CASE STUDY: The digital transformation of a global multichannel B2B business

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Guy Magrath Global Head of eCommerce

B2B Marketing Summit June 2014

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Electrocomponents is ‘the global distributor for engineers’

• Electrocomponents plc is the world’s leading high service distributor of electronics and maintenance products.

• Listed on the London Stock Exchange, a FTSE 250 company

• 6,300 employees in 32 countries across the globe

• Group revenues of £1.27bn per annum

• Trading brands of RS Components in Europe and Asia with Allied Electronics in North America

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With a market-leading product range, service capability and eCommerce engine

59% eCommerce 800K Catalogues

44,000 Parcels Daily

> 1m Customers

Strong Brands

2,500 Major Suppliers 500,000 Products

17 Distribution Centres 90+% of World GDP

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Which are valued by our 1m customers who use RS to design, buy and maintain products

• 5 products per order

• €150 per order

• Broad selection of products

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However the RS proposition has had to develop to meet the evolving needs of our customers

2008

1937

1974

1998

1994

2009 2011

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eCommerce Engine

Our latest evolution is the introduction of a multi-channel marketing approach to respond to customers’ needs

Human Touch

eCommerce “engine”

Human Touch

Cu

sto

mer sp

en

d / p

ote

ntia

l

Awareness

Brand awareness

Nursery

First 4 months

Development

Beyond 4 months

Acquisition

First purchase

Single global effort across contact lifecycle

FueleCommerce

machine

Supporting

infrastructure

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Our eCommerce vision and strategy are clear

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Where we have helped over 50m customers find their product of choice through online acquisition

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Aug-10 Nov-13

Continual session growth over the last 3 years

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New channels and new media types are being used to attract even more relevant traffic

Promoted through social media Our new mobile solution

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2 – Convert through great onsite user experience

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Our onsite developments and marketing have driven record levels of onsite conversion

Execute

search

100%

Checkout Order

Confirmation

Tra

ffic

a

c d

b

Add to cart

Faceted Search

Search - Autocorrect

Guest Checkout

Express Checkout

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3. Repurchase through behavioural driven marketing

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And post-visit marketing and support have driven market-leading click-through-rates

Customer insight and BIG data = SPEED AND RELEVANCE

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4. Underpinned by a world class platform

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Moving to a world class platform which enables limitless innovation at a pace which will delight our customers

• Flexibility enables innovation and accelerates time to market

• Fully integrated to create a truly omni-channel experience

• Provides world class SEM, Onsite Search and Personalisation capabilities

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5. Delivering market leading content

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The differentiator has been to deploy this capability across 28 countries in 15 different languages

• Over 1m translated key words generating 3.9 billion online ads

• 60 websites in local language

• 30million emails sent in local language

• Over 50k new products launched per year

• Over 250 campaigns launched per year

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Case Study - Japan

Overview • Set up in 1998 • GDP x 2.5 of the UK • 1/10TH of the size with regards sales • Recent years - flat growth

Action • Electronics key focus area • Range and price refresh • Strategic supplier partnerships • Customer search behaviour very different • 15,000 localised keywords expanded to 1.1M • Main search engine - Yahoo

Outcome • Over 30% growth Y.O.Y

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Which has been recognised by our peers

Winner - Digital Marketing Category

March 2013

Winner - Best Use Of E-Mail

February 2013

Winner - Best Multichannel Marketing

Winner - Best E-Mail Marketing

June 2013

Winner – Live Chat Innovation

June 2013

Winner - Best B2B Campaign

Winner - Best Digital Strategy

Oct’ 2013

Winner - Best In House Search Team

Winner – Internet Business Awards

Nov’ 2013