.; BDC Venture Capital; Fonds de solidarité FTQ; Investissement Québec, Investment Arm; Tandem Coveo Solutions Inc. 35
19-Sep-17 Bain Capital Ventures; Harmony Partners; Social Capital mParticle, Inc. 35
08-Sep-16 CRV; General Atlantic LLC; Highland Capital Partners; Kleiner Perkins Caufield & Byers; Causeway Management LLC; Salesforce Ventures SessionM, Inc. 35
15-Sep-16 Bessemer Venture Partners; HLM Venture Partners; InterWest Partners LLC; New Enterprise Associates; Sigma Partners; Hearst Ventures; EDB Investments Pte. Ltd.; QUALCOMM Ventures;
Miramar Venture Partners; Flare Capital Partners; Emergence Capital Partners; Okapi Venture Capital, LLC; Georgian Partners
Welltok, Inc. 34
10-Apr-13 Battery Ventures; Benchmark; InterWest Partners LLC; Bain Capital Ventures; GV Optimizely, Inc. 34
31-Jul-16 Bessemer Venture Partners; Baidu, Inc. (NasdaqGS:BIDU); Vertex Ventures Israel; Global Founders Capital Management GmbH; Innovation Endeavors; La Maison Interiors, LLC; Marker LLC;
ClalTech; Deutsche Telekom Capital Partners Management GmbH
Dynamic Yield Ltd. 31
23-Sep-16 Primus Capital Certona Corporation 30
25-Jul-16 Starbucks Corporation (NasdaqGS:SBUX); BCG Digital Ventures Takt, Inc. 30
10-Dec-15 EPIC Ventures; Millennium Technology Value Partners; RPM Ventures; Emergence Capital Partners; DFJ Frontier; Split Rock Partners, LLC; HighBar Partners Janrain, Inc. 27
29-Sep-14 Accel Partners; Balderton Capital; Salesforce Ventures QuBit Digital Ltd 26
04-Apr-14 Mayfield Fund; Sequoia Capital; Tenaya Capital Inc.; Next World Capital; The Four Rivers Group AgilOne Inc. 25
20-Dec-16 Bessemer Venture Partners; Baidu, Inc. (NasdaqGS:BIDU); Vertex Ventures Israel; Global Founders Capital Management GmbH; Innovation Endeavors; Marker LLC; ClalTech Dynamic Yield Ltd. 22
26-Jun-14 ABS Capital Partners, Inc.; SoftBank Capital IgnitionOne, Inc. 21
02-Jun-14 Draper Fisher Jurvetson; J.F. Shea Venture Capital; CrossLink Capital, Inc.; Centerview Capital Holdings, LLC; Greylock Partners RichRelevance, Inc. 20
12-Dec-13 Benchmark; RRE Ventures LLC; Gotham Ventures; Scale Venture Partners; AOL Ventures Sailthru, Inc. 20
01-May-15 VantagePoint Capital Partners; Baird Venture Partners Legacy Interactive, Inc. 20
11-Feb-13 Benchmark; RRE Ventures LLC; Gotham Ventures; AOL Ventures Sailthru, Inc. 19
30-Jun-16 General Catalyst Partners Index, Inc. 19
11-Feb-13 Benchmark; RRE Ventures LLC; Gotham Ventures; AOL Ventures Sailthru, Inc. 19
11-Feb-16 Battery Ventures; Intel Capital; Hasso Plattner Ventures Reflektion, Inc. 18
Shea 29-Sep-16 Bain Capital Ventures; Social Capital mParticle, Inc. 18
22-Aug-17 Ignition Partners; Greycroft Partners LLC; Trilogy Equity Partners; Seven Peaks Ventures LLP; Wildcat Venture Partners, LP Amplero, Inc. 18
12-Jan-15 Volition Capital LLC Insite Software Solutions, Inc. 17
12-Jun-14 Intel Capital; Nokia Growth Partners; Inventus Capital Partners; Ojas Venture Partners; Ascent Capital Advisors Vizury Interactive Solutions Private Limited 16
25-Sep-15 U.S. Venture Partners; Hasso Plattner Ventures Wayin, Inc. 15
12-Feb-13 N/A Monetate, Inc. 15
16-Nov-15 ENIAC Ventures; Social Capital; Golden Venture Partners, Inc.; Bowery Capital mParticle, Inc. 15
28-Aug-15 North Atlantic Capital ChoiceStream, Inc. 14
17-Jul-14 Norwest Venture Partners; Sequoia Capital India Capillary Technologies Pvt Ltd. 14
31-May-13 N/A nGage Labs, Inc. 14
11-Feb-14 Norwest Venture Partners; QUALCOMM Ventures; Sequoia Capital India; American Express Ventures Capillary Technologies Pvt Ltd. 14
03-Jun-14 U.S. Venture Partners; WS Investments Wayin, Inc. 13
29-Dec-14 NewSpring Capital SiteSpect, Inc. 13
19-Jun-17 Inventus Capital Partners; IDG Ventures India; Eight Roads Ventures India; Nirvana Venture Advisors UNBXD Software Private Limited 13
20-Jun-14 Bessemer Venture Partners; The New York Times Company (NYSE:NYT); Innovation Endeavors; Marker LLC; ProSiebenSat.1 Accelerator Dynamic Yield Ltd. 12
02-Sep-13 N/A Segmint, Inc. 12
13-Oct-15 Sierra Ventures; Lerer Hippeau Ventures; Cota Capital boomtrain, Inc. 12
25-Oct-17 Battery Ventures; Hasso Plattner Ventures; Clear Ventures Management LLC Reflektion, Inc. 12
10-Dec-15 Fondaction; Fonds de solidarité FTQ; W Investments Orckestra Inc. 12
05-May-15 CRV; Highland Capital Partners; Kleiner Perkins Caufield & Byers; DoCoMo Capital, Inc.; Commerce Ventures; Causeway Management LLC SessionM, Inc. 12
01-Aug-14 IDG Ventures; Sequoia Capital; Lightspeed Venture Partners EverString Technology Inc. 12
31-Oct-16 Safeguard Scientifics, Inc. (NYSE:SFE); Pivotal Capital Group, LLC Spongecell Inc. 11
26-Mar-15 Octopus Investments Limited; Northstar Ventures; SVB Silicon Valley Bank, Investment Arm Amplience (UK) Limited 11
06-Dec-16 TTV Capital; TechOperators LLC; Harbert Growth Partners Springbot, Inc. 10
09-Aug-17 Arrowroot Capital Evergage 10
18-Dec-15 Arrowroot Capital, G20 Ventures, Point Judith Capital Evergage 10
12-Jan-16 PJC; G20 Associates, LLC.; Arrowroot Capital Evergage, Inc. 10
14-Jan-15 N/A Moxtra, Inc. 10
Source: Capital IQ

CONFIDENTIAL
26
Acquirer Targets
Source: Crunchbase, Capital IQ
Active strategic buyers
HQ: Redwood City, CA
Founded: 1977, Status: Public
Acquired in: Aug‘15
Implied EV: $160m
Acquired in: Feb ‘14
Implied EV: NA
Acquired in: Apr ‘15
Implied EV: $533M
Acquired in: Apr‘12
Implied EV: NA
HQ: New York, NY
Acquired in: Jan ‘14
Implied EV: $80M
Acquired in: Mar ‘13
Implied EV: NA
HQ: New York, NY
Founded: 1985, Status: Private
Implied EV: $91M
HQ: Karnataka, India
Acquired in: Apr ‘15
Implied EV: $111M
HQ: Littleton, CO
Acquired in: Aug‘14
Implied EV: $69M
HQ: Sydney, Australia
Acquired in: Aug ‘07
Implied EV: $41m
Acquired in: July ‘17
Implied EV: NA
HQ: Dublin, Ireland
HQ: Melville, NY
Acquired in: Nov‘16
Implied EV: NA
HQ: Petaluma, CA
Acquired in: Sep ‘16
Implied EV: NA
HQ: Nashua, NH
Founded: 1994
Acquired in: Aug ‘16
Implied EV: NA
Implied EV: NA

CONFIDENTIAL
Source: MatterMark
Overview of personalization disruptors across sectors
Big Data/Predictive/AI eCommerce Marketing Personalized UX Others
TotalFundsRaised
`
$20m
$60m
$40m
$80m
$100m
$120m+
Seed
27

CONFIDENTIAL
28
Profiles of personalization disruptors: Big Data/Predictive/AI
Company FocusCategory Employees FundingLocation
Big Data/Predictive/AI Somerville 51-100 $78.7m Data and AnalyticsEverstring
Big Data/Predictive/AI Seattle 11-50 $25.5m Content MarketingAmplero
Source: Press releases, dealroom.co, Crunchbase
Big Data/Predictive/AI Mountain View 251-500 $97.0m Cloud MarketingBloomreach
Big Data/Predictive/AI Israel 11-50 $7.0m Data and AnalyticsCoherent Path
Big Data/Predictive/AI Vancouver 101-250 $26.3m Digital MarketingEvergage
Big Data/Predictive/AI Mountain View 11-50 $14.5m Navigation and
Mapping
Unbxd
Big Data/Predictive/AI London 101-250 $3.1m Apps, Mobile,
Software
INSIDER
Big Data/Predictive/AI Menlo Park 11-50 $3.0m Data and AnalyticsGraphdive
Big Data/Predictive/AI Stockholm 11-50 $0.6m Commerce and
Shopping
Loop54
Big Data/Predictive/AI San Francisco 11-50 $36.0m Predictive
intelligence engine
6sense
Big Data/Predictive/AI
Boston 11-50 $4.7m Data and AnalyticsciValue
Big Data/Predictive/AI Madrid 11-50 $1.1m eCommerce
Analytics
BrainSINS
Big Data/Predictive/AI Tel Aviv 11-50 N/APersonyze
Data and Analytics

CONFIDENTIAL
29
Profiles of personalization disruptors: eCommerce
eCommerce Stevenson 11-50 $3.9m Commerce and
Shopping, Software
4-Tell
eCommerce Atlanta 51-100 $20.0m Software, Data and
Analytics
Springbot
eCommerce San Francisco 101-250 $95.8m
Commerce and
Shopping
RichRelevance
eCommerce Toronto 101-250 $ 51.2m Commerce and
Shopping
Tulip Retail
eCommerce Cambridge 11-50 $14.0m Media and
Entertainment
Vee24
eCommerce Luxembourg 11-50 $3.9m Sales and MarketingPingvalue
eCommerce Mountain View 1-10 $2.0m Personalized
Merchandising
Attune
eCommerce Vadodara 11-50 $1.0m Commerce and
Shopping
Gingercrush
eCommerce York 1-10 N/APureClarity Personalization
Software
eCommerce Columbia 101-250 $21.8m PlatformElastic Path
eCommerce Palo Alto 11-50 $17.0m Promotions platformIfeelgoods

CONFIDENTIAL
30
Profiles of personalization disruptors: Marketing
Marketing San Diego 11-50 $84.1m SoftwareChoiceStream
Marketing Boston 101-250 $45.2m
OmnichannelDynamic Yield
Marketing London 251-500
$74.9m
Advertising, Information
Technology
Qubit
Marketing Boston 101-250 $73.5m Sales and MarketingSessionM
Marketing Culver City 101-250 $64.8m AdvertisingSteelHouse
Marketing New York 101-250 $67.0m Smart video
platform
SundaySky
Marketing New York 101-250 $48.0mSailthru
Marketing Denver 51-100 $49.6m CMS platformWayin
Customer
acquisition
Marketing Philadelphia 101-250 $ 46.0m Data and Analytics,
Internet Services
Monetate
Marketing Mountain View 101-250 $41.0m
Predictive marketingAgilOne
Marketing London 51-100 $31.3m Sales and MarketingAmplience
Marketing Akron 11-50 $29.5m Digital marketing
solutions
Segmint
Marketing San Francisco 11-50 $26.0m Retail softwareIndex

CONFIDENTIAL
31
Profiles of personalization disruptors: Marketing
Marketing Chicago 251-500 $25.0m SoftwareJellyvision
Marketing NewYork 101-250 $24.5m Creative management
platform
Spongecell
Marketing London 51-100 $13.8m OptimisationAB Tasty
Marketing Minneapolis 101-250 $16.8mInsite Softtware B2B eCommerce
Marketing Austin 11-50 $15.8m Acceleration
Software
ReachForce
Marketing San Francisco 11-50 $10.6m Segment-of -One
marketing
Blueshift
Marketing Santa Monica 51-100 $10.3m Retention marketingRetention
Science
Marketing Krakow 101-250 $6.0m Automation platformSALESmanago
Marketing Bath 11-50 $9.7m MerchandisingThe Filter
Marketing Paris 11-50 $4.8m AR platformAugment
Marketing London 11-50 $10.9m Automation platformOmetria
Marketing New York 11-50 $2.0m Marketing services
& analytics
Grey Jean
Technologies
Marketing Boston 11-50 $8.5m
Email marketing
platform
Klaviyo

CONFIDENTIAL
32
Profiles of personalization disruptors: Personalized UX
Personalized UX San Francisco 251-500 $146.2m PlatformOptimizely
Personalized UX San Diego 51-100 $37.0m Multi-channel
personalization platform
Certona
Personalized UX New York 51-100 $76.3m
Customer data
platform
mparticle
Personalized UX San Mateo 51-100 $41.3m Individualized
Commerce Technology
Reflektion
Personalized UX Singapore 251-500 $82.1mCapillary
Technologies
Customer analytics
marketing platform
Personalized UX Helsinki 51-100 $25.4m Product
recommendations
Nosto
Personalized UX Salt Lake City 51-100 $19.5m PlatformNeedle
Personalized UX San Diego 11-50 $8.1m Adaptive messaging
platform
Cordial
Personalized UX Denver 11-50 $12.5m Mobile appBaker
Technologies
Personalized UX San Francisco 51-100 $3.8m Algorithmic body
measurement prediction
Bold Metrics
Personalized UX Paris 11-50 $3.0m Personalized user
experience
AntVoice
Personalized UX Bucharest 11-50 $1.1m PlatformOmniConvert
Personalized UX Tel Aviv 11-50 NA Website personalization
technologies
Barilliance

CONFIDENTIAL
33
Profiles of personalization disruptors: Other
Other Bangalore 251-500 $57.4m
Footwear and
apparel’s discovery
platform
True Fit
Other Durham 51-100 $18.2m
Predictive lifecycle
and retention
marketing platform
Windsor Circle
Other Scottsdale 11-50 $20.9m Personalized mobile
engagement
nGage Labs
Other Bangalore 11-50 $4.0m Performance advertisingRevX

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