2. Web Migration Task Force Team
Liesl Abrahamson: Touchpoints
Blake Mortiz: IT
Dave Nash: Customer Knowledge
Matt Parsons: Marketing
Communications
Jason Puk: E-commerce
Maj Rizvi: E-Commerce
Pat Rooney: Marketing Campaigns
Ben Olson: Momentum
Tom Russell: Marketing Manager
Bob Sieger: Director E-Commerce
Jennifer Stewart: One Boise
Jeff Swiatek: DSM/Chicago
Matt Trainor: Retention and Growth,
Large Market
Larry Engel: Bader-Rutter
Nancy Hamlin: Retention and Growth
3. Business/Marketing Objectives
• Increase the profitability of BCOP via migration of
customers to the web touchpoint.
Web migration will:
1. Reduce the customer cost to serve
2. Allow for proactive cross/up-sells and
personalized retention opportunities that are not
available via fax and other channels
4. E-Commerce 2001 vs. 2002
December 2001:
% of e-commerce lines: 39%
December 2001:
% of e-commerce sales: 32.6%
December 2002 :
% of e-commerce lines: 44%
December 2002:
% of e-commerce sales: 39.77%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
%Lines
%Sales
Dec-01
Dec-02
5. Situation Analysis
Challenges
Site stability/ease of use
Customer experience/high
expectations
Not a “top” priority (Paper,
Peak, One Boise)
Will require battle for reps
attention
No sale incentive
Opportunities
Stabilization enhancements
One Boise tools facilitate
better targeting/analsis of
customer behavior
Customers will benefit from
“full” One Boise experience
6. Situation Analysis
Assumptions (planning milestones)
IBM Web Sphere – in place since 12/15/01
Keynote – Q2
PIN integration – 2/15/02
Townsend e-mail marketing – 3/02
Web campaigns available – 6/02
“Peak Performance” launch – 7/02
New web design – Q3
ECS Training competed 1/02
10. Strategic Components
The Web Migration strategy has been broken down into the
following strategic migration components focused on the
Large Market Segment:
1. New Accounts/New Business
2. Existing customers with:
2a. Current E-Commerce sales greater than 75%
2b. Current E-Commerce sales between 25% and
75%
3. Existing customers with no E-Commerce sales
11. Strategic Components Overview
Large Market Customer Segment
Location-level
Accounts
Total
Revenue
(Annualized)(
$MM)
E-Commerce
Revenue
(Annualized)
($MM)
E-Commerce
% of Total
#1 - New Accounts (1) 7,535 256$ 90$ 35%
#2a - E-Commerce Sales greater than 75% 1,787 185$ 163$ 88%
#2b - E-Commerce Sales between 25% & 75% 2,008 637$ 389$ 61%
#3 - No E-Commerce Sales 8,339 408$ -$ 0%
#4 - E-Commerce Sales between 0% & 25% 1,685 547$ 45$ 8%
Total 21,354 2,033$ 687$ 33.79%
(1) Revenue for New Accounts is adjusted revenue - 80% is estimate to be actual "new account revenue"
12. Strategic Components Overview
The above distribution shows the skew of E-Commerce % of Total Revenue for
Large Market MVC/MGC location-level accounts. (June 2001 - Jan. 2002)
Large Market - E-Commerce % of Total Revenue
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
1
346
691
1036
1381
1726
2071
2416
2761
3106
3451
3796
4141
4486
4831
5176
5521
5866
6211
6556
6901
7246
7591
7936
8281
8626
8971
9316
9661
10006
10351
10696
11041
11386
11731
12076
12421
12766
13111
13456
13801
Location-level Accounts
E-Commerce%ofTotalRevenue
Customer Bucket #2a
(> 75% )
Customer Bucket #2b
(Between 25% & 75% )
Customer Bucket #4
(<25% )
Customer Bucket #3
(0% )
13. Strategic Components Overview
The above scatter-plot of location-level account data points reveals the total and
e-commerce revenue distribution of Large Market MVCs/MGCs. (June 2001 - Jan. 2002)
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000
Location-level Account Total Revenue
Location-levelAccount
E-CommerceRevenue Customer Bucket #2a
(> 75% )
Customer Bucket #2b
(Between 25% & 75% )
Customer Bucket #4
(<25% )
Customer Bucket #3
(0% )
15. Segment #1 - New Accounts
Strategy: Utilize One Boise data to target new
business in specific locations and SIC codes - AND
provide the field with new training and sales tools to
sell the benefits of online ordering.
16. Segment #1 – New Accounts
7,535
$320MM (Annualized)
$256MM (Annualized)
$113MM (Annualized)
$90MM (Annualized)
35.39%
Segment Profile (1)
Location-level Accounts
Total Revenue
Adjusted Total Revenue (2)
E-Commerce Revenue
Adjusted E-Commerce (2)
Revenue
E-Commerce % of Total
(1) New Accounts defined as first purchase date between 1/1/01 and 1/25/02
(2) Assumption is 80% of new revenue per E.Piphany is actually “new account revenue”.
EDI: 3.22% PHONE: 17.84% FAX: 31.60% MAIL: 1.44% SREP: 10.35%
17. Segment #1 – New Accounts
2001
Total E-Commerce Revenue
$90MM
Total E-Commerce Sales %
35.39%
(based upon adjusted annualized 2001
“new account” revenue)
2002
Total E-Commerce Revenue
$102MM
Total E-Commerce Sales %
40.0%
Targets and Goals
18. Segment #1 – New Accounts
Tactics
Education – Focus on training for the field to allow for confident
and consistent communication of the BCOP.com message to new
accounts/prospects (up-to-date knowledge of new functionality)
Communication – Consistent reporting to the field on site stability
and performance through the use of new monitoring tools
(Keynote)
Sales Tools - Create new tools (sales collateral, CD-Rom Demo) fo
reps to use with new accounts/bid process that emphasize benefits
and ease
19. Segment #2a – Existing Customers
With E-commerce Sales
Greater Than 75%
Strategy: Develop “best customer” profiles to
apply to other strategic segments from this
customer group - AND - focus marketing
programs on retention and communication of
new functionality.
20. Segment #2a – Existing Customers With
E-commerce Sales Greater Than 75%
1,787
$185MM (Annualized)
$163MM (Annualized)
88%
Segment Profile
Location-level Accounts
Total Revenue
E-Commerce Revenue
E-Commerce % of Total
EDI: 0.01% PHONE: 5.00% FAX: 4.42% MAIL: 0.06% SREP: 2.39%
21. Segment #2a – Existing Customers/
E-commerce Sales Greater Than 75%
2001
Total E-Commerce Revenue
$163MM
Total E-Commerce Sales %
88%
2002
Total E-Commerce Revenue
$168MM
Total E-Commerce Sales %
88%
Targets and Goals
22. Segment #2a – Existing Customers/
E-commerce Sales Greater Than 75%
Tactics
Retention - focus on retention programs leveraging
Revenio, Clarify, Web Campaigns and email
Customer Profiling - develop and analyze
characteristics of this “super user group” to overlay
on new accounts/new business and existing
customers
23. Segment #2b – Existing Customers
With E-commerce Sales Between
25% and 75%
Strategy: Using “best customer” profile information -
target locations, SIC codes and specific customers to
launch channel migration campaigns - primarily through
new One Boise tools - Revenio, Clarify, and Email.
24. Segment #2b – Existing Customers With
E-commerce Sales Between 25% and 75%
2,008
$637MM (Annualized)
$389MM (Annualized)
61%
Segment Profile
Location-level Accounts
Total Revenue
E-Commerce Revenue
E-Commerce % of Total
EDI: 0.22% PHONE: 15.07% FAX: 18.76% MAIL: 0.21% SREP:4.57%
25. Segment #2b – Existing Customers With
E-commerce Sales Between 25% and
75%
2001
Total E-Commerce Revenue
$389MM
Total E-Commerce Sales %
61%
2002
Total E-Commerce Revenue
$476MM
Total E-Commerce Sales %
71%
Targets and Goals
26. Segment 2b – Existing Customers With
E-Commerce Sales Between 25% and 75%
Tactics
One Boise technology/programs - leverage
Revenio, Clarify, Web Campaigns and email to “pull”
customers onto the web - focus on headquarter
marketing efforts with limited field involvement
All touchpoints - Utilize all touchpoints to drive traffic
to the web - phone, fax, field, web and direct mail
campaigns with focused/exclusive messages
27. Segment #3 – Existing Customers
With No E-Commerce Sales
Strategy: Use One Boise data and best customer
profile information to develop concise target lists
for the field - AND - use new sales tools to sell the
benefits of online ordering.
28. Segment #3 – Existing Customers
With NO Web Sales
8,339
$408MM (Annualized)
$0MM (Annualized)
0%
Segment Profile
Location-level Accounts
Total Revenue
E-Commerce Revenue
E-Commerce % of Total
FAX: 50.78% PHONE: 10.12% SREP: 5.23% EDI: 18.49% MAIL: 1.67%
UNKNOWN: 4.36% SEPARATE WIN: 9.35%
29. Segment #3 – Existing Customers/
No E-
Commerce Sales
2001
Total E-Commerce Revenue
$0M
Total E-Commerce Sales %
0%
2002
Total E-Commerce Revenue
$32MM
Total E-Commerce Sales %
7.8%
Targets and Goals
30. Segment #3 – Existing Customers/
NO Web Sales
Tactics
Customer/location profiling - use “super user group” profiles to
target specific locations, SIC codes, to establish pilot locations for
migration plan; discover “keys to success” for top selling locations
and share with “under-performing locations”
Tools - develop migration “tool kit” for the pilot locations that will
include a list of priority customers with appropriate data, bcop.com
demo CD, brochure
One Boise -leverage One Boise tools to pull customers online
once set-up
