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Office DepotThe Path to Personalisation

Jonathan NewmanVP, eCommerce & Marketing Operations

www.officedepot.euwww.viking.com

uk.linkedin.com/in/jonnewman@jon_newman

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Office Depot merged withOffice Max in 2013

Office Depot, Inc. has combined global annual sales of approximately

USD $17 billion

Office Depot, Inc. has more than 60,000 associates

The company serves consumers and businesses in 58 countries

More than 2,000 retail stores

Office Depot is a leading global provider of office products, services and solutions for every workplace

Online sales of $4.2 billion

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Two brands: Office Depot & Viking

We deliver > 250,000 parcelsevery day

Office Depot is active in 30European countries

We process > 85,000 orders per day

In Europe, Office Depot is the number one reseller of workplace

products and services

We hold two Royal Warrants granted by HM The Queen and HRH The Prince of Wales in the UK to recognition at the pan-European Supply Chain Distinction Awards

31 different websites

We send > 66.5 Million cataloguesper year

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Our Online Evolution

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1999

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1999

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1999 2000

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1999 2000

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1999 2000 2008

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1999 2000 2008

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1999 2000 2008 2012

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1999 2000 2012

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1999 2000 2008 2012 2014

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eCommerce Strategy

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eCommerce Strategy

Digital-first foundation

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eCommerce Strategy

Customer-needs driven

Digital-first foundation

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eCommerce Strategy

Customer-needs driven

Digital-first foundation

Consistent master data

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eCommerce Strategy

Customer-needs driven

Digital-first foundation

Consistent master data

End-to-end business processes

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eCommerce Strategy

Customer-needs driven

Digital-first foundation

Consistent master data

End-to-end business processes

Actionablebusiness insights

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About Personalisation

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We successfully personalise offline

Increase in response rate +21%

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We successfully personalise in email

Open rate +60%Click rate +60%Sales +327%

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But we’ve struggled to personalise online…

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Our architecture & tools have created many challenges…

• Slow, complex development processes

• Changes require IT development

• Limited personalisation capabilities

• Inconsistent experience across channels & markets

• Limited online campaign testing capabilities

• Investment focused on a new platform

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How are we addressing this problem?

DNA

Strategy

Limits

• Personalisation is in ourDNA.

• Successful in email & offline channels.

Our history & strategy demands a solution…

• An omni-channel sales& marketing strategy

• Personalized approach to servicing customers

• Limitations in current online& onsite tools

• Augment these limitations& support rapid innovation

Monetate has augmented our legacy capabilities and enabled our online personalisation strategy

• Business focused interface

• Easily segment & target• Users can quickly test / build /

repurpose / edit assets

• Quickly test & deploy code

• Identify successes & guide eCommerce platform

…we have partnered with Monetate

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Our journey with Monetate

Initial Proof of Concept Pilot

• Start January 2014

• 3 months

• Innovate, Learn, Iterate

• Prove results: 15 x ROI

• Deliver best practice

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Revenue per session+ 2%

Pilot campaigns

screen sizes services

devices

geo targetting

AOV+ £6.22

New visitor conversion

+ 19%

Revenue per session+ 22%

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Roll-out

• Singular governance & execution

• Proven campaigns deployed

• Benefit from best practice

• Immediate value added

• Current scope: 15 European Viking Direct sites

• Current output: 577 campaigns

• Current target: 15*ROI on track

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✔ Be open for the mindset change, personalization is about customer stories and the customer journey

✗Don’t work in a vacuum…. ✔ Involve all stakeholders

✔ Create multi disciplined teams that each have a clear scope

✔ Build a pipeline per team

✗Don’t limit thinking to banners & ad placements

✔ Define targets per team & KPIs per campaign

✔ Integrate Monetate reporting with internal reporting

✗Don’t invest too much time in campaigns attracting too few sessions

✗Don’t try to get too detailed before you start

✔ Fail fast, fail forward

Some Lessons Learned

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Online Drivers User Experience

Customer

JourneyMobile TabletEmail SEO/SEA Affiliate

Customer Segments

ISS Online TAM

Poor Performi

ng Segment

s

Product Campaigns

Multi Disciplined Teams

Merchan-dising

Campaign

Calendar

Replenish-ment

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SubjectMatterExpert

CampaignManager

eCommerceOperations

Business Intelligence

Roles within each Multi Disciplined Team:

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Project or Dept title

What’s next?

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Brilliant Execution of a Customer-Centred, Omni-Channel and Insight-Driven Experience across all Touch Points & Channels

• Personalised, relevant & timely experiences

• Integrated cross-channel marketing decision making & management

• Increased quality and volume of campaigns

• Performance driven

• Rapid innovation & iteration

• Adaptive

• Increased resource specialisation in personalisation strategies & tools

• A suite of capabilities

• Embedded in our future platform

• Cross-channel usage of Monetate

• Further integration of historical, behavioral & merchandising data

• Detailed & accurate campaign performance tracking

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Thank youJonathan Newman

VP, eCommerce & Marketing Operations

www.officedepot.euwww.viking.com

uk.linkedin.com/in/jonnewman@jon_newman