How Circa Lighting's Integrated Digital Marketing Strategy Drives - PowerPoint PPT Presentation

How Circa Lighting's Integrated Digital Marketing Strategy Drives Effective Customer Engagement at Every Touch Point Presented by: Al Bessin, COO, Circa Lighting Udayan Bose, Founder & CEO, NetElixir April 24-25, 2019

Objectives 2 Optimize our business for B2B and consumer markets Normalize and automate digital assets to support webs as well as digital displays What our partners , such as NetElixir, do to support and extend our marketing across channels Integrating outside sales, showroom, call center and online sales by leveraging our ERP across desktop and mobile platform

Circa Lighting Highlights 3 Mission To be the premier merchant of designer-inspired lighting to designers and consumers, providing inspiration , world class service and support Founded 1998 by Gale Singer Growing organically and through showroom expansion

Circa Lighting – Vertical Integration 4 Manufacturing and Distribution • Visual Comfort – premium designer-inspired decorative lighting • Tech Lighting – modern decorative and architectural lighting • Generation Lighting – popularly priced decorative lighting • Monte Carlo Fans – full range of fans Direct Sales • Circa Lighting – direct sales to trade and consumers Manufacturing & Distribution Direct

Markets and Channels 5 Markets Channels • Hybrid B2B, B2SP, B2C across the US Websites Do business how • • Trade Phone your customers • Designers • Email want, not how • Builders • Showroom you want • Architects • • Electrical Suppliers Outside Sales • Consumers Tip: Ensure channels work with each other rather than compete

Digital Media – Online 6 Websites • circalighting.com • clarksonlighting.com Email • Targeted and triggered Marketplaces • Trade and Consumer Social Media • Facebook • Pinterest • Instagram Trade Media: • Active management Tip 1: Be where your customers are Tip 2: Segment Media by Market

About NetElixir 7 Mission Helping Retailers Get Found Online, Win New Customers and Acquire Actionable Business 120+ Clients. 130 Team Members. Insights Founded in 2004 by Udayan Bose Premier Google and Bing Partner. UPS Ready Partner. Services Offered: Full Service Demand Gen Solutions: Paid Search, SEO, Paid Social, Amazon Ads Analytics Consulting and CRO, On-Demand Ecommerce Tech Development

3+ YEARS OF PARTNERSHIP: CIRCA + NETELIXIR 8 +176% +154% +317% SESSIONS NEW USERS REVENUE

HIGH VALUE CUSTOMER PERSONA 9 Lives mainly in Visits the site 7-11 times before CA, NY, MA, CT, and TN completing the purchase (latency) Uses long tail, specific and intent Mostly women driven queries between in the age group 35 - 44 4 and 7 words long when searching Completes purchases mainly on Completes the purchases (mostly) Mondays when Purchasing between 11 AM and 2 PM Valuable Items on Wednesdays She is a Luxury Shopper , Business Traveler, and Home Décor Enthusiast In Top 20% (by Household Incomes) and loves to shop in stores as well Uses 2.2 devices during the search- Takes time before making a purchase Waits for 3 – 7 days after beginning shop-buy process but is most likely to the purchase journey (latency) complete her purchase on a computer

Targeted Search + Social Advertising for Profitably Winning 10 High Value Customers Reach out to the Potential and Push Geos with Relevant In-Market High Value Traffic Audiences at the Potential Right Moment Maximize The Use Cross-Device Coverage of Long Data to Determine Tail Queries Across Device Level Ad Formats Investments Be There For All Maximize Visibility Demographics with During Key Always Available Shopping and for Female Research Hours Customers and Days Be Found By Top Align Latency with Income Groups Audience Targeting During End to End Strategies Purchase Journeys

MODERN SEARCH 11 CREATIVE MEASUREMENT EXCELLENCE Prominence Metrics Non-Last Click Attribution Responsive Search Ads Experiments Responsive Display Ads AUDIENCE AUTOMATION Detailed Demographics Smart Campaigns Advanced Audience Segments Smart Bidding Dynamic Search Ads

AI is changing paid search.. forever 12 Source: Prediction Machines by Prof. Ajay Agarwal, Prof.Joshua Gans, Prof. Avi Goldfarb

Modern Search Features Already Introduced by Google 13 Audience Automation Creative Excellence Measurement Non Last Click Attributions Dynamic Search Ads Smart campaigns Responsive search ads Detailed demographics • Page Locations/Prominence Metrics Age • instead of Avg. Position Gender • • Abs. Top IS, Household income Smart bidding Responsive display ads • • Parental Status Top IS, • • Click Share for Search Marital Status • Education and Shopping Campaigns • Homeownership Status Drafts & experiments Dynamic Remarketing & Prospecting Detailed Audience Targeting • Past Visitors, • Lookalikes, • Email Lists, • In-Market, • Detailed Demographics, • Custom Combinations, • Third Party Audiences, • Affinity, • Custom Intent/Affinity Voice Search & Local Search

Modern Search Adoption Drive for Circa: <10% to 62% of 14 paid search revenue in 15 months Online channels are ever evolving. NX keeps on testing new and relevant features to learn how to adopt them permanently. Below are some major features that NX has adopted for Circa Lighting over last few years. Smart Bidding with Human Manipulations drives 69% of Smart Bidding Sessions that have 154% better CTR, 27% lower CPC and 227% better ROAS than manual bidding Circa DSA had a ROAS which is about 200% higher industry Dynamic Search Ads benchmark for this campaign type. Responsive Search Ads Helped us with driving more qualified searches which reduced CPC by 66% and improved ROAS by 208% New Detailed Targeting Variables – For e.g. Helped us with increase the traffic and revenue from top 10% of Household Incomes US Households by 122% and 112% YoY between Oct and Mar Audience Maximization around Site Visitors, In- Traffic, Spend, Orders and Revenue grew by 4251%, 3597%, 1268%, and 1161% YoY in Google in 2019 across all audience Market, Lookalikes and Custom Combinations types Helped us with driving traffic with a CPC at 25% cheaper CPC Customer Match and drive revenue with maximum efficiency Helped us drive 600K incremental impressions at 62% lower Smart Display Campaigns CPC than all campaigns with a 9X Assist Ratio Helped us win new inventories for trademark keywords with Gmail Ads CPCs 68% lower than SERP placement for trademark keywords

The Impact of Modern Search: Audience Campaigns 15 +75% +375% -7% +62% ROAS CTR CPC CVR

Best Practices: Audience 16 • Test all audience types. Identify the “must - have” audiences from each type (the “high - value” persona). • Allocate spend to focus on the top performing segments. • Determine if you need just an audience layer vs. standalone targeting. • Test Combined Audiences (intersection of two audience segments) as part of a larger campaign. • Apply Smart Bidding with select audiences to maximize the impact of Google’s machine learning algorithms. • Engage in continuous performance testing and invest/divest on different audience segments per business goals.

Learn NetElixir’s Best Practices for Modern Search 17 • Join our Modern Search Webinar Series in May: - May 8 & 9: Fundamentals & Best Practices - May 17: Updates from Google Marketing Live in SFO - May 30: Bing and Modern Search (co-hosted by a Bing Product Expert). • Download our Modern Search Best Practices Checklists. netelixir.com/modernsearch

Asset Normalization 18 Data • Disparate feeds from four sister companies • Mapping, Transformation, and Loading all digital tools and ERP-CRM Images M-T-L • Studio Photography • Application Shots • Instagram: crowd-sourced hosted by Olapic ERP-CRM Showrooms • CAD Block Images Tear Sheets Online • Dynamic: data-driven Installation Instructions Tip 1: Leverage the same assets across all media Tip 2: ”Productionize” as much as possible

Digital Media Across Channels 19 Websites Endless Aisle Displays Full Size Displays iPad Applications ERP-CRM websites mobile app endless aisle ERP-CRM Tip: Brand the look everywhere

ERP-CRM Integration 20 ERP-CRM fully integrated M-T-L Website bi-directional integration iPad ERP-CRM ERP-CRM Showrooms Endless Aisle integration Online Tip: Integrate everything

Thank You! Al Bessin abessin@circalighting.com 512.745.9070 Udayan Bose udayan@netelixir.com 609.356.5112 ext 102 21