The webinar explored the need for retailers to reach new customers using natural search. Participants were Forrester Research's Dean Davison, Meijer.com's Erik Small and BloomReach's Joelle Kaufman. Forrester TEI report referenced is available here - http://go.bloomreach.com/tei-report

1. MAXIMIZE ROI BY
UNLOCKING THE FULL VALUE
OF UNDISCOVERED CONTENT
Dean Davison, Principal Consultant, Forrester Consulting
Joelle Kaufman, Head of Marketing, BloomReach
Erik Small, Senior Manager, Online Advertising & eCommerce, Meijer

2. Maximize ROI by Unlocking the
Full Value of Undiscovered
Content

3. A big number

4. The web outpaces stores
20.0%
15.0%
10.0%
Total retail
5.0%
E-commerce
0.0%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012
-5.0%
-10.0%
Source: U.S. Department of Commerce

5. Customer acquisition through search
Interactive marketing spend
Mobile Social
2% 5%
E-mail
4%
Search Display
59% 30%
Source: Forrester Research

6. But most clicks go to few sites
 Natural search: five sites captured 20% of clicks on
natural search links in the fourth quarter of 2012
(Amazon was the top retailer, fifth overall, at 1.4%).
 Natural search: top 500 sites capture nearly 50% of
all clicks.
Source: Experian Marketing Services

7. Most paid search clicks, too
 Paid search: top 10 web sites attracted 16% of clicks
on paid search ads (Amazon was No. 1 at 4.2%).
 Paid search: top 500 captured 56%.
Source: Experian Marketing Services

8. Paid search is expensive
Monthly paid search spend
(in millions of dollars)
$5.00
$4.00
$3.00
$2.00 $3.91
2.76
$1.00 $1.70
0.86 0.78
$0.00
Amazon Target Wal-Mart Sears Lowe's
Source: ROI Revolution,
Internet Retailer Search Marketing Guide

9. Maximize ROI by Unlocking the Full
Value of Undiscovered Content

10. WHAT ARE YOU DOING NOW ISN’T WORKING
Social hasn’t converted
Mobile isn’t a “channel”
Email is great… but you already knew them
You need something else

11. NEW CUSTOMERS ARE HARD TO FIND
your data won’t get you customers you don’t already have.
You understand what your
customers are doing…
but what about everyone else?

12. USE THE GREAT CONTENT YOU ALREADY HAVE

13. THE NEW WAY, BIG DATA MARKETING APPS, WORKS
use the collective
intelligence of your
Billions site and the web to:
pages
per day
capture 60% new customers
Billions
interactions over 25% more natural search traffic
per day
2x more conversion than paid search
Thousands
of hadoop
jobs/day

14. BLOOMREACH’S BIG DATA APPLICATIONS
driving business results with two big data applications
founded in 2008 by
Google, Yahoo!, and
Facebook the world’s first big data
engineers, backed by marketing application for natural
Bain Capital search customer
Ventures, Lightspeed acquisition
Ventures, and NEA
increasing advertising ROI using big data to
deliver relevance in paid search

15. BLOOMREACH & MEIJER

16. ABOUT MEIJER
• Privately-held, 75 years old
• 200+ stores across 6 states
• #298 in Internet Retailer Top 500
• Thousands of products across
dozens of categories
• Online channel via Meijer.com optimized
through direct, paid, affiliate, organic, email

17. MEIJER’S CHALLENGE
Thousands of products are added
every week to Meijer.com
expanding product categories and
sub-categories
The new product pages are
indexed and crawled by search
engines, generating site traffic
?
User experience is limited to
internal search
filtering, navigation, and our
interpretation of search intent

18. IMPROVED EXPERIENCE WITH BLOOMREACH
BloomSearch
New big data
large scale web
Meijer marketing
crawl – billions
product application
of pages per
pages
day
machine learning and
natural language processing
demand prediction
“Scratch Resistant “Red Home
Framed Bedroom Accent Décor”
Furniture”

19. INCREASE NON-BRANDED SEARCH
Thousands of thematic pages have been created and Meijer.com
has seen 92%+ increase in non-branded organic search traffic
BloomReach thematic page
“Rustic Wood Table”

20. MEIJER’S NON-BRANDED VISITS MAKE A JUMP
Since the beginning of the partnerships, non-branded visits
are up 60%+ year-over-year (Dec ‘11 to Dec ‘12)

21. BLOOMREACH INFLUENCED REVENUE
revenue
influenced by
BloomReach has
increased an
average of 70%+
month-over-
month since the
partnership began

22. THE ECONOMIC IMPACT

23. WHAT IS A TEI?
WHAT: The Total Economic ImpactTM is a standard methodology
developed by Forrester Research Inc., enhancing a company’s
technology decision-making process
WHY: To provide prospects and clients with a framework for
evaluating the potential financial impact of BloomSearch
HOW: Based on interviews with four BloomReach
customers, Forrester constructed a TEI framework, a composite
company, and modeled the associated ROI analysis that
illustrates the economic impact. The composite organizations fall
into two categories: established and emerging.

24. THE COMPOSITE ORGANIZATION – ESTABLISHED
• Sells $3.5 B annually from a portfolio of 25,000 products (US only).
• Derives 25% of sales from online in year 1; increases to 45% in the third year.
• Converts 6% of direct marketing and 3% of traffic from paid search and SEO.
• Runs remarketing campaigns that have a 5% conversion rate.
• Views search as important and has a full-time individual assigned to manage search.

25. THE COMPOSITE ORGANIZATION – EMERGING
• Sells $250 million annually from a portfolio of 3,000 products (US only).
• Derives 40% of traffic from paid search, 40% from SEO, and 20% from affiliate sites.
• Converts 3% of its traffic into sales and adds customers to a central customer list.
• Views natural search an interesting experiment as a potential new channel.

26. WHAT IS THE FORRESTER TOTAL ECONOMIC IMPACT
OF BLOOMSEARCH?
Forrester worked with BloomReach to analyze the total economic impact that
BloomSearch has on a number of its customers, who shared these business
challenges and objectives…
Natural search is a vast
unknown opportunity
We need to We’re a large brand
and looking for We’re an emerging
grow TOP
alternatives to SEO brand and want to
line revenue
and paid search grow in a cost-
effective way

27. COMPOSITE ANALYSIS
Through interviews and data aggregation, Forrester concluded the following
financial impact BloomSearch had on customers…
Established Brands Emerging Brands
ROI ROI
196% 638%
Payback Payback
2.5 days 1.2 months
3-year revenue impact 3-year revenue impact
$464M $75M

28. WHAT MATTERS MOST TO CUSTOMERS?
Established Brands Emerging Brands
Benefits Benefits
TEI broke down 34% 31% 26%
“multichannel “conversion rate “capturing misses from
the specific marketing similar to 50% other channels”
efficiency” “brand building at a
benefits, costs, remarketing”
fraction of cost”
and metrics 35% 24%
that mattered “capturing misses from “conversion rates
better than SEM”
other channels”
to customers…
Costs Costs
99% 93%
pay for pay for performance
performance fee fee
1% 7%
startup startup

29. BLOOMSEARCH BY THE NUMBERS
$3.24:1 Return on ad spend. Based on
gross profit for established brands.
Return on ad spend. Based on
$5.85:1 gross profit for emerging brands.
BloomSearch traffic from
60% noncustomers.

30. BLOOMSEARCH BY THE NUMBERS
Of time it takes annually to analyze and optimize
10% BloomSearch once it is integrated.
Of total costs to build an emerging brand by product
4% discounting. BloomSearch is 4% of traditional brand
building costs.
Conversion rate improvement. BloomSearch
100% conversionrate is 2x the paid search conversion rate.

31. A NEW WAY

32. YOU CANNOT WIN THE OLD/CURRENT WAY
1,000 head terms < 25% of pages 90% search traffic > 40% of
getting natural is branded products change
search each month
web and onsite analytics (to the tune of 5 TB everyday)
natural language processing (12B phrases and growing)
continuous machine learning (1000 Hadoop Jobs per day)
Web Relevance Engine
Relevant, rich
Dynamic
content New, targeted
link graph
(related category pages
content)
identify and optimize 60/40 split
> 1 M long-tail 75% of pages incremental 60% net new
get found customers
variations non-branded

33. DRIVE INCREMENTAL TRAFFIC AND REVENUE
thematic pages
aggregate desired products reducing click
related content to discovery and relevance
add relevant content to drive traffic to
undiscovered pages while flattening site
new category (thematic) page
filtering relevant products
existing category or product page SHOP FOR CHIC
BLACK DRESSES
COLOR
Red
Blue
Striped
TYPE
Lace
A line
Open back
related searches related products
street chic dress
red shift dress
dakota black dress
open back short sleeveless with black polka dot
black sheer dress sleeve dress cinched bodice belted dress
with lace and sheer with sleeves
> more > more > more

34. WHAT DOES THIS MEAN FOR THE CONSUMER?
better experiences, more discovery

35. WHAT CAN THIS MEAN FOR YOU?
more revenue
natural search uplift
125%
100
90%
75
equal or
50
higher
conversion
rates
25
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14
months since bloomsearch launch

36. THANK YOU.
Dean Davison, ddavison@forrester.com
Joelle Kaufman, joelle@bloomreach.com
Erik Small, erik.small@meijer.com