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
The Why"People dont buy what you do, they buy why you do it.“ Simon Sinek
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
The How“The essence of positioning is sacrifice.”
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
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.
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/
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
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.