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

1. This is not a test

2. Agenda for growing a direct to consumer
business
• 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. The Why
"People don't buy what you do, they buy why you do it.“
Simon Sinek

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. The How
“The essence of positioning is sacrifice.”

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. Where we live in the purchase funnel
Awareness
Consideration
Purchase
Our bull’s-eye is at the purchase end of the funnel, our
marketing efforts are aimed at converting inbound
linking to sales.

8. Vijay Govindarajan's three strategy boxes
Box 1 Box 2 Box 3
• Competing for the • Selectively forget the • Competing for the
present past future
• Driving core business • Adjacent to the core • New Space, more risk
to meet budget
• New ideas that we • Experimental and
• Constrained view will test, but not part of innovative
our business plan
• Testing future • Requires change and
assumptions (fail fast) learning
• Unconstrained view
http://www.vijaygovindarajan.com/

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. The What
“Metrics map to objectives, period.”

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. E-mail: lance_binley@logitech.com
Direct: 510-713-5012