The document outlines a strategy for growing a direct-to-consumer business, emphasizing the importance of understanding the purpose behind customer relationships. It details actions such as defining organizational structure and marketing strategies while also discussing key metrics for evaluating success. Additionally, it highlights the significance of adapting to future assumptions and customer experiences in the purchasing process.

1. This is not a test

2. Agenda for growing a direct to consumer
business
• 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

3. The Why
"People don't buy what you do, they buy why you do it.“
Simon Sinek

4. 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

5. The How
“The essence of positioning is sacrifice.”

6. 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

7. Where we live in the purchase funnel
Awareness
Consideration
Purchase
Our bull’s-eye is at the purchase end of the funnel, our
marketing efforts are aimed at converting inbound
linking to sales.

8. Vijay Govindarajan's three strategy boxes
Box 1 Box 2 Box 3
• Competing for the • Selectively forget the • Competing for the
present past future
• Driving core business • Adjacent to the core • New Space, more risk
to meet budget
• New ideas that we • Experimental and
• Constrained view will test, but not part of innovative
our business plan
• Testing future • Requires change and
assumptions (fail fast) learning
• Unconstrained view
http://www.vijaygovindarajan.com/

9. 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

10. The What
“Metrics map to objectives, period.”

11. 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.

12. E-mail: lance_binley@logitech.com
Direct: 510-713-5012