Mobile/Social Marketing Recommendation




                          Prepared By Brad Stageberg
                          August 2011
Overview
Assignment
Develop and execute a mobile/social marketing plan to convert 300,000 + members of a
unique social network devoted to ski/snowboarding to customers and grow member base.




Business Situation
The House, a successful catalog/e-tailer of ski/board/skate/water equipment, recently
purchased a competitor website with 300,000+ registered users that had been using the site
as a social network for adventure sport athletes. The company wants to convert members to
customers and grow the member base to drive a return on their investment.


Challenges
•Highly fragmented product market and sales channel
•Heavy reliance on discounting to churn inventory
•Short peak selling season + impact of annual snow conditions
•The House (parent company) relies on push marketing tactics, no social/mobile know-how
•The House owns four additional sites that will compete with trusnow for sales

                                                                                  2
Trail Map
•   Opportunity assessment
•   Where does Trusnow fit?
•   How do we enter the community?
•   How will we know if it’s working?
•   Action Plan
Opportunity Assessment




22M+ snow sport enthusiasts

5,000,000 google searches/month for “snowboards”




                                       Source: SIA RetailTrak Data 2010/2011
They’re Buying Gear…
•   2010-2011 sales hit new high at $3.3B (+12%)
•   Specialty shops still dominate sales revenue
•   Internet sales strong, surpassing chain stores
…From Many Places
                                     Ski/Board/Skate




             Specialty Shops




Bricks & Mortar                                        Internet




                               Chain Stores




                                      Broad Outdoors
Key Online Sales Drivers
                      High
Industry Importance

                      Medium
                      Low




                               Price   Brands   Fulfillment   Incentives   Image
                                                  Industry Competes On
Primary Internet Competitors



•   50-100k daily visitors*                                     •   10-15k daily visitors*
                               •   15k daily visitors*
•   Skews older, educated,                                      •   Primarily Snow and Skate
                               •   Snow, skate, water product       product focus
    female (25-34 yrs)             focus
•   300,000+ facebook fans -                                    •   Strong Facebook activity
                               •   Brand focused on image           (128,000+ followers)
    high quality content           and self expression
•   Broad outdoors gear                                         •   Celebrating snow/skate
                               •   Low price guarantee
    product mix                                                     lifestyle
•   Brand focused on outdoor
    adventure
•   Tout their top-notch
    customer service




                                                                     * source: Alexa.com
A new type of competitor to watch…




 Deep member discounts on short-term sales
 Incentives to invite friends into the “community”
 Broad outdoor category products
 Not much choice -- have to buy what they have.
Where Does Trusnow Fit In This Market?
Let’s Start With Them…




22M+ snow sport enthusiasts
– 75% Ski or Board; 35% Ski and Board
– 73% of snowboarders < 25 years of age

What’s important to them:
– “Their Crew”
– Mobile technology
– Authenticity
– Adventure, risk taking     Source: SIA RetailTrak Data 2010/2011
Traditional Digital Marketing.




  SEO/PPC     Click on our site
              We’re like you (image)
              Buy something…please.
              Opt-in to our marketing
              Continuous sales messages
Trusnow Community Is A Golden Opportunity To Deviate
From The Pack-- They Already Participate.




                 300,000+ Members
Youth Marketing Trends To Leverage




              =   A Promise                 ≠       Marketing Strategy



              How are you going to put me into this
              story that you’re telling?



              (It’s tough sledding if you don’t include them in the process)


                            Source: Understanding Mobile Youth Culture Since 2001; slideshare.com
Youth Marketing Trends
Sell The Community                          Selling Social Values To Create
                                                                Movements




Promote The Influencers                                 Marketing Is Creation
                                               (or the Death of Sponsorship)




                          Source: Understanding Mobile Youth Culture Since 2001; slideshare.com
Convergence Teeing Up A Big (Natural) Opportunity




                               Youth Marketing
                                   Trends
    300,000+ Members



                 Marketing Technology
A Community Of Them, For Them,
    About Them, By Them.
Initially, Keep A Narrow Focus
On Snow…
                       Ski/Board




 ecommerce                           Community +
                                     ecommerce




             Chain Stores




                    Broad Outdoors
…And Play The Game A Little Different
                                                              trusnow      Industry
                      High
Industry Importance




                                                                                                  Competitive
                                                                                                  Advantage
                      Medium
                      Low




                               Price   Brands   Fulfillment   Incentives   Image      Community         Experience

                                                 Industry Competes On
How Do We Enter The Community?

   Community Nurturing And Marketing Plan
Marketing Strategy:
Engage members in the community with social/mobile
technology to grow membership, daily site traffic, and
sales.

                                       Product


         Nurture Community




                      Marketing Technology
Four Initial Customer Targets


                           Primary Customer Targets
                           1. Current Members
           Land Lovers
                              Current Trusnow users

                           2. Your Friends, Friends
           Searchers
                                Current members’ social connections


          Friends          Secondary Customer Targets
                           3. Searchers
      Current                   Internet buyers not currently buying
     Members
                                from trusnow.com
     300,000+

                           4. Land Lovers
                                Primarily specialty store buyers that
                                search internet in hopes of saving $’s
Our Primary Tools




                       Fluid
                    Conversation
For This To Work, We Need To Remember That
Social/Mobile Marketing Is Not Selling To Them.




           It’s About Giving Them A
                 Reason To Buy.
Primary            Marketing Goals:
Target             Engage in the community
   1
 Current Members   Invite their friends



                                          Strategy:

                                          1. Nurture The Community
                                            Show them we’re committed to the community


                                          2. Mobile/Social Plan
                       300,000+ Members     Make it easy and rewarding for them to share


                                          3. Social Cause Marketing
                                            Give them something to care about
Primary            Nurture The Community
Target
   1               1. Content Plan
                      Mobile/Social marketing will require a large amount of content -- some user
                      generated and some brand generated.
 Current Members

                      Brand Content                            User Content
                      • Preview of manufacturers               • Photo/video uploads
                         sponsored riders movies               • Area information/conditions
                      • Area snow reports                      • Best rides
                      • Behind the scenes videos
                      • New product teasers
                      • Stories related to/about
                         community members



                   2. Trusnow.com Enhancements/Upgrades
                      • Prominently feature the community on the home page.
                      • Live feed of community activity
                      • Clear link to information about the community
                      • Make it easy to join



                                                                                         26
Primary            Nurture The Community
Target
   1               3. Include Them In Your Business And Reward Participation
                        Instead of this...                                   Do this...
 Current Members

                                                                             We build your board
                                                                             Source board designs from the
                                                                             community, let the community
                                                                             vote, build the winning designs


                        Instead of this...                                   Do this...

                                                                             Rewards when friends join
                                                                             Reward members when their
                                                                             friends join -- daily, weekly, monthly
                                                                             winners.



                   4. Exclusive Member Opportunities
                      • Exclusive product only available to Trusnow members
                      • Enter to win the ultimate ride vacation
                      • Special opportunities to save money on gear, lift tickets, etc.
                      • Special event attendance                                            27
Primary            Nurture The Community
Target
   1               5. Get The Community Offline

                        Trusnow Social Events      Trusnow Riding Events
 Current Members

                        Area Meet-Ups              Trusnow Equipment
                                                   Demo Days
                       Find-a-Ride, Share-a-Ride




                                                               28
Primary            Mobile/Social Plan
Target
   1
                                      The Most Effective Mobile/Social Campaigns Focus On
                                      Three Areas:
 Current Members

                                      1. Convenience
                                         • Help people get things done easier
                                         • Offer tangible value
                                      2. Context
                                         • Curate the most relevant local information
                                         • Help people find useful information in real time
                                      3. Fun
                                         • Best way to change people’s behaviors
                                         • Provide fun in unexpected places and ways
                                         • Mix in delight, surprise, and reward to build and retain
                                           relationships



                   source: slideshare, mobile trends -2011 - trending the future.   29
Primary            Mobile/Social Plan
Target
   1                                     Mobile App Like Vail’s Epic Mix
                                         That Allows Trusnow members
 Current Members

                                         to:
                                         • Share their adventures and information
                                         • Earn rewards points/recognition for
                                             sharing
                                         •   Rate best videos, rides, airtime, etc.
                                                            Real time ski area information,
                                                            discounts, social


                     Academy                                Real time local conditions,
                                                            hazards, parking information
                                                            from community members on
                                                            the hill



                                                            Share photos/videos from your
                       (working title)
                                                            day on the hill

                                                                            30
Primary            Cause Marketing
Target             Show we’re committed to their passion by providing
   1               opportunities for others to learn to ride.

                   Special shopping days where         Teach Someone To Ride Day
 Current Members

                   % of sales donated...




                                                      • One day a season where community
                                                        members teach someone how to ride or
                                                        ride better

                                                      • Use TS Academy mobile app to share
                                                        progress of riders - earn member points

                                                      • Riders at locations all over the country
                       ...to impaired/challenged        (or globe) linked by common purpose.
                       riders foundations
                                                      • Provide special prizes (e.g., most
                                                                             31
                                                        improved), product deals, etc.
Primary                  Marketing Goals:
Target                   Grow community through invites
   2
 Your Friends, Friends   to join from current members

                                                        Community Content
                            300,000+




                                                 1. Member incentives to invite
                                                    friends




                                                                                      Community
                                                                                       Content
                                                 2. Friend incentives to join
                             Community Content




                                                 3. Sell the community value
                                                 4. Download Trusnow academy
                                                    app.



                                                                 Invitation to join
Secondary Marketing Goals:
  Target  Make sure they find us
                             Best prices and mitigate online purchase barriers
                             Over deliver on service/fulfillment
                             Sell the community and invite to join
   Searchers & Land Lovers


                                 Design A First-Class Shopping Experience...

                                  SEO/PPC


                                Community content
                                helps keep us in top
                                       ranks


                               Rigorous SEO and        Relentless focus on   Multiple help avenues
                               PPC plan to ensure      online experience
                               high rankings                                 Live chat
                                                       Save My Favorites
                                                       (register to use)     Links to help and info

                                                       Show inventory        “How to” videos
                                                       levels
Secondary Marketing Goals:
  Target  Make sure they find us
                             Best prices and mitigate online purchase barriers
                             Over deliver on service/fulfillment
                             Sell the community and invite to join
   Searchers & Land Lovers


                                    ...Over Deliver On Service And Fulfillment
                              Make It Easy To Buy      Communicate Often         Rate My Experience




                               Ensure secure           Estimated ship time       Provide an incentive
                               purchase process                                  to rate shopping
                                                       Verify my order           experience
                                                       prior to ship
                                                                                 Provide information
                                                       Your order shipped        and invitation to join
                                                                                 the community
                                                       Trained customer
                                                       service agents
Secondary Marketing Goals:
  Target  Make sure they find us
                             Best prices and mitigate online purchase barriers
                             Over deliver on service/fulfillment
                             Sell the community and invite to join
   Searchers & Land Lovers


                                             ...And Sell The Community.
How Will We Know If It’s Working?
Measurement Plan
• Key Performance Indicators:
   –   Community membership
   –   Member visit frequency
   –   Daily traffic/page visits
   –   Facebook followers
   –   SEO Ranks
   –   Mobile uploads/activities
• Business Measures
   – Conversion rate
   – Sales/average ticket
   – Returns
Pro Forma Projections
Site Traffic Basis
 Daily Traffic        Conversion Rate          Avg Ticket     Revenue/Day Buying Days             Annual Rev

    6000                   0.75%                 $200             $9,000             265            $2,385,000

    10000                  0.75%                 $200            $15,000             265            $3,975,000

    15,000                 0.75%                 $200            $22,500             265            $5,962,500

    20,000                 0.75%                 $200            $30,000             265            $7,950,000

    30,000                 0.75%                 $200            $45,000             265          $11,925,000

    40,000                 0.75%                 $200            $60,000             265          $15,900,000

    50,000                 0.75%                 $200            $75,000             265          $19,875,000



Membership Basis
             Add 1                  Active                    Total     Conversion                                 Annual Rev
Members      friend     Active %   Members Visits/Wk        Visits/Wk      Rate        Avg Ticket     Revenue/wk    39 weeks

300,000    600,000      50.00%     300,000         3        900,000        0.25%           $200        $450,000    $17,550,000

                                   400,000         3        1,200,000      0.25%           $200        $600,000    $23,400,000

                                   500,000         3        1,500,000      0.25%           $200        $750,000    $29,250,000

                                   1,000,000       3        3,000,000      0.25%           $200       $1,500,000 $58,500,000
Other Considerations

  • Gaming: Consider developing a mobile app game
    (e.g., Farmville - Farmers Insurance) that’s easily
    shared.

  • Advertising: Launch campaign on popular snow
    sport websites/magazines (maybe) and destination
    riding areas.

  • Member Swap Area: Ski swaps are a traditional
    part of the sport’s culture. Set up an online/
    mobile swap site and charge a small fee to post
    used equipment.
Down The Road?
                 • Retail store designed
                   around the values of the
                   community.

                 • A “Tru”snow experience

                 • $2B specialty store sales
                   in 2011
Resources Needed
•   Community director
•   Web/mobile programmer
•   Digital graphic design
•   Customer service/live chat rep
•   Fulfillment (The House?)
Action Plan
Week 1   Trusnow audit, refine strategy/tactics,
         begin search for talent resources
Week 2   Budget, marketing calendar, site
         revisions, mobile app development

Week 3   Set up key measures, establish baseline
         levels

Week 4   Begin content plan roll-out, engagement
         incentive offers
Questions?




             43

Mobile/Social Marketing Recommendation

  • 1.
    Mobile/Social Marketing Recommendation Prepared By Brad Stageberg August 2011
  • 2.
    Overview Assignment Develop and executea mobile/social marketing plan to convert 300,000 + members of a unique social network devoted to ski/snowboarding to customers and grow member base. Business Situation The House, a successful catalog/e-tailer of ski/board/skate/water equipment, recently purchased a competitor website with 300,000+ registered users that had been using the site as a social network for adventure sport athletes. The company wants to convert members to customers and grow the member base to drive a return on their investment. Challenges •Highly fragmented product market and sales channel •Heavy reliance on discounting to churn inventory •Short peak selling season + impact of annual snow conditions •The House (parent company) relies on push marketing tactics, no social/mobile know-how •The House owns four additional sites that will compete with trusnow for sales 2
  • 3.
    Trail Map • Opportunity assessment • Where does Trusnow fit? • How do we enter the community? • How will we know if it’s working? • Action Plan
  • 4.
    Opportunity Assessment 22M+ snowsport enthusiasts 5,000,000 google searches/month for “snowboards” Source: SIA RetailTrak Data 2010/2011
  • 5.
    They’re Buying Gear… • 2010-2011 sales hit new high at $3.3B (+12%) • Specialty shops still dominate sales revenue • Internet sales strong, surpassing chain stores
  • 6.
    …From Many Places Ski/Board/Skate Specialty Shops Bricks & Mortar Internet Chain Stores Broad Outdoors
  • 7.
    Key Online SalesDrivers High Industry Importance Medium Low Price Brands Fulfillment Incentives Image Industry Competes On
  • 8.
    Primary Internet Competitors • 50-100k daily visitors* • 10-15k daily visitors* • 15k daily visitors* • Skews older, educated, • Primarily Snow and Skate • Snow, skate, water product product focus female (25-34 yrs) focus • 300,000+ facebook fans - • Strong Facebook activity • Brand focused on image (128,000+ followers) high quality content and self expression • Broad outdoors gear • Celebrating snow/skate • Low price guarantee product mix lifestyle • Brand focused on outdoor adventure • Tout their top-notch customer service * source: Alexa.com
  • 9.
    A new typeof competitor to watch… Deep member discounts on short-term sales Incentives to invite friends into the “community” Broad outdoor category products Not much choice -- have to buy what they have.
  • 10.
    Where Does TrusnowFit In This Market?
  • 11.
    Let’s Start WithThem… 22M+ snow sport enthusiasts – 75% Ski or Board; 35% Ski and Board – 73% of snowboarders < 25 years of age What’s important to them: – “Their Crew” – Mobile technology – Authenticity – Adventure, risk taking Source: SIA RetailTrak Data 2010/2011
  • 12.
    Traditional Digital Marketing. SEO/PPC Click on our site We’re like you (image) Buy something…please. Opt-in to our marketing Continuous sales messages
  • 13.
    Trusnow Community IsA Golden Opportunity To Deviate From The Pack-- They Already Participate. 300,000+ Members
  • 14.
    Youth Marketing TrendsTo Leverage = A Promise ≠ Marketing Strategy How are you going to put me into this story that you’re telling? (It’s tough sledding if you don’t include them in the process) Source: Understanding Mobile Youth Culture Since 2001; slideshare.com
  • 15.
    Youth Marketing Trends SellThe Community Selling Social Values To Create Movements Promote The Influencers Marketing Is Creation (or the Death of Sponsorship) Source: Understanding Mobile Youth Culture Since 2001; slideshare.com
  • 16.
    Convergence Teeing UpA Big (Natural) Opportunity Youth Marketing Trends 300,000+ Members Marketing Technology
  • 17.
    A Community OfThem, For Them, About Them, By Them.
  • 18.
    Initially, Keep ANarrow Focus On Snow… Ski/Board ecommerce Community + ecommerce Chain Stores Broad Outdoors
  • 19.
    …And Play TheGame A Little Different trusnow Industry High Industry Importance Competitive Advantage Medium Low Price Brands Fulfillment Incentives Image Community Experience Industry Competes On
  • 20.
    How Do WeEnter The Community? Community Nurturing And Marketing Plan
  • 21.
    Marketing Strategy: Engage membersin the community with social/mobile technology to grow membership, daily site traffic, and sales. Product Nurture Community Marketing Technology
  • 22.
    Four Initial CustomerTargets Primary Customer Targets 1. Current Members Land Lovers Current Trusnow users 2. Your Friends, Friends Searchers Current members’ social connections Friends Secondary Customer Targets 3. Searchers Current Internet buyers not currently buying Members from trusnow.com 300,000+ 4. Land Lovers Primarily specialty store buyers that search internet in hopes of saving $’s
  • 23.
    Our Primary Tools Fluid Conversation
  • 24.
    For This ToWork, We Need To Remember That Social/Mobile Marketing Is Not Selling To Them. It’s About Giving Them A Reason To Buy.
  • 25.
    Primary Marketing Goals: Target Engage in the community 1 Current Members Invite their friends Strategy: 1. Nurture The Community Show them we’re committed to the community 2. Mobile/Social Plan 300,000+ Members Make it easy and rewarding for them to share 3. Social Cause Marketing Give them something to care about
  • 26.
    Primary Nurture The Community Target 1 1. Content Plan Mobile/Social marketing will require a large amount of content -- some user generated and some brand generated. Current Members Brand Content User Content • Preview of manufacturers • Photo/video uploads sponsored riders movies • Area information/conditions • Area snow reports • Best rides • Behind the scenes videos • New product teasers • Stories related to/about community members 2. Trusnow.com Enhancements/Upgrades • Prominently feature the community on the home page. • Live feed of community activity • Clear link to information about the community • Make it easy to join 26
  • 27.
    Primary Nurture The Community Target 1 3. Include Them In Your Business And Reward Participation Instead of this... Do this... Current Members We build your board Source board designs from the community, let the community vote, build the winning designs Instead of this... Do this... Rewards when friends join Reward members when their friends join -- daily, weekly, monthly winners. 4. Exclusive Member Opportunities • Exclusive product only available to Trusnow members • Enter to win the ultimate ride vacation • Special opportunities to save money on gear, lift tickets, etc. • Special event attendance 27
  • 28.
    Primary Nurture The Community Target 1 5. Get The Community Offline Trusnow Social Events Trusnow Riding Events Current Members Area Meet-Ups Trusnow Equipment Demo Days Find-a-Ride, Share-a-Ride 28
  • 29.
    Primary Mobile/Social Plan Target 1 The Most Effective Mobile/Social Campaigns Focus On Three Areas: Current Members 1. Convenience • Help people get things done easier • Offer tangible value 2. Context • Curate the most relevant local information • Help people find useful information in real time 3. Fun • Best way to change people’s behaviors • Provide fun in unexpected places and ways • Mix in delight, surprise, and reward to build and retain relationships source: slideshare, mobile trends -2011 - trending the future. 29
  • 30.
    Primary Mobile/Social Plan Target 1 Mobile App Like Vail’s Epic Mix That Allows Trusnow members Current Members to: • Share their adventures and information • Earn rewards points/recognition for sharing • Rate best videos, rides, airtime, etc. Real time ski area information, discounts, social Academy Real time local conditions, hazards, parking information from community members on the hill Share photos/videos from your (working title) day on the hill 30
  • 31.
    Primary Cause Marketing Target Show we’re committed to their passion by providing 1 opportunities for others to learn to ride. Special shopping days where Teach Someone To Ride Day Current Members % of sales donated... • One day a season where community members teach someone how to ride or ride better • Use TS Academy mobile app to share progress of riders - earn member points • Riders at locations all over the country ...to impaired/challenged (or globe) linked by common purpose. riders foundations • Provide special prizes (e.g., most 31 improved), product deals, etc.
  • 32.
    Primary Marketing Goals: Target Grow community through invites 2 Your Friends, Friends to join from current members Community Content 300,000+ 1. Member incentives to invite friends Community Content 2. Friend incentives to join Community Content 3. Sell the community value 4. Download Trusnow academy app. Invitation to join
  • 33.
    Secondary Marketing Goals: Target Make sure they find us Best prices and mitigate online purchase barriers Over deliver on service/fulfillment Sell the community and invite to join Searchers & Land Lovers Design A First-Class Shopping Experience... SEO/PPC Community content helps keep us in top ranks Rigorous SEO and Relentless focus on Multiple help avenues PPC plan to ensure online experience high rankings Live chat Save My Favorites (register to use) Links to help and info Show inventory “How to” videos levels
  • 34.
    Secondary Marketing Goals: Target Make sure they find us Best prices and mitigate online purchase barriers Over deliver on service/fulfillment Sell the community and invite to join Searchers & Land Lovers ...Over Deliver On Service And Fulfillment Make It Easy To Buy Communicate Often Rate My Experience Ensure secure Estimated ship time Provide an incentive purchase process to rate shopping Verify my order experience prior to ship Provide information Your order shipped and invitation to join the community Trained customer service agents
  • 35.
    Secondary Marketing Goals: Target Make sure they find us Best prices and mitigate online purchase barriers Over deliver on service/fulfillment Sell the community and invite to join Searchers & Land Lovers ...And Sell The Community.
  • 36.
    How Will WeKnow If It’s Working?
  • 37.
    Measurement Plan • KeyPerformance Indicators: – Community membership – Member visit frequency – Daily traffic/page visits – Facebook followers – SEO Ranks – Mobile uploads/activities • Business Measures – Conversion rate – Sales/average ticket – Returns
  • 38.
    Pro Forma Projections SiteTraffic Basis Daily Traffic Conversion Rate Avg Ticket Revenue/Day Buying Days Annual Rev 6000 0.75% $200 $9,000 265 $2,385,000 10000 0.75% $200 $15,000 265 $3,975,000 15,000 0.75% $200 $22,500 265 $5,962,500 20,000 0.75% $200 $30,000 265 $7,950,000 30,000 0.75% $200 $45,000 265 $11,925,000 40,000 0.75% $200 $60,000 265 $15,900,000 50,000 0.75% $200 $75,000 265 $19,875,000 Membership Basis Add 1 Active Total Conversion Annual Rev Members friend Active % Members Visits/Wk Visits/Wk Rate Avg Ticket Revenue/wk 39 weeks 300,000 600,000 50.00% 300,000 3 900,000 0.25% $200 $450,000 $17,550,000 400,000 3 1,200,000 0.25% $200 $600,000 $23,400,000 500,000 3 1,500,000 0.25% $200 $750,000 $29,250,000 1,000,000 3 3,000,000 0.25% $200 $1,500,000 $58,500,000
  • 39.
    Other Considerations • Gaming: Consider developing a mobile app game (e.g., Farmville - Farmers Insurance) that’s easily shared. • Advertising: Launch campaign on popular snow sport websites/magazines (maybe) and destination riding areas. • Member Swap Area: Ski swaps are a traditional part of the sport’s culture. Set up an online/ mobile swap site and charge a small fee to post used equipment.
  • 40.
    Down The Road? • Retail store designed around the values of the community. • A “Tru”snow experience • $2B specialty store sales in 2011
  • 41.
    Resources Needed • Community director • Web/mobile programmer • Digital graphic design • Customer service/live chat rep • Fulfillment (The House?)
  • 42.
    Action Plan Week 1 Trusnow audit, refine strategy/tactics, begin search for talent resources Week 2 Budget, marketing calendar, site revisions, mobile app development Week 3 Set up key measures, establish baseline levels Week 4 Begin content plan roll-out, engagement incentive offers
  • 43.