Digital Marketing Plan: Increasing Bosch Power Tools Sales on Grainger.com by 10 Percent

Prepared by: Michael Bitanga July 16, 2016

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GRAINGER

TABLE OF CONTENTS

Proposal Section Pages

Executive Summary 3-6

Consumer Decision Journey (CDJ) 6-9

Data Collection and Analysis 9-13

Channel Strategy 14-16

Test and Control Plan 16-18

Works Cited 19-23

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GRAINGER

EXECUTIVE SUMMARY

Objective

Grainger is looking to increase the sales of Bosch Power Tools on their website by 10%. This consolidated digital marketing plan will help Grainger achieve this goal. Grainger will have to look at three scenarios for their customers and how they contribute to sales on the Grainger website.

Scenario 1: Audiences visit BoschTools.com, look at a power tool, but do not make their way to Grainger.com.

Scenario 2: Audiences visit BoschTools.com, look at a power tool, and then visit Grainger.com. They log into Grainger’s site, and proceed to visit the power tools category.

Scenario 3: Audiences visit BoschTools.com, they look at a power tool, and then visit Grainger.com. They log into Grainger’s site, and visit the plumbing category and not the power tools page.

Goals Grainger will be looking to increase their sales of Bosch Power Tools on their website through improving their display ads and email marketing. The positioning of the Grainger brand selling Bosch Power Tools will be that of an efficiently engineered provider of high-quality, durable tools and accessories. Grainger will promote their ease of use, especially with their eProcurement and KeepStock systems. Display ads will promote Bosch Power Tools and Grainger together, using content that represents both brands well. Native display ads will also be in use for a more organic draw of procurement officers and end-users.

Project Outline

• Analysis of traffic and bounce rate on both the Bosch Tools and Grainger websites • Research task completion rate of customers on Grainger • Compare conversion rate vs. conversion rate with email incentive • Evaluate repeat customer rate and loyal customer rate • Target procurement officers and end-users with specified display ads to advertise that Bosch Power Tools are

sold on Grainger • Influence consideration through email marketing with discount incentives and email registry suggestions • Grow loyalty for long-time customers and repeat customers with social media and email surveys

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CLIENT ANALYSIS

Grainger

There are three different personas that place orders to Grainger: small business owners, technicians in medium-sized businesses, and large companies. Most of their customers are contracted to purchase products at a negotiated discount price (Grainger).

The growth strategy is to sell every type of product to various types of customers. The target segment is dictated by a specific situation of when a customer needs products quickly and hassle-free. Grainger refers to this as “speed and convenience,” and they earn brand loyalty by living up to that motto (Heller). They want a little revenue out of every consumer.

Online Presence

Grainger has a solid online presence; most of their traffic comes from search engines, at 21.50% (Alexa ). Their daily page views per visitor is 4.33 and the daily time that’s spent on the Grainger site is 4:38 (Alexa). They have a total of 3,840 sites linking in (Alexa). Grainger’s website global ranking is 5,190, and in the United States they are ranked 1,230 (Alexa).

Customer Purchasing Patterns

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Construction is expected to grow 70%, therefore there’s an expected resurgence in the demand for power tools from professionals (8 Key Trends). This is directly linked to the resurgence in the housing market. Additionally, cordless power tools are outpacing hand tools, so the Bosch Power tools that Grainger carries could have increased sales based on this expected pattern. There’s also a DIY trend that is gaining traction, which can also help in the goal of a 10% sales increase of Bosch Power Tools on the Grainger website (8 Key Trends).

They have reduced the number of contacts they have via e-mail; however, they have refined their targeting (Zaroban). The contacts that visit their site more often will be the ones getting more content, as they are more interactive with the website, and are more likely to be influenced by e-mail marketing.

Bosch Power Tools

The Bosch brand has a reputation of engineering excellence. This has made them become the world leader in design, manufacturing, and sales of their quality power tools. Bosch lives by the following motto: “innovation today ensures business tomorrow” (Bosch Tools).

Problem Statement

To reiterate, the goal of this digital marketing plan is to increase the sales of Bosch Power Tools on Grainger’s website by at least 10% in a specific year. The problem at hand is in finding the marketing strategies that will accomplish that goal. More specifically, Grainger wants to get this done through

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improvements in email marketing and display ads. Should Grainger’s quality service and ease of use with ePro advantage be emphasized in the email content and display ads to the procurement officers? What should Grainger do to improve loyalty and maintain their long-time customers, as well as transition repeat customers into the loyalty loop, and how should they project these improvements in display ads and email content? Will projecting email registry, along with conducting surveys for service improvement, allow Grainger to maintain customers?

CDJ Three Scenarios and their relevant CDJ phases

Scenario 1: Audiences that visit BoschTools.com look at a power tool, but do not visit Grainger’s site

The consumer may be in the initial consideration phase, and may have landed on the Bosch Tools page, looking for a specific tool. They are familiar with Bosch Tools; however, they do not recognize the partnership they have with Grainger. Adjustments in consumer-driven marketing would be beneficial (Court).

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Business objective:

In this scenario, the main business objective is to build awareness that Bosch Power Tools are sold on Grainger’s website. In addition, both positive reputations of each brand should be projected through the email marketing and display ads. Display ads should be targeting procurement officers to allow them to see the unity of Bosch Power Tools and Grainger, so that procurement officers can make the jump. This would work well with native display ads, giving a more organic feeling, so that Grainger would be visible as “sponsor content” (Copyblogger).

Scenario 2: Audiences that visit BoschTools.com look at a power tool, visit Grainger’s site, log in, and visit the power tools page.

Here, the consumer is in the active evaluation phase. They are most likely logged in and are analyzing the inventory of the provider. The bounce rate is a factor because no purchases are made (Kaushik, 51). The procurement officers in this active evaluation phase are checking to see the quality of Grainger’s power tools category, as well as the diversity .They are looking to see the ease of use of Grainger’s site and whether or not Bosch Power Tools will satisfy the needs of the end-users.

Business Objective:

For this scenario, the main business objective should be to influence consideration through email marketing. Primary or secondary customers that visit the power tools category on Grainger’s site may not be getting to the moment of purchase phase of the CDJ because they are abandoning shopping carts. Procurement officers and end-users doing so should be retargeted with display ad incentives or email content that comes with an incentive. Retargeted users are 70% more likely to convert (Stec).

Scenario 3: Audiences visit BoschTools.com, look at a power tool, and visit Grainger’s site. They log in to Grainger, and visit the plumbing category, but not the power tools page.

The consumer is either in the active evaluation phase or they might also be in the loyalty loop. They may be evaluating Grainger’s brand as a whole, and what they have to offer. Loyal customers come in two variations: active and passive (Court). Passive loyal customers will be more than likely to look at competitors, and may be using Grainger as a placeholder in case they find something better.

Business Objective:

The main business objective here is to grow or maintain loyalty. Email surveys and social media campaigns would be effective, especially if procurement officers are invited to become brand ambassadors. Additionally, email surveys can be used for honest feed back, aiding in the loyalty loop (Kelley).

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Suggested Analysis: Scenario 1

• Analysis of traffic and time spent on the Bosch Power Tools page

• Analyze bounce rate of Bosch Power Tools page

This will allow a deeper look into how much time the Bosch Power Tools page is holding the attention of a procurement officer. Successful elements of display ads on the Bosch Power Tools page can be transferred to the Grainger site to help increase sales and also project a sense of unity between the two companies.

Suggested Analysis: Scenario 2

• Research the task completion rate of procurement officers and end-users

• Research conversion rate vs. conversion rate with email incentive

Particular email marketing approaches may effect the amount of abandoned shopping carts. It is pivotal to research the effectiveness of email marketing and its relation to task completion.

Suggested Analysis: Scenario 3

Scenario Phase Concerns

Scenario 1 Initial Consideration Primary customers are not triggered by any display ads or content to transition to the Grainger website.

Scenario 2 Active Evaluation Procurement officers are abandoning shopping carts. They may also be in post-purchase and are re-evaluating their product’s performance against information in the online description.

Scenario 3 Activity Evaluation/ Loyalty Loop

Customers may be looking at multiple procurement purchases and may not have been satisfied with a previous power tools purchase. They may also have found a better power tools provider.

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• Determine repeat customer rate

• Determine loyal customer rate

This will help in measuring loyalty improvement over a period of time. A customer that makes three or more purchases is 54% more likely to make another purchase (McEachern). Proposed strategies for email marketing and display ads can be tested against this notion.

Data Collection and Analysis Key Data Sources to Be Collected For scenario 1, the key data will be clickstream analysis. User activity is able to be rendered, which includes where the viewer typically goes, depending on the page they are currently on. What viewers click on, and how that movement leads to further web activity will help in leading to data about what pages are more successful in transitioning viewers to the Grainger website (Technopedia). The Bosch Power Tools page should be analyzed to see if certain paths from the Bosch Power Tools page are more successful pathways to Grainger’s site.

Key Questions Data Types Source of Data

Scenario 1 Are primary and secondary customers aware that Grainger carries Bosch Power tools?

- Clickstream traffic - Desktop/ mobile

search activity

- Google Trends- Google AnalyticsYahoo! Web Analytics

Scenario 2 What’s our retention strategy?

- conversion rate- bounce rate

- Fireclick - Google Analytics

Scenario 3 Is customer loyalty solid and would repeat customers advocate for Grainger?

- Voice of customer data

- Brand advocacy surveys

- iPerceptions - Google Customer Surveys

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In scenario 2, Grainger needs to look at the conversion rate data. This data will aid in measuring the potential amount of visitors that are performing the desired task of completing a purchase. Procurement officers are abandoning their shopping carts or they aren’t clicking to solidify a purchase at all on the power tools page. Grainger should analyze the shopping cart abandonment rate so that it can help in creating the proper display ads to influence purchases that are only considered and not acted upon. The conversion rate should be broken down by types of visitors and intent (Chaffey).

For scenario 3, the voice of customer data should be examined. This measure the wants and needs of the customers, and allows improvement of the loyalty loop. Grainger should acquire this data in a variety of ways, including surveys, customer specifications, and complaint logs. Real-time monitoring of the voice of customer data is ideal so that Grainger can adapt to obstacles and see patterns in their loyalty loop (Qualtrics).

Data KPIs Data Sources

Scenario 1 -clickstream analysis-clickpaths -times spent-most frequently viewed pages

-Traffic sources- Channel grouping

-Google Analytics

Scenario 2 -conversion rate-shopping cart abandonment rate

-Bounce rate-Average session duration by channel

-Webtrends -IndexTools

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Bias Elimination Confirmation bias may be a factor for scenario 1. Assuming that current Grainger and Bosch customers are not interested or do not know about the partnership of Grainger and Bosch may lead to the belief that current efforts aren’t working (MarketingLand). What display ads are currently up and running? Which ones are successful? Which ones aren’t? Perhaps some displays ads or even parts are effective. Solid email incentives may be going to spam mail or may not be clicked on due to weak subject lines.

Eliminating Bias for Scenario 1:

• Analyze the paths from Bosch Tools page that are leading people to Grainger’s site

• Find what works for the current display ads, especially in terms of leading viewers to Grainger

• Research the number of unique visitors on Grainger’s site that are coming from links on the Bosch Power Tools page

There’s a possibility in having bias through assuming that the duration of the session is directly linked to the interest of the consumer. Short times sessions could mean that the consumer knows what he/she wants, and transitions quickly to the check out process. Spending a long time on a certain page doesn’t necessarily mean that the page/channel is more effective in leading viewers to make a purchase.

Eliminating Bias for Scenario 2:

• Checking other pages to see if certain display ads are working elsewhere

• Find the most effective path to checkout (check all pages)

• Calculate duration of time spent on power tools page and the relation to transaction percentage

There is also the bias of stereotyping customers. The focus might be more on consumers that make multiple purchases, but break their loyalty loop and disappear. Consumers that are consistently making purchases might be overlooked or given less attention.

Eliminating Bias for Scenario 3:

Scenario 3 -voice of customer data-unique visitors -returning visitors

-Conversion rate by channel-New vs. Returning visitors

-Google Analytics-Clicky

Data KPIs Data Sources

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• Create email incentives for consistent consumers

• Calculate conversion rate of returning visitors to measure loyalty

• Check conversion rate of consumers that leave power tools page to check for overall loyalty to Grainger

Type of Data Analysis and KPIs

By looking into the clickstream analysis data, especially in terms of what pages are viewed and by who, significant insights can be developed and used specifically for procurement officers and end-users. Measuring the KPIs and categorizing the analysis as inferential, exploratory, descriptive, predictive or causal will also help create the structure for increasing the purchases of Bosch Power Tools on the Grainger website.

The click-through rate (CTR) can also be tracked as a KPI to analyze the relevancy of specific display ads. This could influence the creation of new display ads that target procurement officers at the ideal time and on the right places on the page.

The conversion rate and shopping cart abandonment rate can be measured for certain KPIs. This includes Cost Per Acquisition (CPA), and repeat visits. By analyzing this data, the step in the process of a transaction that leads to cart abandonment may be determined. This will allow for the development of criteria for specific placement of display ads. Grainger should also take a look at Macro and Micro- conversion rates on email opens.

Looking at the voice of the customer data, along with unique and returning visitors, Grainger could mine for customer sentiment, feedback, and influences in a non-biased manner (TouchCommerce). Display ads and email marketing can be monitored through VoC for actionable market insights.

Benchmarks

In order for Grainger to achieve the goal of a 10% sales increase for Bosch Power Tools on Grainger’s website, certain benchmarks need to be met:

• The bounce rate needs to be below 55% as the average is 41-55% where anything below a 40% is excellent (Peyton).

• The Click to Open rate (CTOR) for email ads needs to be at least 10.6% which is the average for business supplies/ services (MailerMailer).

• B2B CPA average needs to be at $38.54 (SearchEngineLand). • Conversion rate should be above 2.35% which is the median (WordStream).

Through Grainger’s utilization of display ads and email marketing, they can increase their sales of Bosch Power Tools on their site. Looking at click-through rate data and the KPI of traffic sourcing will help Grainger to gain insight on successful aspects of display ads to promote Bosch Tools on the Grainger site. Conversion rates and CPA analysis can help in gaining insight for the criteria needed for display ad placement. Finally, the VoC data will help create effective email incentives and marketing through

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catering to consumer needs. This type of use of this data will help with creating or recreating display ads and using email marketing to increase Bosch Power Tools sales on Grainger, as well as up-sell other products on the Grainger site.

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Bounce Rate

CTOR

CPA

Conversion Rate

0 17.5 35 52.5 70

Benchmarks for Grainger Average High

Channel Strategy Email and Display Strategy

Email Marketing

Create content procurement officers would read, answering the question “Why should we buy Bosch Power Tools through Grainger?” Identifying the correct content formula for procurement officers, as well as separate formula for end-users, is the key to ideal advertising (Act-on).

• Tone: informative and relative • Visual: combines Grainger’s logo with Bosch Power Tools visual • Content should be scannable with bullet points and appropriate spacing between categorized

chunks of information • Include incentive to check out Bosch Power Tools on the Grainger site (example: 15% off your first

purchase) • Invitation to join email registry for product alerts and discounts

Display Ads: Bosch Power Tools and Grainger Partnership

The display ads need to show that Bosch Power Tools are being sold on Grainger’s site, while still promoting Bosch’s brand. The display ads should make the association that Bosch’s reliability extends to their relationship with Grainger, so that Bosch’s viewers/customers may put their trust in the Grainger brand. Current customers, who may not be in the loyalty loop, have to be targeted with insurance that Grainger is consistently efficient and reliable.

• Promote Bosch’s brand essence of innovative tools with versatility, ease of use, and performance (Bosch).

• Utilize native display ads on Bosch website to promote sales on Grainger—have the focus of these native ads be on Bosch’s brand essence to make it feel organic, but add a link to Grainger’s site

• Display ads should be targeted to procurement officers on social media, mainly Facebook and Twitter, along with review sites for businesses

• Visuals should include Bosch Power Tools along with the Grainger logo, touting Grainger’s reputation of being the 13th largest e-retailer in the U.S. and Canada (Pressroom).

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Email Content Strategy: Abandoned Shopping Carts or Contemplating Purchase

Visitors that have abandoned shopping carts may have made past purchases, and there are the visitors that are actively evaluating the purchases but are hesitant to complete it. The content of the email must address the two types of customers. Procurement officers can be emailed to request brand ambassadorship for Grainger.

• Tone: professional and caring—promote willingness to adapt to their preferences • Provide necessary details about ease of business through Grainger’s eProcurement system • Make Grainger Customer Care team easily accessible for additional assistance • Promote innovation and durability of Bosch Power Tools with a 1-2 minute video in the email: Why

Choose Bosch? • Promote reliability and ease of use of Grainger • Provide a call to action by asking how Grainger can help with any discrepancy or hesitation with the

transaction • Email a coupon incentive to repeating customers and a quick survey on how Grainger can improve,

as well as what they’re doing right

Display Ads: Advertising Bosch Power Tools Sold on Grainger

Bosch Power Tools has a reputation for creative, reliable, and durable tool. This should be promoted through a short video that mixes visuals and slogans found on the site. This short video should integrate the web’s content to form a symbiotic relationship of the owned media. (Ciampa). The display ad visuals should promote reliability of both Grainger and Bosch Power tools, and how it makes sense that they are a team, creating an unbeatable duo.

• Bosch Power Tools and Grainger should be promoted as companies that fit together with the glue of product/ service reliability and customer care

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Find all Bosch Power Tools at exceptional prices on Grainger.com: the 13th largest E-retailer in the U.S.

• Video content should be a continuation of the content on the site, with emphasis on communication with customers, and continuous efforts to improve services and products

• Go for emotional triggers in display ads: Example: “The right tools are needed to be the build something that lasts”—Bosch Power Tools (Sagin)

• Promote Grainger’s reliability as well: Example: “The best tools for the job are sold on the site with the best service”

The right tools are needed to be the build something that lasts Bosch Power Tools are sold on Grainger.com

Test and Control Plan Primary Research

• In order to check on the stability of the loyalty loop and find ways to improve the UX in order to increase the percentage of completed transactions, surveys are necessary. Open-ended questions should be used to avoid bias in the findings.

• Online monitoring, specifically on Facebook, is also necessary research. Through social media marketing, Grainger can search for sentiment and key words for email content, as well as slogans to go along with the display ads that will reinforce the loyalty loop.

• Utilization of web analytics is also beneficial to the Grainger campaign of Bosch Power Tools. This will allow analysis of traffic sources, in order to pinpoint where web traffic and referral traffic is coming from. This helps in display ad placement.

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Tools to use:

1. Google Analytics: With Google Analytics, Grainger can keep track of which online campaigns bring in more traffic, where most loyal visitors are located, and track site searches to see what people are searching for in terms of Bosch Power Tools. Display ads can then showcase the most popular power tools.

2. Survey Planet: This can help in gauging employee satisfaction, and analyzing significant issues, so that they’re addressed in email marketing. Improvements may also be advertised. Product feedback can also be analyzed for degree of satisfaction, which can be used in marketing improvements.

3. Google Alerts/ IFTTT: Updates on products, and news on competitors can help in the content creation for emails based on the various scenarios. It can also help with the content to go along with visuals in display ads.

Secondary Research

• Search reputation of Grainger’s site to help in forming content for emails and display ads. This can be done through an Advanced Google Search.

• This allows Grainger to see current advantages: easy reorder, bulk ordering, sharing of products and details, and paperwork integration.

• Nielsen.com can be used for current customer insights. This can help in measuring or getting an idea of what types of display ads are getting high returns, which will help in creating display ads for Grainger and Bosch Power Tools.

• Use Google Scholar to research journals or articles on display ads or email marketing strategies. For example, one scholarly journal dives into the topic of display ads, in relation to the user’s profile. Grainger can implement current display ad strategies or utilize the latest insights to help shape their display ads.

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Testing Effectiveness

Grainger should test different SEO keywords based on the location of primary and secondary customers on the CDJ. The groups should be mall sample sizes of about 200-300 people that are chosen randomly for accurate results (Kissmetrics). Only a few items from the list should be tested at a time via email. For example, call to action, chosen key words, and subject lines.

For display ads, Grainger should test out a small sample size of people interacting with two variations of the display ads. Version A should be the one based on pushing for a 10% increase of Bosch Power Tools on Grainger, and Version B being based on what Grainger is currently doing to influence the purchase of Bosch Power Tools. An MROC (Market Research Online Community) can also be used for more detailed information and a bias reduction.

Word Count: 3,718

Tools For Testing

Analysis Measuring Success

Sample Size

Email Marketing - Campaign Monitor

- MailChimp- Active

Campaign

- Open rate- Click-through

rate- Conversion

rate

- Higher than historic open rate

- Increase in conversion rate

- 200-300- Chunk into groups for different versions of email content

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Tools for Testing Analysis Measuring Success

Size

Display Ads -Waggle - Power Decisions Group

- Sources of information used as reference by procurement officers

- business decision maker attitudes

- Novel ideas/feedback from community

- Discussion of ideas presented

- Response to visuals + calls to action

-25-75 engaged members- Different MROCs for different scenarios

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