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eCommerce@Ogilvy's presentation to the AdForum
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The eCommerce locust swarm
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“It’s going to get harder and harder to justify the retail store market. The model has this fundamental problem where every store has to have it’s own inventory, and every store is a warehouse.”
- Marc Andreessen
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eCommerce sales are the only bright spot in a dull retail marketplace
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ImminentOnline Penetration by Category
30-50% 20-30% <20%
RIP: CompUSA, Blockbuster, Hollywood Video, Tower Records
Eye of the Storm: Best Buy, Barnes & Noble, HHGregg, Gamestop
Clouds Gathering? Bed Bath & Beyond, Hallmark, Staples, OfficeMax, Toys ’R’ Us, Babies ’R’ Us
Source: Forrester, Morgan Stanley Research
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Customer purchase journeys have changed
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More than just a cart…
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eCommerce requires business transformation
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eCommerce@Ogilvy
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Multi-channel digital customer experienceA multi-channel digital ecosystem of engagements, digital assets, browsing/shopping experiences and campaigns tied to a commerce platform.
Digital Agency of RecordRedesign and development of all customer experiences across the ecosystem, including display ads, campaigns, BA.com’s flight booking system, and social media integration
eCommerce redesign, customer care, integrated marketingWebsite redesign including eCommerce, customer care, and self-service portal with electronic bill pay / presentment, as well as integrated marketing – both on- and offline.
eCommerce redesignGlobal eCommerce rollout to 42 markets, m-commerce custom apps, loyalty rewards program, and creation/delivery of all digital assets and content.
Client What we did with them
Data-driven CRM solution, integrated campaignNew CRM program built around a mother’s pregnancy ‘journey.’ Comprised of engagement communications early in her pregnancy supported by trigger communications delivering timely, relevant information to drive behavior at key decision points. Notably higher email open and click through rates.
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Ogilvy’s eCommerce work
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Product innovation & digital integrated business/experience modelDigital business model development and multi-channel digital services allowing customers to purchase, manage and learn about products via web or smartphone.
Consumer-driven digital community platformThrough consumer-driven sharing, IKEA is positioned as a pioneering partner in helping consumers make their homes, communities and world a better place. Program included content strategy, web site and mobile experience design and partnership with O You.
Client What we did with them
eCommerce digital storefrontEvolution of the whole eCommerce site to include better customer engagements across the experience through integration with personalization engine, social media, rating/reviews, recommendations and dynamic content offering.
Multi-channel communication strategy and analytics programComplete redesign of the web and mobile sites and rewards program. Included strategy to utilize data to trigger real-time activity and a ‘lifecycle’ communication strategy.
eCommerce value proposition & business case developmentConsultative services for overall development of BAT’s eCommerce value proposition with business case justification based on conducted research to better understand current state, customer needs, and market landscape.04/07/2023
Ogilvy’s eCommerce work, con’t
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Build
Partner
Acquire
The right talent:• eCommerce practice lead• Account Leads with eCommerce experience• Business Strategists with eCommerce experience• Program Managers with eCommerce experience
eCommerce consulting firms• Focus on high-level business strategy only• No desire to manage overall execution
eCommerce platform plays• Focus on solution only• No client-facing marketing services
Young companies that augment one of our core competencies• Content delivery• Customer/shopper UX• Digital agency with strong eComm focus• Technology pure-plays focused on any
experience that could deliver, enhance,facilitate some aspect of our value chain
A plan to build, partner and acquire
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Build: a hybrid model out of the gate
Each region will have a coreeCommerce capability hub:
• eCommerce SME (business/channel strategy
• Technology lead• Technology partner• Program Management lead
On an as-needed basis, reach out to various expertise spokes to fill gaps in key focus areas
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Need to build eCommerce credibility through partnerships
examples:
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Our partnerships are already strong and growing: IBM
• IBM and Ogilvy formally announced a partnership in eCommerce space
• Roughly, IBM handles hard components, ie technology, analytics and Ogilvy handles soft components, ie user experience, shopper insights, creativity
• Offering an integrated complementary solution to clients
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Our partnerships are already strong and growing: Amazon
• Partnership centered on cross-education with Ogilvy striving to become Amazon "black belt“
• Holding bi-annual partnership meeting to better understand each other's offering
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We sell or else slide
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Thank you