Entertainment 2013 Digital Strategy (and roadmap)

1. Entertainment 2013 Digital Strategy (and roadmap) Kit Cody / VP Digital Product / December 2012

2. Digital Strategy Overview Why Digital Matters Entertainment.com 2.0 Agile Product Development 2013 Digital Product Roadmap eCommerce platform Customer Support Search Optimization Mobile Product Strategy Metrics-Driven Operations

3. Why Digital Matters

4. The Future is Digital Entertainment Promotions has long understood that the competitive landscape for discounts and promotions has been shifting, and that consumer behavior is dramatically changing as new discount products emerge (like daily deals) and better distribution channels mature (like mobile). Our flagship product, the Entertainment Book, has seen declining distribution for the past several years, and EP merchants have consistently requested access to more variety in D&P programs, broader content distribution, and support with other digital tools to help them grow their businesses. Recognizing these changes, Entertainment has been laying the groundwork, for several years, to launch new products, expand distribution, and test new business models. Foundational to these changes is a new, dynamic content database that enables much more flexibility in the management of content, and exciting new opportunities in digital distribution of offers.

5. The Evolution of Discounts & Promotions • Exploding Competition: Coupon & Discount based businesses are growing and morphing the industry • New Technologies are disrupting the discounts & promotions ad space • The internet is splintering across proprietary platforms like Apple, Android, connected TVs, Netflix, Social sites like Facebook, Linkedin, Twitter, FourSquare • Consumers/Merchant – texting, social check-ins, become a fan • Deeper discounts growing via digital and short duration print products • Online and Mobile coupons are gaining reacceptance & acceptance • Traditional paid advertising is shrinking and reinventing ways to grow revenue. • New/emerging coupon businesses are leveraging “Free” first time positioning for clients – with only pay for performance or placement enhancements. • Local Merchants are adopting new technologies faster than ever before - Merchant Self Service moving to online and mobile

6. Shifting eCommerce Trends

7. Entertainment Platform 2013 marks the culmination of numerous efforts to update technologies, integrate systems, and launch new products – including entertainment.com. The approach has been to select and stand up compatible, best-in-class products for content entry, management, and distribution: • Content Delivery Network: Hybris, PDC • Content Management: Fry OCP • CRM: Netsuite • Customer Service: RightNow, Fry OCP • Digital Asset Management: Cellum • E-Commerce, Shop Cart : Fry OCP • Enterprise Service Bus: iWay • Geo/Mapping Services: MapQuest • Offer Entry: Offer Entry Management • Online Suport/Live Chat: RightNow • Order Management: NetSuite • Optimization: Google Optimizer • Payment Processor: Cyber Source • Promotion/Personalization: Fry OCP • SEO Monitoring: SEOmoz • Site Search/Merchandising: Endeca • Social Media: Sprout Social • Web Analytics: Google Analytics Furthermore, these products have been integrated leveraging an open, services-based architecture, which enables flexibility and scalability.

8. eCommerce Architecture

9. The (Digital) Path Forward The purpose of this document is to provide context for the transformation of Entertainment Promotions into a more digitally-oriented company, and share details on how EP develops and optimizes digital products leveraging an iterative, customer-focused, metrics-driven process. The sections ahead outline the strategy, execution, and ongoing development plans for EP’s online initiatives (eCommerce and digital membership) and mobile products through 2013. This overview distills new approaches for both User Experience (design) AND Technology (development) because ultimately great digital companies must embrace both disciplines. There are also insights on SEO tracking, customer service reporting, and web analytics that enable EP to better manage, measure, and optimized digital products.

10. Entertainment.com 2.0

11. Re-inventing Entertainment Online In January, 2012, Entertainment contracted with Catalyst Group, an award-winning design firm in New York City, to re-architect and re-design entertainment.com. This effort focused on a number of key elements missing from the existing site: • Clear Value Proposition (competitive differentiation) • Usability (prioritization of user experience) • Product Integration (sales site vs. member site) • Look & Feel (modern, member-focused design) • Social Media integration (save, share, like, pin) Using a proprietary process, deeply rooted in Human Factors Engineering and traditional Usability, Catalyst developed Entertainment’s User Experience Strategy, site architecture (hi-fidelity wireframes and html prototypes), and visual designs (including mobile web). The engagement was completed in June, 2012.

12. Catalyst Approach • Discovery Phase engage stakeholders and target users in the development of a User Experience Strategy to drive the subsequent design efforts. • User Interface Design phasecreate paper-based wireframes to illustrate the recommendations and solutions arising out of the Discovery phase. • Visual Design phase develop a new “look and feel” for the Entertainment.com site and produce the visual page templates required for site implementation.

13. Catalyst Design Phase

14. Entertainment.com Value Proposition The digital coupon landscape is increasingly competitive, and there is a significant hurdle to overcoming consumers initial reaction to EP’s membership-based products: “Online Coupons should be Free.” Leveraging testing and consumer insights about the unique value of Entertainment’s products, we ultimately focused the site design and user experience on a core value proposition: DEEP, EXCLUSIVE, EVERYDAY DISCOUNTS • This product orientation lead to several design insights: • Localization (local coupons comprise bulk of EP’s deep, exclusive content) • Content Prioritization (feature the ‘best of the best’ – search for the rest) • Personalization (provide savings tools and targeted recommendations) • Convenience (ALL the best coupons and discounts in one place) • Usability (search, sort, browse and filter content with ease)

15. after Entertainment Home before

16. after Entertainment Home before • Localization • market specific header • prioritized content • Clear Value Proposition • Convenience • (direct path to purchase) • Prioritized Content • top national brands • featured local merchants • Usability • (seamless online to mobile)

17. after Member Home before

18. after Member Home before • Usability • prominent search • intuitive navigation • Personalization • savings dashboard • member services • Localization • (direct path to purchase) • Social Media Integration • (tweet, share, like)

19. after Local Coupons before

20. after Local Coupons before • Convenience • (intuitive taxonomy) • Usability • (search, sort, browse, filter) • Localization • map orientation • map view • Prioritized Content • top national brands • prioritized merchants

21. after Shopping Cart before

22. after Shopping Cart before • Usability • distraction-free page • prominent flow • one-page design • Convenience • order summary • customer support

23. Agile Product Development

24. A New Approach to Digital Product • IN March, 2012, Entertainment partnered with renowned agile training firm, Menlo Innovations (based in Ann Arbor, MI). Menlo’s process involves immersing cross-functional teams in their thriving professional services business (the “Software Factory). EP sent 15 employees (developers, product managers, business analysts, Qas, and their managers) for an intensive week of training in the Menlo offices. This training formed the foundation for Entertainment’s new approach to product development: • Iterative Development (two-week cycle) • Dedicated Teams (product ownership) • Co-location (proximity begets collaboration • While EP teams have adapted the Menlo methodology to better suit our business needs. The training was a watershed milestone for our product group.

25. Why Agile Development? Agile Development FAST ITERATION & PROTOTYPING 1 Focus on Minimal Viable Product What does the customer want? Make software that brings joy to end users. Core features built first. 2 Nimble, Swift Development Work is organized into ‘Sprints’ with integrated quality advocacy. IA and prototypes before coding. 3 Open and Collaborative Pairing means no one works alone. Collaborative working and decision making. Involve clients early and often 4 Make Mistakes Faster Iterative and incremental approach; deploying the simplest solution to user needs, testing, optimizing.

26. The Advantages of Agile Approach Entertainment’s Ecommerce team designated the Entertainment 2.0 development project as “Digital Revolution.” The team has has embraced agile methodologies, taken new accountability for their work, and taken advantage of agile benefits: 1. Revenue Deliver (and monetize) features faster 2. Speed-to-market 80% of all market leaders were first to market. 3. Quality Testing is required throughout lifecycle.  4. Visibility Agile encourages stakeholder involvement. 5. Risk Management Incremental releases allow business to ‘fail’ faster. 6. Flexibility / Agility Change is accepted. In fact, it’s expected. 7. Cost Control Scope of project and features are variable. 8. Business Engagement/Customer Satisfaction Active involvement of product owner. 9. Right Product Constant testing and optimization. 10. More Enjoyable! The active involvement, cooperation and collaboration.

27. The Iterative Cycle The Enterainment.com development team has adopted a two-week iterative cycle: planning, executing, and measuring ‘sprints’ using Menlo methodology. daily standups pairing collaborativeworkspace fail fast PLAN Collect Storycards Estimate Plan Resources Authorize Scope Authorize Work Kickoff JIRA JIRA EXECUTE Yellow Dot Orange Dot Red Dot START Visioning Stories Project Sizing Speculative Plan Authorize Budget JIRA JIRA transition MEASURE Pairing Green Dots Unit Tests Functional Testing Show N Tell Design Assessment Iterative Releases User Testing

28. Digital Revolution

29. 2013 Digital Product Roadmap

30. Iterative Product Roadmap While product planning and software development tend to be focused on two-week iterations and continual prioritization of features (ideally based on testing and end-user feedback), there is a longer-term product roadmap we use to drive quarterly (and annual) planning for new product releases. The roadmap is thematic, based on high-level features sets which correspond to development initiatives and business requirements: • Purchase Path • Marketing Promotions/Merchandising • User Engagement • Content • Customer Service • Analytics • Mobile

31. Purchase Path

32. Marketing Promotions/Merchandising

33. User Engagement

34. Content

35. Customer Service

36. Analytics

37. Mobile

38. E-Commerce Platform

39. Platform Goals Capitalize on the flexibility of the new platform to enable rich merchandizing, advanced personalization, and powerful campaign management. Capitalize on the scalability of the new platform that will provide easy third party integrations for additional robust content and up-sell opportunities leading to increased conversion rates and engaged consumer loyalty. • Short-Term Advantages: • New features development across one site instead of multiple applications resulting in quicker time-to-market and less IT & Marketing time required to manage the updates • Optimize Search Engines by exposing discount and promotions details via an open site for better SEO; improved local keywords • Improvement in search, browse, and filtering allows consumers find information more quickly • Ability to engage new consumers with free registration & access to content • Employ robust self-service functionality to reduce customer service inquiries • Enhanced, robust savings content experience augmented by 3rd party content providers resulting in additional backend revenue (i.e. Open Table).

40. Platform Goals (continued) • Long-Term Advantages: • Ability to test and if successful, rollout a business model with different subscription/membership levels • Target consumers with Strong Personalization/Segmentation with focus on Life Stage, Life Style, Life Decisions, Special Interest (e.g Movers & Shakers; Country Squires; Upper Crust -- Auto or Home Focused; Beauty or Fitness Focused) • Test & Execute New Products, Additional Redemption Types, New Features/Benefits • Build Social Networks • Execute Mobile Strategy

41. Fry Open Commerce Platform (OCP) Fry OCP Offers a single platform for all web properties that streamlines the promotion & merchandizing processes providing operational improvements. For instance, if an offer is to be merchandized on both ent.com & SaversGuide the merchandizing manager can use the same rules to drive placement. Fry OCP Facilitates quick functionality updated to shared functionality across sites, and provides out-of-the-box components for eCommerce enablement and operations: • Registration • Merchandizing • Campaign Management • Promotions Management • Mobile Optimization • Web Content Management • Storefront • Cart Management • Checkout Processing • Settlement • Account Management

42. Benefits of Fry OCP OCP's site management tools ensure that business users can perform the following from one centralized user-friendly administration tool: proven functionality customization merchandising • Efficiently capitalize on merchandising opportunities • Flexible product management allows for both manual and automatic product and merchandising updates • Quick to market with proven out-of-the box functionality • Ready to use components for eCommerce enablement and operations (account management, content management) • Easily create personalized experiences for customers • Segment customers dynamically based on a broad, extensible set of events and conditions (e.g. – custom clients) A D M I N I S T R A T I O N • Drag and drop interface allows non-technical users to manage the site & create new experiences • Single instance of site manager for all sites within a single OCP implementation.

43. OCP Site Management OCP's site management tools ensure that business uers can easily keep the product catalog current, efficiently capitalize on merchandising opportunities, create personalized experiences for customers, and manage orders. These powerful tools offer a centralized site management solution for multiple sites within a single OCP implementation. • User-friendly drag and drop interface allows non-technical business users to manage the site and create new experiences. • Flexible product management allows for both manual and automatic product and merchandising updates. • Continuous analytical processing evaluates customer actions and delivers appropriate merchandise, content, and promotions. • Segment customers dynamically based on a broad, extensible set of events and conditions. • Integration with data across your enterprise results in a true multi-channel experience. • Single instance of site manager for all sites within a single OCP implementation.

44. OCP Content &Promotions Management Unsolicited Homepage Member Homepage Content Management One template, different content based on audience/segment Promotions Management Schedule in advance, down to the minute Merchandizing Management

45. OCP Promotions Engine Allows business to schedule, preview, and launch promotions down to the minute. Drag and drop functionality in the admin tool allows ease, flexibility, and saves time for Marketing.

46. OCP Shopcart Out-of-the-Box Features decrease development time: managing products, shipping to multiple addresses, promo codes, and one page checkout. Ship To Multiple Locations Multiple Products in One Cart

47. OCP Partnerships Plug and play compatibility with of integration many of our other vendors supporting our site including: Payment Gateway: Email Marketing : Affiliate Marketing: Web Analytics: Mapping:

48. Customer Support

49. RightNow • In an effort to streamline online customer support, improve member engagement, and reduce operational costs, we have contracted with RightNow Technologies (recently acquired by Oracle), to manage customer support on Entertainment.com, and within our call centers. • RightNow Web Experience provides a rich, online customer experience solution for customers to research and purchase products, or resolve issues from any device—from smartphones to the desktop. • Deliver a seamless customer experience regardless of where or how customers interact with you • Match consumer intent to highly relevant content and interactions to increase conversion rates • Provide more information and self-service tools to customers who want it • Enable customers to seamlessly transition from web self-service to assisted e-mail, chat, co-browse, and phone agents • Make it easy for customers to find the answers they need—across the communication channels of their choice  

50. Online Support