home depot digital strategy 2013
TRANSCRIPT
HOME DEPOT DIGITAL STRATEGY ASSESSMENT AND RECOMMENDATIONS
Presented by
Steve Gilberg
June 11, 2013
Today’s Presentation:
• Home Depot Background • Digital Strategy • Digital Channels • Strengths & Challenges • Recommendations
Home Depot Background:
• Founded in 1978 in Atlanta, Georgia, and today operates more than 2,200 home improvement stores
• Home Depot is the world's largest home improvement specialty retailer with
fiscal 2012 retail sales of $74.8 billion and earnings of $4.5 billion
• Home Depot stores sell building materials, home improvement products, and lawn and garden products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me, and professional customers.
• The Home Depot, Inc. (HD) Stock Price: 77.73, 1.01 (June 10, 2013) and is included in the Dow Jones industrial average and Standard & Poor's 500 index.
• Top Competitor: Lowes (LOW) Stock Price: 41.18, 0.42 (June 10, 2013)
• Kevin Hofmann: SVP and President – Online
Digital Strategy:
To seamlessly integrate in-store, e-commerce, and mobile platforms to improve the customer experience
• Provide Inspiration • Sell More Product • Facilitate Projects
Digital Channels:
E-Commerce: • 40K SKUs, 300K SKUs via Buy Online, Ship to Store • 2011 Revenue: $600MM, Annual Growth: 8% • 60% of HD consumers research large purchases online • Site Statistics:
• Alexa U.S. Ranking: 69 (Lowes: 110) • Search Visits: 26.2% (Lowes: 24.8) • Average Visit: 6 minutes, 44 seconds per pageview
• Site Demographics:
• Gender: Mostly Female • Age: 25-64, most 35-44 and 55-64 • Children in Household: 55% No Kids • Household Income: 31% $100-150K • Education: 56% College Graduates • Ethnicity: 79% Caucasian
Mobile: • 4MM App Downloads • Browse and shop via any iOS, Android, or Windows device • Have the store in your pocket • Check local store inventory and view in-store aisle location
Digital Channels, cont.
Social Media:
• Facebook: 1.1MM Likes (Lowes: 2.4MM Likes) • Twitter: 125K Followers (Lowes: 93K Followers) Richard the Cat: 806 Followers • YouTube: Home Depot Channel: 28K Subscribers/2.8K Videos (Lowes Channel: 49K
Subscribers/1.1K Videos) • Pinterest: Active in DIY, Projects, Flowers, Paint, Cabinets
SEM:
• 2011 SEM Estimate Spend: $50.3MM (Source: Larry Kim, Wordstream) • Common Keywords and CPC
• Home Air Conditioning, $8.67 • Replacement Window Cost, $8.03 • Appliance Repair, $7.06 • Cabinet Refacing. $6.07
Strengths:
• Brand Strength, Product Assortment • Female demo drives sales • Social Media engagement is very strong • DIY Videos instill confidence, drive sales • Mobile apps deliver Home Depot on-the-go
Challenges:
• Website is one-size-fits-all • Needs more UX testing. Difficult to find services. • Missing Up-Sell and Cross-Sell Opportunities • No iPad App • Practically no personalization • Pro/Contractor segment is generally not tech savvy or at an education level to
use sophisticated online tools
Recommendations:
1. Site Personalization! 2. Elevate Big Brands - Increases SEO, Traffic and Visibility 3. Grow Content Development Strategy 4. Move all In-Home Scheduling Services Online 5. Multi-Language Site to Support Pros – Spanish (Polish?) 6. Integrate BlackLocus data collection and analysis techniques to create a
multi-dimensional profile of each HD customer 7. Engage Dotomi to personalize HD’s online marketing to achieve greater ROAS
and increased user engagement
Questions?
