Doing  what  you‘ve  always  done
is no longer an option.
Digital Marketing at Distrelec.
Markus Dobbelfeld
CMO, Datwyler ...
– Head of E-Commerce, Hilti North America
– Head of Global E-Business, Hilti Lichtenstein
– Senior Manager, Online Banking...
– Focused industrial supplier with global presence
– Leading positions in global and regional market
segments
– Revenue of...
4
Datwyler
Technical Components
5
Technical Components
Distribution and Sales Locations
6
Distrelec Online Distribution
Our Market
– B2B, Continental European market volume USD  3‘000  mio.
– Competitors: Elect...
Distrelec Group
Our Services
– Online distributor with optimised logistics
– We specialise in small and medium-sized quant...
World is changing
We are always on
Differentiators have
become commodities
Channel shift in sales &
communications
Interne...
Distrelec New E-Platform & Digital Marketing
Video
9
DE: http://youtu.be/I0A0LsVDVG0
Relentless Demands
– Profitable growth & operational efficiency
– Need for organic and inorganic growth
– Agility to captu...
To achieve substantial change, need to do 3 things to transform marketing;
Fundamentally change the marketing operating mo...
Hack the Org Chart
– The driving force are the people. Nurture and empower your talent
Redefine processes and foster colla...
Marketing Excellence
To remain competitive we must adapt to changing
customer behaviours and deliver a personalized
experi...
New Marketing Setup
Summary
14
What we want to
achieve
– We want marketing to become a demand generating unit
– We want to...
– Sept 2011, Acknowledgment of changed market conditions (starting point)
– Nov 2011, Change Vision & Strategic Planning
–...
Yesterday
Solid marcom practice with efficient
catalogue and media production.
Sales pitch:  ‘one-size-fits-all’.
Future
D...
Distrelec Marketing
Roles & Objectives
17
Brand
Develop the brand and public image
Intelligence
Provide real-time business...
Demand Generation Engine - Deployment of integrated
marketing tools to drive demand and conversion
18
Demand Generation Engine
Shift to Digital Media
19
Digital
(Online)
Traditional
(Offline)
Distrelec Marketing: Tasks
High Level Target State
Marketing
E-Platform
Operations
Product
Data (4)
Customer
Integration (...
21
Marketing
E-Platform
Operations
Product
Data (4)
Customer
Integration (2)
E-Platform
Support (3)
Development
Project Mg...
Functional Marketing Organization
Digital Marketing & E-Platform Operations
22
Marketing Organization
Functional setup with specialist functions
23
E-Platform
(Technology)
Business Intelligence
E-Busin...
24
Job Descriptions with clear accountability, lines of
interaction and KPIs
Marketing Process Workflows - Cross-functional
alignment between Sales, CM and Marketing (incl. ISO)
25
Marketing Technology (E-Platform & Ecosystem)
Operations & Development
26
We are creating one core E-Platform. We invest into
People, Technology, Processes and Channels
Suppliers
Procurement Suppl...
New E-Platform
Global Rollout in 2014
28
DAM
ETL
Font Server
Live Chat
ERP
Video
E-Platform Architecture
Abstract System View
29
Multivariate Testing
E-Procurement...
E-Business – Demand Generation
Field & Category Marketing
30
Cross-Functional Collaboration - The three sales
relevant functions heavily rely on each other
31
• GTM plans
• Resource a...
Adapting the Marketing Organization to support cross-
functional interests and collaboration
32
• GTM plans
• Resource all...
E-Business – Demand Generation
Search Engine Marketing (SEM)
33
Search Engine Marketing
Focus & Setup
– Drive Sales (Direct Response)
– Customer Retention (Remarketing)
– Brand Awareness...
Importance of Videos for SEO
Rich & Relevant Content
35
– Established a 360° Spin-Photography
and high-end Video Studio
– ...
E-Business – Demand Generation
E-Mail Marketing
36
E-Business – Demand Generation
E-Mail Marketing
– Serving 20 markets in 17 languages
– Introduced new E-Mail practice, com...
E-Business – Demand Generation
Customer Experience (Onsite Search)
38
E-Business – Demand Generation
Customer Experience - Search Intelligence
39
Conversion optimization efforts in regard to o...
E-Business – Demand Generation
Online Marketing (Web Merchandizing)
40
E-Business – Demand Generation
Online Marketing (Web Merchandizing)
41
– Countries (DE, CH, AT, IT LT, LV, EE, PL, FI, CZ,...
E-Business – Demand Generation
Business Intelligence
42
Marketing Communications
Branding & Public Relations
44
The bigger, better digital budget
Shift from Sales to (digital) Marketing
45
– Heaviest investments are in SEA, customer e...
– Raising awareness of changed market conditions
– Creating the right sense of urgency (opportunity going down)
– Investme...
Thank you
Q&A
47
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Fachveranstaltung Digital Marketing – Die zukunftsgerichtete Marketingorganisation – Learnings aus der Praxis – Markus Dobbelfeld

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Fachveranstaltung Digital Marketing – Die zukunftsgerichtete Marketingorganisation – Learnings aus der Praxis – Markus Dobbelfeld

  1. 1. Doing  what  you‘ve  always  done is no longer an option. Digital Marketing at Distrelec. Markus Dobbelfeld CMO, Datwyler Technical Components & Distrelec Group June 3, 2014
  2. 2. – Head of E-Commerce, Hilti North America – Head of Global E-Business, Hilti Lichtenstein – Senior Manager, Online Banking, Credit Suisse – Senior Marketing Group Director, Central Europe, Adobe Systems – Chief Marketing Officer, Dätwyler TeCo & Distrelec Group 2 About me Markus Dobbelfeld
  3. 3. – Focused industrial supplier with global presence – Leading positions in global and regional market segments – Revenue of more than CHF 1,400 million – 7,000 employees – Established in 1915 – Listed on the SIX Swiss Exchange, Zurich – Two divisions: – Technical Components, 2’000  Employees,  CHF  720  million – Sealing Solutions, 5’000  Employees,  CHF  680  million 3 About Dätwyler Group Overview
  4. 4. 4 Datwyler Technical Components
  5. 5. 5 Technical Components Distribution and Sales Locations
  6. 6. 6 Distrelec Online Distribution Our Market – B2B, Continental European market volume USD  3‘000  mio. – Competitors: Electrocomponents (GB), Premier Farnell (GB), Digikey (US), Mouser (US), Conrad (DE)
  7. 7. Distrelec Group Our Services – Online distributor with optimised logistics – We specialise in small and medium-sized quantities – B2B trading of MRO products – Comprehensive product ranges – 250,000 products in portfolio – Outstanding availability of 98% – Delivery within 24 hours 7
  8. 8. World is changing We are always on Differentiators have become commodities Channel shift in sales & communications Internet enabled price visibility Customer journey more complex Shift from traditional to digital media Distrelec Starting Position For today’s  marketer,  the  sweet  spot  is  a  moving  target 8
  9. 9. Distrelec New E-Platform & Digital Marketing Video 9 DE: http://youtu.be/I0A0LsVDVG0
  10. 10. Relentless Demands – Profitable growth & operational efficiency – Need for organic and inorganic growth – Agility to capture opportunities quickly Higher Stakes – Requirements to acquire and retain customers most important – Synchronize end-to-end customer experience – Use data and technology for real-time marketing impact Smaller SOW – Flat or declining market share – Harder to obtain and keep new customers and sell more to existing ones Higher Customer Expectations – Relevance is here to stay – Consumers’  expectations for relevant experiences – Consumers still expect value, trust, quality and better customer service More complex environment Competing priorities & changing consumer behaviors
  11. 11. To achieve substantial change, need to do 3 things to transform marketing; Fundamentally change the marketing operating model (done) – Improve innovation and internal capabilities – Drive significant shift in organizational culture so that consumer relevance at scale becomes a key operating principle shared by all departments Build new skills internally (done) – Hire, upskill and redeploy people to improve efficiency and agility – Need talent that can create consistent, multichannel experiences Drive digital orientation throughout the enterprise (ongoing) – Improve marketing performance & reduce complexity – Digital orientation cannot remain only a province of marketing – Entire organization needs to understand how digital is transforming the customer experience – C-suite needs to give digital orientation greater importance by embracing horizontal collaboration 11 The new Marketing Agenda – Increase in customer expectations and channel preferences
  12. 12. Hack the Org Chart – The driving force are the people. Nurture and empower your talent Redefine processes and foster collaboration – Developing collaborative processes among cross-functional teams Identify and eliminate bad habits – Refuse to languish in legacy Become a master of modelling – Take ownership of consumer insights and business intelligence Be a leader – Challenge the status quo and embrace change, champion collaboration Keep your eyes on the trends, but your feet on the ground – Allow innovation to emerge from a structured marketing machine Digital Marketing Steps To Digitally Align Your Organization
  13. 13. Marketing Excellence To remain competitive we must adapt to changing customer behaviours and deliver a personalized experience across all channels and touch points. Demand Generation Engine Multi-Channel Commerce To stay relevant we must offer value added services and state-of-the-art e-commerce. E-Platform Up-skill & Focus-shift To drive demand and conversion we want to build a highly skilled marketing organization, capable to adapt to changing customer demands. Organization Conclusion - Provide for Marketing Excellence 13
  14. 14. New Marketing Setup Summary 14 What we want to achieve – We want marketing to become a demand generating unit – We want to support sales in their campaigns – We want to develop and maintain the best e-platform How we organize ourselves – We will organize ourselves around 3 main tasks: – E-Platform (Technology) – E-Business (Demand Generation) – Marcom (Branding & Public Image) What are our measures of success (KPIs) – Sales and sales growth per channel – Conversion rates – Costs per acquisition/sale – Return on marketing investment What will change / What will be better than before – We will have a functional marketing department – We will build up competency in e-marketing – We will generate demand and drive sales – We will ensure consistent master data – We will provide a globally scalable E-Platform
  15. 15. – Sept 2011, Acknowledgment of changed market conditions (starting point) – Nov 2011, Change Vision & Strategic Planning – May 2012, Investment approvals (resources, technology, etc.) – July 2012, Implementation planning – Sept 2012, Functional reorganization – Since, Change management (communicate, empower, culture, etc.) 15 Timeline Change Management
  16. 16. Yesterday Solid marcom practice with efficient catalogue and media production. Sales pitch:  ‘one-size-fits-all’. Future Demand generation and sales development through digital marketing automation. Sales  Pitch:  ‘personalized’  through  insights. Aspired Marketing Condition Up-skill and shift focus 16 0 1 2 3 4 5 Demand Generation Publications Online Marketing Sales Promotions Relationship MarketingPublic Relations Search Marketing Business Intelligence Customer Intimacy Distrelec Future Distrelec Yesterday
  17. 17. Distrelec Marketing Roles & Objectives 17 Brand Develop the brand and public image Intelligence Provide real-time business intelligence Channels Operate a multichannel commerce platform Demand Customer acquisition and conversion Data Provide for master data systems
  18. 18. Demand Generation Engine - Deployment of integrated marketing tools to drive demand and conversion 18
  19. 19. Demand Generation Engine Shift to Digital Media 19 Digital (Online) Traditional (Offline)
  20. 20. Distrelec Marketing: Tasks High Level Target State Marketing E-Platform Operations Product Data (4) Customer Integration (2) E-Platform Support (3) Development Project Mgmt (2) Web Development (7) Web Design (1) E-Business Demand Generation Campaign Mgmt (3) SEM / Bid Mgmt (4) SEO (2) Pilots/Mirrors E-Mail Marketing (4) Re-Targeting Affiliates & Price Portals (2) Shop Management Merchandizing & Recommend. (2) Search/Usabili ty Test & Target (2) Retention Loyalty Mgmt (1) Mobile Commerce (1) Marcom Publications Channel Marketing (2) (E-)Seminars TS/Events (2) Public Relations (2) Social Media & Community (2) Business Intelligence • Generate demand, attract, engage & retain customers. Drive ROI from online marketing programs and increase sales funnel conversion. • Ensure operations and further development of global, multichannel E- Platform: Webshop and application ecosystem, PIM, marketing applications, customer and supplier integration. • Conduct marketing communications, improve & maintain public image. Create catalogues and print collateral. Drive channel marketing and engage community. 20
  21. 21. 21 Marketing E-Platform Operations Product Data (4) Customer Integration (2) E-Platform Support (3) Development Project Mgmt (2) Web Development (7) Web Design (1) E-Business Demand Generation Campaign Mgmt (3) SEM / Bid Mgmt (4) SEO (2) Pilots/Mirrors E-Mail Marketing (4) Re-Targeting Affiliates & Price Portals (2) Shop Management Merchandizing & Recommend. (2) Search/Usability Test & Target (2) Retention Loyalty Mgmt (1) Mobile Commerce (1) Marcom Catalogues Publications (6) Channel Marketing (2) (E-)Seminars TS/Events (2) Public Relations (2) Social Media & Community (2) Business Intelligence E-Business • Revenue & growth • ROMI (attributable revenue minus campaign invest) • AOV/AOI (Average order Value / Items), BCR (Basket Category Ratio), DSR (Displayed/sold Ratio) • CPL/CPO (Cost Revenue Ratio) • Conversion, growth & customer retention E-Platform • Availability and performance of systems and services • Performance with typical queries • Throughput time and data quality (new product go-live, etc. – shared KPIs > PM) • Ratio of fully automated scripts and order passages • Data Integration KPIs (new/updated product data, performance of interfaces) • Service Quality, Data Governance & Support KPIs Marketing Communications • Public Image and Brand awareness • Publications: revenue and contribution margin per catalogue page (shared KPI with CM) • Customer satisfaction e.g. NPS (Net Promoters Score) or «Fans», CLV (Customer Lifecycle • Value), Customer Satisfaction Index (CSI) • Community engagement index Top 5 Marketing KPIs - Drive sales, build revenue, improve retention, optimize spent and ROMI
  22. 22. Functional Marketing Organization Digital Marketing & E-Platform Operations 22
  23. 23. Marketing Organization Functional setup with specialist functions 23 E-Platform (Technology) Business Intelligence E-Business (Digital Marketing) Marcom (Image/Brand)
  24. 24. 24 Job Descriptions with clear accountability, lines of interaction and KPIs
  25. 25. Marketing Process Workflows - Cross-functional alignment between Sales, CM and Marketing (incl. ISO) 25
  26. 26. Marketing Technology (E-Platform & Ecosystem) Operations & Development 26
  27. 27. We are creating one core E-Platform. We invest into People, Technology, Processes and Channels Suppliers Procurement Supplier Product Managers Marketing- Managers Product Catalogue Brochures Flyers Direct Mailings Digital Catalogues Vendors Content Managers Sales PIM CRM CMS Various ERPs Other internal Systems Online Shop (Brand n) Mobile Shop Third Parties (e.g. Google Search, Market Places, etc.) Online Shop (Brand 1) Call Center E-Mail Communication Distrelec Core E-Platform (for Commerce & Services)
  28. 28. New E-Platform Global Rollout in 2014 28
  29. 29. DAM ETL Font Server Live Chat ERP Video E-Platform Architecture Abstract System View 29 Multivariate Testing E-Procurement Bid Mgmt. / SEM Mail E-Mail Marketing Recommendation Faceted Search Web Analytics PIM Payment E-Commerce Platform Online ShopMobile Market Monitoring Market Places Fit Server Mobile Native App Co-Browsing Search Engines Shop OCI Data Quality Tag Management Mobile Site Mobile Report MRMCRM Transaction Middleware Service LayerRouting Layer ERPERP Publication CMS BI-Warehouse
  30. 30. E-Business – Demand Generation Field & Category Marketing 30
  31. 31. Cross-Functional Collaboration - The three sales relevant functions heavily rely on each other 31 • GTM plans • Resource allocation • Innovation • Market opportunities • Value proposition • Aligned go-to-market • Customer campaigns • Leads nurturing • Merchandizing • Product Campaigns • Channel Marketing • Product opportunities • Global/local Pricing • Product promotions • Product strategy • Acquire new customers • Develop existing customers and increase share of wallet • Segment customer types and define value propositions • Attract, engage & retain customers across channels • Online marketing and E-Business operations • Marketing Communications • Maintain and develop attractive product portfolio • Sourcing/Procurement • Secure high margins • Ensure high availability Marketing Sales Category Management
  32. 32. Adapting the Marketing Organization to support cross- functional interests and collaboration 32 • GTM plans • Resource allocation • Innovation • Market opportunities • Value proposition • Aligned go-to-market • Customer campaigns • Leads nurturing • Merchandizing • Product Campaigns • Channel Marketing • MDF • Price crawler • Extended assortment • Product opportunities • Global/local Pricing • Product promotions • Product strategy • Acquire new customers • Develop existing customers and increase share of wallet • Segment customer types and define value propositions • Attract, engage & retain customers across channels • Online marketing and E-Business operations • Marketing Communications • Maintain and develop attractive product portfolio • Sourcing/Procurement • Secure high margins • Ensure high availability Marketing Sales Category Management Category Marketing 4 FTE acting as attorneys representing interests of product Field Marketing 4 FTE acting as attorneys representing interests of country
  33. 33. E-Business – Demand Generation Search Engine Marketing (SEM) 33
  34. 34. Search Engine Marketing Focus & Setup – Drive Sales (Direct Response) – Customer Retention (Remarketing) – Brand Awareness (Specific markets) – International team of SEM Specialists with several years of experience – Whole assortment accessible,  250’000  products – 17 markets – 15 languages – Google (AdWords), Microsoft Bing (Ads) – 7 Mio. keywords over all accounts – Bid Management (intelliAd) – Strong performance orientation: focus on ROI (CRR) – Cost-revenue-ratio: 9.5 34
  35. 35. Importance of Videos for SEO Rich & Relevant Content 35 – Established a 360° Spin-Photography and high-end Video Studio – Video has become a must-have feature for competitive SEO Distrelec (paid) Distrelec (paid) Distrelec (organic) Video (organic)
  36. 36. E-Business – Demand Generation E-Mail Marketing 36
  37. 37. E-Business – Demand Generation E-Mail Marketing – Serving 20 markets in 17 languages – Introduced new E-Mail practice, complete redevelopment, new & responsive design utilizing latest technology (personalization, whitelisting, analytics). – Deployed additional E-Mail Types & triggered and automated e-mails. – Introduced a category based segmentation of all recipients and an industry selection for new users. – Implemented an analytics based workflow and scheduling to achieve maximum deliverability. 37
  38. 38. E-Business – Demand Generation Customer Experience (Onsite Search) 38
  39. 39. E-Business – Demand Generation Customer Experience - Search Intelligence 39 Conversion optimization efforts in regard to on-site search, overall usability and improved customer experience on Distrelec’s online touchpoints. – Analysing user behaviour – Visits with Keyword Search: 64% – Conversion Rate with Search: 8,69%
  40. 40. E-Business – Demand Generation Online Marketing (Web Merchandizing) 40
  41. 41. E-Business – Demand Generation Online Marketing (Web Merchandizing) 41 – Countries (DE, CH, AT, IT LT, LV, EE, PL, FI, CZ, SK, HU, DK, NL) – Sales/Brand Campaigns – Promoboxes, Rotation Banner, Landing pages, etc. – Recommendations, Cross- & Upselling
  42. 42. E-Business – Demand Generation Business Intelligence 42
  43. 43. Marketing Communications Branding & Public Relations 44
  44. 44. The bigger, better digital budget Shift from Sales to (digital) Marketing 45 – Heaviest investments are in SEA, customer experience and analytics. – Investments align with priorities to acquire and retain customers.
  45. 45. – Raising awareness of changed market conditions – Creating the right sense of urgency (opportunity going down) – Investment approvals on FTEs, E-Platform, Budgets – Functional  reorganization  (handling  bleeding  ego’s) – Establish performance orientation (KPI measuring) – Breaking old habits, move away from traditional approach – Cross-functional collaboration (sales, category management, marketing) – Digital orientation and education (developing expertise) 46 Digital Marketing Transformation Greatest Challenges
  46. 46. Thank you Q&A 47

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