CHIP Xonio Online GmbH Delivers Its Merchants More Clicks with CNET Channel DataSource™

With corporate parents including CHIP, one of Germany’s top technology magazines for consumers, CHIP Xonio Online GmbH (CXO) has the perfect pedigree for providing consumers with in-depth product reviews, product tests, news and buying advice that’s as fresh as the day it’s posted online.

Created in 2002, the Munich-based company maintains three online storefronts where consumers can find help in purchasing computers, peripherals, handheld and mobile devices and telecommunications equipment and more: CHIP Online offers a wide range of hardware and software; Xonio, specializes in handheld and mobile computing; and Download offers software and shareware. Half of CXO’s staff is comprised of editors who work closely with CHIP magazine’s test labs to produce recommendations for about a thousand products each year.

Parent company CHIP’s brand recognition has helped make the online retail sites the leading consumer portals for information technology and home entertainment in Germany. But CXO also works hard to earn its keep as a sales avenue for special offers in the print publication to about 50 merchant partners who advertise on the sites and serve as the final destination for qualified shoppers.

Chip Off of CHIP Exceeds Customer Expectations

There are five steps in our service to the consumer: inform, compare, advise, price and route to our merchant partners,” explains Mathias Plica, Chief Executive Officer of CHIP Xonio Online.

CXO uses CNET Channel's DataSource to power these steps with a superior data collection and aggregation system. But for the founders of the company, pedigree and premier editorial content weren’t enough.

“From the start, we realized our tests and product data didn’t cover the market,” says Plica. “While our editorial team provides consumers with a solid understanding of product performance in the context of real-world use, that’s just part of the story. We wanted to provide truly comprehen-sive information for a broader range of goods beyond those reviewed, but we didn’t have the resources to compile that kind of data by ourselves.”

DataSource converts vasts amounts of non-standardized product infor-mation from IT and consumer electronics manufacturers into highly usable content for electronic product catalogs. With over 2,000,000 SKUs in production, the DataSource solution is used by hundreds of corporate resellers, retailers, distributors, VARs and shopping destinations world-wide. For CXO, DataSource populates a proprietary database that, in turn, feeds all three online stores. Consumers can search and filter this rich content using unique CXO site tools to locate products by criteria including features, product specifications, and more. Shoppers who know exactly what they’re looking for can go straight to the source and view the extensive information that DataSource provides for a specific product.

Deployed as an outsourced service, DataSource populates Insight’s According to Plica, “We aim to exceed the expectations of even our customers who know what they want. They may come to one of our online portals thinking there is nothing more to find out about an item—and then we surprise them with a great deal more information.”

In late 2003, CHIP Xonio Online turned to CNET Channel for help. Plica describes his initial data-gathering team as three people: one lead and two “helping hands” who, together, aggregated product information and ensured that it worked with the company’s proprietary comparison shopping system.

“We had to find a solution that would fill the gaps in our capabilities, and also support our strengths,” says Plica. CXO staff considered other data providers, including a partner to many other German online retailers, and found DataSource to be the more comprehensive resource.

CNET Channel staff assisted CXO with localization and modification required for the DataSource information feed to support the system. Perhaps most remarkable, according to Plica, is the fact that language was a non-issue and the online retailer could dedicate resources to product availability and driving more leads to its shopping partners.

“Instead, we could focus on whether we had the products which are offered in the German market,” says Plica. “This presents a fairly signifi- cant undertaking when products change slightly from country to country.”

Partnering with CNET Channel Creates Strong Foundation for Increased Sales

CXO chose CNET Channel because the company wanted a long-term partner. “We knew this wasn’t a decision to be made lightly, as we couldn’t switch providers from one month to the next. Between our evaluation of the DataSource solution and the company's sheer longevity, we were convinced CNET Channel was reliable and trustworthy, and would be around in the long run.”

Plica also points out the advantage of working with CNET Channel staff based locally: “That proximity meant our staff were able to collaborate in a workshop-style training session and, in just two days, develop the core concepts of the data model we would use to integrate DataSource content into our database. Eventually, we transitioned to e-mail based support without a hitch.”

The most important effect of the improvement in data quality at CXO is a jump in quality of click-throughs — qualified sales leads — for the company’s merchant partners. The online retailer receives about 200,000 leads per month — people who click through to CXO’s merchant partners. The company marked revenue gains of about 50 percent over the previous year and kicked off 2005 with an aggressive plan to achieve a 100 percent close rate.

“CNET Channel empowers us to offer comparison shopping features which helps users to close or to finalize the purchasing process,” says Plica. "The rise in click-throughs benefits our merchant partners, and it benefits CHIP Xonio Online by motivating our partners to advertise.”

Building Blocks for the Future

For now Plica says DataSource promises to continue to be a sturdy foundation for CXO operations. The company regards the service as instrumental to its success, and capable of supporting its fast-growing business and aggressive growth target of a 60 percent gain over 2004.

Plica comments, “we expect our growth will be based on our existing capabilities, which will continue to deliver qualified shoppers to merchants, and in turn encourage advertising on our site."

About CHIP Xonio Online GmbH

CHIP Xonio Online GmbH comprises three online retail sites that comp- lement parent CHIP magazine, one of Germany’s top technology maga- zines for consumers. These e-tail sites include CHIP Online, which fea-tures a wide range of hardware and software; Xonio, which offers hand- held and mobile computing products; and Download, for software and shareware. CHIP Xonio Online is distinguished from the competition by its unparalleled combination of news, product reviews, shopping advice, comparison shopping and access to merchant sites to complete purchase.