© 2006 Hewlett-Packard Development Company, L.P.


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© 2006 Hewlett-Packard Development Company, L.P.

  1. 1. HP PurchasEdge Overview Mike Gibson March 22, 2007
  2. 2. PurchasEdge program overview <ul><li>Allows customers to earn points toward free HP products and services for buying HP Supplies (like print cartridges, storage media, and paper) </li></ul><ul><li>Members earn 1 point for every $4 spent on qualifying supplies </li></ul><ul><li>Started in 1998 </li></ul>HP PurchasEdge is designed to maintain and increase B2B customer loyalty for resellers and HP supplies. Customized statements Rewards Exclusive promotions Value-added Web content Support Center TCE Members enrolled through promotions, resellers, and direct marketing strategies
  3. 3. Customers get free HP products, resellers get loyal customers HP PurchasEdge is a rewards program for loyal HP customers and helps resellers enhance customer relationships. Promotions provide greater member return and encourages additional supplies purchases Increased customer rewards with quarterly promotions Creates a “value add” service which promotes customer loyalty. Electronic invoice submission makes reporting fast and simple Simply earn and redeem for free HP products. Resellers submit the necessary information Resellers see increased sales as members redeem points for products which consume supplies Free HP products for purchasing qualifying supplies. Free Products include (printers, digital cameras, PDAs and more) Reseller End Customer
  4. 4. Average supplies growth 160% 140% 120% 100% 80% 60% 40% 20% 0% 1 2 3 4 40.97% 71.42% 102.97% 138.48% Years in Program Linear Growth Member supplies purchase growth in PurchasEdge program through 2005. Average CAGR: 36.5%
  5. 5. FY06 results Data as of 10/02/06 <ul><li>600 new Independent Resellers </li></ul><ul><li>Over 40,000 members </li></ul><ul><li>35% annual member growth </li></ul><ul><li>78% SMB members </li></ul>$605,564,188 Total $477,995,861 Top 10 total $8,628,296 Reseller 10 $8,948,863 Reseller 9 $11,051,342 Reseller 8 $12,437,803 Reseller 7 $20,154,213 Reseller 6 $31,178,983 Reseller 5 $34,883,758 Reseller 4 $71,986,389 Reseller 3 $101,176,456 Reseller 2 $177,549,753 Reseller 1 FY06 purchase submissions Top 10 Resellers
  6. 6. FY 06 YTD Redemptions May 12, 2010 LaserJet detail: 4,678 (71%) Mono 1527 (23%) Color 293 (4%) AIO 92 (2%) MFP inkjet detail: 2,069 (35%) Deskjet 1,746 (30%) Officejet 1,412 (24%) Photosmart 360 (%) Fax 274 (5%) Business Inkjet
  7. 7. Direct reseller integration model customer Purchases supplies Redeems points Data flow transactional data reseller PurchasEdge reporting data
  8. 8. Indirect reseller integration model Data flow transactional data Purchases supplies Redeems points reporting data end-user customer PurchasEdge reseller ecommerce service provider
  9. 9. Data requirements <ul><li>Able to track and report purchases via a unique customer identifier and include the following data fields: </li></ul><ul><ul><li>Reseller ID (RID) </li></ul></ul><ul><ul><li>Reseller customer ID (RCID) or PurchasEdge member ID (PID) </li></ul></ul><ul><ul><li>Invoice date </li></ul></ul><ul><ul><li>Invoice number </li></ul></ul><ul><ul><li>Product number (HP SKU) </li></ul></ul><ul><ul><li>Product quantity </li></ul></ul><ul><ul><li>Product price (price paid per item) </li></ul></ul><ul><li>Able to export customer data in one of two acceptable formats: </li></ul><ul><ul><li>XML (extensible markup language) </li></ul></ul><ul><ul><li>Tab-delimited text (text file with values separated by spaces, can be exported directly from Excel) </li></ul></ul>
  10. 10. PurchasEdge enrollment process Invitation by reseller rep <ul><li>Registration benefits: </li></ul><ul><li>View detailed information about customers invited to the program </li></ul><ul><li>Automatically populate contact in customer invitations </li></ul><ul><li>Access secure content on the PurchasEdge Reseller Web site </li></ul><ul><li>Include personal note in customer invitations </li></ul>Reseller rep registration URL: www.purchasedge.com/go/registration/resellername Step 1: Reseller rep registers via co-branded online form
  11. 11. <ul><li>Features: </li></ul><ul><li>PurchasEdge system verifies customer is not already enrolled or has not previously declined to participate </li></ul><ul><li>Customer profile provided by reseller rep is pre-populated for customers who opt in </li></ul>PurchasEdge enrollment process Invitation by reseller rep Step 2: Reseller rep fills out invitation form for customer
  12. 12. <ul><li>Features: </li></ul><ul><li>Invitation e-mail has link to co-branded reseller enrollment form </li></ul><ul><li>If invitation is declined, customers opt-out status appears on PurchasEdge Web site; no further action is taken </li></ul>PurchasEdge enrollment process Invitation by reseller rep Step 3: Customer receives invitation to PurchasEdge
  13. 13. <ul><li>Features: </li></ul><ul><li>Completed applications sent to PurchasEdge Support Center for approval </li></ul><ul><li>Once approved, a welcome e-mail is sent to both the new member and their reseller rep </li></ul>PurchasEdge enrollment process Invitation by reseller rep Step 4: Customer fills in information not previously provided by rep and submits form to complete application process
  14. 14. New Member Welcome Kits <ul><li>Includes: </li></ul><ul><ul><li>Program overview </li></ul></ul><ul><ul><li>Terms and conditions </li></ul></ul><ul><ul><li>Support center contact information </li></ul></ul>Mailed to new members following enrollment approval
  15. 15. New Member Website <ul><li>Log-in page </li></ul><ul><li>New program demo (Flash 6.0) </li></ul><ul><li>New site provides significant </li></ul><ul><li>improvements: </li></ul><ul><ul><li>New shopping cart redemption interface </li></ul></ul><ul><ul><li>Updated invoice tracker and account management tools </li></ul></ul><ul><ul><li>Added content/messaging </li></ul></ul><ul><li>www.purchasedge.com </li></ul><ul><ul><li>User name: sample </li></ul></ul><ul><ul><li>Password: 99999 </li></ul></ul>
  16. 16. Promotions Example <ul><li>New promotions each quarterly </li></ul><ul><li>Increased point rewards </li></ul><ul><li>Product discounts </li></ul>
  17. 17. e-Statements <ul><li>Opt-in, quarterly frequency </li></ul><ul><li>Account information, including point balance </li></ul><ul><li>Content briefs, with push to website for complete story </li></ul><ul><li>Periodic promotions </li></ul><ul><li>PE Support Center contact information </li></ul>
  18. 18. Marketing materials Available at www.purchasedge.com/reseller <ul><li>Reseller Fact Sheet </li></ul><ul><li>Member Fact Sheet (customizable) </li></ul><ul><li>HTML e-mail </li></ul><ul><li>Telemarketing script </li></ul><ul><li>Direct Mailer (customizable) </li></ul><ul><li>Reseller Brochure </li></ul><ul><li>Member Brochure </li></ul><ul><li>Web banners (customizable, available on www.purchasedge.com) </li></ul>Brochures Direct Mail Fact Sheets Telemarketing Script HTML e-mail and web banners
  19. 19. Getting started <ul><li>1. Obtaining a Reseller ID (RID) </li></ul><ul><ul><ul><li>> Resellers who use an ecommerce service provider like ECI2/DDMS, </li></ul></ul></ul><ul><ul><ul><li>Red Cheetah, Britannia or tBN regarding how to obtain a RID and set </li></ul></ul></ul><ul><ul><ul><li>up automated invoice submission. </li></ul></ul></ul><ul><ul><ul><li>OR </li></ul></ul></ul><ul><ul><ul><li>> All other resellers should contact PurchasEdge directly at [email_address] </li></ul></ul></ul>
  20. 20. Getting started <ul><li>2 . Target </li></ul><ul><ul><ul><li>> $500 annually in HP supplies </li></ul></ul></ul><ul><ul><ul><li>> SMB focused </li></ul></ul></ul><ul><ul><ul><li>> Value driven </li></ul></ul></ul><ul><li>3 . Invite (3 touch approach) </li></ul>3 – Follow-up Call 2 - Email 1 - Web Banner Secure customer interest by calling to answer any questions and to re-enforce enrollment Professional html email template Pre-populate online customer enrollment and view status Easy and cost effective to implement Two banners to choose from or rotate all Link to custom co-branded enrollment form Easy and cost effective to implement
  21. 21. PurchasEdge Contacts <ul><li>PurchasEdge Support Center </li></ul><ul><li>1.888.264.6599 </li></ul><ul><li>[email_address] </li></ul><ul><li>Reseller Integration Support </li></ul><ul><li>Mark Ritchie </li></ul><ul><li>[email_address] </li></ul>HP Program Manager David Llamas [email_address] Marketing & Promotions Melissa Heye [email_address] New Reseller Integrations Mike Gibson [email_address]
  22. 22. Questions?