Web 1.0 - Online Marketing
Backdrop: Dell Direct to Consumer
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Direct business model
Extended into retail in 2007
$12 billion company (of $60b Dell total)
#2 vs. HP followed by Acer, Apple and Toshiba
33 million (10m unique) site visits/month
2-3% site conversion
The Marketer
Input Teams
• Competitive
Landscape
• Product
Development
• Pricing/Costing
• Procurement
• Forecasting
• Marketing
Research
Marketing
• Product: launch
& ongoing
expert
• Price: base &
component
• Promotion:
stories &
discounting
• Placement:
channel strategy
Output Teams
• Sales & Retail
• Online
• Site, Email,
Online Ads,
Affiliates,
Search
• Offline
• Catalog, FSI,
Magazine, TV
Potential Scenarios
1. Grow top-line to hit the quarter
2. Battery factory burns down in Malaysia
3. Customer reviews and recommendations
have increasing influence with online
consumers
…What’s a marketer to do?
Available Channels
Website
Email
Online Ads
• 70% direct
consumer
business
• HUGE volumes
• Immediate
influence
• BUT
consistency is
key for a
consumer
experience
• Dependant
upon traffic
drivers
• Varied
customer set
• Urgency driver
to incent
purchase
• Decent
volumes
• Balanced
rev/mar
attainment
• Tech savvy
consumer
• Increasing optout rates, in
line with
industry
• Traffic driver to
the website
• Broad reach,
branding
vehicle
• Varied
consumer,
early in the
purchase
decision
Affiliates
• Revenue
driver, very
low margins
• Very tech
savvy
consumer
• Very price
conscious
consumer
Search
• Very important
traffic driver to
the website
• Become top of
mind for
consumers
• Varied
customer set
Action: Available Levers
1. Hit Targets:
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Bundling: adjust configurations (components, service,
accsesories)
Discount: optimize revenue goals and conversion on website
and in email
Promotions: create new offers for affiliates channel
2. Battery shortage:
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Adjust battery bundling & offerings in configurator for all
channels
Adjust pricing to deter purchases from low inventory offerings
3. Online reviews:
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Create new stories in promotional campaigns in all vehicles
Adjust site pathing, making reviews more prominent
Metrics
• Main metrics:
– Conversion is king
– But no sales without traffic first
– Site pathing: page click through rates, page
conversion, eye tracker, beta testing
– Email: effective subject line headings, click
through rates, heat map
– All vehicles: Sales, Revenue, Margin – hit forecast
Experiment: Constant Improvement
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A/B beta testing
Multi-variant testing
Creative testing
Subject-line testing for email
Heat map/Eye-tracker testing
Focus groups
Online Testing Community
Dell in Web 2.0
• Idea Storm – digg.com set up where anyone can
post ideas and the most popular are
implemented
• Dell Community – broader online community;
blogs, wiki, forums, groups
• Dell Lounge – the “cooler” face of Dell, sponsor of
gaming competitions & concerts, contests
interact with Gen Y and younger
• Dell University – hire college kids to become peer
to peer advocates of Dell on campuses