Torodealer.com
Transcription
Torodealer.com
Torodealer.com Dave Francis, Sr. Manager e-commerce 2012 National Sales Meeting Power Equipment is Big Business Online Retail in 2012 www % 12 Power Equipment Sold Online 10 Yr. CAGR: 24% 10 8 6 4 2 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD L&G equipment/supplies are roughly $2.2B in retail sales (10%) according to Global Insights Top Market Share Brands All OPE Unit Share $ Share 2 1 3 3 4 2 If Toro were to get the same share in online sales that we have overall, we’d have a $200,000,000 online business Launched on June 19th Singular goal: Capture as much purchasing activity as we can and funnel it through All Toro dealers – either online or in a dealer’s brick and mortar Dealer Feedback “I just wanted to let you know STI Turf Care received its first ecommerce equipment order recently. The gentleman purchased a TimeCutter on a Saturday. I immediately received an email notification of the order that afternoon. On Monday I confirmed I had the mower in stock and contacted the customer. We set up a delivery for Thursday and hung up. He immediately called me back and asked if we sold trimmers. I told him we did sell them, and within a few minutes, I had sold him on a $255 trimmer and $100 in accessories. Nice add-on sale! All equipment was delivered as promised, and the customer was extremely happy. I wish all orders were this simple!” Thanks again, Stan Bain, STI Turf Care Incremental business? First 90 Days 1 2 3 4 5 6 7 8 9 10 Orders Anaheim Mower 180 Maestranzi Brothers 73 General Chainsaw 71 Gauvin Supply 55 Broadway Total Power 50 Stark Street Power Equipment 41 Big Tool Box 38 Cypress Lawn & Turf 31 STI Turf Care 27 Exit 18 Equipment 21 Order Value $ 6,601.00 $ 3,502.00 $ 3,346.00 $ 2,589.00 $ 1,746.00 $ 2,941.00 $ 1,696.00 $ 3,899.00 $ 4,129.00 $ 4,363.00 Average for all dealers $ 450.00 7 Current Participating Dealers Customer Orders 13% of our orders have come from here! Quick Refresher Requirements to Participate Service Dedicated • Must be an ASD or MSD • Must place a qualified booking order each year Parts • Must participate in PWP program E-mail • Must be an E-dealer Full Line • Must carry Toro’s full line (WPMs, ZTRs, Snow) *In addition, must be compliant with our internet policy What is on the site? Everything, plus all residential parts and accessories Pricing • Virtually all of these products are already sold online. In order to be competitive, most products are priced at the promotional price • Some products, such as cast deck mowers, are priced at MSRP • Customers will pay for shipping, but we will offer free shipping at times to keep the site competitive Product Delivery • • • • Toro will be responsible for shipping all products with the exception of ZTRs, TimeMasters and 2-stage These will be delivered by a dealer either from their inventory or ours, dealer’s choice In addition to the commission on Z and TimeMaster orders, dealers will receive a $50 set-up/delivery fee Dealers will be expected to deliver orders that are a reasonable distance from their store Returns Parts and Portable Power • Toro manages these returns just as we did on Shoptoro; the customer initiates the return online and ships the product to Toro. When the product is received we issue a credit to the customer’s cc and reverse the commissions • Runs about 3% Gas Powered • Customer brings the product to the dealer. • Dealer makes final determination if product is returnable, i.e. used/abused. • Dealer prints a return receipt for the customer. • Dealer notifies Toro of the return • Toro issues a credit to customer’s cc, reverses commission and puts the returned unit on dealer’s Red Iron account. • Dealers cost on used equipment is cost less 10%. • Running at 0% Order Management Tool • • Dealers will use this tool to manage orders and communicate with Toro: – Z, TM, 2SS order acknowledgment – Proof of delivery – Manage product returns – View order history and customer information – View commissions You will continue to use the commission report on the portal Fit with other Toro programs/promotions • We will generally run all national residential promotions concurrently on Torodealer.com when they are in stores • At this time we will not allow regional promotions on the site or support any local promotion that a dealer may be running • All sales made on the site, whether delivered by a dealer or by Toro, will count as a sale to the dealer and be included in any volume based dealer program. Dealer commission structure WPM, ZTR and snow throwers Portable power • Standard dealer margin* less 5% pts. • 3% of promo retail price (blowers, trimmers, e-snow) Parts • Same as Shoptoro (standard dealer margin at list retail) * Standard margin = promo retail - dealer cost, note: dealer cost will not include volume rebates, truck-load discounts, etc. that may apply to a dealers cost for their store orders. How to opt in • Log into the Toro dealer portal: http://partner.thetoroco.com • In the quick links section on the right side of the screen, find the update my locator link. • Once there, click yes on the radio button about participating in the Torodealer.com program • Indicating yes and meeting the program qualifications will enroll a dealer in the program • Before being activated we will verify that they meet the program requirements Change to the site: • Forcing the visitor to select a dealer when entering the site… Hate it/frustrating Don't mind it Like it It is necessary 0% 20% 40% 60% • 70%+ visitors were leaving the site Metrics Traffic Sources Direct Toro.com Google Other Unique Visitors 2 months after launch 4,500 58% more traffic than 2011 4,000 3,500 3,000 2,500 2012 2,000 2011 1,500 1,000 500 0 19-Jun 26-Jun 3-Jul 10-Jul 17-Jul 24-Jul 31-Jul 7-Aug 14-Aug 21-Aug 28-Aug Orders/Day 200 34% less orders/day than 2011 180 160 140 120 2011 100 2012 80 60 40 20 0 19-Jun 26-Jun 3-Jul 10-Jul 17-Jul 24-Jul 31-Jul 7-Aug 14-Aug 21-Aug 28-Aug Conversion Rate 9.0% Avg. 2.4% vs 6.1% in 2011 8.0% 7.0% 6.0% 5.0% 2011 4.0% 2012 3.0% 2.0% 1.0% 0.0% 19-Jun 26-Jun 3-Jul 10-Jul 17-Jul 24-Jul 31-Jul 7-Aug 14-Aug 21-Aug 28-Aug Sales/Order $160.00 Avg. $60.17 vs $43.78 in 2011 $140.00 $120.00 $100.00 2012 $80.00 2011 $60.00 $40.00 $20.00 $- 19-Jun 26-Jun 3-Jul 10-Jul 17-Jul 24-Jul 31-Jul 7-Aug 14-Aug 21-Aug 28-Aug • How will we address these deficiencies? – Parts pricing – keep the gap, but close it some (we are 20%+ higher than list) – 80%+ of visitors to the site are looking for Toro parts. We send them to Toro.com in our keyword buys because of a better conversion and click-thru rate, but they still get lost on Toro. We will create a specific parts landing page to eliminate confusion – Offer free freight promotions during key retail periods – ups conversion by a factor of 10x Marketing the Site Goal is to achieve 3.5M in visitors 3.5M 87,500 Orders Parts Accessories WPMs Port. Power 74,500 4,500 4,300 3,500 Snow ZTRs 2,000 900 2013 Marketing Tactics Goal is to achieve 3.5M in visitors SEM - Our effort will be very focused/efficient on capturing the customer looking for Toro: • Search marketing (SEM) with Google and possibly with Bing • Presenting the site to the 1Ms of searches for Toro rather than the 100Ms for general lawn equipment SEO – Compliment our SEM with a site well designed for natural search • This will complement our focused SEM and create general awareness of the site • Links from Toro AND dealer sites Linking – Provide all participating dealers with a customized link to the site that will populate the header with their dealer image/info. Ratings and Reviews – Work with a 3rd party to get ratings and reviews on both Toro.com and Torodealer.com. This will boost our conversion rate and generate traffic. Toro.com – Buy now links on every product page on Toro.com. Currently 60% of our traffic comes from Toro. SEM and SEO for Lawn Mowers SEM and SEO for Toro Parts Enhancements for next year Printing – Allow a visitor to print a summary page of their product with dealers information tagged in the header Linking – Provide participating dealers with a logo and customized link for their site that would link to TD.com and pre-populate the header with the dealers information. + Ratings and Reviews – Work with a 3rd party to get ratings and reviews on both Toro.com and Torodealer.com. This will boost our conversion rate and generate traffic. Financing – Allow customers to apply for and use their Toro card on the site to make purchases. BOPIS – Lay the ground work for customers to buy online and pick their purchases up in their selected dealer Dealer Participation Current Participating Dealers Fall off – Direct Territories Don’t qualify for many reasons All Direct Qualified Participating 3,674 • • • • • 1,036 809 • • 2,192 No qualified booking order 2,053 Not PWP 1,503 Not full line 965 Not an e-dealer 799 Not servicing dealer Dealers choice Awareness 30% Don’t qualify for single reason 78% 3,674 All Direct Qualified Participating Add back: • 18 who are not e-dealer • 258 who are not PWP • 259 w/ no booking order • 104 not full line 1,675 1,306 • • Dealers choice Awareness 78% 46% Fall off – 2-step Territories Don’t qualify for many reasons 1,069 All 2-Step Qualified Participating 413 156 • • • • • 499 Not full line 439 Not an e-dealer 378 Not servicing dealer Dealers choice Awareness 39% Don’t qualify for single reason 38% All 2-Step 1,069 658 Qualified Participating 250 • • Dealers choice Awareness Add back: • 55 who are not e-dealer • 16 who are not service • 174 not full line 38% 62% Eligible Dealer NOT Participating Dealers Missing One Qualifying Requirement Future of Shoptoro • We will retire the Shoptoro.com site at the end of the fiscal year and redirect the traffic to Torodealer.com Today: 1,750 Dealers Nov. 1: 950 Dealers Internet Policy 1.1 All of Toro’s channel partners can sell the same family* of gas powered products online that they carry, or make available, in their store environment. For dealers, these products are defined in their dealer agreement. In addition the following restrictions apply: 1. Landscape Contractor Equipment (LCE) and all Titan series products must be sold and delivered by local authorized Toro retailers. This requirement will ensure that appropriate setup and user training take place after every sale. Effective immediately, Toro dealers may not advertise the price of, nor sell, Toro LCE or any Titan series products in and/or via any public electronic media including the Internet. This includes, but is not limited to, online services such as e-Bay, dealer-owned web sites, and Craigslist. This requirement applies to both new and demo equipment still covered by the manufacturer's warranty (demo equipment is defined as machines with less than 150 hours of service). All LCE and Titan series products may still be featured on a dealer's web site – minus any pricing information. 2. No Toro retailer is allowed to sell any new (unused) Toro product on a third party’s website. 3. No parts wholesaler is allowed to sell to any online retailer 4. Any exceptions to this policy need the GM of Toro’s RLC division’s explicit permission * Family is defined as products of the same subseries of a category, i.e. cast deck mowers are a subseries (family) of Toro walk mower category, TimeCutter Z are a subseries (family) of Toro ZTRs category. Internet Policy 1.2 All of Toro’s channel partners can sell the same Toro branded products (gas powered, electric powered, parts and accessories) online that they carry, or make available, in their store environment. For dealers, these products are defined in their dealer agreement. In addition the following restrictions apply: 1. Landscape Contractor Equipment (LCE) and all Titan series products must be sold and delivered by local authorized Toro retailers. This requirement will ensure that appropriate setup and user training take place after every sale. Toro dealers may not advertise the price of, nor sell, Toro LCE or any Titan series products in and/or via any public electronic media including the Internet. This includes, but is not limited to, online services such as e-Bay, dealer-owned web sites, and Craigslist. This requirement applies to both new and demo equipment still covered by the manufacturer's warranty (demo equipment is defined as machines with less than 150 hours of service). All LCE and Titan series products may still be featured on a dealer's web site – minus any pricing information. a) LCE equipment must not be included in any shopping feed b) LCE equipment pricing must not be included in any website source code 2. No Toro retailer is allowed to sell any new (unused) Toro product (gas powered, electric powered, part and accessory) on any website other than their own. 3. No parts wholesaler is allowed to sell to any online retailer 4. The word “Toro” is an exclusive trademark of the Toro Company and may not be used in any URL that a retailer uses. 5. Any exceptions to this policy need the GM of Toro’s RLC division’s explicit permission Ending Notes • Review your dealers – Get those on-board that already qualify – Close the loop on those that almost qualify – Especially those who are on Shoptoro.com • Remind dealers – – – – – – Check their e-mail daily Load their logos into the system Link to Torodealer.com Monitor their commission reports Use the customer information we provide We are enforcing our internet policy • Monitor your dealers internet activity for policy violations • Report violations outside of your territory to me Dave Francis 952-887-8947 dave.francis@toro.com