Office Depot is adopting a sales and marketing strategy that has, at its core, a personalised approach to servicing customers, improving customer experience, and increasing online sales. Join Jonathan Newman, Office Depot's VP Ecommerce Europe, as he discusses how the company is doing it.
http://www.monetate.com/summit-europe-2014/
1. 1
Office Depot
The Path to Personalisation
Jonathan Newman
VP, eCommerce & Marketing Operations
www.officedepot.eu
www.viking.com
uk.linkedin.com/in/jonnewman
@jon_newman
2. 2
Office Depot merged with
Office Max in 2013
Office Depot, Inc. has combined
global annual sales of approximately
USD $17 billion
Office Depot, Inc. has more than
60,000 associates
The company serves consumers and
businesses in 58 countries
More than 2,000 retail stores
Office Depot is a leading global
provider of office products, services
and solutions for every workplace
Online sales of
$4.2 billion
3. 3
Two brands: Office Depot & Viking
We deliver > 250,000 parcels
every day
Office Depot is active in 30
European countries
We process > 85,000 orders per day
In Europe, Office Depot is the
number one reseller of workplace
products and services
We hold two Royal Warrants granted by
HM The Queen and HRH The Prince of
Wales in the UK to recognition at the pan-
European Supply Chain Distinction
Awards
31 different websites
We send > 66.5 Million catalogues
per year
27. 27
Our architecture & tools have created many challenges…
• Slow, complex development processes
• Changes require IT development
• Limited personalisation capabilities
• Inconsistent experience across channels & markets
• Limited online campaign testing capabilities
• Investment focused on a new platform
28. 28
How are we addressing this problem?
DNA
Strategy
Limits
• Personalisation is in our
DNA.
• Successful in email & offline
channels.
Our history & strategy demands a solution…
• An omni-channel sales
& marketing strategy
• Personalized approach to
servicing customers
• Limitations in current online
& onsite tools
• Augment these limitations
& support rapid innovation
Monetate has augmented
our legacy capabilities and
enabled our online
personalisation strategy
• Business focused interface
• Easily segment & target
• Users can quickly test / build /
repurpose / edit assets
• Quickly test & deploy code
• Identify successes & guide
eCommerce platform
…we have partnered with Monetate
29. 29
Our journey with Monetate
Initial Proof of Concept Pilot
• Start January 2014
• 3 months
• Innovate, Learn, Iterate
• Prove results: 15 x ROI
• Deliver best practice
30. 30
Revenue per
session
+ 2%
Pilot campaigns
screen sizes services
devices
geo targetting
AOV
+ £6.22
New visitor
conversion
+ 19%
Revenue per
session
+ 22%
31. 31
Roll-out
• Singular governance & execution
• Proven campaigns deployed
• Benefit from best practice
• Immediate value added
• Current scope: 15 European
Viking Direct sites
• Current output: 577 campaigns
• Current target: 15*ROI on track
32. 32
✔ Be open for the mindset change,
personalization is about customer stories
and the customer journey
✗Don’t work in a vacuum…. ✔ Involve all stakeholders
✔ Create multi disciplined teams that each
have a clear scope
✔ Build a pipeline per team
✗Don’t limit thinking to banners & ad
placements
✔ Define targets per team & KPIs per
campaign
✔ Integrate Monetate reporting with internal
reporting
✗Don’t invest too much time in
campaigns attracting too few sessions
✗Don’t try to get too detailed before you
start
✔ Fail fast, fail forward
Some Lessons Learned
33. 33
Online Drivers User Experience
Customer
Journey
Mobile TabletEmail SEO/SEA Affiliate
Customer Segments
ISS Online TAM
Poor
Performing
Segments
Product Campaigns
Multi Disciplined Teams
Merchan-
dising
Campaign
Calendar
Replenish
-ment
36. 36
Brilliant Execution of a Customer-Centred, Omni-Channel and
Insight-Driven Experience across all Touch Points & Channels
• Personalised, relevant & timely
experiences
• Integrated cross-channel marketing
decision making & management
• Increased quality and volume of
campaigns
• Performance driven
• Rapid innovation & iteration
• Adaptive
• Increased resource specialisation in
personalisation strategies & tools
• A suite of capabilities
• Embedded in our future platform
• Cross-channel usage of Monetate
• Further integration of historical,
behavioral & merchandising data
• Detailed & accurate campaign
performance tracking
37. 37
Thank you
Jonathan Newman
VP, eCommerce & Marketing Operations
www.officedepot.eu
www.viking.com
uk.linkedin.com/in/jonnewman
@jon_newman
Editor's Notes
Company Profile
Office Depot is a leading global provider of office products, services and solutions for every workplace – whether your workplace is an office, home, school or car. It is the single source for everything customers need to be more productive, including the latest technology, core office supplies, print and document services, business services, facilities products, furniture, and school essentials.
In Europe, Office Depot is the number one reseller of workplace products and services with around 6,000 employees and two main brands: Office Depot and Viking. The company’s portfolio of leading brands includes Office Depot, OfficeMax, OfficeMax Grand & Toy, Viking, Ativa, TUL, Foray, and DiVOGA.
The company serves consumers and businesses in 58 countries with more than 2,000 retail stores, award-winning e-commerce sites and a dedicated business-to-business sales organisation – all delivered through a global network of wholly owned operations, joint ventures, franchisees, licensees and alliance partners.
Company Overview/Highlights
After merging with OfficeMax in 2013, the combined organisation is creating a stronger, more efficient global provider of business products, services, and solutions, fully committed to setting a new standard for serving the workplaces of today and tomorrow through innovation and exceptional customer experiences.
Office Depot’s European and Middle East headquarters is in Venlo, The Netherlands.
Office Depot, Inc. has combined global pro forma annual sales of approximately $17 billion and employs more than 60,000 people.
Office Depot is active in thirty European countries, with subsidiaries in Austria, Belgium Czech Republic, France, Germany, Ireland, Italy, the Netherlands, Slovakia, Spain, Sweden, Switzerland and the UK.
Through our European business partners we also serve customers in Bosnia, Bulgaria, Croatia, Denmark, Estonia, Finland, Hungary, Latvia, Lithuania, Macedonia, Montenegro, Norway, Poland, Romania, Serbia and Slovenia.
Market leaders
We are a serious e-commerce player, committed to ensuring our customers can engage with us effectively either by phone or online.
We deliver around 85,000 orders and 250,000 parcels every day to our customers across Europe.
We have customised products, services and delivery solutions to meet the needs of our customers.
We are proud holders of some of the most prestigious awards, certifications and associations in the industry including two Royal Warrants granted by HM The Queen and HRH The Prince of Wales in the UK to recognition at the pan-European Supply Chain Distinction Awards.
For the people at the heart of every small and medium-sized business, Viking is the office-performance partner. We are committed to providing the products and services that are right for them and to helping them get the most from their office and the time they spend there.
Background, Offered customers with different sized screens an alternative view of the site. Customers with a page of 1672 or wider were shown the premiums.
Reduce the width down to include all customers who’s screen could accommodate, included two premiums on page, one for £100 and other for £250
Test Started on 3rd February, current test 8th April 2014
Results show customers seeing the offers have an AOV of £6.22 more than people who do not @ 95% confidence.
Next Steps± Part of the review of our colour palette to ensure not conflicting with the other colours on the page.
Note also done product offers, highlighted brands and USP’s. USP’s did not work for UK.
Background : Highlight our next day service to customers. Expected to increase new customers numbers and to increase conversion rate. Increase the call to action to place order then and there and also to support our next day proposition. Displayed to all visitors within applicable postal codes. Commenced on the 10th February 2014.
Results showed increased in items being added to trolley and both in new and existing customer are converting better when they see the banner. Test moved to 90% on the 11th March.
Background: Hiding the hierarchy from tablet user to encourage them to use the search box. Expected benefits was improved customer experience and increasing conversion rate.
Targeted to all users of a tablet and done as 50/50 split
Commenced on the 19th February 2014
Seen by 156k sessions
Revenue per session up 21.8% (99% confidence), Control $3.90 per session versus $4.75 experimentProjected yearly revenue up to $650k per year in UK.
Turned up to 90% on 7th May
Background to support the business with promoting Fans to regions based on the weather within that area, targeted at areas with a temperature forecast of more than 15.0 degrees Celsius. Expect to see increase in Fan sales. Commenced on the 15th April 2014. Displayed in two separate locations on the homepage. A) - Below the Flash ads. (B) - Below Adspots 1 - 5
Within Office Depot we have defined four focus groups to deliver Monetate campaigns from different business perspectives. Each focus group consists of the following roles:
Subject matter expert: the SME operates as an internal consultant. (4 area’s: product assortment, customer segments, online drivers and user experience)
Campaign manager: the CM is responsible for creating campaign briefs and monitoring the active campaigns.
Ecommerce operations expert: responsible for the technical implementation of the campaigns within the monetate application.
Business Inteligence expert: The BI expert advises
Each focus group consists of the following roles:
Subject Matter Expert: the SME operates as an internal consultant.
Campaign Manager: the CM is responsible for creating campaign briefs and monitoring the active camapigns.
eCommerce Operations Expert: responsible for the technical implementation of the campaigns within the monetate application.
Business Inteligence Expert: The BI expert advises on which KPI’s to track and how these can be measured