1. Web 1.0 - Online Marketing

2. Backdrop: Dell Direct to Consumer Direct business model Extended into retail in 2007 $12 billion company (of $60b Dell total) #2 vs. HP followed by Acer, Apple and Toshiba 33 million (10m unique) site visits/month 2-3% site conversion

3. The Marketer Input Teams Competitive Landscape Product Development Pricing/Costing Procurement Forecasting Marketing Research Marketing Product: launch & ongoing expert Price: base & component Promotion: stories & discounting Placement: channel strategy Output Teams Sales & Retail Online Site, Email, Online Ads, Affiliates, Search Offline Catalog, FSI, Magazine, TV

4. Potential Scenarios 1. Grow top-line to hit the quarter 2. Battery factory burns down in Malaysia 3. Customer reviews and recommendations have increasing influence with online consumers …What’s a marketer to do?

5. Available Channels Website 70% direct consumer business HUGE volumes Immediate influence BUT consistency is key for a consumer experience Dependant upon traffic drivers Varied customer set Email Urgency driver to incent purchase Decent volumes Balanced rev/mar attainment Tech savvy consumer Increasing opt- out rates, in line with industry Online Ads Traffic driver to the website Broad reach, branding vehicle Varied consumer, early in the purchase decision Affiliates Revenue driver, very low margins Very tech savvy consumer Very price conscious consumer Search Very important traffic driver to the website Become top of mind for consumers Varied customer set

6. Action: Available Levers 1.Hit Targets: – Bundling: adjust configurations (components, service, accsesories) – Discount: optimize revenue goals and conversion on website and in email – Promotions: create new offers for affiliates channel 2. Battery shortage: – Adjust battery bundling & offerings in configurator for all channels – Adjust pricing to deter purchases from low inventory offerings 3. Online reviews: – Create new stories in promotional campaigns in all vehicles – Adjust site pathing, making reviews more prominent

7. Metrics Main metrics: – Conversion is king – But no sales without traffic first – Site pathing: page click through rates, page conversion, eye tracker, beta testing – Email: effective subject line headings, click through rates, heat map – All vehicles: Sales, Revenue, Margin – hit forecast

8. Experiment: Constant Improvement A/B beta testing Multi-variant testing Creative testing Subject-line testing for email Heat map/Eye-tracker testing Focus groups Online Testing Community

9. Dell in Web 2.0 Idea Storm – digg.com set up where anyone can post ideas and the most popular are implemented Dell Community – broader online community; blogs, wiki, forums, groups Dell Lounge – the “cooler” face of Dell, sponsor of gaming competitions & concerts, contests interact with Gen Y and younger Dell University – hire college kids to become peer to peer advocates of Dell on campuses