Bean Boot Final Project

L.L. Bean BootDigital Strategy 2015 Kenneth Mangano General Assembly 15-Sep-2015

Business Overview

Brand Brief

The Bean Boot is for the adventurous, outdoor explorer who needs security knowing that their feet will stay dry in the wettest conditions.

Been in production since 1912.

Unlike the competition, the Bean Boot is handmade and comes with a lifetime satisfaction guarantee.

Brand Personality

Respected

Sincerity - Genuine, Kind, Family-Oriented

Ruggedness - Tough, Outdoors

Quality - Built to Last

Bear Grylls

Customer Empathy Map

Think & Feel About their next winter trip after the workweek or

college/high school lets out. About what their friends think.

House projects that need to be done. Want to feel stylish and with the “in” crowd.

See College Campus.

High School Classrooms. Suburban Landscape.

Moutains, Fields, Woods. Ski Lodges, Pub Rooms, Hunting Lodges.

Hear Influenced by opinions of friends and family.

Party, rock, or classic music. Gossip about their friends or people they know.

Influencers talking about the latest trends. Influenced by the latest celebrity or style trends.

Say & Do Read outdoor sporting magazines.

Talk about fashion and style on social media. Follow celebrities/influencers on social media. Research the “best” product for their sport.

Watch online “how to” videos. Buy the latest trends in fashion.

Take frequent trips with their friends.

Customer Segments

Stylish Active Teens/College Men/Women Active Mature Men/Women

Digital Strategy

Campaign Goals

Use Social, email, and paid search channels to drive Bean Boot sales higher by 10% over last year’s sales.

2014 Stats

• Sold over 450,000 pairs of Bean Boots.*

• Had 100,000 people on the waiting list.*

*Source 1

Channels With Opportunity

Facebook

• 82% of all 18-29yr internet users.*

• 79% of all 30-49yr internet users.*

• 64% of all 50-64yr internet users.*

Twitter

• 32% of all 18-29yr internet users.*

• Only 6% of 65+yr internet users. and 13% of 50-64yr internet users*

*Source= 2.

Channels With Opportunity

Adwords

• 79% of all paid search ad clicks*

*Source: 3

Channels With Opportunity

Email Marketing

• Closest to paid search in prospect quality and conversion probability.

Conversion Funnel

1. Use Social Channels to Drive Email Opt-Ins

2. Use Email and Paid Search to Drive Bean Boot Sales

Campaign Tracking

Custom Query String URLs • http://www.myroadtomillions.com/personal-development/life-efficiencies/quite-

possibly-the-best-boot-ever/?utm_source=Facebook&utm_medium=Pay%20Per%20Click&utm_campaign=BeanBoot-%20Older%20Women

Google Analytics • Event Tracking on buttons/videos/links • Campaign goals to measure progress.

Facebook/Twitter

Facebook/Twitter - Audience

Audience Segments

Facebook

Twitter

Young Men

13-28yrs

Older Men

29-65yrs

Young Women

13-28yrs

Older Women

29-65yrs

Young Men 13-29

Young Women 13-29

Facebook/Twitter - Strategy

Content • Compose and advertise good quality content to warm

up our prospective buyers. • Mix in direct response ads with the content driven

ads to encourage email signups.

Influencers that cater to the young audience segments • Drive email sign ups.

Facebook/Twitter - Key Performance Indicators (KPIs)

Content Ads 1. Click Through Rate (Ad Clicks/Ad Impressions) - CTR 2. Time On Page (Google Analytics) 3. “Read More” click through rate (“Read More” clicks/

# of page visits) Direct Response/Influencer Ads 1. CTR 2. Email Sign Up Rate (# of Signups/# Page Visits)

Adwords

Adwords - Keyword Research

Keywords such as: L.L. Bean Boot, Duck Boots, Winter Boots, Rain Boots, Etc..

Max CPC of $1.71 seems to be the sweet spot.

Max CPC of $20.00 equals small increase in # of clicks, but major increase in cost.

# of Keywords

Average Daily Clicks

Bid Range (CPC) Est. Daily Cost

22 2330 $0-$1.71 $0-$1830

Adwords - KPIs

CTR.

Conversion rate (# of conversions/# of ad clicks).

Keyword conversion rate (# of conversions by keyword/# clicks that keyword drove).

• Eliminate under performing keywords

Email

Email - Strategy

Content

• Personalized content based on the preferences checked off when they signed up.

• Mix in direct response emails encouraging a Bean Boot purchase.

Email - KPIs

Click to Open Rate (Unique clicks/unique opens).

Conversion Rate (# of conversions/# of opens).

Unsubscribe rate (# of people unsubscribed/# of emails delivered).

Facebook Campaign Example

Women Target Men Target

Facebook - Content Ads

Content Landing Page

Facebook Direct Response Ad Example

Mobile LP

Desktop LP

Results

Ad Set Name Results Reach Cost Budget Amount

SpentBean Boots -Young

Men 35 8982 $0.55 $5.00 $19.10Bean Boots - Older

Women 44 4158 $0.43 $5.00 $19.03Bean Boots - Older

Men 42 5594 $0.45 $5.00 $19.00Bean Boots - Younder

Women 38 9214 $0.50 $5.00 $18.92

Totals 159 27948 $0.48 $5.00 $76.05

Average Click to Website Costs $0.48 Potential Campaign Reach Is 68M people.

Budgeting

Budgeting - Strategy

Goal: • Increase Bean Boot sales by 10% on a YoY basis • 2014 sales of 450k boots

We need to sell 45k additional pairs!

Budgeting - Paid Search

Adwords:

Yearly Clicks = 847,467

1% Conversion Rate

Est. Sales = 8,475 Pairs of Bean Boots

# of Keywords Average Daily Clicks

Bid Range (CPC)

Est. Daily Cost

22 2330 $0-$1.71 $0-$1830

Budgeting - Social

Facebook & Twitter @ 1% conversion rate

• Need 200,000,000 visits

• Need 2,000,000 email sign ups

• Cost to run $96M

• Est. Revenue: $2.4M

Scenario #1 Scenario #2Facebook & Twitter @ 5% conversion rate

• Need 40,000,000 visits • Need 400,000 email sign ups • Cost to run $19.2M • Est. Revenue $2.4M

Viability

As is, running this on social would be suicide.

Our breakeven CPC on social media would need to be at or below $.06.

Scenario #3

Facebook & Twitter @ 5% • Need 40,000,000 Visits • Receive 400,000 email sign ups @ 1% • 20k units sold @ 5% email CR • Revenue: $2.4M • Cost @ $.06/click: $2.4M

Totals

Metric Adwords Social Email

Yearly Visits (clicks) 847,467 40M 400K

Conversion Rate 1% 1% 5%

CPC $1.71 $0.06 $0

Cost $665,607 $2.4M $0

Revenue $1,016,960 $0 $2,400,000

Gross Profit $351,353 -$2.4M $2.4M

Waiting List

Waiting List Strategy

KPI • Rate of waiting list drop off (%)

• (Original # of ppl on waiting list - # of ppl that received their boots)/(Original # of ppl on waiting list) X 100%

Goal • Reduce amount of waiting list drop offs by 20% Strategy • Incentivize people to wait for Bean Boot delivery.

Incentives

Offer entry into a contest to win a $500 L.L. Bean Gift Card.

• Entry happens once boots ship.

Communicate to wait-listed customers via email to keep them informed of the shipment status.

• Send pics of the stitching process.

• Personalized videos from the boot makers themselves. Show the manufacturing process to build a lasting bond with the end customer.

Key TakeAways

Top Takeaways

Use Social to drive email signups and email/paid search to drive Bean Boot Sales.

Paid Search is profitable.

Social email campaign is viable, but we still need to do more research to get CPCs below $.06/click.

Recommendations

Look into other social channels to drive signups at a low CPC.

Add new, but relevant search terms to paid search to increase volume

Sources

1. Bean Boot Preps For Upcoming Season 2. Social Media Update 3. Google Advertising Stats 2015 4. www.forbes.com/BeanBoot

Thanks For Your Attention!

Influencer Examples

Influencer Examples

Sara Belle (Female Targets) • 349,946 Subscribers • Over 40M video views • evegail@melroseandpark.com (subject: Sarah Belle) Outdoor Gear Review (Male Targets) • 50,459 subscribers • Over 5M video views • Smaller audience, but highly targeted.