1. Brand Platform Drives the Entire Business, Not Just Marketing
Vision
What is Z
Gallerie?
Brand Platform
Competitor and Consumer
Insights; Brand Position
Business Plan
What do we want to accomplish?
Key Strategies
What will we do to accomplish this?
Merchandising Ops./Store Experience E-Commerce Marketing
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2. Competitive Landscape
Messaging/Perceived Positioning
Unique, Authentic and Always Affordable
Contemporary, Affordable Housewares With a Twist
Distinct Home Furnishings, Décor From Across the Globe
Expertly Crafted Furnishings for the Modern Home
Timeless and Updated Classics for a Luxury Lifestyle
Uncover your style. Discover Z Gallerie.
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3. E-Commerce Opportunity
• Online sales of furniture, for example, now more than $10b annually
• But still less than 10% of $100b+ market
• Many analysts expect that number to increase to 12-15%, which
means that there is a $2b - $5b opportunity out there
• Further, while the furniture bricks and mortar category has shown
little to no growth for several years, online sales of furniture have
grown more by more than 200%
• Accessories and home décor items are “even lower-hanging fruit,”
given the cheaper shipping costs and less price sensitivity
• Mobile commerce still in infancy; debate as to how big a market it
will be, especially for big-ticket, visually driven purchases
– But Mobile, Location-Based Search is growing rapidly
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Sources: US. Dept. of Commerce, Forrester
4. E-Commerce Opportunity
Consumer Acquisition (qualified traffic = incremental revenue)
• 60 – 70% traffic comes from search engines – Google, Yahoo, Bing
• Build database through aggressive sign-up – on sites (tiles on multiple pages) and in store
• Online-only exclusives to drive traffic and online purchase trial
• Offline Basics: bag stuffers; continual URL tagging on packaging, receipts, advertising
Consumer Retention/Repeat Purchase (CRM)
• Reveal and target best customers; maximize LTV of all customers (through Recency, Frequency, Monetary Value)
– Loyalists: most profitable segment
– Newbies: 1 purchase in past 12 months; getting them to 2nd purchase is key – then they become loyal
– Lapsed: At least 1 purchase but more than 12 months ago; make some efforts at re-activation
E-Mail
• Sign-up incentive/reward (free shipping or discount); ongoing exclusives, pre-ordering
• Almost polar opposite of home page principle – give them many option and shopping links (template)
• Frequency is sensitive – generally 1 per week maximum; begin to customize for different segments
• Executed properly, can directly drive 15% or more of a retailer’s total online sales
Site Analytics – Key Metric Dashboard
• Conversion Rate (2-5% is considered good); Overall and via E-mail
• Total Visits and Share of Visits vs. Competitors
• Sell-through
• A.O.S.
• Website and Cart Abandonment (pain points -- goes to usability)
• Return %
Website Enhancements To Consider As Budgets Allow
• Much more SEO copy, alt. tags, etc. to improve Google organic rankings
• Customer Reviews (gives confidence that can significantly improve conversion) 4
• Trend stories, presented in a shopable e-zine
5. Search Engine Marketing (SEO/CPC)
70% of all traffic comes from search engines; ROI-based
Z Gallerie could drive
much more traffic to
its website by adding
copy that search
engines find and
cheaply buying
keywords that
consumers use to
search with.
In this example,
smaller competitors
are appearing on the
first page of results
for “modern furniture
and accessories.”
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6. E-Mail
Could directly drive 15%+ of online revenue; low CPA
Down the road, segmentation will allow you to send different messages to different consumers.
But for now, an e-mail needs to appeal to a broad swath – so instead of a single story like fall
art, the e-mail should message a lead story and 2-4 secondary stories, still represented by
artwork/imagery, to increase chances of one of the stories resonating during the few seconds
the consumer looks at it.
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7. Shoes.com Example - E-Mail Plan – By Segment
Segment Priority Avg. Total Avg. Objective Message/Offer
Frequency
House File 1 692,000 3x month Awareness/Relevancy; Sat. Sale x 2; Seasonal
New Purchase Campaigns; Discount Coupons
Multi-category Purchasers 1 325,000 est* 2x month Awareness/Relevancy; New Arrivals; Most Popular;
* e-mail clickers New Purchase Featured Products and Brands
Women’s-only Purchasers 1 238,000* 2x month Awareness/Relevancy; New Arrivals; Most Popular;
New Purchase Featured Products and Brands
Men’s-only purchasers 1 61,000* 1x month Awareness/Relevancy; New Arrivals; Most Popular;
New Purchase Featured Products and Brands
Thank you bounce-back 1 80,000 est 1x month Retention New Arrivals and/or exclusive
promo code TBD
13-mo. Lapsed 1 300,000 1x month Re-activation We Want You Back exclusive
** Fulton report est** promo code (deeper discount)
6-month lapsed 2 400,000 est 1x month Retention See What’s New at Shoes.com
Best Customers: 3 purchases 2 20,000 est Quarterly Loyalty Exclusive promo code TBD; or
in 12 months free shipping upgrade
2x sale-only purchasers 2 TBD Quarterly New purchase New arrivals in sale and clearance
1-yr.-ago seasonal purchase 2 100,000 est Quarterly New purchase New Boots/Sandals/Athletic/BTS
Luxury only (brand/price) 3 TBD Quarterly New purchase Shop luxury new arrivals/sale
Athletic only 3 TBD 2x year New purchase New Arrivals; Brands
Kid’s only 3 TBD 2x year New purchase Most Popular; Brands
• Goal #1: 10-14 unique e-mails created and sent monthly (compared to 6-8 currently)
• Goal: #2: 1-2 e-mails received by each person weekly (not including Sat. sale e-mails); no more than 7 monthly
8. Social Media and Loyalty
• With more than 30,000 Facebook fans and 4,000 Twitter followers, you have the beginnings of a
solid foundation in social media. It’s not a separate channel, but rather a medium that should be
closely integrated with e-commerce, e-mail and loyalty initiatives to drive traffic and sales.
• Key moving forward is to monetize your fans and followers, by using the social relationship you
have with them to drive more repeat and impulse purchases, and to exponentially grow fans by
leveraging their own social networks (“sharing”), particularly on Facebook
• A key strategy in an emotionally driven category like yours is to create a sense of “mass
exclusivity” – making the fans and followers feel like opinion leaders, as the first to know about
new styles and trends, and obviously, to be rewarded with specials not available to the general
public (like a one-hour early shopping pass, online)
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9. Proposed Marketing Plan - Overview
• Navigation
• Shopping Ease
• Bricks and Clicks • Enhanced Imaging
Multi-Channel
• In-store web search • Customer Reviews
Synergy Website/Direct Selling
• “Virtual Showroom”
• CPC
• Consumer • SEO/SEM
Profiles Research and
• CPA
• Website Usability Analytics Online Marketing
• Metric Dashboard
• Increase Signups
Advertising, • Segmentation
Promotions & • Frequency
Partnerships CRM/E-Mail • Call to Action
• Hyper-Local Ads
• Contests
• Partnerships Social Media PR/Grassroots
(HGTV Show, & Mobile
etc.)
• Product Placement
• Editorial Mentions
• Facebook, Twitter • “Lifestyle” PR
• Foursquare, Yelp 9
• Opt-in Text Messages
• Mobile Search