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Consolidated Digital Marketing Plan: How To Increase Sales Of Bosch Power Tools
On Grainger.com By 10 Percent In 2017
Mark...
Mark Benson – 1. Table Of Contents – Page 2
Table Of Contents
1. Table Of Contents…………………………………………………………………………………………………………...
Mark Benson – 1. Table Of Contents – Page 3
7. Channel Strategy (continued)
Addressed To End Users…………………….………………………………………...
Mark Benson – 2. Executive Summary - Consolidated Digital Marketing Plan: How To Increase Sales Of
Bosch Power Tools On Gr...
Mark Benson- 2. Executive Summary – Page 5
officers will focus on Francine Davis, a procurement officer who has proclaimed...
Mark Benson - 3. Client & Brand Analysis -- Grainger – Page 6
Grainger’s Business Model And Strategy For Growth
Grainger h...
Mark Benson -- 3. Client & Brand Analysis – Grainger – Page 7
62% in 2015, and offers seven Bosch Power Tools products—att...
Mark Benson -- 3. Client & Brand Analysis -- Grainger – Page 8
Grainger’s growth strategy is to maintain successful relati...
Mark Benson -- 3. Client & Brand Analysis -- Grainger – Page 9
Grainger’s Facebook imagery is geared to corporate clients,...
Mark Benson -- 3. Client & Brand Analysis -- Grainger – Page 10
Using analytics, Grainger could translate “likes” that a G...
Mark Benson -- 3. Client & Brand Analysis -- Grainger – Page 11
Online procurement infrastructure is a priority. Grainger....
Mark Benson -- 3. Client & Brand Analysis – Bosch Power Tools – Page 12
Bosch Power Tools – Brand Analysis , Including Eva...
Mark Benson -- 3. Client & Brand Analysis – Bosch Power Tools – Page 13
The company’s social media include YouTube and Fac...
Mark Benson -- 3. Client & Brand Analysis – Bosch Power Tools – Page 14
Though there are just 3,300 YouTube followers, the...
Mark Benson – 5. Consumer Decision Journey/Business Objectives – Bosch Power Tools And
Grainger.com – Page 15
Figure 1: Im...
Mark Benson – 5. Consumer Decision Journey/Business Objectives – Bosch Power Tools And
Grainger.com – Page 16
Secondary cu...
Mark Benson – 5. Consumer Decision Journey/Business Objectives – Bosch Power Tools And
Grainger.com – Page 17
Second Scena...
Mark Benson – 5. Consumer Decision Journey/Business Objectives – Bosch Power Tools And
Grainger.com – Page 18
2e. Scenario...
Mark Benson – 5. Consumer Decision Journey/Business Objectives – Bosch Power Tools And
Grainger.com – Page 19
3e. Scenario...
Mark Benson -- 6. Data Collection and Analysis – Page 20
Data Collection – Outline of Procedures and KPIs To Be Reviewed35...
Mark Benson -- 6. Data Collection And Analysis – Page 21
Data Collection – Outline Of Procedures And KPIs To Be Reviewed (...
Mark Benson -- 6. Data Collection And Analysis – Page 22
Data Collection – Outline Of Procedures And KPIs To Be Reviewed (...
Mark Benson -- 6. Data Collection And Analysis – Page 23
Data Collection - Potential Biases: What Are They? How Can These ...
Mark Benson -- 6. Data Collection And Analysis – Page 24
Figure 1: Model For Digital Marketing Analytics – Listen To Vario...
Mark Benson -- 6. Data Collection And Analysis – Page 25
be deduced from the exploratory analysis, such as the possibility...
Mark Benson -- 6. Data Collection And Analysis – Page 26
Email – Details On ePro Purchase
• For email recipients who have ...
Mark Benson -- 7. Channel Strategy -- Ad Descriptions – Page 27
Display Ads For Procurement Officers And End Users
Display...
Mark Benson -- 7. Channel Strategy -- Ad Descriptions – Page 28
targeted to readers of Answers.com pages of interest to pr...
Mark Benson -- 7. Channel Strategy -- Ad Descriptions – Page 29
Figure 2: Steps In Grainger ePro KeepStock Notification Pr...
Mark Benson -- 7. Channel Strategy -- Ad Descriptions – Page 30
Emails To End Users: Influencing Consideration
If end user...
Mark Benson -- 7. Channel Strategy – Mockups – Page 31
Figure 1: Testing Brand Characteristics –Do Grainger’s Professional...
Mark Benson -- 7. Channel Strategy – Mockups – Page 32
Figure 2: Mock Up of Display Ad for Grainger’s Facebook Page (Procu...
Mark Benson -- 7. Channel Strategy – Mockups – Page 33
those an end user would likely read.60
A suggestion for a display a...
Mark Benson -- 7. Channel Strategy - Mockups – Page 34
Figure 6: Display Ad Invitation to Join the Grainger Customer Regis...
Mark Benson -- 7. Channel Strategy – Mockups – Page 35
Figure 7: Email Touting Grainger’s Advantages to Procurement Office...
Mark Benson -- 7. Channel Strategy – Mockups – Page 36
evaluating a purchase (Figure 9) and the other is a potential repea...
Mark Benson -- 7. Channel Strategy – Mockups – Page 37
Figure 11: Email To Procurement Officers To Reposition The Brand
Fi...
Mark Benson -- 7. Channel Strategy – Mockups – Page 38
When procurement officers are invited to become a social media bran...
Mark Benson -- 7. Channel Strategy – Mockups – Page 39
Figure 14: Email to End Users to Encourage Everyday Heroes to Becom...
Mark Benson – 8. Test And Control Plan – Page 40
Three “SMART” Research Objectives To Increase Bosch Power Tools Sales By ...
Mark Benson – 8. Test and Control Plan – Page 41
• The display ad with the invitation to join the Email Registry
will be r...
Mark Benson – 8. Test and Control Plan – Page 42
• The Key Performance Indicators (KPIs) to be measured for each
of these ...
Mark Benson - 9. Bibliography – Page 43
Works Cited
Aberdeen Group. Is Your Omni-Channel Strategy Driving Your Customers t...
Mark Benson - Module 6 - Bosch Power Tools and Grainger - Final
Mark Benson - Module 6 - Bosch Power Tools and Grainger - Final
Mark Benson - Module 6 - Bosch Power Tools and Grainger - Final
Mark Benson - Module 6 - Bosch Power Tools and Grainger - Final
Mark Benson - Module 6 - Bosch Power Tools and Grainger - Final
Mark Benson - Module 6 - Bosch Power Tools and Grainger - Final
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Mark Benson - Module 6 - Bosch Power Tools and Grainger - Final

  1. 1. Consolidated Digital Marketing Plan: How To Increase Sales Of Bosch Power Tools On Grainger.com By 10 Percent In 2017 Mark Benson Professors Aric Rindfleisch, Kevin Hartman, Rhiannon Clifton and Vishal Sachdev University of Illinois Urbana-Champaign Digital Marketing Capstone April 2016
  2. 2. Mark Benson – 1. Table Of Contents – Page 2 Table Of Contents 1. Table Of Contents………………………………………………………………………………………………………………………………2 2. Executive Summary – Consolidated Digital Marketing Plan: How To Increase The Sales of Bosch Power Tools On Grainger.com By 10% in 2017………………………………………………..…………………….…………4 3. Client/Brand Analysis…………………………………………………………………………………………………………………………6 Grainger……………………………………………………………………………………………………………………………………..6 Grainger’s Business Model And Strategy For Growth…………………………………………………….6 Grainger’s Online Presence...…………………………………………………………………………………………9 Grainger’s Customers……………………………………………………………………………………………………11 Trends In Consumer Buying Patterns……………………………………………………………………………11 BoschPower Tools…………………………………………………………………………………………………………………….12 Bosch Power Tools – Brand Analysis , Including Evaluation Of Online Presence…………..12 Primary/Secondary Bosch Power Tools Customers: Who Are They? What Do They Want? Need?.......................................................................................................14 4. Problem Statement…………………………………………………………………………………………………………………………..14 What Problem Are You Trying To Solve?.......................................................................................14 5. Consumer Decision Journey/Business Objectives – Bosch Power Tools And Grainger.com……………….15 Three Scenarios: Relevant CDJ Phases, Customer Concerns & Suggested Analyses Re: Ad Spend………………………………………………………………………………………………………………………………..15 First Scenario…………………………………………………………………………………………………..15 Second Scenario………………………………………………………………………………………………17 Third Scenario………………………………………………………………………………………………….18 Three Scenarios: How Can They Be Achieved?..............................................................................19 6. Data Collection And Analysis………………………..…………………………………………………………………………………..20 Data Collection………………………………………………………………………………………………………………………….20 Data Collection - Outline Of Procedures And KPIs To Be Reviewed……………………………….20 Data Collection - Potential Biases: What Are They? How Can These Be Overcome?.....23 Data Analysis…………………………………………………………………………………………………………………………….24 Data Analysis - Analysis To Be Performed On the Data Collected and KPIs Measured…..24 Data Analysis - Benchmarks For Data Collected…………………………………………………………...25 Data Analysis - Summary Of Insights – The 60 Second Story…………………………………………26 7. Channel Strategy…………………………………………………………………………………………………………………………….…27 Ad Descriptions…………………………………………………………………………………………………………………………27 Display Ads For Procurement Officers and End Users…………………………………………………..27 To Build Awareness That Bosch Power Tools Are Sold On Grainger.com………….27 To Increase Consideration And Invite Potential Customers To Join the Email Customer Registry………………………………………………………………………………………….28 Email Content Marketing……………………………………………………………………………………………..28 Addressed To Procurement Officers……………………………………………..…………………28 To Influence Consideration………………………………………………………………….28 To Improve Sales Processes…………………………………………………………………29 To Reposition The Brand……………………………………………………………………..29 To Grow Loyalty………………………………………………………………………………….29
  3. 3. Mark Benson – 1. Table Of Contents – Page 3 7. Channel Strategy (continued) Addressed To End Users…………………….…………………………………………………………….29 To Influence Consideration…………………………………………………………………30 To Reposition The Brand……..………………………………………………………………30 To Grow Loyalty………………………………………………………..………………………..30 Mockups With Recommendations On Tone And Content Of Display Ads And Email Marketing Messaging………………………………………………………………………………………………………………………………31 Display Ads – Building Awareness That Grainger.com Sells Bosch Power Tools………………………………………………………………………………………………………………31 Display Ads -- Increase Consideration By Procurement Officers/End Users With Invitations To Join Email Customer Registry………………………………………….33 Email Content Marketing -- Increase Consideration Through Follow-up Emails To Procurement Officers And End Users Touting Grainger’s Advantages…………………………………………………………………………………………………….34 Email Content Marketing - Improving Sales Process With Abandoned Shopping Carts/Past But Not Recent Customers…………………………………………….35 Email Content Marketing -- Repositioning The Brand: Emails On Desire To Reconnect with Customers…………………………………………………………………………….36 Email Content Marketing -- Grow Loyalty: Brand Ambassadorship………………….37 How Will The Display/Email Content Marketing Be Aligned With Bosch Power Tools…………………………………………………….………………………………………..…..39 8. Test And Control Plan………………………………………………………………………..…………………………………………..…39 Three SMART Research Objectives To Increase Sales of Bosch Power Tools By 10% Grainger…..40 What Research Is Necessary? What Analytical Tools Will Be Used? How Can Impacts On User Experience Be Avoided?.....................................................................40 First SMART Research Objective………………………………………………………………………40 Second SMART Research Objective………………………………………………………………….40 Third SMART Research Objective…………………………………………………………………….41 What Will The Recommended Campaign Be To Test These Objectives?.........................42 9. Bibliography………………………………………………………………………………………………………………………………………43
  4. 4. Mark Benson – 2. Executive Summary - Consolidated Digital Marketing Plan: How To Increase Sales Of Bosch Power Tools On Grainger.com By 10 Percent In 2017 – Page 4 Executive Summary Grainger wants to increase its online sales of Bosch Power Tools on Grainger.com by 10 percent in a given year and this Consolidated Digital Marketing Plan will help Grainger achieve that goal. First, Grainger will monitor current marketing activity in 2016, evaluating how three customer scenarios contribute to Grainger’s sales. Scenario 1: Customers visiting the Bosch Power Tools Page; Scenario 2: Customers entering the Bosch Power Tools Page on both Boschtools.com and Grainger.com; and Scenario 3: Customers who click on the Bosch Power Tools Page on Boschtools.com, but go to the Grainger Plumbing Page. In 2017, Grainger will launch a new marketing strategy, relying on points of difference that have traditionally been emphasized in Grainger’s marketing efforts to professional organizations but utilizing the powerful effects of customer testimonials taken from a digital marketing source: social media. The 2017 marketing campaign also includes opportunities for gathering primary research data through customer surveys that will assist Grainger in developing a new marketing strategy to achieve the goal of an improvement in Bosch Power Tools sales on Grainger.com by at least 10%. Sections 3 and 4 of this Consolidated Digital Marketing Plan detail the business objectives, analytical tools and Key Performance Indicators (KPIs) that will be monitored for the next three years. Five business objectives will be addressed to manage the marketing strategy for the three scenarios— Build Awareness, Increase Consideration, Improve the Sales Process Reposition the Brand and Grow Loyalty. These business objectives correspond to certain phases in the McKinsey Consumer Decision Journey, from the Initial Trigger to the Active Evaluation for Initial Moment of Purchase/Reassessment in Loyalty Loop. To measure the KPIs, analytical tools will be utilized, including Google Analytics and Google Customer Surveys. With Google Analytics, Grainger will be provided with relevant, powerful insights into the effectiveness of the display ad and email content marketing campaign for 2017 described in this Consolidated Digital Marketing Plan. The Google Customer Surveys will be administered to past customers who have not made a recent purchase and the current customers who are invited to become brand ambassadors. The relevant, powerful insights gained from these surveys will help determine whether there are new points of difference that should be emphasized in the Grainger/Bosch marketing campaign in 2018. That is a special feature of this campaign—to collect survey responses to monitor the success of the 2017 marketing campaign and suggest a possible future marketing strategy for 2018. Details of the 2017 marketing campaign are outlined in this Section 5 of this Comprehensive Digital Marketing Plan. Grainger’s target market is comprised of the primary customer, the procurement officer, who purchases Bosch products and accessories on behalf of the secondary customer, the end user who performs the Maintenance, Operations and Repair work. The overall positioning of Grainger and Bosch is of a professional distributor of well-engineered, high-quality, durable tools and accessories. To procurement officers, Grainger has traditionally emphasized this point of difference: the Grainger.com website is the easiest to use in the industry and its eProcurement and KeepStock systems give it an edge as a distributor. The 2017 marketing campaign to procurement
  5. 5. Mark Benson- 2. Executive Summary – Page 5 officers will focus on Francine Davis, a procurement officer who has proclaimed her love of the ease of use of Grainger’s website and ePro systems on a Facebook feed. Grainger relies upon a slightly different angle for end users, who are celebrated as the “Everyday Heroes” who fulfill the Grainger slogan, “for the ones who get it (the job) done.” This will be the pitch to end users like Jim Hebert, Construction Manager and owner of a Bosch cordless drill, who will be featured in a future “Everyday Heroes” video on Grainger’s YouTube feed. The elements of the marketing campaign outlined in Section 5 of this campaign will be successful if they resonate and generate 10% in new and repeat Bosch Power Tools sales on Grainger.com in 2017. If the 10% goal is not achieved in 2017, then testing performed as part of the customer surveys may reveal that other points of difference should be emphasized.
  6. 6. Mark Benson - 3. Client & Brand Analysis -- Grainger – Page 6 Grainger’s Business Model And Strategy For Growth Grainger has a distinctive US business model with two differentiated online channels.1 One is Grainger.com, mainly addressing customers in large, complex- and medium-sized organizations. The other is Zoro.com, a niche website targeting smaller, less complex businesses and do-it-yourselfers. Since Grainger’s Canadian and Mexican clients typically utilize country-specific versions of these two websites, this discussion concentrates exclusively on these US-focused websites and the goal of the Capstone Project: increasing Grainger.com sales by 10%.2 According to Elizabeth Distel, Grainger’s best customers are “large and have complex needs”— 20% of Grainger’s customers account for 80% of revenues.3 Grainger.com’s sales increased 13% in 2014 and 94% of sales growth came through eCommerce.4 Bosch Power Tools are sold exclusively on Grainger.com, so its tools are targeted to large- and medium-sized organizations.5 Zoro.com’s sales rose 1 Grainger 2014 Annual Report, “Letter to Shareholders,” p. 3. In the US, Grainger relies upon a multichannel sales strategy including call centers, nearly 400 physical retail outlets, a catalogue business and two different eCommerce outlets—Grainger.com and Zoro.com. Grainger CEO James T. Ryan suggests that the two online channels serve the needs of different sets of its business clients. The “multichannel model” featuring Grainger.com is primarily for “large, complex organizations.” Under the heading, “the single online channel model,” Ryan explains that customers with “less complex operations” will use Zoro.com. 2 Grainger 2014 Annual Report, pp. K-4 to K-5. Grainger’s strategy in Canada is to use its nearly 200 branches, a catalogue printed in both English and French, and one online channel--ZoroCanada.com-to serve its Canadian customers. In Mexico, it has a network of branches, a catalogue printed in Spanish and a lone eCommerce outlet, Grainger.com.mx. Although call centers do not exist in Canada or Mexico to process orders by mail, fax or email, these orders from Canada and Mexico are instead routed to the US call centers for handling. According to Alexa, some traffic in the past month did come from outside the US to both Grainger.com and Zoro.com. For Grainger.com, US-based customers accounted for 82.2 percent of Grainger.com’s visitors, followed by: India, 3.1%; Kuwait, 1.9%; Canada, 1.6%; Mexico, 1.1%, and others with shares of less than one percent. Source: Alexa, “Grainger.com: Audience Geography.” With respect to Zoro.com, US traffic was 91.5%, followed by Kuwait (2.2%), India (.9%) and Canada (.5%) Source: Alexa, “Zoro.com: Audience Geography.” 3 Google Hangout 3-with Beth Distel and Victoria Jurkowski. 4 In its 2014 annual report, Grainger announced that online sales zoomed 13% through Grainger.com alone, indicating that customers are increasingly shopping online Grainger 2014 Annual Report, p. K-4. The data on the 94% increase in eCommerce came from this source: Mark Brohan, “E- Commerce Accounts for Nearly All of Grainger’s Annual Sales Growth.” B2B E-Commerce World, January 27, 2015, available at https://www.b2becommerceworld.com/e-commerce-accounts-for-nearly-all-of- graingers-annual-sales-growth. An Aberdeen Group research report by Bob Heaney recommends that companies like Grainger should consider selecting cloud-ready solutions to update their order processing infrastructure to accommodate the variety of online systems that B2B customers utilize to buy products. Aberdeen Group, Is Your Omni-Channel Strategy Driving Your Customers to Shop a Competitor? September 2015. 5 Based on a review of Grainger.com and Zoro.com, four brands appear on Grainger.com’s Power Tools Page—DeWalt, Milwaukee, Makita and Bosch. Only Milwaukee is on Zoro.com.
  7. 7. Mark Benson -- 3. Client & Brand Analysis – Grainger – Page 7 62% in 2015, and offers seven Bosch Power Tools products—attachments, not tools (Figures 1 and 2).6 Another Robert Bosch Tool Company subsidiary, Skil, sells its tool line on Zoro.com. Figure 1: Grainger Power Tools Page On Grainger.com Figure 2: Seven Bosch Power Tools Items For Sale on Zoro.com 6 In 2015, eCommerce was 41% of all sales, and Zoro-specific sales rose 62% over 2014. Nona Tepper, “eCommerce Accounts for Nearly 41% of Grainger’s Sales in 2015,” January 26, 2016, available at https://www.b2becommerceworld.com/e-commerce-accounts-for-nearly-41%-of-grainger’s-sales-in- 2015.
  8. 8. Mark Benson -- 3. Client & Brand Analysis -- Grainger – Page 8 Grainger’s growth strategy is to maintain successful relationships with large- and medium-sized organizations yet be agile to react to marketplace trends, including a rise in smaller, less complex businesses. As Grainger CEO James T. Ryan states, “we are driven to make our products and services accessible in ways that are most convenient and cost-effective to the customer.”7 Grainger’s Online Presence Grainger’s online presence is measurable. Based on fourth quarter 2015 data (See Table 1), the greatest revenues for Grainger were from power tools purchasers who visited the Bosch Power Tools Pages on Boschtools.com and Grainger.com (See 5. Grainger & Bosch Visitor ClickThroughRate - CTR, .02%; Revenue, $128,560.08; Return On Advertising Spend –ROAS, $57.24).8 Table 1: Website Traffic: Grainger Online Activity, October To December 2015 Source: Grainger, Targeting Tools Data, October to December 2015. As stated by Victoria Jurkowski during the Google Hangout, Facebook is the company’s most significant social media platform: Grainger has over 150,000 fans, Zoro, 10,000.9 As seen in these screenshots, 30 7 Grainger 2014 Annual Report, Letter to Shareholders, p. 3. 8 The revenue gained from this set of behaviors is $128,560.08. If not already done, one possible online advertising strategy might be to establish stronger advertising relationships between the two websites. Those internet users visiting a page on Boschtools.com would receive a prompt in the form of a display ad to encourage clicking on Grainger.com and possibly filling a shopping cart. 9 Google Hangout 3. This statement on the importance of Facebook to Grainger is reflected in a review of available social media options. According to the Grainger Facebook page, Grainger’s Facebook presence has the most followers of any of its social media outlets, 162,966. Another social media communication option, Grainger’s Twitter feed, has just 22.9 thousand followers. Grainger’s YouTube site is somewhat developed, with the “Everyday Heroes” campaign emphasizing the successful customers using Grainger products, but has merely 3,333 subscribers. However, Pintrest, the shopping social media site, has no Grainger presence. A Grainger career-related social media option is LinkedIn. However, Grainger’s LinkedIn page has less than half the number of followers as Facebook—76,556. Grainger also has a Google+ presence with just 1,959 followers though nearly four million visitors, viewing the many YouTube videos of Grainger’s “Everyday Heroes” that are posted there. Currently, Grainger’s Facebook page is a collection of visual images featuring its products. While the Facebook page is not differentiated in this way, the organization’s website has a tab on the front page that lists all of the product categories. The listing for the power tools category takes the internet user to Targeting Tactic Impressions Clicks CTR Spend Click Orders View Orders Total Orders Revenue CPA ROAS 1.Bosch Tools.com Only 2,885,607 1,688 0.06% $10,743.73 2 18 21 $5,220.08 $517.08 $0.49 2. Bosch Tools Visit, No Grainger.com visit 2,459,467 1,219 0.05% $9,223.00 0 0 0 $- $- $- 3. Grainger Power Tools Category 2,989,892 1,311 0.04% $11,106.37 1 65 66 $56,461.19 $168.28 $5.08 4. Grainger & Bosch Visitor and No Purchase 1,732,177 1,024 0.06% $6,493.19 0 1 1 $1,547.17 $5,312.61 $0.24 5. Grainger & Bosch Visitor and Purchase 601,992 116 0.02% $2,246.06 0 192 192 $128,560.08 $11.71 $57.24 Grand Total 10,669,135 5,358 0.05% $39,812.35 4 276 280 $191,788.53 $142.24 $4.82
  9. 9. Mark Benson -- 3. Client & Brand Analysis -- Grainger – Page 9 Grainger’s Facebook imagery is geared to corporate clients, while Zoro’s connects with smaller establishments, with its fox mascot and shrunk-down feel (Figures 3 and 4). 25 Figure 3: Grainger Facebook Front Page Figure 4: Zoro Facebook Front Page the Grainger.com Power Tools Page which highlights the four brands sold – DeWalt, Milwaukee, Makita and Bosch. Zoro’s social media presence is also primarily Facebook, but, it has significant activity on Pintrest. Zoro’s Pintrest page shows that there are 32 message boards with 2.1 thousand pins, many of customers enjoying the improved quality of life that Zoro products bring. Zoro is on LinkedIn and has 3,742 followers. There are 566 followers of Zoro’s Twitter Feed. There is currently no Tumblr, but Zoro has a YouTube presence with 77 subscribers and a snippet of a Zoro video game “Pakkit,” on Google Play. Zoro is also on Google+ with 394 followers and nearly 500,000 viewers.
  10. 10. Mark Benson -- 3. Client & Brand Analysis -- Grainger – Page 10 Using analytics, Grainger could translate “likes” that a Grainger Facebook subscriber gives to a power tool visual to prompt display advertising directing the viewer to Grainger’s Power Tools Page. It may boost profits. According to Table 1, internet users stopping solely on the Grainger Power Tools Page generated the second highest amount of revenue (See 3 - ClickThroughRate - CTR, .04%; Revenue, $56,451.19; Return On Advertising Spend –ROAS, $5.08). Other Grainger social media outlets celebrate its customers. Two examples are Grainger’s Youtube “Everyday Heroes Campaign” and Zoro’s Pintrest photopages focused on do-it-yourselfers (See Figures 5 and 6). Figure 5: Grainger’s YouTube “Everyday Heroes” Campaign Figure 6: A Sampling Of Zoro’s Pintrest Customer Photos
  11. 11. Mark Benson -- 3. Client & Brand Analysis -- Grainger – Page 11 Online procurement infrastructure is a priority. Grainger.com has a new automated procurement system, ePro, while Zoro.com’s facilitates “simplified transactions.”10 Grainger’s Customers As noted earlier, Grainger’s best customers (80%) are large, complex organizations.11 In the Google Hangouts, Distel said the buy order is placed by a procurement officer who relies on input on product selection from end users employing power tools on the job.12 Procurement officers typically buy products providing a certain quality level that will not malfunction. They also try to please the Finance Department and shareholders by minimizing costs. Secondary customers are end users and forepersons and executives with a stake in the work the end user performs. Secondary customers want utility, durability, and balance quality of output with cost. Grainger does acquire demographic data. The most detailed is available in its email data registry.13 For unregistered visitors, only the IP address is stored along with analytics. Grainger should register more customers to gain the richer demographic data, and the display ads discussed in Section 7 of this Report will permit that to take place. Trends In Customer Purchasing Patterns Certain buying patterns are noticeable.14 The most significant impacting online sales is demand for improved mobile applications. Currently, 15% of eCommerce traffic comes via mobile devices (Figure 7), but Grainger predicts this will soon increase to 70%.15 Figure 7: Grainger Mobile Applications Customers Source: 2015 Grainger Fact Book. 10 Grainger 2015 Fact Book, pp. 6, 11 and 17. According to the Fact Book, the eCommerce platform accounts for 36% of US sales. The automated ePro system is “a client-specific, customized connection allowing multiple purchasers within a single organization to order from Grainger” (p. 6). The benefits include brand loyalty that comes with using this Grainger-specific system. KeepStock is an electronic inventory system that is customized to each customer and allows for reordering of parts associated with Grainger power tool products (p. 11). 11 Google Hangout 3 - with Beth Distel and Victoria Jurkowski. 12 Google Hangouts I and 3. The relationship with Grainger is business to business to customer, or B2B2C, so, the wants and needs of the customer or end user factor into the purchasing decision. 13 Google Hangout 1 – with Elizabeth Distel. 14 Mark Brohan, “Grainger Sees a Bigger Future for Mobile Apps,” B2B Ecommerce World, August 5, 2014, available at https://www.b2becommerce world.com/2014/08/05/grainger-sees-a-bigger-future-for- mobile-apps. In the behavioral data that Grainger provided on the final three months of internet activity in 2015, typically purchases were made every weekday, sometimes on Saturday, but never on Sunday. To illustrate, in the final week of October, most purchases occurred on Wednesday, October 28, 2015, $11,635.19. On the other days of that Monday-Saturday work week, the sum of the purchases equaled $6,985.09. Grainger, Targeting Tools Data, October to December 2015. 15 Brohan, “Grainger Sees a Bigger Future for Mobile Apps.”
  12. 12. Mark Benson -- 3. Client & Brand Analysis – Bosch Power Tools – Page 12 Bosch Power Tools – Brand Analysis , Including Evaluation Of Online Presence Robert Bosch Tool Corporation (RBTC), a German multinational, is the parent company of Bosch Power Tools, which is one of two Consumer Goods divisions.16 RBTC’s new, “We are Bosch” strategic vision emphasizes a three-part theme--customer focus, shaping change and striving for excellence- energizing employees worldwide, particularly in the US.17 To support the vision’s realization, RBTC invested $6.6 billion in Research & Development worldwide, with two US engineering facilities in Palo Alto and Pittsburgh.18 RBTC has five other brands of tools and equipment that it sells in the US, all available on Grainger.com: Skil (wide selection of power tools also sold on Zoro.com), Dremel (power tools), RotoZip (saws), Vermont American (hole drillers) and Gilmour (garden hoses, nozzles and sprinklers).19 Bosch Power Tools sold on Grainger.com are in blue casing if they have an electric cord, or blue-gray casing if cordless.20 The points of difference with Bosch Power Tools are that they are well-engineered, high- quality and long-lasting, all embodied in its slogan: invented for life.21 Figure 1: RTBC Brands Sold In The US 16 The North American Consumer Goods segment earned 11% of all of the region’s revenues in 2014. Bosch in North America, p. 14. 17 “Letter to Shareholders,” 2014 Bosch Annual Report. 18 2014 Bosch Annual Report, p. 30. 19 Information on the product lines for these five companies was taken from these web sites: Skil - www.skiltools.com/pages/home.aspx; Dremel – www.dremel.com/en-us/pages/default.aspx; RotoZip – www.rotozip.com; Vermont American – www.vermontamerican.com; Gilmour – www.gilmour.com. Only the Dremel web site includes a link to product information in the U.S. market that is in Spanish for Spanish-speaking laborers and their procurement officers who work in one of the 50 states. 20 Visuals of Bosch Power Tools on www.grainger.com. 21 “About the Company,” available at www.boschtools.com.
  13. 13. Mark Benson -- 3. Client & Brand Analysis – Bosch Power Tools – Page 13 The company’s social media include YouTube and Facebook; YouTube provides instructional videos, Facebook, a testimonial one. (See Figures 2 and 3). Figure 2: Bosch Power Tools YouTube Page Figure 3: Bosch Power Tools Facebook Page
  14. 14. Mark Benson -- 3. Client & Brand Analysis – Bosch Power Tools – Page 14 Though there are just 3,300 YouTube followers, there are 100,000 on Facebook, where more potential eyeballs might be interested in a video like the one shown in Figure 3 or other social media testimonial.22 Primary/Secondary Bosch Power Tools Customers: Who Are They? What Do They Want? Need? Like Grainger, Bosch Power Tools has primary and secondary customers. The primary customers are procurement officers who buy the tools. The secondary customers include end users who search online for information on products they desire to use at work. Other secondary customers are the forepersons and executives who have a stake in the success of what the end user does on the job.23 Quality is a common consideration to all of the primary and secondary customers, with cost a major issue for the primary customer (procurement officer) and most of the secondary customers (forepersons, executives). Durability is also of primary importance to the procurement officer and the end user, whom Beth Distel identifies as the primary and secondary customers of Grainger. Mark Benson -- 4. Problem Statement - What Problem Are You Trying to Solve? Problem Statement – What Problem Are You Trying To Solve? The goal of this Consolidated Digital Marketing Plan is to increase Bosch Power Tools sales on Grainger.com by at least 10% in a particular year. The problem to be solved is how to find the marketing strategies that will accomplish this goal. Should the online/ePro advantage be emphasized to procurement officers who make the purchasing decisions on behalf of their organizations? Should the “Everyday Heroes” campaign be the main point of difference emphasized to the end users who utilize Bosch Power Tools secured from Grainger.com? If these points of difference do not generate the desired increase in Bosch sales, the marketing campaign will also test and determine other points of difference that could achieve the goal. 22 Bosch Power Tools are on other social media feeds, but these are not very relevant to the U.S. market and do not have many followers. The Bosch Power Tools Twitter presence is targeted for its German market. RBTC does have Twitter feeds in the US, but it is for Bosch Appliances USA. Bosch Power Tools is found on the blog site Tumblr, but there are not many people affirming the posts on that social medium. Pintrest, the shopping social media application, does have some Bosch Power Tools as featured products, but there are only 10 pins, nine originating from the Canadian dealer, www.ToolStore.ca. Bosch Power Tools has a LinkedIn page, but there are just 1,901 followers. Prominently displayed on Facebook is other promotional marketing collateral, including images of professionals using Bosch Power Tools, an announcement of a company conference in Las Vegas and a link to a product catalogue. 23 The primary customer is a procurement officer. Procurement officers want to buy a product that will provide a certain quality level and will not malfunction or become obsolete. They also want to minimize costs to please the Finance Department and shareholders that adequate measures are being taken to minimize expenses on power tools. Secondary customers of Bosch Power Tools are end users, forepersons and executives. The end users are primarily concerned with the utility, durability and quality of output associated with the power tool selected. Cost will be a far less significant factor. Forepersons are concerned with the quality of the job that the power tool product will provide to the client. When buying a power tool, managerial executives have to balance quality and cost.
  15. 15. Mark Benson – 5. Consumer Decision Journey/Business Objectives – Bosch Power Tools And Grainger.com – Page 15 Figure 1: Image Of Consumer Decision Journey (CDJ) With Listing of Individual Phases Source: Retention Science. Three Scenarios: Relevant CDJ Phases, Customer Concerns & Suggested Analyses Re: Ad Spend24 First Scenario: Scenario 1 includes secondary customers and potential primary customers who visit Boschtools.com, look at power tools, but do not visit Grainger.com. 21 24 Concepts associated with the CDJ were first presented in Kevin Hartman’s lecture in the University of Illinois Urbana-Champaign’s Digital Marketing Specialization, “Lesson 4 - Where It All Begins.” He identified the key questions to ask at each stage of the CDJ, and what measurements or analyses should be performed. Trigger - What creates that customer need?, answered with clickstream analysis. Initial Consideration Set - Do customers recognize my brand?, answered with competitive intelligence. Active Evaluation – Reassessing Return on Loyalty Loop - Do my products satisfy customer needs?, answered by experimentation and testing. Moment of Purchase/Buy Moment at Loyalty Loop – Do my sales result in wins for my brands?, answered by outcome analysis. Post-Purchase Experience – Do the experiences fulfill expectations?, answered by voice of the customer experience surveys. Loyalty Loop – Do consumers advocate for my brand?, answered by voice of the consumer, brand advocacy surveys. As Professor Rhiannon Clifton noted in her courses on content marketing, an Integrated Marketing Communications Strategy, specifically, an Integrated Digital Marketing Strategy, is crucial to the success of multichannel marketing. There should be seamless online experiences…everything should work in concert….organic search, paid search, message and content…no matter the device or location…to create relevance and top of mind awareness. In the Harvard Business Review article, “Advertising Analytics 2.0,” Wes Nichols, CEO of MarketShare, suggests that a possible approach to multichannel marketing is to focus on three aspects: attribution, or putting a number to each advertising contribution; optimization, using analytics; and allocation, increasing spend for the successful advertising channel. Wes Nichols, “Advertising Analytics 2.0,” Harvard Business Review, March 2013, p. 63. According to the research provided in a recent edition of eMarketer Daily, 2016 advertising spend by US organizations is allocated in the following percentages: Display, 27.4%; Search, 25.4%; Social, 22.3%; Video, 19.7; and Other, 5.1%. eMarketer Daily, “Digital Video Advertising Continues to Expand,” March 21, 2016.
  16. 16. Mark Benson – 5. Consumer Decision Journey/Business Objectives – Bosch Power Tools And Grainger.com – Page 16 Secondary customers may be following an impulse for a need (Trigger), checking brand perception (Initial Consideration Set) or pinpointing the desired purchase option (Active Evaluation for initial Moment of Purchase/Reassessment for Loyalty Loop). Potential primary customers are reviewing information on Boschtools.com but are expecting to buy elsewhere (Active Evaluation/Reassessment). Here are suggested analyses to perform: 1a. Perform traffic analysis on the time spent on Bosch Power Tools Page – Builds Awareness. 1b. Retarget a display ad indicating that Bosch Power Tools are sold on Grainger.com – Builds Awareness.25 1a/1c. In response to time spent on Boschtools.com, retarget a display ad with an invitation to join the email registry, and, upon registration, transmit email touting Grainger.com’s advantages – Influence Consideration.26 1d. If Scenario 1, in the email registry and past but not current Bosch Power Tools customer on Grainger.com, sent an email to consider buying Bosch Power Tools through Grainger again? – Reposition the Brand.27 25 The search ad would appear in search engines in response to keyword lookups and the display ads would be featured in news articles, blog posts and similar sites. The search ad should be sized so that it blends in with the rest of the search results after a keyword lookup. The display ad should be a certain size for internet users who access the web through desktop computers or mobile devices. To please desktop internet users, the ad size should be a 336 by 280 rectangle that appears in the side channel next to the text of the article or blog. Mobile ads might attract attention if they are a mobile banner ad of 320 by 50. Both will have a button linking the viewer of the display ad to the Bosch Power Tools Page on Grainger.com. Jason Schell, “Best Practices When Creating Display Ads,” Business 2 Community, March 29, 2016, available at https://www.business2community.com/ author/jason-schell. Research conducted by the marketing firm Hinge revealed that business customers more often use the internet to access information on a possible professional services company. Most often, buyers look at the company’s web site (80.8%) and conduct research online utilizing keywords on a search engine (63.2%). Since this Scenario involves a review of a company web site and future search activity, it will reach potential customers in the two ways they most frequently access information on a professional services company and will help connect them to the possibility of selecting the professional distributor Grainger.com for their Bosch Power Tools purchases. Lee Fredericksen, “Top 10 Advantages of Online Marketing for Professional Services,” Hinge, October 20, 2014, available at http://www.hingemarketing.com/blog/story/top-10-advantages-of-online-marketing-for-professional- services. 26 It is important to use best practices when crafting the email to encourage a new member of the email registry to select Grainger.com for Bosch Power Tools purchases. As Professor Rhiannon Clifton stated in her courses on content marketing, a story addressing the personas of the customers—in this case, the procurement officers and end users- would be most effective. It may be possible to use past customer product testimonials as the basis for the story touting Grainger.com’s advantages over its rivals. Rhiannon Clifton, “What is Content Marketing-Digital and Social Media Marketing: The Landscape,” University of Illinois Urbana-Champaign Digital Marketing Specialization. Jennifer Lonoff Schiff, “16 Ways to Improve Your Content Marketing Strategy,” CIO, July 24, 2013, available at http://www.cio.com/article/2383860/marketing/16-ways-to-improve-your-content-marketing-strategy. 27 As noted in the Client/Brand Analysis, Grainger.com is a high quality distributor for the people who get things done in mostly large professional organizations and Bosch Power Tools offers well-
  17. 17. Mark Benson – 5. Consumer Decision Journey/Business Objectives – Bosch Power Tools And Grainger.com – Page 17 Second Scenario: Scenario 2 reflects customers who enter Boschtools.com, scan power tools, then proceed to Grainger.com. These include end users in three stages—Trigger, Initial Consideration Set and those preparing final selections for procurement (Active Evaluation/ Assessing Return on Loyalty Loop). The primary customers--the procurement officers-are in Active Evaluation with some abandoning shopping carts.28 They may also be in Post-Purchase, reconnecting with product information. Here are suggested analyses regarding Scenario 2: 2a. Use traffic analysis to monitor time spent on Boschtools.com and Grainger’s Bosch Power Tools Page – Builds Awareness. 2a./2b. After analyzing time spent on the two pages, then send a display ad invitation to join the company’s email registry, following up with email content marketing touting Grainger’s advantages – Influence Consideration. 2c. In the registry, but with an abandoned shopping cart, they get content marketing with necessary details to complete a buy order on Grainger.com’s ePro29 – Improve Sales Process. 2d. If Scenario 2, in the email registry and past customers on Grainger.com but not buying or abandoning shopping cart now, receive email asking whether to buy BoschTools on Grainger again?30 – Reposition the Brand. engineered, high-quality, long-lasting products for professionals. Currently, the branding is reified- enacted, the ideal place for the brand as its meaning relates to the professional grade of the products and services Grainger provides to procurement officers and the everyday heroes who get it done. Pierre Berthon, Morris B. Holbrook and James M. Hulbert, “Understanding and Managing the Brand Space,” MIT Sloan Management Review, January 15, 2003, available at https://www.sloanreview.mit.edu/article/understanding-and-managing-the-brand-space. 28 Some of the influences on abandoned shopping carts that would exist in a B2B context include: product is out of stock; price of item is too high; total cost of order is too high; and there is limited access to the funds needed to secure the transaction. Monika Kukar-Kinney and Angeline G. Close, “The Determinants of Consumers’ Online Shopping Cart Abandonment,” Journal of Academic Marketing Science, 2010, 38, p. 241. 29 This approach addresses primary customers who are in the Active Evaluation phase. A discount for those who abandoned a shopping cart was also considered. Research has shown that a promotional offer often cinches the sale for initial and loyal customers if the customer has abandoned a shopping cart. Kukar-Kinney and Close, p. 249. However, a concern for Grainger would be that some would game the system and abandon a shopping cart in order to receive the discount. 30 Sending these customers a questionnaire would be a way learn about customer satisfaction and reflect that the Grainger brand is responsive to the needs of a customer. There are four possible outcomes for a post-purchase experience: delight, satisfaction (positive indifference), acceptance (negative indifference) and dissatisfaction. If the past customer indicates delight, Grainger might want to consider asking whether the customer would allow Grainger permission to post positive survey comments on one of Grainger’s owned social media feeds. Jessica Santos and Jonathan Boote, “A Theoretical Exploration and Model of Consumer Expectations, Post-Purchase Affective States and Affective Behavior,” Journal of Consumer Behavior, 2003, pp. 142-156.
  18. 18. Mark Benson – 5. Consumer Decision Journey/Business Objectives – Bosch Power Tools And Grainger.com – Page 18 2e. Scenario 2 customer next orders on Grainger’s ePro for Bosch Power Tools, then furnish a YouTube video demonstrating the product and an invitation to become social media brand advocates – Grow Loyalty.31 Third Scenario: Primary customers who click Boschtools.com but go to the Plumbing Page on Grainger.com instead are in Scenario 3. They are possibly looking at multiple procurement buys, comparing brand image versus perception (Initial Consideration Set), actively deciding what to purchase (Active Evaluation/Reassessment). 3a. Should time spent on the two pages (Boschtools.com and Grainger Plumbing Page) be analyzed to determine if non-customers get retargeted?32 - Builds Consideration. 3b. Then sending link to join the company’s email registry, following up with email touting Grainger’s advantages33 – Influence Consideration. 3c. In the registry, but abandoned shopping cart of Bosch Power Tools, they get email on completing ePro buy order – Improve Sales Process. 3d. If recent Bosch Power Tools customer on Grainger.com, sending a questionnaire asking them about past experience to encourage future business – Reposition the Brand. 31 The request to become a social media brand advocate is especially important in the Loyalty Loop. Securing brand advocates is a way to increase repeat sales and encourage new customers who may be positively influenced by word-of-mouth advertising. In an Integrated Marketing Communications strategy, organizations can use a combination of owned and earned media to great effect. W. Glynn Mangold and David J. Faulds, “Social Media: The New Hybrid Element of the Promotion Mix,” Business Horizon, 2011, p. 362. The organization can use its own social media feeds to enable communications, and incorporate video the organization produces, with either feedback or input from the customer. With Grainger’s Everyday People campaign on YouTube, the company uses its own social media feed to post videos that the Grainger creates filming satisfied customers participating in the work-related activities that Grainger supports. Focusing on the customers who are delighted in their survey responses is the appropriate strategy for acquiring brand ambassadors. Michael Lowenstein, “The Strategic Marketing Case for Customer Advocacy Measurement,” Customer Think, July 2, 2010. The 3-M model of social media marketing communication suggests that the third M, “Monitor,” reflects customer-to-customer word of mouth communication like that the social media ambassadors will be creating. John Gallaugher and Sam Ranthsbotham, “Social Media and Customer Dialog Management at Starbucks,” MIS Quarterly Executive, 2010. 32 The retargeting creates brand awareness for Grainger.com as a distributor of Bosch Power Tools and is responsive to the question for the Initial Consideration Set phase: “Do customers recognize my brand?” It is also a way to remind customers in the Active Evaluation phase who shop elsewhere that Grainger is also available to them. Retargeting is considered a best practice for existing inventory and not just excess inventory. “The Top Five Retargeting Myths,” Retargeter, June 17, 2015, available at https://retargter.com/blog/retargeting/the-top-5-retargeting-myths. 33 This particular strategy is for primary customers in the Initial Consideration/Reconsideration Set.
  19. 19. Mark Benson – 5. Consumer Decision Journey/Business Objectives – Bosch Power Tools And Grainger.com – Page 19 3e. Scenario 3 customer next completes an ePro order for Bosch Power Tools, furnish YouTube video and invitation re: brand advocacy – Grow Loyalty. Three Scenarios: How Can They Be Achieved?34 Business Objective Key Question Data  Source Build Awareness Do secondary end users and potential primary customers know that Grainger.com carries Bosch Power Tools? Scenario 1a/1b - Clickstream Traffic  OpenTracker; Competitive Intelligence (desktop/mobile search activity)  Google Trends; and Traffic Analysis (desktop/mobile search activity)  Google Analytics. Influence Consideration Do secondary end users and primary customers want more details on Grainger.com’s prices and services in order to better evaluate a possible purchase? Scenarios 1a/1c., 2a/2b. and/or 3a/3b. - Clickstream Traffic  OpenTracker; Competitive Intelligence (desktop and mobile search activity)  Google Trends; and Traffic Analysis (desktop/mobile search activity)  Google Analytics. Influencing Sales Do sales efforts result in additional sales for Bosch Power Tools on Grainger.com? Scenarios 2c and/or 3c. - Testing  Google Website Optimizer (Can the sales effort to convince customers to buy on be Grainger.com be aided?). Reposition the Brand Are there steps that can be taken to improve the brand experience so that Grainger.com might have repeat customers of Bosch Power Tools products? Scenarios 1d., 2d. and/or 3d. - Voice of the Customer  Google Customer Surveys (Can past experience be improved? Encouraged to be repeated?). Grow Loyalty Are Grainger.com customers delighted and wish to advocate for my brand? Scenarios 2e. or 3e. - Voice of the Customer Survey Question (to determine if delighted), then Brand Advocacy Survey Question (only if delighted)  Google Customer Surveys. 34 The relevant sources for this section of the assignment are: Kevin Hartman, “Lesson 2: Preparing for the Analysis Journey, Part 2”; and R. Stokes, eMarketing: The Essential Guide to Digital Marketing (2013).
  20. 20. Mark Benson -- 6. Data Collection and Analysis – Page 20 Data Collection – Outline of Procedures and KPIs To Be Reviewed35 Business Objective Key Performance Indicators (KPIs) To Be Reviewed Build Awareness Acquisition KPIs: •Clickthrough Rate (CTR) - Bosch Power Tools Page and Ads; •% New Visits - Bosch Power Tools Page and Ads; •Cost Per Click on Ads or Cost Per Mille on Ads (CPC/CPM); and •Cost Per Acquisition or Impression on Ads (CPA). Behavior KPIs: •Bounce Rate on Boschtools.com, Ads and Grainger.com; •Depth and Length of Page Views; •Shopping Cart Abandonment Rate on ePro; •Loyalty on Boschtools.com and Bosch Power Tools Page on Grainger.com; •Events Per Visit on Boschtools.com and Bosch Power Tools. Outcomes KPIs: •Return on Advertising Spend (ROAS); •Days to Conversion on Ads; and •% Assisted Conversion Rate. Influence Consideration Acquisition KPIs: •Click To Open (CTO) on email asking customer to join the Email Registry; •Unique Open Rate/Site Traffic; and •CPA on Email (separate statistics for A and B versions). Behavior KPIs: •Bounce Rate on Email, Email Registry; •Depth and Length of Page Views; •Shopping Cart Abandonment Rate; •Session Length on mobile email registry application/Loyalty; and •Events Per Visit on Boschtools.com and Bosch Power Tools Page. Outcomes KPIs: •Database Conversion Rate on Email Registrants in response to email; •ROAS-Sales Conversion Rate/Days to Sales Conversion on Email; and •% Assisted Conversion Rate. 35 Several sources were utilized in designing the KPI categories and KPIs mentioned in this analysis. Neil T. Bendle, Paul W. Farris, Phillip E. Pfeifer, and David J. Reibstein, Marketing Metrics. (Upper Saddle River: Pearson Education, 2015). Rhiannon Clifton, “3-2.2: Email Strategy and Planning,” University of Illinois Urbana-Champaign Digital Marketing Specialization. Avinash Kaushik, “Best Web Metrics/KPIs for Small Medium or Large Sized Businesses,’ June 5, 2015, available at http://www.kaushik.net/avinash/best-web-metrics-kpis-small-medium-large-business. Armando Roggio, “7 Crucial KPIs for Email Marketing,” Practical Ecommerce, April 29, 2014, available at http://www.practicalecommerce.com/articles/67353-7-Crucial-KPIs-for-Email-Marketing. R. Stokes, eMarketing: The Essential Guide to Digital Marketing. (Capetown: QuirkEducation 2013) for suggested KPIs for Brand Awareness.
  21. 21. Mark Benson -- 6. Data Collection And Analysis – Page 21 Data Collection – Outline Of Procedures And KPIs To Be Reviewed (Continued) Business Objective Key Performance Indicators (KPIs) To Be Reviewed Reposition the Brand Acquisition KPIs: •CTO on email asking the customer to complete a survey indicating reasons why they might shop on Grainger.com again; •Unique Open Rate/Site Traffic; •% New Visits on Survey Page and Bosch Power Tools Page on Grainger.com; and •CPA on Email and Survey Page. Behavior KPIs: •Bounce Rate on Survey Page and Bosch Power Tools Page on Grainger.com; •Depth and Length of Page Views; •Shopping Cart Abandonment Rate; •Session Length on ePro app/Loyalty on Bosch Power Tools Page; and •Events Per Visit on Boschtools.com and Bosch Power Tools Page on Grainger.com. Outcomes KPIs: •ROAS - Macroconversion/Microconversion Rate on Email and Survey Page; •Days to Conversion on Email and Survey Page; and •% Assisted Conversion Rate. Improve Sales Processes Acquisition KPI: •CTO on email giving necessary details on an ePro order; •Unique Open Rate/Site Traffic; •CPA on Email; Behavior KPI: •Bounce Rate on Email, ePro and Bosch Power Tools Page on Grainger.com; •Depth and Length of Page Views; •Shopping Cart Abandonment Rate; •Session Length/Loyalty; and •Events Per Visit on Boschtools.com and Bosch Power Tools Page. Outcomes KPI: •ROAS - Sales Conversion Rate on Email; •Days to Conversion on Email and ePro; and •% Assisted Conversion Rate.
  22. 22. Mark Benson -- 6. Data Collection And Analysis – Page 22 Data Collection – Outline Of Procedures And KPIs To Be Reviewed (Continued) Business Objective Key Performance Indicators (KPIs) To Be Reviewed Grow Loyalty36 Acquisition KPIs: •CTO on email sending YouTube video/invitation to become a social media brand ambassador; •Unique Open Rate/Site Traffic; and •CTR on YouTube link/invitation to become ambassador. Behavior KPIs: •Bounce Rate on YouTube and owned social media feeds associated with the invitation; •Depth and Length of Page Views; •Applause Rate on YouTube and owned social media; •Partial/Complete Views on YouTube; •Actions Per Social Visit on YouTube; •Posts, Comments, Sharing, Tweets and Retweets on Social Media relating to Brand Ambassadorship; •Session Length/Loyalty on YouTube and social media feeds; and •Events Per Visit on Boschtools.com, Bosch Power Tools Page on Grainger.com, YouTube and owned social media feeds. Outcome KPIs: •Conversion Rate on Email to YouTube Viewership as well as Brand Ambassadorship action on owned social media feeds; •Sales Conversion Rate on posts associated with Social Media Advocacy; and •Days to Conversion on Email and attempts at Social Media Advocacy. Figure 2: Social Media Paths Affording Data Collection – Megaphone, Magnet and Monitor Source: John Gallaugher and Sam Ransbotham, “Social Media and Customer Dialog Management at Starbucks.” 36 To select the Social Marketing KPIs, these sources were consulted: Bendle et al., Marketing Metrics; Carolyn Edgecomb, “8 Social Media KPIs You Should Track and Monitor,” Impact Bnd, December 11, 2013, https://www.impactbnd.com/blog/8-social-media-kpis-you-should-track-and-monitor; Dara Fontein, “The Top 26 Social Media KPIs Marketers Can’t Ignore,” Hootsuite, January 27, 2016, available at https://blog.hootsuite.com/social-media-kpis-key-performance-indicators; Kevin Hartman, “Lesson 2: Preparing for the Analysis Journey – Collecting the Resources Required for Effective and Efficient Data Analytics, Part 2,” University of Illinois Urbana-Champaign and Chuck Hemann and Ken Burbary, Digital Marketing Analytics, (Indianapolis: Que Publishing, 2013).
  23. 23. Mark Benson -- 6. Data Collection And Analysis – Page 23 Data Collection - Potential Biases: What Are They? How Can These Be Overcome? Kevin Hartman states that “bias must be avoided to ensure effective analysis.” 37 Biases can arise when inappropriately phrasing and ordering questions (questionnaire bias), allowing preconceived notions to influence how data is evaluated (interpretation bias) and incorrectly choosing a survey sample to represent a market segment (sampling bias). All can be overcome, and the one that could have the greatest influence on the actual success of the marketing strategy is interpretation bias.38 Interpretation bias is not likely with descriptive analysis, as it involves the reading of directional data on a customer’s affinity for a brand or product. Directional data that would be the focus of descriptive analysis would include many of the Key Performance indicators mentioned above, including ClickThrough Rate (CTR), Click To Open (CTO) Rate, Percent New Visits, Bounce Rate and Applause Rate. There is a greater propensity for interpretation bias with other analytical techniques, particularly the making of patterns in exploratory analysis, finding causal connections or predicting outcomes from certain known events. To avoid interpretation bias to influence these analytical techniques, time-tested logic and reasonableness tests and approved statistical methods should be utilized. For example, we can make exploratory patterns correlating two or more data points – such as the CTO rate for an email with a customer testimonial touting Grainger’s brand attributes and a future sale on Grainger.com reflected in the Conversion Rate. But it is important to recognize that correlation does not always equal causation. Grainger cannot be absolute certain that a cause and effect relationship exists between the content marketing contained in the email, the Megaphone of the Monitored social media feedback, and the desired option, the sale of Bosch Power Tools on Grainger.com, unless we perform a confirmatory customer survey for verification. 37 Kevin Hartman, “Digital Analytics for Marketing Professionals: Marketing Analytics in Practice: Module 3, Lesson 4: Data Collection, Part II,” University of Illinois Urbana-Champaign Digital Marketing Specialization. 38 The definition of questionnaire bias is from the Pew Research Center. “US Survey Research – Questionnaire Design,” 2016, available at http://www.pewresearch.org/methodology/U-S-Survey- Research/Questionnaire-Design. When evaluating questionnaire responses, it is also important not to contribute inferential bias and incorrectly assign meanings to survey answers. Survey groups responding to the customer surveys will not exhibit survey biased. Separate surveys will be sent to primary and secondary customers so that survey sample choice will not skew the data toward conclusions that misrepresent the viewpoints of either set of customers.
  24. 24. Mark Benson -- 6. Data Collection And Analysis – Page 24 Figure 1: Model For Digital Marketing Analytics – Listen To Various Online Sources, Then Measure, Integrate, Distribute and Communicate Source: Chuck Hemannn and Ken Burberry. Digital Marketing Analytics. Data Analysis - Analysis To Be Performed On The Data Collected And KPIs Measured By listening to data points and measuring KPIs, relevant, powerful insights can be developed, then communicated and distributed to Grainger’s target markets of procurement officers and end users.39 To generate relevant, powerful insights, descriptive, exploratory, causal, inferential and predictive analyses are required. Grainger already listens to data to measure certain KPIs—ClickThrough Rate (CTR), Cost Per Acquisition (CPA), Return on Advertising Spend (ROAS), and Repeat Visits.40 This should continue. Grainger should also track the additional KPIs described in Module 3, Task 2, including Click to Open (CTO) Rate, Unique Opens, Site Traffic, Bounce Rate, Shopping Cart Abandonment Rate, Social Media Interactions and Macro and Microconversion Rates on Email Opens and Sales. Many of the data points and KPIs Grainger should measure require descriptive analysis. For example, analyzing the behavior of clicking in the CTR KPI reveals that the customer has awareness of the brand. Exploratory analysis takes the descriptive data and forms patterns of customer activity— such as the pattern of a CTO on an email and a subsequent purchase on ePro. Causal relationships may 39 Kevin Hartman, “Data, Data Everywhere, Part 1,” University of Illinois Urbana-Champaign, Digital Marketing Specialization. Chuck Hemannn and Ken Burberry. Digital Marketing Analytics. (Indianapolis: Que Press, 2013). 40 Three of these KPIs are included in the Targeting Tools Data for the Fourth Quarter 2015: CTR, CPA and ROAS. As Beth Distel states in her interview on “Display Advertising on Grainger,” another KPI Grainger utilizes is Repeat Visits. Grainger, Targeting Tools Data, Fourth Quarter 2015. Beth Distel, “Display Advertising on Grainger,” University of Illinois Urbana-Champaign, Capstone Project.
  25. 25. Mark Benson -- 6. Data Collection And Analysis – Page 25 be deduced from the exploratory analysis, such as the possibility that adding specific email content brought about a desired outcome, a sale on Grainger.com. However, this causal connection must be later verified through survey research. When responses to the customer survey are received, Grainger can verify the causal relationship and make inferences about the larger market segment. Then, predictions can be made about expected behavior of the market segment—when one variable exists, another variable will soon follow. Data Analysis - Benchmarks For Data Collected To achieve the goal of a 10% increase in sales of Bosch Power Tools on Grainger.com, online customer activity will need to reach certain benchmarks.41 Display Ads – Facebook, Answers.com And Invitation To Join Email Registry • The benchmark CTR for display for Google Adwords should be at least .35, the industry average.42 This CTR rate is achievable. According to SimilarWeb site traffic taken the past three months, Grainger’s actual display CTR for all search engines is .43.43 • Based on industry averages, Grainger’s benchmark CPA for display should be $34.425 or lower.44 Email – Follow-Up To Email Registrants Touting Grainger’s Advantages • Using industry averages, Grainger’s benchmark CTO rate for these emails should be at least 19.19% and the bounce rate .365% or lower.45 41 Without actual sales figures on the Bosch Power Tools sold on Grainger.com, it is difficult to calculate the exact number of customers making purchases of a specific amount to generate an increase of at least 10%. In its current annual report for 2015, Grainger’s worldwide sales were reported to be “flat” at $9,973,384,000, with the Grainger-specific sales decreased by four percent to $768.996 million. Worldwide in 2014, Power Tools sales accounted for 3% of overall sales, and there is no data to suggest that percentage changed for fiscal year 2015, so power tool sales worldwide would be $23.07 million. Although the majority of worldwide sales would be from the US market, it is unknown what that percentage would be. It is also necessary to divide the US figure by four, which is the number of brands of power tools sold on Grainger.com. “Note 18,” 2015 Grainger Annual Report. 42 Appropriate benchmarks for the CTR and CPA on search and display ads are derived from the industry averages in B2B and eCommerce reported by Wordstream in 2016. The CTR for a search ad indicating that Bosch Power Tools are sold on Grainger.com would be in the range of 1.66 (eCommerce industry average) to 2.55 (B2B industry average) while a display ad would be in the range of .25 (B2B industry average) to .45 (eCommerce industry average). Larry Kim, “The Highest and Lowest Average CTRs in Google AdWords By Industry,” Search Engine Journal, March 30, 2016, available at http://www.searchenginejournal.com/highest-lowest-average-ctrs-google-adwords-industry. 43 SimilarWeb, “Grainger.com – Site Traffic,” accessed April 3, 2016. 44 The CPA benchmarks are generated from the industry averages for the B2B and eCommerce industries reported by Wordstream in 2016. The CPAs for search are listed as $46.07 for the eCommerce industry, $63.57 for B2B, while in display, the averages are $30.21 (eCommerce) and $38.08 (B2B). Larry Kim, “New Benchmarks: Google AdWords Cost Per Acquisition Across 20 Industries,” Search Engine Land, March 23, 2016, available at http://www.searchengineland.com/new-benchmarks-google-adwords-cost- per-acquisition-across-20-industries. 45 The benchmark CTO was produced by averaging B2B commerce data points from HubSpot and Signup.to and comparing it to a third source of estimates at Mailchimp. HubSpot provides the highest estimate for B2B Commerce, 30%. The low estimate, 8.51%, came from the market research firm, Signup.to. The average of these two estimates, 19.255%, is also close to the midpoint for Mailchimp’s ecommerce and Retail industry averages of 16.86% for eCommerce and 21.52% for Retail. Ginny Soskey, “What’s a Good Email Open Rate & Click Rate?” HubSpot, February 4, 2015, available at http://www.blog.hubspot.com/marketing/email-open-click-rate-benchmark. Jack Simpson, “The Ultimate 2016 Email Marketing Benchmark Guide,” Econsultancy, March 16, 2016, available at https://econsultancy.com/blog/67649-the-ultimate-2016-email-marketing-benchmark-guide.
  26. 26. Mark Benson -- 6. Data Collection And Analysis – Page 26 Email – Details On ePro Purchase • For email recipients who have attempted a purchase and abandoned a shopping cart, the CTO should be 21.52%, MailChimp’s CTO Rate for Retail, and achieve the median Sales Conversion rate of $28.50.46 • For email recipients who made a past purchase, CTO should be 30%, HubSpot’s eCommerce CTO industry average, and better than the median Conversion Rate of $28.50. Social Media Activity – Email With YouTube Video/Invitation To Ambassadorship • If there are 1.4 million Grainger customers and 19.19% percent open the email, it is hoped that at least one percent would view the YouTube video.47 • The benchmark number of social media interactions with the post by the social media ambassador would be 11.4.48 Data Analysis - Summary Of Insights – The 60 Second Story Grainger will utilize display ads, email content marketing and social media outreach to attract customers and increase sales. By retargeting display ads at new customers who visit Boschtools.com, Grainger will convert more customers and should easily achieve the .35 benchmark.49 Grainger can meet the median email conversion rate of $28.50 with customers who abandon a shopping cart, and improve upon that figure with past customers.50 Since word of mouth advertising has been shown to cinch new or repeat purchases, this should be also be a lucrative marketing strategy for Grainger.51 “Email Marketing Benchmarks,” MailChimp Research, available at http://www.mailchimp.com/resources/research/email-marketing-benchmarks. 46 eMarketer, Email Marketing Benchmarks: Key Data, Trends and Metrics, 2013, available at http://www.emarketer.com/public_media/docs/eMarketer/Email_Marketing_Benchmarks_Key_Data_ Trends_Metrics.pdf. 47 The Day One Grainger Show 2016 video has 1,528 views and the YouTube instructional videos have hundreds of views. 48 Ayaz Nanzi, “2015 Social Media Benchmarks by Industry,” MarketingProfs, March 23, 2015, available at http://www.marketingprofs.com/charts/2015/27299/social-media-benchmarks-by-industry. 49 A research study by New York University reveals that sponsored search advertising leads to an increase in profits by between 4.2 to 6.15% when compared to the absence of any paid search. Sha Yang and Anindya Ghose, “Analyzing the Relationship Between Organic and Sponsored Search Advertising: Positive, Negative, or Zero Interdependence?” Marketing Science, April 2010, pp. 1-22. 50 eMarketer, Email Marketing Benchmarks: Key Data, Trends and Metrics, 2013, available at http://www.emarketer.com/public_media/docs/eMarketer/Email_Marketing_Benchmarks_Key_Data_ Trends_Metrics.pdf. 51 Andrew T. Stephen and Jeff Galek, “The Effects of Traditional and Social Earned Media on Sales: A Study of the Microlending Marketplace,” Journal of Marketing Research, April 2012, pp. 1-69. An extra unit of media publicity generated 894 new sales and 403 repeat sales when it was from TMO, while blogs returned 90 new sales and 63 repeat sales and community forum posts 99 new sales and 48 repeat sales.
  27. 27. Mark Benson -- 7. Channel Strategy -- Ad Descriptions – Page 27 Display Ads For Procurement Officers And End Users Display Ads - To Build Awareness That Bosch Power Tools Are Sold On Grainger.com Display ads will be retargeted to both procurement officers and end userson Facebook and Answers.com after they enter a relevant Scenario 1 search phrase—such as Bosch Power Tools or Boschtools.com-then proceed to click on the Bosch Power Tools Page.52 As shown in the Grainger Targeting Tools Data for the final months of 2015, the ClickThrough Rate for internet users who visit the Bosch Power Tools Page is the highest of all reported. If the customer participates in a significant, lengthy page view, a display ad should be transmitted. Display ads are the source of site traffic on Grainger.com for less than one percent of internet users in the three month period from December 2015 to February 2016 (Figure 1).53 Although this is a much smaller number of potential customers, their wants and needs must be understood and strategically accommodated. Figure 3: Display Ad Traffic Data From December 2015 To February 2016 Source: SimilarWeb.com As shown in Figure 1, Facebook is the top source of display ads. As there is a greater than 50% chance that a person who likes a Facebook photo of a product will buy that product, Facebook should be a major source of display ad spend and the display ad should include an image.54 Images should also be part of the display ads that will be 52 Since Search ads are outside the scope of this assignment, they will not be discussed explicitly in the text of this report. As there are upwards of four to five million customers who access Grainger.com by search, search is vital to a strategy to increase customers of Bosch Power Tools on Grainger.com. Grainger should consider spending additional funds on search so that two search ads appear in response to the entry of the phrase for Scenario 1. One would be an ad with the Bosch Power Tools Page on Grainger.com; another would be a link to cordless Bosch Power Tools sold on Grainger.com. Currently, these ads appear when an internet user keys in the search term, “Bosch Power Tools on Grainger.com.” SimilarWeb, “Grainger.com – Site Traffic,” accessed April 3, 2016. 53 Grainger, “Targeting Tools Data, October to December 2015.” 54 HubSpot is the source for the statistic on the percentage of shoppers who make a purchase after responding favorably to a product image on Facebook. According the research by HubSpot, customers
  28. 28. Mark Benson -- 7. Channel Strategy -- Ad Descriptions – Page 28 targeted to readers of Answers.com pages of interest to primary or secondary customers. Display Ads - To Increase Consideration And Invite Potential Customers To Join the Email Customer Registry After receiving display ads on Facebook and Answers.com, Scenario 1 customers will be provided with a display ad inviting them to join the Email Customer Registry. This display ad will also be made available to customers who follow Scenario 2 (Bosch Power Tools Page on Boschtools.com and Grainger.com) and/or Scenario 3 (Bosch Power Tools and Grainger Plumbing Page). The display ad will highlight that Grainger is a distributor of both corded and cordless Bosch Power Tools. It will also promise those who register information on future Grainger promotional offers on Bosch products and accessories. Email Content Marketing Campaigns For Procurement Officers Four of the five business objectives will be addressed through email campaigns—Influence Consideration, Improve Sales Process, Reposition the Brand and Grow Loyalty. As Professor Rhiannon Clifton explained in her lessons on email, this channel provides many advantages. It promises the highest return on marketing investment, fosters better relationships with customers and allows for target market segmentation.55 Emails addressing each of these four business objectives will target the primary customer, the procurement officer. Emails To Procurement Officers To Influence Consideration Should an internet user respond to the invitation in the display ad and join the Registry, Grainger will send follow-up emails individually targeted primary or secondary customers touting one of Grainger’s major advantages relative to its competitors. Procurement officers will receive an email highlighting the point of difference that Grainger has a competitive advantage with its ePro electronic procurement system with the option of joining KeepStock. With KeepStock, a Grainger customer receives electronic messaging when the time is right to reorder replacement Bosch Power Tools products and accessories (Figure 2).56 Grainger’s follow-up email to end users will emphasize how end users fulfill Grainger’s slogan, “for the ones who get it done” as one of the “Everyday Heroes” celebrated on Grainger’s YouTube feed. who indicate that they like a Facebook image of a product are 51% more likely to buy that product. HubSpot, An Introduction to Facebook for Business. Answers.com would also be wise choice for display ads. For primary customers focused on procurement-related activities, display ads should be sponsored in wiki pages and blogs on Business and Industry, particularly those describing best practices for reducing expenses for organizations that are in the MRO industry. Retargeting ads in Answers.com information sources that may be of interest to skilled tradespeople, particularly in auto and vehicle repair, would help connect with end users to the fact that Bosch Power Tools are sold on Grainger.com. 55 Rhiannon Clifton, “Lesson 3-2: Email Marketing,” University of Illinois Urbana-Champaign, Digital Marketing Specialization. 56 2015 Grainger eProcurement Integration Guide. KeepStock is integrated with the electronic procurement system of the customer, whether it is owned software or Software as a Service (SaaS) in the cloud. What are the steps in placing an order through Keepstock? (1) After scanning the product barcode, (2) Grainger will send an email announcing to the customer that it is time to replace the product or accessory. (3) Then, order information will be autofilled into the company’s chosen electronic procurement system. (4) When the procurement officer authorizes the order, it is submitted to Grainger and the products or accessories will be delivered to the procurement officer’s organization.
  29. 29. Mark Benson -- 7. Channel Strategy -- Ad Descriptions – Page 29 Figure 2: Steps In Grainger ePro KeepStock Notification Process When Supplies Are Low Source: 2015 Grainger eProcurement Integration Guide. Email To Procurement Officers To Improve Sales Process In order to improve the sales process of Bosch Power Tools on Grainger.com, Grainger will send emails to procurement officers in Active Evaluation or Reassessment phases of the CDJ. Procurement officers are in Active Evaluation if they have never made a purchase and have abandoned a shopping cart. If a customer is in the ePro system and has made a past purchase, that customer may be in the Reassessment Phase of the Loyalty Loop. Both should be sent an email with the necessary information to order on ePro—either based on the data in the abandoned shopping cart or order history on ePro. Email/Customer Survey To Procurement Officers To Reposition The Brand An email will be sent with a customer survey requesting that the drivers of their past purchases be quantified. The email to procurement officers will emphasize Grainger’s professional distribution of professional, well-engineered, high-quality, durable Bosch Power Tools products and accessories. Another attribute that will be tested is whether procurement officers pick Grainger because of its eProcurement and KeepStock systems.57 If there is another attribute that is appealing, it will emerge from the survey responses as to what they liked and what they want to see changed before shopping Grainger.com again. Email To Procurement Officers To Grow Loyalty Procurement officers will receive an email with a YouTube video and an invitation to become social media brand ambassadors. The email will include a thumbnail of Day One in Grainger Show 2016 and the word video should be featured prominently in the subject line.58 Email Content Marketing Campaigns For End Users End Users will be addressed to achieve three of the business objectives – Influence Consideration, Repositioning the Brand, and Grow Loyalty. 57 It is worth noting that Grainger does not appear in the list of online distributors on the Bosch Power Tools Page Popup Directory of Online Retail Distributor. Amazon.com and HomeDepot.com do. 58 Pardot, 60 B2B Marketing Tips You Can Try Right Now: The Best Ideas, Straight from the Experts. 2016. Tip 29 is to use videos in an email campaign to increase Click To Open rates. According to research conducted by Pardot, the CTO rate increases by 25% if the word “video” is included in the email subject line. It is also recommended that a thumbnail image be used that redirects the person who opened the email to the video online rather than embedding the video directly into the email.
  30. 30. Mark Benson -- 7. Channel Strategy -- Ad Descriptions – Page 30 Emails To End Users: Influencing Consideration If end users respond to the display ad and join the email registry, they will be sent a follow-up email touting Grainger’s advantages. As the registrants will be asked screening questions that will distinguish between a procurement officer and an end user, the follow up emails can be different. The Grainger Advantage will be that it sells Bosch Power Tools to the “Everyday Heroes” who fulfill the Grainger slogan and “get it (the job) done.” Emails To End Users: Repositioning The Brand The end users who are the “Everyday Heroes” using Bosch Power Tools sold on Grainger.com-will be sent a customer survey asking them to affirm that is the right positioning for secondary customers. To further gauge if that positioning is authentic, Grainger should include a reference to the CSR program for students in the skilled trades (Figure 3). Figure 3: Grainger CSR Initiative – Supplying Tools and Scholarships to Students in the Skilled Trades Source: 2015 Grainger Corporate Social Responsibility Report Emails To End Users: Grow Loyalty Secondary customers will be sent a YouTube video and asked to RSVP to the request to become social media ambassadors. As the Everyday Heroes messaging is being tested in the repositioning survey, the YouTube video will be an instructional video.
  31. 31. Mark Benson -- 7. Channel Strategy – Mockups – Page 31 Figure 1: Testing Brand Characteristics –Do Grainger’s Professional eProcurement Systems Make It Possible For Procurement Officers To Buy Professional Bosch Power Tools? Do End Users Believe Grainger Fulfills the Needs of “Everyday Heroes” Who Want Bosch Power Tools? Source: Grainger Facebook Page Source: Grainger YouTube Campaign Mockups With Recommendations On Tone And Content Of Display Ads And Email Marketing Messaging Display Ads – Building Awareness That Grainger.com Sells Bosch Power Tools Display ads focused on Building Awareness should be presented in the top two sources of redirects to Grainger.com—Facebook and Answers.com. As noted in the previous module, display ads on Facebook should include a photo image of Bosch Power Tools products: HubSpot predicts that there is a greater than 50% chance that an internet user who likes a Facebook image of a product will purchase that product. A mock-up of an idea for the image and text of the Facebook display ad for desktop internet users is provided in Figure 2.
  32. 32. Mark Benson -- 7. Channel Strategy – Mockups – Page 32 Figure 2: Mock Up of Display Ad for Grainger’s Facebook Page (Procurement Officers & End Users) Should the Facebook display ad be changed to accommodate mobile phone users? It should be modified to be 320 x 50 and have responsive design for optimal viewing on a smartphone screen. Figure 3 has a mock-up of that display ad.59 Figure 3: Mock Up Of Mobile Display Ads That Appear To A Mobile Phone User Of Facebook What kinds of display ads should appear in Answers.com? Should different ads be presented to primary customers--the procurement officers- and secondary customers- the end users? Since behavioral distinctions can be made, display ads appearing in Answers.com sites that procurement officers typically read should be different than and 59 Research by Yesmail suggests that brands with responsive design have 55% higher mobile Click To Open (CTO) rates and 23% more in CTO rates with desktops. “Yesmail Report: Brands with Responsive Emails Generated 55% Higher Mobile CTO,” Market Wire, March 3, 2016, available at http://www.marketwire.com/press-releases/yesmail-report-brands-with-responsive- emails-generated-55- higher-mobile-CTO.
  33. 33. Mark Benson -- 7. Channel Strategy – Mockups – Page 33 those an end user would likely read.60 A suggestion for a display ad for procurement officers are provided in Figure 4, while the display ad for end users is shown in Figure 5. Figure 4: Display Ad For Procurement Officers Reading Business-Related Topics on Answers.com (Both Desktop and Mobile) Figure 5: Display Ad For End Users In Applicable Answers.com Publications (Both Desktop and Mobile) Display Ads - Increase Consideration By Procurement Officers/End Users With Invitations To Join Email Customer Registry The same email will be sent to procurement officers and end users with an invitation to join the Grainger customer registry. As this will be prompted by the entry of the search term, “Bosch Power Tools,” it is not possible to differentiate the content, since an IP address does not currently carry any demographic or identifying personal information to make these distinctions. However, a message can be created that will connect users to brand attributes that are of interest to both marketing personas— Grainger.com is the web site that is the easiest to use in the entire distribution industry. Figure 6 presents a possible message: 60 Answers.com is an aggregation of answers and wiki pages providing information on a range of topics. Procurement officers would likely read information in the Business and Industry subheading, looking up procurement-related topics like Business and Accounting, Business Finance and eCommerce. The end user who performs the work would likely be interested in other subheadings, such as Cars & Vehicles, that has topics ranging from airplanes and aircraft, to American, Asian and European cars to appeal to those in the leading MRO industry, auto repair. A best practice is mapping the buyers personas to the customer journey in the display ads for Answers.com. The text of all of the display ads are intended to build brand awareness for the Initial Consideration Set phase of the McKinsey Customer Decision Journey. The display ad for procurement officers announced that Grainger is a source of professional-grade Bosch products that procurement professionals desire. To end users, they are also told that Grainger carries Bosch and that it is a product for those skilled tradespeople who get it done every day. IBM Marketing Cloud, Customer Journey Maps and Buyer Personas: The Modern Tool Kit for Marketing. 2016.
  34. 34. Mark Benson -- 7. Channel Strategy - Mockups – Page 34 Figure 6: Display Ad Invitation to Join the Grainger Customer Registry Email Content Marketing - Increase Consideration Through Follow-up Emails to Procurement Officers and End Users Touting Grainger’s Advantages Separate emails with unique content will be sent to procurement officers and end users touting Grainger.com’s advantages. The goal is to make Grainger the ultimate choice in Active Evaluation/Reassessment phase of the CDJ. These emails and the others that follow, reflect two best practices in email content marketing. One best practice is to personalize the content to the individual buyer persona whenever possible.61 Another is to use personal testimonials to connect the potential buyer to customers who act like they might.62 (See Figures 7 and 8). 61 Eric Krattenstein, US Chief Marketing Officer of Mailify, states: “If you’re doing it right, each one of your [email] recipients should read your email and think you wrote it just for them.” Pardot. 60 B2B Marketing Tips You Can Try Right Now: The Best Ideas Straight From the Experts. 2015. 62 This was a message communicated by Professor Rhiannon Clifton in her Content Marketing courses. See, for example, Rhiannon Clifton, “What is Content Marketing- Digital and Social Media Marketing: The Landscape,” University of Illinois Urbana-Champaign Digital Marketing Specialization. The transmission and collection of social media data follows the 3-M Model. Monitoring social media communication that is customer to customer, Grainger will incorporate a social media testimonial in a Megaphone from firm to customer in the hopes of eliciting customer to firm communication (Magnet). There is a digital authenticity to promotion with a social media comment. As Professor Aric Rindfleisch explained, digital authenticity involves presenting marketing information in a genuine manner and is the degree to which a company’s online promotion describes product features, benefits and limitations. Aric Rindfleisch, “Module 2: Promotion,” University of Illinois Urbana-Champaign, Digital Marketing Specialization.
  35. 35. Mark Benson -- 7. Channel Strategy – Mockups – Page 35 Figure 7: Email Touting Grainger’s Advantages to Procurement Officers Figure 8: End Users – Email Touting Grainger’s Advantages Email Content Marketing - Improving Sales Process with Abandoned Shopping Carts/Past But Not Recent Customers Those who abandoned a shopping cart or who have made a past purchase constitute sales leads for purchases. It is important to customize the information to uniquely address each buyer persona—while both are procurement officers, there is a difference—one is an initial customer actively
  36. 36. Mark Benson -- 7. Channel Strategy – Mockups – Page 36 evaluating a purchase (Figure 9) and the other is a potential repeat customer considering a trip down the Loyalty Loop (Figure 10). 22 Figure 9: Request To Procurement Officer With An Abandoned Shopping Cart To Make An Initial Purchase Figure 10: Email to Procurement Officer Inquiring About Possible Repeat Purchase Email Content Marketing -- Repositioning the Brand: Emails on Desire to Reconnect with Customers Using customer data available in the Email Registry, Grainger could direct emails with links to Google Customer Surveys in order to test which brand attributes cinch sales of Bosch Power Tools on Grainger.com. (See Figures 11 and 12).
  37. 37. Mark Benson -- 7. Channel Strategy – Mockups – Page 37 Figure 11: Email To Procurement Officers To Reposition The Brand Figure 12: Email To End Users Asking Why They Want Bosch Power Tools On Grainger.com Email Content Marketing -- Grow Loyalty: Brand Ambassadorship Both procurement officers and end users will be asked to complete a brief survey on becoming a Grainger social media brand ambassador. While waiting for results from the repositioning survey, Grainger can emphasize points of difference that are not tested in the repositioning survey.
  38. 38. Mark Benson -- 7. Channel Strategy – Mockups – Page 38 When procurement officers are invited to become a social media brand ambassador, they will also receive a thumbnail of Day One at Granger Show 2016. This video does not emphasize the point of difference usually transmitted to procurement officers—the benefits of Grainger’s eProcurement and KeepStock systems. (Figure 13). End users will have the opportunity to view a different video thumbnail: a YouTube instructional video. While the video connects to the brand’s slogan, “those who get it done,” the instructional video will not be the “Everyday Heroes” positioning that is being tested in the repositioning survey. (Figure 14). When a primary customer or secondary customer indicates delight with Grainger, that person will be automatically connected to social media ambassadorship opportunities. Both procurement officers and end users will be encouraged to make comments on social media. End users will be given the exclusive chance to be featured in a future instructional video on YouTube.63 153 Figure 13: Email to Procurement Officers to Request Brand Ambassadorship 63 Jessica Santos and Jonathan Boote, “A Theoretical Exploration and Model of Consumer Expectations, Post-Purchase Affective States and Affective Behavior,” Journal of Consumer Behavior, 2003, pp. 142-156.
  39. 39. Mark Benson -- 7. Channel Strategy – Mockups – Page 39 Figure 14: Email to End Users to Encourage Everyday Heroes to Become Brand Ambassadors How Will the Display/Email Content Be Aligned with Bosch Power Tools Currently, Grainger emphasis on professionalism has a distinctly different look and feel from Zoro’s, which is more folksy and lighthearted. With the display and email content described above, Grainger can determine if the messaging for Grainger should continue to reflect the two “professional” attributes presented at the start of this report--the professional, image of an effective eProcurement system represented by a corporate racing car sponsorship for procurement officers and “Everyday Heroes” for end users. Mark Benson – 8. Test And Control Plan Figure 1: SMART Research Objectives – Definition Source: Alison Zeringue, “How To Set and Achieve SMART Marketing Goals,” MarketingLand.
  40. 40. Mark Benson – 8. Test And Control Plan – Page 40 Three “SMART” Research Objectives To Increase Bosch Power Tools Sales By 10% On Grainger Module 5, Task 2 will highlight the three research objectives that fit into the SMART framework – Specific, Measurable Achievable, Results-Oriented and Time-Bound.64 To accomplish these objectives and test the overall marketing strategy, Grainger should conduct primary research on customers with analytics and surveys, use tools like Google Analytics and Google Customer Surveys to measure customer behavior and follow best practices in User Experience design. Three SMART Research Objectives: What Research is Necessary? What Analytical Tools Will Be Used? How Can Impacts On User Experience Be Avoided? First SMART Research Objective: In 2016, before the display and email campaigns are launched, determine the number of Bosch Power Tools Page Viewers in Scenarios 1, 2 and 3 who become new and repeat customers. For each Scenario, Grainger should use Google Analytics to determine total sales. If the activity cannot be tracked until June 2016, then it should be measured for the final six months of 2016 and multiplied by two to obtain the annual estimate. 73 Second SMART Research Objective: In 2017, increase the number of customers who are aware that Grainger sells Bosch Power Tools, and convert a percentage into new sales. Grainger should increase awareness by 38.73 percent, and generate a 2.5% increase. Display ads and emails will invite internet users who click Boschtools.com to possibly make a purchase on Grainger.com. The email touting Grainger’s advantages relies on an essential digital marketing strategy: activate consumers to market on your behalf.65 The social media commentary that is the basis of the storyline in the follow-up email presents favorable customer testimonials on behalf of each customer segment. What analytical tools will be used to measure whether this SMART Research Objective has been achieved? • For the display ads on Facebook and Answers.com, Grainger should use the Google Analytics tool to monitor customer traffic. For each IP address, register clicks on the display ads on Facebook and Answers.com and subsequent purchase activities (abandoned shopping carts and purchases on ePro). For the past three months, Grainger’s display ad traffic is .42, and the goal of .35 appears achievable. 64 Here are the basic themes of each of these five elements of SMART. Specific – The goal have to be detailed and describe exactly what is to be accomplished. Measurable – There must be a way to use quantitative or quantitative tools to evaluate whether the goal has been accomplished. Achievable – It must be possible for Grainger to accomplish the goal using the display ads and content marketing created for the campaign and the financial, technical and human resources devoted to accomplishing the goal. Results-Oriented - The campaign should mesh with the overall strategy and vision of the organization and be authentic. Time-Bound – There must be a specific time frame when the campaign will take place, when it will be measured and when the goal is expected to be achieved. Veronica Jarski, “How To Write SMART Objectives that Matter (& Are Measurable),” MarketingProfs, August 30, 2011, available at http://www.marketingprofs.com/opinions/2011/23345/how-to-write-smart-objectives-that-matter-are- measurable. Zeringue, Alison, “How To Set and Achieve SMART Marketing Goals,” MarketingLand. August 28, 2014, available at http://marketingland.com/how-to-set-achieve-smart-online-marketing-goals-97230 65 Wayin, Retail Guide: 12 Essential Digital Marketing Strategies, 2016.
  41. 41. Mark Benson – 8. Test and Control Plan – Page 41 • The display ad with the invitation to join the Email Registry will be received by those who click on the Bosch Power Tools Page. This group of internet users enjoyed the highest CTR rate and should easily reach the .35 benchmark for display ad traffic on Grainger.com. • Grainger should also use Google Analytics to measure the effectiveness of the follow-up email to the registrant touting Grainger’s advantages in generating new sales. The CTO rates were benchmarked at 19.19%. • Grainger will determine the conversion rates in 2017 for display ads and the registry-related emails. As shown in the benchmarks presented in Module 3, Task 3, email campaigns ($28.50) are slightly more effective than display ads ($34.425).66 Steps should be taken to maximize user experience with display ads and email content, particularly when displayed on a desktop or a mobile phone. Breathing space will be created between the elements in the Facebook ad shown to desktop users.67 Through the use of responsive design, the customer’s view of emails on smartphones will be optimal.68 Responsive design is essential to marketing campaign strategy in 2017 since 70% of all customer activity is expected to be on mobile devices like smartphones. For all display ads and emails, clickable links will be highlighted in blue, and transport the user directly to the appropriate page on Grainger.com.69 Third SMART Research Objective: Grainger should try to generate a 7.5% increase in customers and 500 new social media ambassadors from the final three email content marketing strategies—Improving the Sales Processes, Repositioning the Brand and Grow Loyalty. Percentages will be different for the emails providing necessary details on how to order in ePro (4% new and repeat customers), repositioning the brand (1.75% new and repeat customers), and inviting customers to become a social media ambassador (1.75% new and repeat customers, 500 social media ambassadors). To achieve the Third SMART Research Objective, both Google Analytics and Google Customer Survey tools will be used. 66 The average benchmark CPA for display ads is $34.425, while the industry benchmark of Sales Conversions on email is $28.50. Larry Kim, “New Benchmarks: Google Adwords Cost Per Acquisition Across 20 Industries,” Search Engine Land, March 23, 2016, available at http://www.searchengineland.com/new-benchmarks-google-adwords-cost-per-acquisition-across-20- industries. eMarketer, Email Marketing Benchmarks: Key Data, Trends and Metrics, 2013, available at http://www.emarketer.com/public_media/docs/eMarketer/Email_Marketing_ Benchmarks_Key_Data_Trends-Metrics.pdf. 67 “Chapter 5: User Experience Design,” Rob Stokes, eMarketing: The Essential Guide To Marketing In A Digital World, Johannesburg: Quirk Publishing, 2013, p. 100. 68 “Yesmail Reports: Brands with Responsive Emails Generated 55% Higher Mobile CTO,” Market Wire, March 3, 2016, available at http://www.marketwire.com/press-releases/yesmail- report-brands-with-responsive-emails-generated-55-higher-mobile-CTO. 69 Stokes, eMarketing, p. 99.
  42. 42. Mark Benson – 8. Test and Control Plan – Page 42 • The Key Performance Indicators (KPIs) to be measured for each of these three emails are CTO, Abandoned Shopping Cart and Sales Conversion. • Google Customer Survey responses will be reviewed for the reasons driving past customer purchases. Was it the prevailing point of difference (for procurement officers, the website/ePro difference and end users, “Everyday Heroes”) or another reason. • Determine whether a total of 500 procurement officers and end users became social media ambassadors and review other quantitative data generated from the Google Customer Surveys for planning future marketing strategy. • Focus on how many procurement officers and end users were delighted with the old marketing strategy or the new marketing strategy represented by the video. • Formulate the campaign strategy for 2018 relying in part on the two sets of survey data identifying what point of difference drove purchases or generated more customer delight. User experience will be improved through the application of best practices. All clickable links will be highlighted in blue and take the email recipient to the appropriate website or customer survey.70 Subject lines in emails will contain mentions of keywords known to increase CTO rates—such as “video.”71 Rather than a video link, video thumbnail of the YouTube content will be included in the body of the email.72 Three SMART Research Objectives: What Will the Recommended Campaign Be To Test These Objectives? The 2016 and 2017 campaign results will be compared to determine whether modifications in positioning are needed in 2018. The 2017 display ad and email campaign outlined in this report—with positioning emphasizing a unique point of difference for procurement officers and end users-will be measured and analyzed to determine if the sales goal is met. If not, possible new marketing positioning could be emphasized in 2018 based on the analysis of customer survey responses from procurement officers and end users next year. 5,545 words 70 Stokes, eMarketing, p. 99. 71 Pardot, 60 B2B Marketing Tips You Can Try Right Now: The Best Ideas Straight from the Experts, 2016. 72 Ibid.
  43. 43. Mark Benson - 9. Bibliography – Page 43 Works Cited Aberdeen Group. Is Your Omni-Channel Strategy Driving Your Customers to Shop a Competitor? September 2015. -----------------------. Maintenance Repair and Operations: Turning Downtime into Dollars. July 2015. Alexa. “Boschtools.com: Audience Geography.” --------. “Boschtools.com: Sites Visited After Boschtools.com.” --------. “Grainger.com: Audience Geography.” --------. “Zoro.com: Audience Geography.” Answers.com. “Business and Industry.” Available at http://www.answers.com. ------------------. “Cars and Vehicles.” Available at http://www.answers.com. Anything Research. 2016 Report on Repair & Maintenance Industry. Bendle, Neil T., Paul W. Farris, Phillip E. Pfeifer, and David J. Reibstein, Marketing Metrics. (Upper Saddle River: Pearson Education, 2015). Berthon, Pierre, Morris B. Holbrook and James M. Hulbert. “Understanding and Managing the Brand Space,” MIT Sloan Management Review, January 15, 2003, available at https://www.sloanreview.mit.edu/article/understanding-and-managing-the-brand-space. Bosch Power Tools. Bosch Power Tools Page Popup Directory of Online Retail Distributors. Bosch Power Tools Facebook Page. Available at https://www.facebook.com/BoschToolsNA. Bosch Power Tools LinkedIn Page. Available at https://www.linkedin.com/company/bosch-power-tools. Bosch Power Tools Main Page. Available at http://www.boschtools.com. Bosch Power Tools Main Page. Available at http://www.boschtools.com. Bosch Power Tools Tumblr Page. Available at https://www.tumbr.com/tagged/bosch-power-tools. Bosch Power Tools USA Website. Available at https://www.bosch.us. Bosch Power Tools Website. Available at https://www.boschtools.com. Bosch Power Tools Website with the Broken Links. Available at https://www.bosch.us/content/ language. Bosch Power Tools YouTube Page. Available at https://www.youtube.com/user/BoschToolsNA. Brohan, Mark. “E-Commerce Accounts for Nearly All of Grainger’s Annual Sales Growth.” B2B Ecommerce World, January 27, 2015, available at https://www.b2becommerceworld.com/e- commerce-accounts-for-nearly-all-of-graingers-annual-sales-growth.

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