Client/Brand Analysis (Module 1)

Grainger is a leading distributor of industrial supplies, MRO equipment, tools, and materials. With access to over 1.5 million industrial supply products available online and in its print catalog, Grainger provides maintenance, repair, and operational solutions for businesses of all sizes. 1

Business Model and Growth Strategy Grainger has a strategy and business model to serve customers of all sizes and grow its industry-leading position. Grainger’s strategic priorities are to:

• Create unique value for different customers • Ensure effortless customer experience • Reduce cost • Help each other grow and succeed • Be responsible stewards2

Large customers want a multichannel model and high-touch service. Medium-sized customers want competitive pricing and a relevant product offer. Small customers tend to purchase similarly to consumers and value a simple, web-based solution to quickly identify and purchase the items they need at a competitive price. One of Grainger’s strongest competitive advantages is with large customers in North America. 3 These customers value onsite sales representatives, e-commerce, inventory management, and delivery capabilities, with increasing expectation of online sales. 4

One of Grainger’s key strategies for growth is its response to increasing online sales. Twenty years ago, Grainger debuted the first e-commerce enabled website in the MRO industry. Grainger continues to be an e-commerce leader. In 2015, 41 percent, or $4.1 billion, of Grainger’s revenue came from online channels, making it the 11th largest e-retailer in North America, according to Internet Retailer. 5 In Grainger's 2016 second quarter fiscal report (July 19, 2016), the company said e-commerce represented 46 percent of its total sales in the first half of 2016, up from 40 percent a year earlier. 6 According to Retail Info Systems News, Grainger.com now attracts over 9 million visitors each month, up from the 4.5 million monthly in 2014. 7

Online Presence Grainger has also embraced social media, with a presence on all major social media outlets, including Facebook, Twitter, LinkedIn, YouTube, Instagram, and Google+.

2015 U.S. Sales, Large and Medium Customers

Product Category Customer Category Safety and Security 18% Heavy Manufacturing 19% Material Handling 13% Commercial 16% Cleaning and Maintenance 10% Government 16% Metalworking 10% Light Manufacturing 13% Pumps, Plumbing, and Test Equipment 9% Contractor 11% Hand Tools 7% Other 7% HVAC 7% Retail 6% Electrical 6% Transportation 6% Lighting 6% Natural Resources 3% Fluid Power 4% Reseller 3% Power Tools 3% Motors 2% Power Transmission 2% Specialty Brands 2% Other 1%

With an estimated MRO market size of approximately $127 billion in 2015, Grainger holds 6% market share, with approximately 1,938,000 customers served.

Maintenance, Repair, and Operation (MRO) Industry in North America The MRO industry is going through dynamic change due to multiple economic challenges, global trends, and changing customer behaviors. Customers want highly tailored solutions with real-time access to information, and just-in-time delivery of products. Customers prefer not to stock infrequently used items, although the need is often urgent when that part is required. Companies are focused on reducing cost and becoming more productive. Businesses are ordering more products online, utilizing inventory management solutions, and choosing to have orders shipped or made available immediately through onsite services. This is particularly true for large customers, and these customer trends are most pronounced in the United States. 8

Industrial e-commerce is growing exponentially. More and more industrial suppliers, particularly in the MRO market, are starting to launch their own e-commerce sites. Modern Distribution Management reports that 70 percent of industrial distributors are in the process of developing e-commerce solutions. Despite the growth in industrial e-commerce, Internet Retailer estimates that there is still a $1 trillion B2B e-commerce market that remains untapped. The three North American giants in this space are AmazonBusiness, Fastenal, and Grainger. 9 Other major players in North American include Wolseley PLC, MSC Industrial Direct, HD Supply Holdings, Applied Industrial Technologies, and Wesco International, among many others. 10

Word Count: 750

The Robert Bosch Tool Corporation is a world leader in the design, manufacture, and sale of power tools, rotary and oscillating tools, accessories, laser and optical leveling and range finding tools, and garden and watering equipment. The Bosch Power Tools Division is the world market leader for power tools and power tool accessories. The core success factors are innovative strength and pace of innovation. Each year, Bosch launches more than 100 new power tools onto the market. 11 As its "invented for life" slogan indicates, Bosch is committed to making its customers' lives safer, more efficient, and more comfortable through their innovations and services. Each year, Bosch spends more than $5.7 billion, or 8% of its sales revenue, on research and development, and applies for over 3,000 patents worldwide. 12 Bosch Power Tools sets itself apart from its competition through its focus on engineering, innovation, product development, and quality. Bosch Power Tools are known for premium quality, durability, and reliability, with a warranty second to none. 13

Primary and Secondary Customers Bosch Power Tool’s primary customers, among large North American companies, are procurement specialists who rely heavily on secondary customers, who are the professional end users. They are in building, construction, remodeling, and demolition. Professional power tool users are builders, contractors, electricians, plumbers, craftsmen, woodworkers, and metalworkers. 14 They have straightforward but exacting needs; they want tools that are made well, are precise, work as expected, are dependable, are durable, and last a long time. Professional power tool users may be influenced by DIYers or other professionals who either have fierce loyalty to their brands, or conversely, who have little loyalty to a particular brand, considering Bosch quality synonymous with that of its main competitors: DeWalt, Milwaukee, Makita, and Hilti.

Customer Trends Professionals prefer power tools over hand tools, but demand from professionals is increasing with an increase in the global volume of construction, which is expected to grow by 70% and reach US$ 15 trillion by 2025, primarily in the United States, China, and India. Another major trend is the shift to cordless power tools, due to ease of use, performance advantages, and the introduction of Lithium-ion batteries, which are lightweight, highly efficient, and offer enhanced run time as compared to Ni-Cd batteries. 15

Brand Perceptions Perceptions of Bosch Power Tools varies. For instance, on protoolreviews.com, a profession power tool review site, Bosch power tools are rated highly, not only for quality, but also for safety. 16 On coptool.com, a professional power tool evaluation site, Bosch power tools are rated highly among the top competitors, Milwaukee, DeWalt, and Makita. Bosch sometimes rates slightly higher than its competitors, and sometimes rates slightly lower. There is definitely the perception that Bosch innovates quickly and has new and improved products released annually. 17 However, some perceptions are not as positive. The Festool Owners Group is a user forum for Festool tool owners. Festool is a German company, like Bosch, but Festool prides itself on its “Made in Germany” label. In a thread on “What is happening to Bosch”, many users complain about the dwindling quality of Bosch power tools that are now “made in Mexico with parts from China”. 18

SWOT Analysis

Online Presence Bosch Power Tools has embraced social media, with a presence on all major social media outlets, including Facebook, Twitter, LinkedIn, YouTube, Instagram, and Google+.

Word Count: 740

Strong heritage; German engineering and innovation; balanced portfolio; agility and speed to market; overall positive perception among primary customers; focus on health and safety aspects such as dust, noise, and vibration.

STRENGTHS WEAKNESSES

Slow productivity compared to competitors; lack of direct sales.

Increasing demand from professionals, particularly for cordless products; global growth in construction in both developed and developing world.

Perceived reduction in quality due to manufacture in China and assembly in other countries; competitors with similar brand perception (substitute products) winning on price; rising cost of raw materials.

OPPORTUNITIES THREATS

Consumer Decision Journey (Module 2) Streamlining the Decision Journey19

Assumptions • Consumers follow the classic journey; companies are attempting to guide consumers on a new,

compressed journey. • Mostly large North American companies, but also medium-sized companies. • Personas: Al the end user; Betty the buyer. 20 • Betty relies on Al to determine what to buy. Grainger has to influence both. • Betty likely visits Grainger directly to make bulk buys, based on recommendations from Al, on a

regular schedule. • Al likely stays with brands he knows and is happy is with, yet is willing to conduct his own active

evaluation to properly inform Betty. • Both Al and Betty could be influenced equally, yet differently, through emails and display ads to

weigh Bosch Power Tools more heavily among competitors the next time there is a need to purchase (trigger).

• Visitors to Boschtools.com could be Al or Betty (active evaluation), but Betty is a more likely visitor to Grainger.com (moment of purchase).

Question 1, Scenario 1 Audiences that visit Boschtools.com, look at a power tool, but do not visit Grainger.com

CDJ Phase: Active Evaluation

Rationale: Al considers Bosch Power Tools among his initial consideration set. Al knows that Bosch is always adding new and improved power tools to their product offering, and he wants to ensure that Betty purchases the latest and greatest power tools if, in fact, they are better. Al doesn’t visit Grainger.com because he got all the information he needed on Boschtools.com. He might also visit reputable third-party review sites, such as protoolsreview.com. Al will also likely visit the websites for DeWalt, Milwaukee, and Makita, and compare any unique features he notices between these brands.

Betty might also be doing regular research on the top competitors in power tools to see if there are any features or enhancements of one company versus the others that might make one competitor’s products a greater value than that of the other companies.

Question 1, Scenario 2 Audiences that visit Boschtools.com, look at a power tool, and then visit Grainger.com, log in to Grainger.com, and visit the power tools category

CDJ Phase: Active Evaluation (large companies); Moment of Purchase (medium companies)

Rationale: Betty the buyer at a large company is taking this next step in the Active Evaluation phase to (1) more easily view a particular power tool as part of the Product Family, because Betty is very familiar with Grainger’s “View Product Family” link on product pages21; and (2) take advantage of Grainger’s “Compare” feature that allows users to add a Product Compare page to more easily compare arrival dates, compliance notes, and technical specs22.

Buyers at medium-sized companies have done their research among the top competitors (Bosch, DeWalt, Milwaukee, and Makita); are pleased with what they saw on Boschtools.com, clicked the Buy Now call-to-action (CTA), chose Grainger.com as the reseller, logged in, and visited the product page for that particular Bosch power tool. This buyer has completed his active evaluation and is ready to purchase a Bosch power tool on Grainger.com.

Question 1, Scenario 3 Audiences that visit Boschtools.com, look at a power tool, and then visit Grainger.com, log in to Grainger.com, and visit the plumbing category but not power tools

CDJ Phase: Loyalty Loop

Rationale: End users who visit Boschtools.com, view power tools, visit Grainger.com, log in, and then also visit the plumbing category are end users who feel that Bosch e their needs for power tools. They are pleased with the Bosch power tools they have purchased on Grainger.com, have a need to purchase plumbing products, and are seeking the Bosch brand in the plumbing category.

Question 2 How can Grainger cross-sell/up-sell more Bosch products from categories beyond power tools to its existing customers?

CDJ Phase: Moment of Purchase

Rationale: Similar to Question 1, Scenario 3, Bosch/Grainger should have the goal to create customers who are so satisfied with the Bosch power tools they purchased on Grainger.com that those customers will consider other Bosch products either at the moment of purchase of power tools, or the next time they have a need to purchase. Bosch needs to ensure that Bosch power tools fulfill customer expectations. Grainger needs to offer Bosch products from other categories on Bosch product pages and on the “You May Also Like” screen23 after adding a Bosch power tool to the cart.

Question/ Scenario CDJ Phase Key Concern(s) Analyses Question 1, Scenario 1 (visit Boschtools.com, look at power tool, do not visit Grainger.com)

Active Evaluation 1. Customers are seeking new and improved Bosch Power Tools.

2. Customers are seeking new features of existing Bosch Power Tool products to differentiate them from competitors.

1. External referrers 2. Clickthrough

analysis from emails/display ads

Question 1, Scenario 2 (visit Boschtools.com, look at power tool, visit Grainger.com, log in, visit power tools category)

Active Evaluation (large company)

1. Customers need to easily compare Bosch power tools within the Bosch product family.

2. Customers need to easily compare Bosch power tools to competitors.

1. Multivariate testing (objective: post-click orders, post-view orders)

2. Click path analysis

Moment of Purchase (medium company)

Medium-sized customers have completed their active evaluation and need an easy purchase experience.

1. Macro-conversion rate

2. Per visit goal value

Question 1, Scenario 3 (visit Boschtools.com, look at power tool, visit Grainger.com, log in, visit plumbing category but not power tools)

Loyalty Loop Customers pleased with Bosch Power Tools need an easy experience to explore and purchase Bosch products in other categories on Grainger.com.

1. Search volume 2. VOC/brand

advocacy/NPS surveys

Question 2 (cross-sell/up-sell more Bosch products from categories beyond power tools to existing customers)

Moment of Purchase

Customers pleased with Bosch Power Tools need an easy experience to explore and purchase Bosch products in other categories on Grainger.com.

1. % spend increase per visit

Word Count: 1008 (Yes, I know the word count is high! I chose to elaborate on assumptions based on personas; and to include Question 2, which the assignment does not clearly indicate is supposed to be included, but I believe it is a 4th scenario.)

Marketing Analytics Plans Below are the concise marketing analytics plans for each scenario in Question 1 and for Question 2. Each plan focuses on a specific business objective, one or more key questions, and KPIs, data, and sources required to answer the key questions.

Scenario 1: Audiences that visit Boschtools.com, look at a power tool (for example a drill), but do not visit Grainger.com24

Business Objective Key Questions Data -> Sources Influence Consideration25 Which sites did customers visit prior to

Boschtools.com visit (place display ads on those sites)?

External referrer -> Boschtools.com web data; Google Analytics

Do new display ads on external sites increase clickthrough rate to Boschtools.com?

Clickthrough rate -> Boschtools.com web data

Do new display ads in emails increase clickthrough rate to Boschtools.com?

Clickthrough rate -> Boschtools.com web data

Scenario 2: Audiences that visit Boschtools.com, look at a power tool, and then visit Grainger.com, log in to Grainger.com, and visit the power tools category26

Business Objective Key Questions Data -> Sources Influence Consideration27 (large company)

Which display ads on Grainger.com were more effective in influencing consideration?

Multivariate testing (objective: post-click orders, post-view orders) -> Google Content Experiments

Do new display ads in emails from Grainger increase clickthrough rate to Grainger.com?

Clickthrough rate -> Grainger.com web data

Which pages did customers view before clicking Add to Cart?

Click path analysis -> Grainger.com web data; Google Analytics

Scenario 3: Audiences that visit Boschtools.com, look at a power tool, and then visit Grainger.com, log in to Grainger.com, and visit the plumbing category but not power tools28

Business Objective Key Questions Data -> Sources Grow Loyalty 29 How has consumer interest in Bosch

tools, per product category, trended over time on Grainger.com?

Impressions per Bosch product category -> Grainger.com web data; Google Analytics

Which consumer group is our strongest advocate?

VOC/brand advocacy/NPS surveys -> Qualaroo VOC Survey

Scenario 4 (Question 2): How can Grainger cross-sell/up-sell more Bosch products from categories beyond power tools to its existing customers?30

Business Objective Key Questions Data -> Sources Improve the Sales Process 31

Will customers purchase more Bosch products if Grainger adds Bosch suggestions to the “You May Also Like” screen32 after adding a Bosch tool to the cart?

% spend increase per visit -> Grainger.com web data; Google Analytics

Word Count: 490

1 “Grainger.com home page”, Grainger.com, accessed September 10, 2016, https://www.grainger.com/. 2 W.W. Grainger, Inc. Grainger Forward: 2016 Fact Book (Lake Forest: Grainger, 2016), 3. 3 W.W. Grainger, Inc. Grainger Forward: 2016 Fact Book (Lake Forest: Grainger, 2016), 2. 4 W.W. Grainger, Inc. Grainger Forward: 2016 Fact Book (Lake Forest: Grainger, 2016), 8. 5 W.W. Grainger, Inc. Grainger Forward: 2016 Fact Book (Lake Forest: Grainger, 2016), 10. 6 “Grainger Among Retailers With Most E-Commerce Distribution Centers”, Industrial Distribution, accessed September 11, 2016, http://www.inddist.com/blog/2016/09/grainger-among-retailers-most-e-commerce-distribution-centers. 7 “The 10 Retailers With the Most E-Commerce Distribution Centers”, Retail Info System News, accessed September 11, 2016, http://risnews.edgl.com/retail-news/The-10-Retailers-With-the-Most-E-Commerce-Distribution-Centers106667. 8 W.W. Grainger, Inc. Grainger Forward: 2016 Fact Book (Lake Forest: Grainger, 2016), 2. 9 “3 Industrial E-Commerce Leaders”, IndustrialMarketer.com, accessed September 11, 2016, http://www.industrialmarketer.com/3-industrial-e-commerce-leaders/. 10 “WW Grainger Inc”, Morningstar, accessed September 11, 2016, http://financials.morningstar.com/competitors/industry-peer.action?t=GWW. 11 “Boschtools.com home page”, Bosch Power Tools for Professionals, accessed September 11, 2016, https://www.boschtools.com/us/en/.

12“World of Bosch”, Bosch Power Tools for Professionals, accessed September 11, 2016, https://www.boschtools.com/us/en/footer/world-of-bosch/. 13 “Hangout 2-Bosch and Kevin Hartman”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/lecture/o6LBL/hangout-2-bosch-and-kevin-hartman. 14 “Hangout 2-Bosch and Kevin Hartman”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/lecture/o6LBL/hangout-2-bosch-and-kevin-hartman. 15 “8 Key Trends in Power Tools Market”, Future Market Insights, accessed September 11, 2016, http://www.futuremarketinsights.com/articles/power-tools-market. 16 “Bosch Flesh Detecting Saw Review – Reaxx Table Saw”, protoolsreview.com, accessed September 17, 2016, http://www.protoolreviews.com/tools/power/corded/saws/bosch-flesh-detecting-saw-reaxx/25923/. 17 “coptools.com Bosch category page”, coptools.com, accessed September 11, 2016, http://www.coptool.com/category/brands/bosch/. 18 “Topic: What is happening to Bosch”, Festool Owners Group, accessed September 11, 2016, http://festoolownersgroup.com/other-tools-accessories/what-is-happening-to-bosch/. 19 “Competing on Customer Journeys”, Harvard Business Review, accessed September 24, 2016, https://hbr.org/2015/11/competing-on-customer-journeys. 20 “Hangout 1 - Elizabeth Distel-Grainger”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/lecture/5tDqF/hangout-1-elizabeth-distel-grainger. 21 Example: “1/2" Cordless Hammer Drill, 18.0 Voltage, Battery Included”, accessed September 18, 2016, https://www.grainger.com/product/BOSCH-1-2-Cordless-Hammer-Drill-49AX80. 22 “Product Compare” page, comparing two Bosch hammer drills, accessed September 18, 2016, https://www.grainger.com/product/compare#compareSkus%3D49AX80%2C30RW44 23 Example: “1/2" Cordless Hammer Drill, 18.0 Voltage, Battery Included”, click Add to Cart to get the “You May Also Like” screen, accessed September 18, 2016, https://www.grainger.com/product/BOSCH-1-2-Cordless-Hammer-Drill-49AX80. 24 “Problem Statement”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/supplement/bNjMY/problem-statement. 25 “Lesson 2: Preparing for the Analysis Journey, Part 1”, Coursera, accessed September 18, 2016, https://www.coursera.org/learn/digital-analytics/lecture/487oL/lesson-2-preparing-for-the-analysis-journey-part-1. 26 “Problem Statement”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/supplement/bNjMY/problem-statement. 27 “Lesson 2: Preparing for the Analysis Journey, Part 1”, Coursera, accessed September 18, 2016, https://www.coursera.org/learn/digital-analytics/lecture/487oL/lesson-2-preparing-for-the-analysis-journey-part-1. 28 “Problem Statement”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/supplement/bNjMY/problem-statement. 29 “Lesson 2: Preparing for the Analysis Journey, Part 1”, Coursera, accessed September 18, 2016, https://www.coursera.org/learn/digital-analytics/lecture/487oL/lesson-2-preparing-for-the-analysis-journey-part-1. 30 “Problem Statement”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/supplement/bNjMY/problem-statement. 31 “Lesson 2: Preparing for the Analysis Journey, Part 1”, Coursera, accessed September 18, 2016, https://www.coursera.org/learn/digital-analytics/lecture/487oL/lesson-2-preparing-for-the-analysis-journey-part-1. 32 Example: “1/2" Cordless Hammer Drill, 18.0 Voltage, Battery Included”, click Add to Cart to get the “You May Also Like” screen, accessed September 18, 2016, https://www.grainger.com/product/BOSCH-1-2-Cordless-Hammer-Drill-49AX80.

Collect and Analyze Data (Module 3)

TASK 2: KPIs, Biases, Steps to Eliminate Bias

Scenario 11 Business Objective Key Questions KPI Influence Consideration2 Which sites did customers visit prior to

Boschtools.com? External referrers to Boschtools.com -> Boschtools.com web data; Google Analytics

Do new display ads on external sites increase clickthrough rate to Boschtools.com?

Clickthrough rate -> Boschtools.com web data

Do new display ads in emails increase clickthrough rate to Boschtools.com?

Clickthrough rate -> Boschtools.com web data

KPI Notes/Bias Assessment

• External referrers to Boschtools.com: Analyze the last 12 months of data to identify key external sites to place display ads. No sampling bias, minimal to no interpretation bias.

• Clickthrough rate to Boschtools.com: Bosch/Grainger 2017 email and display ad campaign. No sampling bias, minimal to no interpretation bias.

Scenario 23 Business Objective Key Questions KPI Influence Consideration4 (large company)

Which ads on Grainger.com were more effective in influencing consideration?

Multivariate testing (objective: post-click orders, post-view orders) -> Google Content Experiments

Do new ads in emails from Grainger increase clickthrough rate to Grainger.com?

Clickthrough rate -> Grainger.com web data

Which pages did customers view before clicking Add to Cart?

Click path analysis -> Grainger.com web data; Google Analytics

KPI Notes/Bias Assessment

• Subset of visitors from Boschtools.com to Grainger.com

• Multivariate testing (objective: post-click orders, post-view orders): Bosch/Grainger 2017 email/display ad campaign. No sampling bias, minimal to no interpretation bias.

• Click path analysis: Analyze and interpret which pages influence Cart adds. No sampling bias, minimal to no interpretation bias.

Scenario 35 Business Objective Key Questions KPI Grow Loyalty 6 How has consumer interest in Bosch

tools, per product category, trended over time on Grainger.com?

Impressions per Bosch product category -> Grainger.com web data; Google Analytics

Which consumer group is our strongest advocate?

VOC/brand advocacy/NPS surveys -> Qualaroo VOC Survey/NPS Survey

KPI Notes/Bias Assessment

• Impressions per Bosch product category on Grainger.com: Analyze the last 12 months for a baseline to compare to the next 12 months. No sampling bias, minimal to no interpretation bias.

• VOC/brand advocacy/NPS: Conduct surveys prior to and after email/ad campaign. NPS surveys are limited by non-response bias. Those who choose to answer the survey are not necessarily representative of the customer population. Survey responders are more motivated to take the time to answer the survey than the non-responders; therefore, this group tends to contain a higher proportion of people who have had either very good, or more often, very bad experiences. 7 NPS surveys should be offered to all customers to increase response rate, but results should not be considered the final answer in customer satisfaction, but should be considered along with other customer satisfaction surveys. 8 Brand advocacy surveys can be limited by sampling bias, survey methodology bias, and interpretation bias. Qualaroo is respected in the industry for helping businesses uncover customer insights, and they provide survey recipes9 and best practices10 to minimize bias and maximize insights.

Scenario 411 Business Objective Key Questions KPI Improve the Sales Process 12

Will customers purchase more Bosch products if Grainger adds Bosch suggestions to the “You May Also Like” screen13 after adding a Bosch tool to the cart?

% spend increase per visit -> Grainger.com web data; Google Analytics

KPI Notes/Bias Assessment

• % spend increase per visit: Collect Spend for customers who buy Bosch power tools to Cart and add additional Bosch products from other categories that are presented on the “You May Also

Like” screen. Compare to Spend among customers who purchased Bosch power tools prior to implementation. No sampling bias, minimal to no interpretation bias.

Word Count: 748

1 “Problem Statement”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/supplement/bNjMY/problem-statement. 2 “Lesson 2: Preparing for the Analysis Journey, Part 1”, Coursera, accessed September 18, 2016, https://www.coursera.org/learn/digital-analytics/lecture/487oL/lesson-2-preparing-for-the-analysis-journey-part-1. 3 “Problem Statement”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/supplement/bNjMY/problem-statement. 4 “Lesson 2: Preparing for the Analysis Journey, Part 1”, Coursera, accessed September 18, 2016, https://www.coursera.org/learn/digital-analytics/lecture/487oL/lesson-2-preparing-for-the-analysis-journey-part-1. 5 “Problem Statement”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/supplement/bNjMY/problem-statement. 6 “Lesson 2: Preparing for the Analysis Journey, Part 1”, Coursera, accessed September 18, 2016, https://www.coursera.org/learn/digital-analytics/lecture/487oL/lesson-2-preparing-for-the-analysis-journey-part-1. 7 “How to Avoid The Evils Within Customer Satisfaction Surveys”, iSixSigma.com, accessed September 25, 2016, https://www.isixsigma.com/methodology/voc-customer-focus/how-to-avoid-the-evils-within-customer-satisfaction-surveys/. 8 “REPORT: The Pros & Cons of Net Promoter Score”, Customer Satisfaction Strategy, accessed September 25, 2016, http://customersatisfactionstrategy.com/netpromoterscore.html. 9 “Qualaroo Resources”, Qualaroo, accessed September 25, 2016, https://qualaroo.com/resources/#recipe. 10 “Qualaroo Resources”, Qualaroo, accessed September 25, 2016, https://qualaroo.com/resources/#best_practice. 11 “Problem Statement”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/supplement/bNjMY/problem-statement. 12 “Lesson 2: Preparing for the Analysis Journey, Part 1”, Coursera, accessed September 18, 2016, https://www.coursera.org/learn/digital-analytics/lecture/487oL/lesson-2-preparing-for-the-analysis-journey-part-1. 13 Example: “1/2" Cordless Hammer Drill, 18.0 Voltage, Battery Included”, click Add to Cart to get the “You May Also Like” screen, accessed September 18, 2016, https://www.grainger.com/product/BOSCH-1-2-Cordless-Hammer-Drill-49AX80.

Collect and Analyze Data (Module 3)

TASK 3: Analysis Summary

Scenario 1: Audiences that visit Boschtools.com, look at a power tool, but do not visit Grainger.com1

For scenario 1, Bosch will conduct an exploratory analysis to determine which sites customers visit prior to visiting Boschtools.com. These will be the external sites where Bosch will focus spend on display ads. After Bosch produces display ads, Bosch will place them on these sites, and use them in an email campaign. Bosch will measure CTR on both, with a target CTR of 0.04% for display ads on external sites, and 0.06% for display ads in targeted emails.

0.00%

0.01%

0.02%

0.03%

0.04%

0.05%

0.06%

0.07%

External site ads Email ads

CTR Goal

Scenario 2: Audiences that visit Boschtools.com, look at a power tool, and then visit Grainger.com, log in to Grainger.com, and visit the power tools category2

For scenario 2, Grainger will produce multiple display ads and place them on the Bosch power tools landing page (https://www.grainger.com/category/bosch/ecatalog/N-1z13mrn?cm_sp=CS_Banner-_-PO_L1_PowerTools-_-BrandBannerBosch). Grainger will use Google Content Experiments to determine which ads are the most effective in influencing consideration, as measured by post-click orders and post-view orders. Grainger will then run the most effective ad over the course of their 2017 Bosch ad campaign. Grainger will also use their own web data to conduct CTR and click path analysis to analyze effectiveness of email/display ad campaign and which pages customers view before adding Bosch power tools to their cart.

Example of Google Content Experiments Report3

Scenario 3: Audiences that visit Boschtools.com, look at a power tool, and then visit Grainger.com, log in to Grainger.com, and visit the plumbing category but not power tools4

For Scenario 3, Grainger will analyze Impressions per each Bosch product category over the last 12 months to assess consumer interest over time, and to establish a baseline to compare to the 2017 ad campaign. Grainger will also collaborate with Qualaroo to conduct VOC/brand advocacy surveys and NPS surveys, both before and after the ad campaign. Surveys will be distributed through Grainger.com, email, and social media channels.

Example of Grainger Impressions per Bosch product category5: The graph below is for illustration purposes only. It displays total impressions, not impressions by product category.

Value of Voice of the Customer, image Avinash Kaushik6

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Impressions

Scenario 4 (Question 2): How can Grainger cross-sell/up-sell more Bosch products from categories beyond power tools to its existing customers?7

For Scenario 4 (Question 2), Grainger will analyze historical Spend per visit for customers who bought a Bosch power tool over the past 12 months. Throughout the duration of the Bosch/Grainger email/ad campaign, Grainger will modify its “You May Also Like” screen after customers add a Bosch power tool to their Cart. Grainger will present only Bosch products on the “You May Also Like” screen, including other power tools and also Bosch products from other product categories. The goal is to increase Spend per visit by 10%.

Example of % Spend Increase

Word Count: 533

1 “Problem Statement”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/supplement/bNjMY/problem-statement. 2 “Problem Statement”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/supplement/bNjMY/problem-statement. 3 “Google Content Experiments: Track Progress”, Google, accessed September 25, 2016, https://support.google.com/analytics/answer/2365329?hl=en&ref_topic=1745208. 4 “Problem Statement”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/supplement/bNjMY/problem-statement. 5 Grainger-Bosch-Capstone-Reporting data Excel file, Coursera, accessed on September 25, 2016, https://www.coursera.org/learn/digital-marketing-capstone/supplement/YKQhw/module-3-overview. 6 “Voice of Customer”, Qualaroo, accessed September 25, 2016, https://qualaroo.com/voice-of-customer/. 7 “Problem Statement”, Coursera, accessed September 11, 2016, https://www.coursera.org/learn/digital-marketing-capstone/supplement/bNjMY/problem-statement.

$0.00

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

$1,600.00

2016 Spend

2017 Spend