Web 1.0 - Online Marketing

Backdrop: Dell Direct to Consumer

• Direct business model• Extended into retail in 2007• $12 billion company (of $60b Dell total)• #2 vs. HP followed by Acer, Apple and Toshiba• 33 million (10m unique) site visits/month• 2-3% site conversion

The Marketer

Input Teams•Competitive Landscape•Product Development•Pricing/Costing•Procurement•Forecasting•Marketing Research

Marketing•Product: launch & ongoing expert•Price: base & component•Promotion: stories & discounting•Placement: channel strategy

Output Teams

•Sales & Retail•Online•Site, Email, Online Ads, Affiliates, Search

•Offline•Catalog, FSI, Magazine, TV

Potential Scenarios

1. Grow top-line to hit the quarter2. Battery factory burns down in Malaysia3. Customer reviews and recommendations have increasing influence with online consumers

…What’s a marketer to do?

Available Channels

Website•70% direct consumer business•HUGE volumes•Immediate influence•BUT consistency is key for a consumer experience•Dependant upon traffic drivers•Varied customer set

Email•Urgency driver to incent purchase•Decent volumes•Balanced rev/mar attainment•Tech savvy consumer•Increasing opt-out rates, in line with industry

Online Ads

•Traffic driver to the website•Broad reach, branding vehicle•Varied consumer, early in the purchase decision

Affiliates•Revenue driver, very low margins•Very tech savvy consumer•Very price conscious consumer

Search•Very important traffic driver to the website•Become top of mind for consumers•Varied customer set

Action: Available Levers

1. Hit Targets: – Bundling: adjust configurations (components, service, accsesories)– Discount: optimize revenue goals and conversion on website and in

email– Promotions: create new offers for affiliates channel

2. Battery shortage:– Adjust battery bundling & offerings in configurator for all channels– Adjust pricing to deter purchases from low inventory offerings

3. Online reviews:– Create new stories in promotional campaigns in all vehicles– Adjust site pathing, making reviews more prominent

Metrics

• Main metrics:– Conversion is king– But no sales without traffic first– Site pathing: page click through rates, page

conversion, eye tracker, beta testing– Email: effective subject line headings, click

through rates, heat map– All vehicles: Sales, Revenue, Margin – hit forecast

Experiment: Constant Improvement

• A/B beta testing• Multi-variant testing• Creative testing• Subject-line testing for email• Heat map/Eye-tracker testing• Focus groups• Online Testing Community

Dell in Web 2.0

• Idea Storm – digg.com set up where anyone can post ideas and the most popular are implemented

• Dell Community – broader online community; blogs, wiki, forums, groups

• Dell Lounge – the “cooler” face of Dell, sponsor of gaming competitions & concerts, contests interact with Gen Y and younger

• Dell University – hire college kids to become peer to peer advocates of Dell on campuses