WSSI Websidestory (MM)

Data Reflects Importance of Building Customer Loyalty Online SAN DIEGO, May 15 /PRNewswire-FirstCall/ -- When it comes to making a purchase online, repeat visitors are eight times more likely to click the order button than new visitors, according to new data from WebSideStory, Inc. (NASDAQ:WSSI), a leading provider of on-demand digital marketing and real-time enterprise analytics solutions. During the first three months of 2006, repeat visitors to business-to-consumer e-commerce sites had a conversion rate of 12.61 percent, compared to just 1.55 percent for new visitors, according to the WebSideStory Index*, a statistical barometer that features techno-graphic trends culled from the millions of daily Internet users that visit web sites using the company's award-winning web analytics solution, HBX Analytics. "While it has long been known that repeat visitors make better customers than new visitors, this data shows exactly how much better," said Ali Behnam, senior digital marketing consultant for WebSideStory. "For marketers of e-commerce sites, this data further drives home the importance of building customer loyalty online." Customer loyalty is particularly important in the computers and electronics category, where repeat visitors were nearly 16 times more likely to make a purchase than new visitors with conversion rates of 23.12 percent and 1.49 percent respectively. By comparison, visitor loyalty was less important for shoppers at apparel sites, where the conversion rate for repeat visitors (7.56 percent) outranked the conversion rate for new visitors (1.37 percent) by less than 6 times. "This makes perfect sense as consumers are more apt to buy clothing on the spur of the moment than a big-ticket item like a computer or television, which requires much more research," Behnam said. Conversion Rate - New vs. Repeat Visitors Q1 2006 Visitor Type All Categories Computers & Electronics Apparel New Visitors 1.55% 1.49% 1.37% Repeat Visitors 12.61% 23.12% 7.56% * WSS Index E-Commerce Sample Size: Representing nearly 240 million visits during the first quarter of the year to sites that generate more than $3.5 billion in annual sales online About WebSideStory, Inc. Founded in 1996, WebSideStory, Inc. (NASDAQ:WSSI) is a leading provider of on-demand digital marketing and real-time enterprise analytics solutions that improve online marketing, sales and business operations. Its Active Marketing Suite(TM) consists of web analytics, site search, web content management, and keyword bid management. WebSideStory also provides enterprise analytics solutions through its wholly owned subsidiary, Visual Sciences, LLC, a leading provider of streaming data analysis and visualization software. WebSideStory is headquartered in San Diego, California, and has European headquarters in Amsterdam, The Netherlands. For more information, contact WebSideStory. Voice: 858.546.0040. Fax: 858.546.0480. Address: 10182 Telesis Court, 6th Floor, San Diego, CA 92121. Web site: http://www.websidestory.com/. HBX and Active Marketing Suite are trademarks and WebSideStory is a registered trademark of WebSideStory. Visual Sciences is a registered trademark of Visual Sciences, LLC. Other trademarks belong to their respective owners. Forward-Looking Statements Statements in this press release that are not a description of historical facts are forward-looking statements. You should not regard any forward-looking statement as a representation by WebSideStory that any of its plans will be achieved. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in WebSideStory's business, including, without limitation: WebSideStory's reliance on its web analytics services for the majority of its revenue; blocking or erasing of cookies or limitations on our ability to use cookies; WebSideStory's limited experience with digital marketing applications beyond web analytics; the risks associated with integrating the operations and products of Avivo Corporation and Visual Sciences, LLC with those of WebSideStory; privacy concerns and laws or other domestic or foreign regulations that may subject WebSideStory to litigation or limit our ability to collect and use Internet user information; WebSideStory's ability to defend itself against claims of patent infringement alleged by NetRatings, Inc.; WebSideStory's ongoing ability to protect its own intellectual property rights and to avoid violating the intellectual property rights of third parties; the highly competitive markets in which we operate that could make it difficult for WebSideStory to acquire and retain customers; the risk that WebSideStory's customers fail to renew their agreements; WebSideStory's recent achievement of profitability and the risk that it may not maintain its profitability; the risk that WebSideStory's services may become obsolete in a market with rapidly changing technology and industry standards; and other risks described in WebSideStory's Securities and Exchange Commission filings, including WebSideStory's annual report on Form 10-K for the year ended December 31, 2005 and quarterly reports on Form 10-Q. Do not place undue reliance on these forward-looking statements which speak only as of the date of this news release. All forward-looking statements are qualified in their entirety by this cautionary statement, and WebSideStory undertakes no obligation to revise or update this news release to reflect events or circumstances after the date of this news release. DATASOURCE: WebSideStory, Inc. CONTACT: Erik Bratt of WebSideStory, Inc., +1-858-546-0040, ext. 365, Web site: http://www.websidestory.com/

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