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Growing a direct to consumer channel

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This presentation was created to share with a partner of Logitech's for manufacturers that are developing their direct to consumer sales channel.

Veröffentlicht in: Business
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Growing a direct to consumer channel

  1. 1. This is not a test
  2. 2. Agenda for growing a direct to consumerbusiness• Why (belief): • Business purpose• How (actions to realize the why): • Defining your organizational structure • Location in the purchasing funnel • Strategy outline• What (results): • Reporting • Customer experience
  3. 3. The Why"People dont buy what you do, they buy why you do it.“ Simon Sinek
  4. 4. Purpose  Why have a direct business:  To meet customers expectation for those who want a direct relationship with the brand  To have a global channel  To strengthen our brand by providing a best in class shopping experience with our customers  To develop our most profitable channel
  5. 5. The How“The essence of positioning is sacrifice.”
  6. 6. Determining your organizational structure? We are a sales channel with a full P&L that is self funding Our skill sets are primarily customer acquisition and fulfillment
  7. 7. Where we live in the purchase funnel Awareness Consideration PurchaseOur bull’s-eye is at the purchase end of the funnel, our marketing efforts are aimed at converting inbound linking to sales.
  8. 8. Vijay Govindarajans three strategy boxesBox 1 Box 2 Box 3• Competing for the • Selectively forget the • Competing for thepresent past future• Driving core business • Adjacent to the core • New Space, more riskto meet budget • New ideas that we • Experimental and• Constrained view will test, but not part of innovative our business plan• Testing future • Requires change andassumptions (fail fast) learning • Unconstrained view http://www.vijaygovindarajan.com/
  9. 9. A couple of closing thoughts on the how Develop a public versus private strategy There are many ways to add value – e.g. increased recovery on distressed inventory This is a proof point of customer intent and you can quantify all of it
  10. 10. The What“Metrics map to objectives, period.”
  11. 11. The Dashboard• We only have four core metrics (the dashboard): • (Traffic x Conversion) x Average Order Size = Revenue. • NPS = Net Promoter Score, which we use to quantify moments of truth for the customer related to the purchasing process (purchase, assessment and advocacy). • We take a deep dive on all four (by geography, by time period and by product). • There are supporting metrics that map to the core and are tied by an objective of improving the core.
  12. 12. E-mail: lance_binley@logitech.com Direct: 510-713-5012