Magaseek embraces data-driven decision making to enhance site design.

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1 Magaseek embraces data-driven decision making to enhance site design. E-commerce site uses Adobe Analytics and Adobe Target to optimize websites, improve sales, and better serve both consumers and brands. Using Adobe Analytics, we can determine the effects of banners, overall site conversion, and whether search is functioning properly. Using this information, we can develop insights to improve the websites. Mariko Azuma, direction team leader, UX design department, Magaseek SOLUTION Adobe Analytics and Adobe Target solutions within Adobe Marketing Cloud RESULTS 40 MILLION CLEAR IMPROVEMENTS Improved sales by more than 40 million annually by testing and optimizing changes to the product page REAL-TIME CAMPAIGNS Leveraged real-time reports in Adobe Analytics to gain insight into time-sensitive visitor actions ENGAGED BRANDS Improved relationships with fashion brands by using data to back up sales strategies and improve sales SUPPORT Improved communication and understanding of the testing process with support from Adobe Consulting

2 Magaseek Corporation Established in 2003 Employees: 101 Tokyo, Japan CHALLENGES Optimize website usability to improve sales Better understand the effects of changes to websites Establish a data-driven environment to gain information about website usage and accurately measure effects Designing for impact The fashion e-commerce company Magaseek was founded in 2003 around the concept of enabling consumers to buy the clothing and accessories seen in fashion magazines online. Until then, companies in Japan assumed that fashion e-commerce would fail because consumers would need to see the product before purchasing. Magaseek was the pioneer that overturned conventional wisdom and opened up the market. Currently, Magaseek operates three sites: the fashion site MAGASEEK, the outlet fashion site OUTLET PEAK, and the mobile fashion site d fashion, which is run with telecommunications company NTT Docomo as part of its mobile commerce site, d market. With more than 400 brands, Magaseek enables customers to shop from desktop computers, tablets, smartphones, or mobile phones. Magaseek s websites are the backbone of its business. Site usability directly affects our profits, making it key to growth for our business, says Yuka Harada, director of strategy at Magaseek. We are constantly changing the website to make it easier for our customers to use, but there is a fine line between changes for the better and changes for the worse. Even when we thought that the change was an improvement, we didn t have clear evidence of whether the result was positive. We would look at other e-commerce sites and make design decisions based on our own preferences, says Mariko Azuma, direction team leader for the User Experience (UX) design department that supervised the design changes at Magaseek. We would suggest moving buttons or changing colors, but we didn t actually know whether the new design was easier to use. There was a risk that the change would be for the worse, and we d just continue using it.

3 Even if sales improved on a page, Magaseek couldn t tell whether the improvement was due to the design change or due to another reason, such as consumers buying more coats because it was cold outside. Magaseek wanted to continually improve and optimize site design, but first it needed an environment that would enable it to form strategies based on accurate data and measure the effects of changes. Optimizations to meet changing needs Magaseek chose Adobe Marketing Cloud, including the Adobe Analytics and Adobe Target solutions, for its ease of use. We previously used another analysis tool, but creating reports took a lot of time and effort, says Shinobu Gotou, deputy director for the UX design department at Magaseek. We spent all of our time just creating reports rather than looking at how we could apply the data. With Adobe Analytics, we get real-time reports that instantly show us visitors reactions and give us the confidence to change our strategies. Mariko Azuma, direction team leader, UX design department, Magaseek The Adobe Analytics solution clearly displays any desired information, such as the number of clicks on a banner or actions within a site, on its dashboards and reports. Using Adobe Analytics, we can determine the effects of banners, overall site conversion, and whether search is functioning properly, says Azuma. Using this information, we can develop insights to improve the websites. The Adobe Target solution enables Magaseek to test design changes and determine how to improve results. We have more than 10 years of experience running websites designed for desktop computers, but that experience doesn t always carry over to mobile sites, says Gotou. As devices evolve, the user base also diversifies, which means that the most effective strategies may also change. Using Adobe Target, Magaseek tests new designs against existing ones in a limited environment before fully implementing changes. Adobe Analytics helps measure the results and deliver insights that enable Magaseek to optimize the design. By repeating this cycle, Magaseek continuously improves sales. Decreasing risk and increasing sales Once changes have been implemented, it can be difficult for companies to return to a previous version, even if the changes don t produce the expected results. Quantifiable metrics from Adobe Target enable Magaseek to accurately judge the effectiveness of changes, which makes decisions easy. In one test, Magaseek tested a change to the position of the Buy button on its product page. Originally, Magaseek had one Buy button towards the bottom of the page. The company theorized that customers would appreciate having a Buy button at the top of the page for greater usability. When customers add an item to the shopping cart, they are given the option to continue browsing or to complete their order, says Azuma. Using Adobe Target, we tested the position of the button and discovered that the new design actually reduced sales by more than 20 million annually.

4 The product pages list other recommended products at the bottom of the page. By placing a Buy button at the top of the page, customers were less likely to see the recommended products, which reduced browsing and lowered sales. Magaseek created a new design aimed to encourage browsing, which improved annual sales by 40 million compared to the failed redesign. Adobe Target tests often lead to bigger discoveries, such as the realization that results often differ on the MAGASEEK and OUTLET PEAK sites. Magaseek discovered that the sites have different audiences and customer segments, which results in different customer preferences. This insight encouraged Magaseek to dramatically change its strategy across websites and improve sales. By basing our suggestion on data collected from Adobe Target tests, the company better understood our reasoning and immediately started looking into the changes, which improved our relationship. Shinobu Gotou, deputy director, UX design department, Magaseek Campaigns with perfect timing Magaseek not only highlights individual products, but it also runs campaigns recommending popular products or trendy items for each new season. Using Adobe Analytics, we realized that campaigns could become very successful depending on the current weather, says Azuma. Customers tend to buy thick coats on very cold days, or rain boots on rainy days. Previously, we never really gave much thought to the weather, adds Azuma. With Adobe Analytics, we get real-time reports that instantly show us visitors reactions and give us the confidence to change our strategies. The day we had planned to start pushing our spring fashions, we got a snowstorm in Tokyo. The insights from Adobe Analytics encouraged us to switch to a winter clothing campaign last minute. Engaging with fashion brands In addition to consumers, Magaseek s most important clients are its fashion brands. Magaseek often receives numerous requests from companies about site design, product displays, and sales campaigns. Previously, Magaseek felt compelled to accept these requests, but the clear metrics and test results from Adobe Marketing Cloud help better position the company to counter requests and make new suggestions. We suggested that a company shoot new product images featuring a model rather than the clothing by itself, says Gotou. We submitted test data to show that the new images would be more appealing and effective. By basing our suggestion on data collected from Adobe Target tests, the company better understood our reasoning and immediately started looking into the changes, which improved our relationship.

5 Enhancing internal collaboration By introducing Adobe Marketing Cloud, Magaseek is shifting towards data-driven decision making. The UX design department used to just implement requested changes, but Adobe Marketing Cloud gives us more of an opportunity to make suggestions, says Gotou. We have data backing us up, so we can be more confident in our suggestions and it s easier to make a decision. People are more likely to understand the decision as well. Other departments are becoming interested in the site design changes due to our use of data, says Harada. For example, the marketing department started sending reminders to customers who place items in their shopping carts but do not purchase them. Metrics indicate that these reminders help to recover sales. Other departments are becoming interested in the site design changes due to our use of data. Yuka Harada, director of strategy, Magaseek SOLUTION AT A GLANCE Adobe Marketing Cloud, including Adobe Analytics and Adobe Target solutions. Marketing reports and analytics A/B testing Adobe Consulting For more information The clear metrics from Adobe Marketing Cloud are changing the attitudes at Magaseek to promote proactive strategies and improve communication between departments. Magaseek currently holds regular meetings for the User Interface Workshop, in which interested participants from any department are invited to look at issues in site design and work towards a solution. Once a week, about 10 people gather for an unofficial meeting, says Azuma. First, we just talked about what test to focus on next, but as more attendees have become interested in seriously looking at user interfaces, it s become an interactive discussion. Fulfilling projects with the support of Adobe Consulting The Adobe Marketing Cloud solutions weren t the only reason for our success it was also due to strong support from Adobe Consulting, says Azuma. On Adobe s recommendation, we held a workshop with members from each department to improve understanding of how we approached issues and the process we used to find a solution. We started by thinking about what information a customer wants when they re shopping. It was a completely new experience that resulted in a lot of good discussions. The consultants looked at issues from our perspective and actively participated in our discussions, adds Azuma. By introducing technical knowledge, such as the process behind site optimization and how to use data, the Adobe consultants helped us understand the flow of projects and the importance of tests. I don t think we would have been nearly as successful without the help of Adobe consultants. Magaseek has only started working with data-driven site optimization. There are many issues that we want to tackle, says Gotou. We don t see the sites as finalized. We will continue making small improvements that will help us continue to optimize the site. Adobe Systems Incorporated 345 Park Avenue San Jose, CA USA Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners Adobe Systems Incorporated. All rights reserved /14

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