… E-MAIL MARKETING E-mail is a strategic tool
for driving web site traffic, facilitating
transactions, attracting new customers and
retaining existing ones (DigitalRiver.com, 2001).
Digital River helps with the development and
execution of the e-mail marketing campaign. They
help analyze buyer information, and help develop
specific offers to those buyers. They handle the
deployment of the e-mail campaigns and then
analyze the response rates to these offers via
their Enterprise Campaign Management (ECM) system.
ENTERPRISE CAMPAIGN MANAGEMENT (ECM) With ECM,
Digital River helps a company target the best
performing segments of their market. A Web based
interface allows the client to define, create, and
submit their campaigns entirely on their own time.
The client can target the best offers to their
high performance segments and then sample the
effectiveness of this campaign. The ECM service
tracks e-mail delivery statistics such as bounced
messages, gross circulation and buy and no buy
Follow up campaigns can be
automatically launched based on pre-defined
consumer action. All this allows a company to have
tremendous flexibility when designing and
executing an online marketing program. AFFILIATE
MARKETING With affiliate marketing, Digital River
enables a companies Web link, such as banners and
text, to be added to a select group of sites.
Visitors to those sites can then click through to
access specific areas on the companys site.
Digital River currently has an affiliate network
of over 500,000 sites in which to link a web
address. This gives the companies products and
services greater marketing exposure to a larger
buying audience. Jupiter Communications predicts
that by 2002, 24% of all E-commerce revenues will
be derived from affiliate programs such as Digital
Rivers (DigitalRiver.com). CROSS-SELLING AND
UP-SELLING Salespeople are trained to maximize
revenue by suggesting complimentary or enhanced
versions of products that customers may not
otherwise request or purchase.
Online, the absence
of a salesperson might result in wasted sales
opportunities. Digital Rivers proprietary,
rules-based cross sell and up sell solutions help
maximize sales by automatically presenting
customers with applicable complimentary or
upgraded products. Digital River even gives
companies the option to extend cross sell and up
sell products beyond there own inventory. This
service enables companies to not miss revenue
growing opportunities. PERSONALIZATION One
characteristic of online selling is that
face-to-face customer interaction is missing. This
interaction is critical in relationship marketing.
To accomplish this customer interaction,
individualized communication must be performed.
Digital River achieves this by using customer
purchase histories and cross-selling opportunities
to communicate special promotions to the customers
that want them.
This lets the customer know that a
company values their business, understands their
needs and that the companys products can meet the
needs. This practice of relationship marketing
helps develop loyal customers, which leads to
increased revenue. Even with all the success of
these E-Marketing programs, CSPs still face
pitfalls when it comes to privacy issues
associated with online marketing. ONLINE PRIVACY
ISSUES Companies that perform marketing activities
over the Internet have come under fire recently
for a practice called profiling. This practice is
the tracking of Web users as they move from site
to site to determine individual interests
(Roberts, 2000). Many shoppers appreciate the
personalization marketing they receive when they
visit e-commerce sites but are disturbed that
marketers are documenting their every move online.
The concern is what happens to this personal data
after it is captured.
Is it sold to unscrupulous
marketers who will inundate their e-mailbox with
spam (Roberts, 2000)? How companies handle the
publics concerns is key to making Internet
shopping a positive experience. SPAM The term spam
is bandied about a lot when it comes to e-mail
direct marketing. Spam is the indescriminate
sending of e-mails to a large amount of people for
the purposes of advertising. Few people like spam
because it wastes their time if the message is of
no concern to them. E-mail marketing doesnt have
to be spam if the message is not intrusive. Many
list brokers use opt-in lists.
receive ad e-mail if they request it. Response
rates for e-mail direct marketing messages are
higher than those sent by snail mail (Harris,
2001). Currently, a number of bills concerning
unsolicited e-mail and privacy bills related to
e-mail marketing and e-commerce are being
considered in Congress (Goldstein, 2000). Digital
River has adopted an e-mail marketing policy that
I feel will not infringe on public and
congressional concerns and will remain an
effective marketing tool. DIGITAL RIVERS PRIVACY
POLICY Digital River stresses permission-based
data capture on each of the Web sites it
maintains. Visitors give permission for Web sites
to monitor them and send them e-mail through
opt-ins or opt-outs.
Opt-ins are when the customer
elects to receive marketing information and
opt-outs is when the customer elects to have their
name removed from marketing lists (Roberts, 2000).
Other Digital River maintained sites employ double
verifications. This is when the customer says yes
and then Digital River sends them e-mail asking
them to verify the decision. Companies that do not
adopt these types of policies will soon be out of
business, as angry consumers will not return.
Digital River is taking this reality to heart.
SUMMARY In order for companies to succeed in
online selling, a solid Internet infrastructure
must be used and a core competency in online
management must be achieved. Old economy companies
who do not have the resources to accomplish this
have a choice. They can outsource their online
activities to Commerce Service Providers. I have
presented the justification for choosing one
particular CSP called Digital River that I feel is
By offering digital and product
fulfillment and E-Marketing services, Digital
River helps companies grow their online businesses
to maximize revenues while eliminated risks that
non-outsourcing companies assume. As more and more
business is being performed over the Internet,
companies who are aware of and then utilize
Digital Rivers services will survive. REFERENCES:
Digital Rivers E-Marketing Services Get Results
for Industry Leading Companies. February 22, 2001.
www.businesswire.com. E-Marketing Services. April
www.digitalriver.com Enos, Lori. March 29,
2001. Report: No Slowdown for Online Spending.
E-Commerce Times. Goldstein, Deb. 2000.
Establishing e-trust. Folio: the Magazine for
178 Gosselin, Paul. February
12, 2001. Marketing to Your Broadband.
Elana. 2001. Direct customers to your site. Sales
& Marketing Management.
153(1): 76 Heun,
Christopher & Murphy, Chris. 2001. The results
are in. Informationweek. 822: 22-24 Jarvis, Steve.
2001. Building the right corporate Web site means
the right people, patience, and above all, it isnt
Marketing News. 35(4): 1, 11 Leibs, Scott.
2000. Think before you link. Industry Week.
249(8): 22-30 Mahoney, Michael. March 2, 2001.
Running Lean and Mean to Survive in E-Business.
E-Commerce Times. Nelson, Matthew.
E-Commerce companies get help with returns.
Informationweek. 722: 101 Nesdore, Paul. 2001. Is
CSP heades for the acronym graveyard? E-Commerce
Times. Roberts, Lee. June 30, 2000.
Using Web to
get personal data begins to take on higher
profile. The Business Journal Kansas City. Schoen,
John. Old Economy Reaps Perks of the Web. 2001.
www.msnbc.com/news/555265.asp Wilson, Rebecca.
February 22, 2001. The Myth of Owning Online
Harvard Review. 35.
Research essay sample on Analysis Of E commerce And Keys For Succesful Companies