Given at eTail East 2011

1. Utilizing Recommendations & Relevance Marketing Tools To Drive eCommerce Innovation Matt Rainesmatt.raines@bluefly.com@matthewraines 1

2. Quick backgrounders About Bluefly Online retailer of high-end designer and contemporary fashion and accessories Launched in 1998 $89m net revenue in 2010 About Me Bluefly for 9 years Running Tech for last 6 years Internet companies for 15 years MC5 (remember this for later) 2

3. And a little about you … 3

4. What we’re going to talk about Exploratory Data Analysis (EDA) as a process How Bluefly went about this process Suggestions on how you can do this in your company 4

5. What we’re not going to talk about Programming languages Coding Data mining Hadoop 5

6. What is EDA? Exploratory data analysis (EDA) is an approach to analyzing data for the purpose of formulating hypotheses worth testing… -Wikipedia 6

7. We set out to learn more about our customers behavior 7

8. Visualizing the Data Extracted our purchase data for last 4 years Imported into visualization tool - Gephi Similar to “social graph” app on Facebook 8

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10. Whatdid learn Customers stayed within their brand category preference Customers who bought designer continued to buy designer brands Customers who bought contemporary continued to buy contemporary brands Customers stayed true to their gender Customers didn’t buy for others (spouse, significant other, etc.) Very low gifting business (gift wrap numbers reflect this) We created a “Customer Behavior Value” (Gender)(Category)(Intensity) WD5 = Womens Designer 5 MC1 = Mens Contemporary 1 10

11. Targeting based on buying preference The test: 1) Target homepage content based on prior buying behavior Women’s Designer  homepage #1 Women’s Contemporary  homepage #2 Men’s  homepage #3 11

12. Women’s Designer 12

13. Women’s Contemporary 13

14. Men’s 14

15. Targeting based on buying preference The test: 1) Target homepage content based on prior buying behavior Women’s Designer  homepage #1 Women’s Contemporary  homepage #2 Men’s  homepage #3 Targeted email campaigns based on Customer Behavior Value 15

16. Targeted email program 16

17. Realized Benefits Increased open rates Open rates increased 50% of targeted segment Increased user site engagement Browser – more pages browsed Shopper – more add to carts Purchaser – more orders Reduced opt-out rates Increased customer relevancy "finally, bluefly got my email gender preference right" 17

18. Where do you go from here What’s your business objective? Are you collecting the right data? Do you have the right team? Can a pattern be identified in the data? What is a potential treatment to test the pattern? Test the optimal treatment. 18

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20. Matt Rainesmatt.raines@bluefly.comBluefly.com@matthewraines 20