Alienware Transforms Business with Omniture $100 M Achieved over $100 in annual online sales c a se s tudy r etai l / Ma nu fact u ring Overview Alienware, a privately held company, was founded in 1996 by two friends who started out building customized, high-end computers for their fellow gaming enthusiasts. Armed with technical smarts, the pair saw a need to ratchet up the quality and capability of high-end PCs in the marketplace and soon formed their own company. Based in Miami, Florida, Alienware is known for its unique, innovative PC designs, with systems coming in a variety of sizes, shapes and colors with certain products inspired by the look of the extraterrestrial creatures in the classic science fiction movie, Alien. The company has quickly become a key industry player, manufacturing high-performance desktop, notebook and media center computer systems in the U.S. and Europe, and employing several hundred people. Once in a niche gaming market, Alienware has expanded into mainstream markets including home and home office, education, government, mobile computing, and creative services.
Location: Miami, Florida products: Omniture SiteCatalyst™, Omniture DARTmail™ Integration, URL: www.alienware.com Omniture SearchCenter™, Omniture DataWarehouse™ industry: Retail/Manufacturing Omniture Discover™ Challenge Solution Results • Gain deeper insight to analyze • Omniture SiteCatalyst selected • Over $100 million in annual online channel for its best-in-class, hosted online sales • Optimize online channel to drive analytics solution • Average online transaction company growth • Omniture Discover delivers in- near $3,000 • Gain competitive advantage depth reporting analysis • 35 percent annual growth in through advanced analytics • DARTmail Integration improves unique site visitors • Improve e-mail marketing e-mail campaign execution • 105 percent annual increase in effectiveness • Omniture SearchCenter simplifies online holiday sales keyword marketing • $160,000 incremental revenue through DARTmail remarketing campaignChallengeBefore deploying Omnitures online that would give our stakeholders—at ness. Recently, Alienware hasmarketing services, Alienware had all levels—the insight to make quick, deployed Omnitures integration withno real analytics solution in place. To smart decisions.” In a ferociously DoubleClick’s DARTmail service.learn about online activity or visitor competitive PC hardware market “Omniture’s integration with DARTmailbehavior the company relied on crude with companies such as Dell, Sony gives Alienware a truly powerful, com-Web log reports, which required and Gateway vying for market share, prehensive e-mail marketing platform,manual processes of pulling and Alienware needed to find a way to tied into the industry’s leading Webformatting raw data. “At that point, break through the ceiling to continue analytics tool, creating the opportunityour online decisions were essentially its success trajectory in e-commerce. to develop truly effective segmentedbased on guesswork, as true analytics marketing,” says Brown.didn’t really exist,” says William SolutionBrown, director of e-commerce for To take their Internet retail business ResultsAlienware. “We had no way to capture to the next level, Alienware turned to “The results have been phenomenal,”and view Web traffic and its related Omniture in 2003 for its leading Web concludes Brown. “Omniture providescommerce data in real-time. We didn’t analytics solution. “It was critical for us incredibly robust tools that have hadhave the breadth of tools to evaluate to find the right partner and technology a profound impact on our business.”the results of our online decisions.” set,” says Brown. “We wanted a best-in- Today, Alienware is selling over $100The company had grown very quickly class solution that would become a key million annually through the onlineover a span of seven years, but was foundation for growing our business. channel alone, with average transac-seeing Web site conversion rates Our executives made the logical deci- tions near $3,000. Unique site visitorsgradually drop. “With 80 percent of sion to invest in Omniture, embracing are growing 35 percent year-over-our business conducted online, not strategic e-commerce as a major prior- year. “The investments we’ve made inunderstanding why customers were ity for the company.” Subsequently, Omniture have been completely justifiedleaving the site without completing the company deployed Omniture in terms of ROI,” says Brown. “We area transaction was becoming a huge SiteCatalyst, Data Warehouse, Discover, constantly improving decision-makingmissed opportunity,” declares Brown. and most recently, SearchCenter, creat- across such mission-critical functions as“As a rapidly growing company, every ing a suite of analytics that has dramati- site design, email marketing, and onlinesingle sale counts. We needed a tool cally impacted all aspects of the busi- media. Omniture gives us the tools to
With Omniture, we’ve gained tremendous insight into our customer base, which has literally transformed our business. We’re selling over $100 million annually through the online channel alone, and unique site visitors are increasing 35 percent a year. William Brown, director of e-commerce, Alienware Corporationoptimize consumer demand-generation and ‘Cyber Monday’ shopping weekend previous days’ site activity and results,and conversion activities.” in November 2005. “This is the biggest along with a comparable period. For online shopping weekend of the year, our busy executives, this ‘executiveOmniture SiteCatalyst has given and we wanted to make the most of it,” summary’ provides them easy accessAlienware new insights and a deeper says Brown. And they did. Alienware to the information they need. If theyunderstanding of their customers, increased weekend sales by 105 percent need to go deeper, more detailed real-which has made them a more com- compared to the prior year’s five-day time data is just a click away, so theypetitive company. “One of the great period. “With real-time data delivered can make on the spot decisions thatthings about Omniture is that you can through Omniture, we turned our strat- can influence customer behavior in asee—in real time—what your custom- egies and tactics towards products or matter of minutes.”ers are doing and what your customers promotions that were really workingare thinking. In the ‘offline world’, you well on the site to maximize sales,” With Omniture, Alienware has beenoften have to be clairvoyant—a mind says Brown. “Using Omniture reports, able to do more with less. “Omniturereader—to understand what drives key performance indicators, alerts and is so easy to run and so easy to use,”a customer to make a purchase or other tools within the system, we had says Brown. “We can access it from anynot. In the ‘online world’—with Web real-time data to support decisions, Web browser. The tool allows us to doanalytics—you can identify the fac- changing and tweaking site content to so much without additional overhead.”tors that lead to a purchase decision. optimize sales. We identified hot-selling For a company its size, Alienware hasWith the right tools, you can monitor products such as our high-end Area-51 a lean analytics department. “Withcustomer activity, from the initial visit notebooks, gave them better site vis- a hosted solution, we don’t have toto a purchase or abandonment, every ibility and online media promotion, and worry about software updates or main-step of the way. There’s an opportunity watched sales spike before our eyes. We tenance. We don’t need to becomefor direct learning from every visitor could also see what price point custom- experts in building an analytics softwarewho comes to our site. With Omniture, ers were responding to, and make the platform. Instead, we can just focus onwe’ve gained tremendous insight into appropriate changes.” Alienware had building upon the Alienware e-com-our customer base, which has literally its best month ever, with record-break- merce success story and getting thetransformed our business. Having the ing site traffic, conversion rates, and most out of the tool. We trust Omnitureability to look at real-time data in a revenue. “We were able to fully leverage 24 hours a day, seven days a week,highly intuitive, graphical format has our online media investments into maxi- year-round to track the status of ourallowed Alienware to maintain our mum ROI.” global e-commerce business.”competitive advantages over our well-heeled competitors.” Omniture Pays Off in Spades SiteCatalyst has been rapidly adoptedAlienware established a high-profile by users throughout the enterprise,partnership with Lucas Films, whereby as it monitors the Miami-based site “ e are constantly WAlienware built and sold the first official and other company sites in the UnitedStar Wars PC, the Aurora 7500 Star Wars Kingdom, France and Germany. Brown improving decision-makingEdition. The company invested heavily says there are approximately 30 total across such mission-in this initiative with Lucas, building a employees using the tool in Miami ascustom-designed PC with a unique Star well as in their Athlon, Ireland subsid- critical functions as siteWars look-and-feel. Customers could iary office—with even more stakehold-choose one of two models, a “dark side” ers receiving specific reports delivered design, email marketing,model associated with dark characters by email worldwide. With a dedicated and online media.in the movie or a “light side” model in analytics team as well as six to tena light color scheme. Alienware used ‘power’ users throughout the company, Omniture gives us theOmniture to track visitor behavior with SiteCatalyst is spreading insightful tools to optimize consumerthis strategic product, and quickly uncov- data to improve business perfor-ered a startling insight: dark side systems mance. Viewing customized charts and demand-generation andwere outselling light side models by a reports through intuitive dashboards,ratio of 15 to one. This fresh insight from Alienware’s executive team is engaging conversion activities.”SiteCatalyst rippled through Alienware the tool and viewing analytics daily toand the company was able to quickly keep their fingers on the pulse of theadjust its product development, supply business. Customized dashboards arechain assets, marketing and manufactur- sent to executives via e-mail for simple,ing plans to meet the demands of the quick viewing. “Our executives aremarketplace and maximize sales. looking at Omniture reports every day,”Using SiteCatalyst, Alienware had an says Brown, “Dashboards are automat-overwhelmingly successful ‘Black Friday’ ically sent every morning showing the