Malissa Nelson Interview follow ups March 6, 2012

Agenda

Examples of Work
Approach and Perspective2012 Marketing Overview
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Industry trends and benchmarks Personas

Strategy and Cross Channel Approach

Budget and Goals

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2012 Goals Budget 2012

Next Steps

Examples of Work

Amazon Multiple channels focused on improved customer experience

Key thought leader in adoption of In-Shipment Advertising Beta

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Demonstrated response rate lift ranging from 200-400% (Amazon In-ship stats)

Platform was quickly copied by eBay Platform is still available through Amazon.uk

Amazon Clickriver Media

Key team member in the adoption of vertical marketplaces that connect Amazon customers with external services providers.
Why?
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Enhance Amazon customer experience- The integration of Clickriver service ads into Amazon should be optimized to help Amazon customers achieve the objective of their visit to Amazon through a seamless integration with the shopping experience. Improve relevance of experience

How?
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Thank You page integration 22% Conversion Rate Stand-alone pages for service categories 3% Conversion Rate Post purchase email integration
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22% Open Rate, 15% CTR 17% Conversion Rate, $3MM Annual Revenue 1st year of adoption

MyBuys: Social Commerce

One of the first Facebook Storefronts Used in Conjunction with Mobile and SMS campaign 6% Conversion Rate Increased site traffic from Facebook 17% within 3 months Data stored and used to power MyBuys Personalization across 3 other channels realizing almost 70k in incremental revenue

MyBuys: Direct Mail Remarketing

Product Development Manager Designed to serve as an additional touch point and follow up Lower cost of adoption that tradition direct mail platforms
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Higher Relevance, lower send volume = Higher ROI (less cost)

3 Solutions

Email Reactivation
Cross Selling Retention and Loyalty Promotion Early adopters saw an email reactivation rate of 15+%

Industry Trends & Benchmarks

Online - Industry Benchmarks

Aggressive acceleration curves for Young, Medium-sized, Multi-Channel Retailers

The Online Opportunity

Online Opportunity = 32% of Total Sales

What % of Total Sales is eCom currently producing?

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2012 What can we expect?

Focus on:

Acquire
New Win back

Continued movement from traditional channel to online

Upgrade
Repeat Customer Increase RFM

Awareness and Buzz

Retention and Loyalty Social media to amplify traditional channels Mobile marketing continues to accelerate

Retention
LTV Recommendation/ WoM

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Traditional Media in 2012

Average Budget Area of Growth

What is the potential impact of a decrease in investment for Direct Mail and Print Advertising?

The importance of the web is evident as a % of total budget as well as % of Increase

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Personas

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Personas - Who is your shopper?

Average Age? Budget? Career Level?

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Personas - Channel Distribution

Be where your shoppers are Based on your shopper personas, both from a demographic and psychographic standpoint, you can begin to devise a strategy that allows for a channel migration Print and Direct Mail -> New Channel
Marketing Budget (per Forrester 2012)
45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Marketing Budget (per Forrester 2012)

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Personas Interpretation
What does the consumer want?

What does the consumer expect?

Are you providing the right mix of tools to meet the consumers expectations and needs?

**It is not enough to simply be where your consumers are, you must provide them with an experience that allows for their needs and expectations to be met. Ideally in a memorable and engaging way driving long term value and brand awareness and loyalty.
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Strategy and Cross Channel Approach

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Cross Channel Marketing Synergy

Online Offline

Cross channel touchpoints are common in considered purchase funnels

Articles in Media, Conversation with friends/colleagues

Product research and evaluation

Search Engine searches, looking for websites, reviews, products

Gathering Sales Literature

Supplier and Product Selection Determination

Search for Company and/or Product, Comparison Shopping (CSE)

Talking to Sales Rep, Staff, Asking Questions by Phone

Prepurchase qualification

Compare Price, Delivery and support options across several possible sites

Buy InStore or via Call Center

Product Purchase

Purchase or commit to purchase via eCommerce

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Web sites supported by catalogs report a revenue lift of 163% as opposed to those that were not

USPS Research

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Interactive Cataloging

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Building a better bridge

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Amplify Catalog Traffic

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Web site in support of catalog reach

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Address SEO Issues

If systems are the holy grail why are you not here?

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Content Marketing

Case Studies that matter

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Industry leading intelligence, research, and content

Blog And engage bloggers

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Can provide additional SEO benefit

Bring in the voice of the consumer

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Client of the Month

Make it Social
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Engage bloggers and industry relevant press

Support with exclusive offers for product reviews and readership

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Product Announcements Early access to new product

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Optimize List Acquisition

Online and Offline Applications

Encourage email sign up by offering something in return Allow for self segmentation
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Printer Systems buyer

Accessories Frequency of purchase

Follow up immediately with Welcome / Confirmation

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Build Anticipation

Candidate for Direct Mail and Catalog Strategy

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Retention and Loyalty: Email - Where to Focus Effort?

Segmentation
Focus on Relevant Content Development
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Relevancy Contagious Content Share-ability Freshness of message

Grow the list with Brand Evangelists Email Integration and management of CRM
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Social Media

Mobile

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Merchandising Matters

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Social Media

Are you conversational? Does the potential consumer find the content useful? What are they learning?

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Email = Engagement

Follow up with a Thank You Include Incentive or Special Offer

Request Additional Information allow for self segmentation

Consider Refer a Friend option

AB Test Options:

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Mobile

What is your audience doing?

What are analytics telling us? What is the urgency?

What is the strategy best positioned to provide ROI Year 1?

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Affiliate - its still a viable channel

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Opportunity In-Shipment?
Advertising Merchandising

Cross Sells/Upsells

Co-Branded Advertising Opportunity? How can Ad Revenue drive bottom line growth?
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Effectively plant seed for cross sells upon delivery of core product Include QR Code for mobile order? Demonstrated response rate lift ranging from 200-400% (Amazon In-ship stats)

Projections and Goals

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2012 Projections and Goals

2012 Projections Subscriptions Online Call Center Total

Q1

Q2

Q3

Q4

Channel Total

What channel is area of focus for 2012?

What is the overall budget for 2012?

Incremental Lift Opportunity Q1 Industry 32% Average 25% 20% 15% 10% 5% 2%

Q2

Q3

Q4

Incrementality

What are the goals in terms of incremental growth?

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Revenue AOV

Lead Gen
Traffic

Industry average for incremental growth is projected to be 32%

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