Paul Geraeds - Bakker Hillegom

Author: Date:

GROW YOUR SMILE

Cross Border seminarUtrecht, 7 September 2016Paul Geraeds, CEO Bakker.com

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AGENDA:

1. Introduction Bakker.com2. Brand positioning3. Persona’s & persons4. Migration strategy5. Facebook acquisition case

Introducing Bakker• Delivery to 19 European

markets through 11 local sales offices

• 100% privately owned

• Business to Consumer

• Products of Dutch origin

• Assortment of 4.000 articles per season

• 3,4 million orders per year

• 575 members of staff

• Turnover € 130 million annually, 95% generated outside NL

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150 million bulbs










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Sales

AGENDA:


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“Who are you andwhat business are you in?”

Direct Mail company?Logistics company?

Agri company?

Distant seller?

Vision

For a happy life it is essential to have green around

Proven by multiple scientific researches

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Mission

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It is our mission: To bring more green…

Mission

It is our mission: “To bring more green into more peopleslives…

…so we provide everything to enjoy gardening…

…because gardening makes confident and proud.”

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Ambition

To become the leading Pan-European multi-channel garden company

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Positioning frame

Brand promise

Positioning frame

Brand promise

Advice &inspiration

Proof points

Positioning frame

Advice &inspiration

Brand promise

Proof points

Base

Positioning frame

Emotional valuespride, confidence Proof

barriers / easinesscarefree: up to 5 years guaranteewebshopbrowsingbuying & paymentone stop shoppingplanting instructionshome deliveryeasy productsready to plantinformation & support

Drivers/advise &insoiration:a variety of cataloguesgardening ideas & trendssharing & showcase clients’ successesofficial partner of Keukenhofinstruction video’s and online gardening coursetutorials and advice; tips & tricks

Mission/ambition:To bring more green in more people’s lives, to become the leading Pan-European multi-channel garden- company.

fresh: direct route from grower to your

garden 70 years of experienceDutch quality

products24 lessons

gardening course

being loyal to customerskeeps promises

environmental responsible

year round inspiration & advise

easy everything at your convenience

discovers new green products and growing solutionsexcellent variety of

evergreens

Brand PersonalityOpen, informal,

inspirational, friendly

CompetitionOn- and offline and national versus international green product specialists and e-tailers, DIY and platforms such as Amazon

Target GroupAll people who want to have a green home & garden.Persona’sAnna, Bella, Cliff /Clara & Donna.

Brand promise

Advice &inspiration

AGENDA:


Client focus groups; dialogue with real clients

4 FOCUS GROUPS:

- Young urban, 25+

- Young family, 30+

- Mature family, 40+

- Senior, 60+

RESEARCH TOPICS:

- Type of garden

- Garden interest

- Source, inspiration, tips- (Online) shopping

behaviour

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Personas; unified values throughout Europe

Persona: ‘Clara’Family life stage:Empty nest/older children40-60 years, suburban

Garden type: Traditional design of terrace, borders, lawn & shrubs

Garden motivation: He likes a green and colourful garden For him gardening is a challenge

Gardening profile: Cliff is responsible for the heavy duty activities. Clara loves to grow flowers, fruit & vegetables. They are quite experienced, but often wonder “Are we doing the right thing?”

Buying behaviour: Garden centre, she likes new plants & ideas. He likes new hardware. Online buying with easy access

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Yet, huge differences per country in demand

AGENDA:


Moving to e-commerce represents a fundamental change

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Shift no. 1: starting earlier in the customer journey; general orientation phase

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New website launched

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Website set in complete new structure

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• A new content structuredesigned to be SEOproof

• 1004 new content pages per language with 830 new images

• Design mobile & tablet templates for all pages

Search & merchandising tool adapting per market

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Fredhopper S&M tool:

• Cross and upsell

• More relevancy

• Automatically adapting product suggestions to actual sales volume per country

• 285 campaigns per market

Shift no. 2: content for relevance

• Over 10.000 articles revised

• 800 garden advice articles

• 30 video’s

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Video available at youtube: https://www.youtube.com/watch?v=1DjQPUM6OWg

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Video available at youtube: https://www.youtube.com/watch?v=_YZeL9ux2qE

Shift no. 3: differentiation leading to dual communication strategy

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Shift no. 4: budget reallocation “Put your money where your strategy is”

Shifting lower value customer segments and DM frequency

towards

Online acquisition and content creation + recruitment new e-commerce positions

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AGENDA:


Using Facebook as online acquisition channel

Objective:

1. Test if Facebook Advertising could generate profitable new customers in Europe.

2. Gain insights regarding social media behavior in the garden category in the various countries within various audiences with various messages.

Campaign set up via Social Lab (Ogilvy):• We launched a Conversion Pixel campaign in Q1 of 2016 via Facebook. • We created 24 posts in total to find out what products would sell best.• Test results plus Google Analytics gave estimated conversion figures.• We ran Link Click ads in eight countries for approx. six weeks.

Test case

Target audience selection

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All used audiences for the TP2 campaign are also divided by gender and age

Creatives

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Each post had several copy versions (tone of voice), and various croppings. In total, there were 24 posts per country.

Results: Best performing posts

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• Big differences in CPC and CPA • Best performing content varies per country

Best performing creatives

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Cost per Click*/**

€ 0,55

€ 0,72

€ 0,77

€ 0,78

€ 0,91

CPC= € 0,49 CPC= € 0,50 CPC= € 0,57

Example: Germany

Creatives from low to high CPC

• In Germany the Black Lily performed best. The CPC of this ad is 65% lower than from the worst perfoming ad.

• Close-up imagery led to a significant lower CPC.

Best performing audiences

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Target Audience Audience Size* Order value* Cost per Click*/**

Women 56‐65 Garden POI 170.000 € 40,37 € 0,47

Men 56‐65 Homemaker POI 33.000 € 40,37 € 0,51

Men 56‐65 Garden POI 110.000 € 40,37 € 0,52

Women 46‐55 Homemaker POI 180.000 € 40,37 € 0,55

Women 56‐65 Homemaker POI 81.000 € 40,37 € 0,57

Lookalike Fans 1% 250.000 € 40,37 € 0,65

Lookalike Website Visitors 1% 750.000 € 40,37 € 0,65

Lookalike Website Visitors 3% 250.000 € 40,37 € 0,65

Men 46‐55 Garden POI 280.000 € 40,37 € 0,65

Women 46‐55 Garden POI 370.000 € 40,37 € 0,65

Men 46‐55 Homemaker POI 74.000 € 40,37 € 0,66

Website Visitor 13.125 € 40,37 € 0,67

Women 27‐45 Homemaker POI 1.100.000 € 40,37 € 0,77

Average € 0,56

Total 3.661.125

• In Germany it was interesting to observe that the best performing audiences were completely new audiences for bakker.com (POI)

• Also the results show that the campaign attracted relatively more mature audiences (46+)

Example: Germany

Conclusions

1. We saw a profitable business case for multiple countries. Facebook can be a great addition to our online performance media.

2. There are large variations between the countries regarding CPC and CPA especially when you zoom in on copy and visuals (close shots vs. wider shots)

3. There are also variations between target audiences.

4. As a result we can’t execute an one-size-fits-all strategy for Europe. Segmentation is key for success. For every country, for every target audience we need specific visuals and copy to get the optimal result.

Overall conclusion: segmentation is key for success in cross-border social media advertising

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Thank you

Video available at youtube: https://youtu.be/yStOOh3q6F4

Marketing

Paul Geraeds - Bakker Hillegom