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Backdrop: Dell Direct to Consumer

Backdrop: Dell Direct to Consumer. 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. Potential Scenarios.

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Backdrop: Dell Direct to Consumer

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  1. Backdrop: Dell Direct to Consumer • 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

  2. The Marketer

  3. 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?

  4. Available Channels

  5. Action: Available Levers • Hit Targets: • 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: • Adjust battery bundling & offerings in configurator for all channels • Adjust pricing to deter purchases from low inventory offerings 3. Online reviews: • Create new stories in promotional campaigns in all vehicles • Adjust site pathing, making reviews more prominent

  6. 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

  7. Experiment: Constant Improvement • A/B beta testing • Multi-variant testing • Creative testing • Subject-line testing for email • Heat map/Eye-tracker testing • Focus groups • Online Testing Community

  8. 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

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