Blue Martini Software Announces E-Business Intelligence Service.

Business Editors/Retail &High Tech Writers

SAN MATEO, Calif.--(BUSINESS WIRE)--Feb. 2, 2000

Service Analyzes Web Clickstream and Purchase Data using Advanced

Tools for Data Warehousing, Data Mining, and Reporting

Blue Martini Software, a leading provider of enterprise-scale Internet applications for e-merchandising, e-marketing, and e-service, today announced a new service that analyzes Web clickstream and purchase data to discover valuable business trends and patterns, and recommend concrete actions. The company's first subscription service, E-Business Intelligence Service (E-BIS) leverages Blue Martini's own tools and partner resources to help clients build brands, increase revenue across all channels, and retain customers.

&uot;Blue Martini uncovered invaluable insight from their analysis of our data,&uot; reported Doug Dalton, CTO at gloss.com, a leading prestige beauty site. &uot;Data from our Web site is a gold mine. Blue Martini helped us mine this data to better target our merchandise, assess the accuracy of responses to registration forms, and understand the initial market segments who use gloss.com to satisfy their cosmetics, fragrance and skincare needs on the Web.&uot;

&uot;E-BIS is an ideal complement to Blue Martini's software products,&uot; explained Eric Kalabacos, director of Blue Martini's E-Business Intelligence Services. &uot;The service helps customers increase browse-to-buy conversion rates, raise the average transaction size, and optimize their investments in media assets. To provide benefit to companies that have not yet deployed Blue Martini's Customer Interaction System, this service can import external data into the Blue Martini Data Warehouse and then provide valuable discoveries and recommendations. All retailers and manufacturers want to exploit the detailed data collected in their Web site. This service makes the benefits of these investigations a reality-without the need to deploy hardware and train staff.&uot;

Gloss.com Gets to Know Their Customers to Serve Them Better

Blue Martini analyzed Web clickstream data and purchase transaction for gloss.com. Blue Martini first generated a set of customer demographic reports (age, income, marital status, etc.) that described exactly who was using the site. These reports used both registration information and syndicated household data. Blue Martini learned that some users tended to buy without registering, which corrected any false assumptions about customer usage had the syndicated data not been used. The analysis helped identify the segment of registered users, which was not completely representative of all the users at the site.

Investigators also found large differences in the conversion rates (the ratio of buyers to browsers) from different referring Web sites. One site in particular had a relatively low referral rate as defined by numbers of referred shoppers, but ranked high when measured by conversion rate, leading gloss management to change their advertising strategy.

Finally, with this information, gloss.com will be able to organize merchandise assortments to create a more convenient shopping experience for consumers.

Service Deliverables Include Statistics, Customer Profiles, and

Data Visualizations 

Data investigations are performed in Blue Martini's high-security Discovery Lab by a team of expert consultants trained in the latest data mining, statistical analysis, and data visualization methods. Results are presented in understandable Intelligence Reports designed for the business decision-maker that combine statistics, business rules, aggregated customer profiles, and data visualizations, as well as plain-English business advice. These deliverables are particularly valuable to Blue Martini customers since they are immediately &uot;actionable&uot; in Blue Martini's Customer Interaction System. For example, targeted merchandise assortments may be created in Blue Martini's Merchandise Management module that refer to tuned descriptions and imagery stored Blue Martini's Content Management module. When Blue Martini's Recommendation Server recognizes a customer as a member of a customer segment, the targeted assortment may be displayed containing language and imagery that is more compelling to the customer. Subscribers may also choose to incorporate data from external sources, such as syndicated consumer data and point-of-sale (POS) data.

Pricing and Availability

The Blue Martini E-Business Intelligence Service is available immediately. Pricing is subscription-based calculated on the length of the engagement and on the volume of transaction and clickstream data analyzed.

About Blue Martini Software

The Blue Martini Customer Interaction System is the leading enterprise-scale Internet application for interacting live with customers. Build brand equity and raise revenues across all sales channels by interacting with customers through call centers and Web sites for e-merchandising, e-marketing, and e-service. Blue Martini helps merchants and marketers present fresh content and product assortments to targeted micro-segments, and deliver high quality services to customers.

Blue Martini customers with sites already deployed include Gloss.com, Harley-Davidson, and Levi Strauss &Co. Other customers with sites in preparation include Gymboree Corporation and Gazelle.com. For more information, contact Blue Martini Software at 2600 Campus Drive, San Mateo, Calif., 94403; phone [phone]; fax [phone]; www.bluemartini.com.

Note to editors: Blue Martini Software and the Blue Martini Customer Interaction System are trademarks of Blue Martini Software Inc. All other trademarks belong to their respective owners.