engaging end users (there are more than you think)
DESCRIPTION
TRANSCRIPT
All statements made during this presentation, other than statements of historical fact, are forward-looking statements. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “goal”, “target”, “should,” “likely,” “potential,” “continue,” “project,” “forecast,” “prospects,” and similar expressions typically are used to identify forward-looking statements. Examples of such forward looking statements within this presentation include statements relating to: our perception of the contact lens and eyeglasses industry or market and anticipated trends in those markets in any of the countries in which we do business; our anticipated business operations and implementation of strategies; customer perceptions of and responses to our business and strategy; the effect of the current economic climate on our business and consumer behavior; the results of further investments in our retail brands; opportunities presented by our customer database; the extent to which our business will benefit from consumers seeking lower cost alternatives; our expected results in the eyeglasses business; and our ability to address challenges and opportunities resulting from current economic conditions.
Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about our business and the industry and markets in which we operate. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Assumptions underlying our expectations regarding forward-looking statements or information contained in this presentation include, among others: that we will maintain our position in the markets we operate in and expand in a favorable manner; that we will have sufficient capital to continue making investments in advertising and personnel to support our business and new product lines, including our prescription eyeglass business; that we will be able to generate and maintain sufficient cash flows to support our operations; that we will be able to establish and/or maintain necessary relationships with suppliers; and that we will retain key personnel. The foregoing list of assumptions is not exhaustive.
Forward-looking statements or information are only predictions. Our actual future results or performance may be materially different due to a number of factors. These factors include, but are not limited to: changes in the market; potential downturns in economic conditions; consumer credit risk; our ability to implement our business strategies; competition; limited suppliers; inventory risk; disruption in our distribution facilities; mergers and acquisitions; foreign currency exchange rate fluctuations; regulatory requirements; demand for contact lenses and related vision care products; competition and dependence on the internet and other risks detailed in our filings with the Canadian securities regulatory authorities. Reference should be made to the section entitled “Risk Factors” contained in our most recently filed Annual Information Form dated January 28, 2011 as filed on SEDAR, for a detailed description of the risks and uncertainties relating to our business. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, investors should not place undue reliance on forward-looking statements and information, which are qualified in their entirety by this cautionary statement. These forward-looking statements are made as of the date of this presentation and we expressly disclaim any intent or obligation to update these forward-looking statements, unless we specifically state otherwise and except as required by applicable law.
Our financial statements are prepared in accordance with Canadian GAAP and all figures presented are in Canadian Dollars unless otherwise stated. We also present non-GAAP measures, such as Adjusted EBITDA, the number of orders shipped and the reorder rate, which is defined as the percentage of orders in the quarter shipped to customers that we estimate have ordered from us in the past. You should refer to our securities filings for more information on these non-GAAP measures. Coastal Contacts’ securities filings, including its Annual Information Form, Management Discussion and Analysis and Financial Statements are available on www.sedar.com or at www.coastalcontacts.com.
Safe Harbor
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Company Overview
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World’s Largest Online Eyewear Company
• We design, produce and retail the largest selection of eyeglasses and contact lenses on the Internet
• We service customers in more than 10 countries through our family of websites including sites in the US, Canada, Japan, Germany, Australia, United Kingdom and Scandinavia
• Online leader in most markets
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Historical Revenue Summary
Revenue
$81.0
$102.2
$118.8
$140.0
2006 2007 2008 2009
$153.0
2010
Glasses
$184.1
2011
Revenue by Product Line (%)
$140.0
2009
$153.0
2010
Glasses
$184.1 *
2011
Contacts
8%
13%
22%
*Represents a 20% YOY sales increase
92% 87%
78%
103% YoY Growth
8% YoY Growth
Contacts
Company Milestones
2000
Coastal
Contacts
founded
2004
Public
listing
2005 2006 2007 2009 2011
Acquired #1
brand in
Europe
Acquired
market
leaders in
Netherlands
and Japan
Exceeded
$100 million
in annual
revenue
Launched
eyeglasses
category
Emerged as
#1 online
eyeglasses
retailer
5
2011
Acquired
1 million
friends
2011
Shipped
1 million
eyeglasses
Clearly’s Exclusive Designer Frame Strategy
• Stock 1,500 frames styles including leading designers
• 60% of sales in Q1, 2012 were Clearly Contacts exclusive labels
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Online Shopping Tool Enhance Customer Experience
Virtual Try On View • Upload your picture and try on several
pairs at once
Perfect Fit Tool • By entering the frame measurements
listed on your current glasses, Clearly can quickly show you the frames in our selection that will fit you best
Website is designed to accommodate Mobile and Tablet users
• Super fast shipping
• Perfect vision, every time
• FREE 366 day returns
• Give sight together
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Our Brand Promises
Product Line Overview
CONTACT LENSES
• ~ 75% of consolidated revenues
• Growing ~ 8% annually
• Serving customers North America, Europe & Asia
• Approximately 10,000 SKUs in inventory
EYEGLASSES
• ~ 25% of consolidated revenues
• First to market advantage
• Disrupting eyeglasses category
• 1500 designer frames
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Manufacturing: Premium Service and Operations
• #1 most technologically advanced lab in
North America
• Vertical integration removes costs and
deliver more value to customers quickly
• In-house manufacturing with state of the
art lens cutting machines
• Running at 1/3 of capacity
• High volume = low cost distribution
The Better Way to Buy Eyewear
• Brick and Mortar moving online
• Challenge status quo
• Saving consumers money
• Without engagement, none of this would be possible
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• Happier employees?
• Happier customers?
• Happier community?
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What does engagement mean?
• Empowerment
• Transparency
• Part of something bigger
• Align personal values with corporate values
• Team building
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How do you engage employees?
• Empowerment
• Transparency
• Part of something bigger
• Align personal values with corporate values
• Team building
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Any good ideas out there?
• Empowerment
• Transparency
• Part of something bigger
• Align personal values with corporate values
• Team building
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Any good ideas out there?
• Empowerment
• Transparency
• Part of something bigger
• Align personal values with corporate values
• Team building
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Any good ideas out there?
• Empowerment
• Transparency
• Part of something bigger
• Align personal values with corporate values
• Team building
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Any good ideas out there?
• Empowerment
• Transparency
• Part of something bigger
• Align personal values with corporate values
• Team building
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Any good ideas out there?
• What is their customer experience like?
• NPS (Net Promoter Score)
• WOM (Word of Mouth)
• Social Media Ambassadors
• Repeat business
• What’s the story they tell?
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Are your customers engaged?
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How are you making them feel?
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How are you making them feel?
• Media budget used to drive success
• Customers dictate your brand
• Give them something to talk about
• Make it good!
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Who’s the boss?
• Because these guys came along…
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Why does it matter?
• … then their friends…
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Why does it matter?
• … and their friends…
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Why does it matter?
• The actual social media landscape
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Why does it matter?
• Low market adoption
• High CPA
• Noisy marketplace
• What stands out?
• BTW, use code FIRSTPAIRFREECA
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First Pair Free
• Low market adoption
• High CPA
• Noisy marketplace
• What stands out?
• BTW, use code FIRSTPAIRFREECA – Be sure to tell a friend
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First Pair Free
• Market at or engage with?
• Social Media Strategy vs. Communications Strategy
• What’s the ROI of a hug? – Tony Hsieh
• What’s the ROI of your Mother? – Gary Vaynerchuk
• What’s the Return On being Irrelevant? - Me
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What’s the ROI of Social Media?
• Social Good is Good for Business
• 85% of consumers feel more positively about a company that gives back
• Be a part of it
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Is your community engaged?
*
* Cone Cause Evolution Study
• Give sight to someone in need
• Globally local
• 150,000 pairs so far
• 5 international missions so far
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Change the View
The Engagement
• Where does the engagement leave us?
• What has it allowed us to do?
• What is the end goal?
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