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Go Global, Go Direct!

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Why a Global Direct-to-Consumer Channel is Right for Your Business

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Go Global, Go Direct!

  1. 1. Go Global, Go Direct! Why a Global Direct-to-Consumer Channel is Right for Your Business http://www.digitalriver.com | @digitalriverinc
  2. 2. WE LIVE IN THE CUSTOMER AGE
  3. 3. CUSTOMERS HAVE MORE CHOICE THAN EVER
  4. 4. AWARENESS CONSIDERATION PURCHASE SERVICE LOYALTY PR WORD OF MOUTH ONLINE ADS EMAIL DIGITAL SIGNAGE SEARCH SOCIAL MEDIA BLOGS USER REVIEWS DIRECT MAIL STORE 3RD PARTY WEBSITES CALL CENTER MARKETPLACE DIRECT ONLINE RETAILER MOBILE CHAT CALL CENTER PROMOTION ON INVOICE BLOG EMAIL NEWSLETTER 3RD PARTY APPS TV, RADIO, PRINT CUSTOMERS HAVE ACCESS TO MORE INFORMATION THAN EVER
  5. 5. CUSTOMERS EXPECT TO HAVE A RELATIONSHIP WITH YOU
  6. 6. MULTIPLE SELLING CHANNELS CO-EXIST Branded manufacturers are developing three sales channels that co-exist and each channel has its own unique strategy.
  7. 7. CHALLENGES FOR SELLING DIRECT FINANCIAL! EXPERTISE! SYSTEMS & OPERATIONS! CULTURE! PARTNER NETWORK!
  8. 8. Digital River is a leading global provider of commerce, payments and marketing solutions. 20+ years of experience 200+ payment methods 1300+ commerce experts 22 offices around the world $35B annual online transactions More than 240 countries and territories where we do business
  9. 9. JAMES GAGLIARDI James Gagliardi is vice president of strategy and innovation at Digital River. He is responsible for the strategy behind the company’s global product roadmap and ensuring its suite of commerce, payments, and marketing solutions meet, exceed and anticipate the needs of Digital River’s world-renowned clients. http://driv.ws/jamesgagliardi @jamesgagliardi
  10. 10. Source: A commissioned study conducted by Forrester Consulting on behalf of Digital River, March 2014 CUSTOMER RELATIONSHIP+ DEMAND+ COMPETITION+ DRIVERS FOR SELLING DIRECT CUSTOMER EXPERIENCE+ ASSORTMENT+ FINANCIAL+
  11. 11. Source: A commissioned study conducted by Forrester Consulting on behalf of Digital River, March 2014 IMPACT OF SELLING DIRECT CUSTOMER ACQUISITION+ BRAND AWARENESS+ COMPETITIVE DIFFERENTIATION + CUSTOMER SATISFACTION+ ASSORTMENT+ FINANCIAL+ INNOVATION+ BUSINESS INTELLEGENCE+
  12. 12. 89% 89% of people visit a brand’s website when shopping online Source: Digital River
  13. 13. MORE THAN A THIRD OF CONSUMERS GLOBALLY HAVE PURCHASED PRODUCTS DIRECTLY FROM BRANDS 35% Sources: PWC, Demystifying the online shopper 10 myths of multichannel retailing | Forrester, The Marketing Case For A Branded Sales Channel • KNOWLEDGE • CERTIFIED PRODUCTS • WARRANTIES • BRAND LOYALTY • UNIQUE SELECTION • UNIQUE OFFERS • PRICE
  14. 14. BRANDED CONTENT has a higher potential to drive conversions than expert content or user-generated content Source: Nielsen/inPowered, The Role of Content in the Consumer Decision Making Process, $50-$499 Selling direct is the channel most highly correlated with spending premiums in several industries. PURCHASE INTENT
  15. 15. CONTENT IS QUEEN
  16. 16. 43% of customer put off buying a brand’s product through another channel if they can’t buy it through the brands own website Source: Digital River 43%
  17. 17. CALL-TO-ACTION IS KING
  18. 18. Purchasing directly from the Brand’s website converts three to five times more than a retailer. Source: Digital River
  19. 19. 50% of customers end up purchasing competitive or unrelated product 50% Source: Digital River
  20. 20. RECOMMENDATIONS & STRATEGIES WHERE-TO-BUY PARTNER FULFILLED ORDERS OUTLET STORES PRIVATE STORES HIGH-VALUE PRICING PRODUCT DIFFERENTIATION GEOGRAPHICAL TARGETING
  21. 21. WHERE-TO-BUY
  22. 22. WHERE-TO-BUY
  23. 23. SHIP FROM STORE PICK-UP IN-STORE RETURN IN-STORE PARTNER SERVICES PARTNER-FULFILLED ORDERS
  24. 24. 30 % OUTLET STORE REFURBISHED OPEN BOX SCRATCH-AND-DENT OUTDATED EXCESS INVENTORY SLOW MOVING END-OF-LIFE 30% UP TO 30% OF REVENUE FROM OULET STORES
  25. 25. OUTLET STORE
  26. 26. 50% Source: Digital River EMPLOYEES PARTNERS FRIENDS & FAMILY LOYALTY & FAN CLUBS STUDENTS & FACULTY EVENTS PRIVATE STORES 5% Create custom shopping experience with differentiated product assortment, pricing and merchandising offers UP TO 50% OF REVENUE FROM PRIVATE STORES
  27. 27. MSRP INTEGRITY PREMIUM SERVICE HIGH-VALUE PRICING
  28. 28. PRODUCT DIFFERENTIATION PERSONALIZATION UNIQUE COLORS CUSTOM BUNDLES ENDLESS AISLE ADD-ONS ACCESSORIES REPLACEMENTS CONSUMABLES
  29. 29. PRODUCT DIFFERENTIATION
  30. 30. PRODUCT DIFFERENTIATION
  31. 31. LOW BARRIER LOW CONFLICT LEVERAGE PARTNERS GEOGRAPHIC TARGETING
  32. 32. GLOBAL Three billion consumers are expected to drive cross- border ecommerce revenue to more than $300 billion by 2018. .
  33. 33. On average today, 18% of online revenues come from international sales 40% 18% Source: Forrester Consulting, Global eBusiness and Channel Strategy Survey | Digital River INTERNATIONAL SALES
  34. 34. GOING GLOBAL MEANS GOING LOCAL
  35. 35. OPPORTUNITIES & CHALLENGES OPPORTUNITIES CHALLENGES!+ LEGAL ENTITIES+ TAX COLLECTION AND REMITTANCE+ COMPLIANCE+ FRAUD MANAGEMENT+ CUSTOMER SERVICE+ FINANCIAL+ CUSTOMER ACQUISITION+ COMPETITIVE DIFFERENTIATION+ BRAND AWARENESS+ CUSTOMER SATISFACTION+ BUSINESS INTELLEGENCE+ SYSTEMS & OPERATIONS+ FOREIGN EXCHANGE+
  36. 36. CRAWL / GOOD WALK / BETTER RUN / BEST Local Entity • Local credit cards • Local payment types Cross-Border Payments • International payments • PayPal Off-Shore Warehouse • Customer is importer of record • Customer pays landed costs of duties & taxes Localization • Language • Currency Local Warehouse • Client is Importer of Record and pays duties and taxes Localization • Language, currency • Site flow, experience • Address validation Cross-Border Payments • International payments • PayPal Marketing • Local marketing expertise and services Off-Shore Warehouse • Customer is importer of record • Customer pays landed costs of duties & taxes Localization • Language, currency • Site flow, experience • Address validation Customer Support • Local language support for email, phone, chat Customer Support • Local language support for email, phone, chat GOING GLOBAL
  37. 37. CARDS VS. ALTERNATIVE PAYMENTS
  38. 38. GERMANY NETHERLANDS SWEDEN FINLAND 30% 20% 30% 10% ADDING LOCAL PAYMENTS CAN DRAMATICALLY INCREASE REVENUES
  39. 39. CHANNEL BALANCE
  40. 40. OPPORTUNITIES & CHALLENGES OPPORTUNITIES CHALLENGES!+ FINANCIAL! CHANNEL RELATIONSHIPS! EXPERTISE! SYSTEMS & OPERATIONS! CULTURE! FINANCIAL+ CUSTOMER ACQUISITION+ COMPETITIVE DIFFERENTIATION+ BRAND AWARENESS+ CUSTOMER SATISFACTION+ ASSORTMENT+ INNOVATION+ BUSINESS INTELLEGENCE+
  41. 41. Source: A commissioned study conducted by Forrester Consulting on behalf of Digital River, March 2014 91% IMPACT TO THE CHANNEL 91% OF BRANDS SEE A POSITIVE IMPACT TO THEIR CHANNEL RELATIONSHIP BRAND AWARENESS INCREASED SALES+ BRAND AWARENESS INCREASED LEADS+ REFERRAL SALES+ INVENTORY MANAGEMENT+ FOCUSED PRODUCT ASSORTMENT+
  42. 42. Go Global, Go Direct! Why a Global Direct-to-Consumer Channel is Right for Your Business http://www.digitalriver.com | @digitalriverinc

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