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

1. Go Global, Go Direct!
Why a Global Direct-to-Consumer Channel is Right for Your Business
http://www.digitalriver.com | @digitalriverinc

2. WE LIVE IN THE CUSTOMER AGE

3. CUSTOMERS HAVE MORE CHOICE THAN EVER

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. CUSTOMERS
EXPECT TO HAVE
A RELATIONSHIP
WITH YOU

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. CHALLENGES FOR SELLING DIRECT
FINANCIAL!
EXPERTISE!
SYSTEMS & OPERATIONS!
CULTURE!
PARTNER NETWORK!

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. 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. 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. 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. 89%
89% of people visit a brand’s
website when shopping online Source: Digital River

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. 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. CONTENT
IS QUEEN

17. 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%

18. CALL-TO-ACTION
IS KING

19. Purchasing directly from the
Brand’s website converts three
to five times more than a
retailer.
Source: Digital River

20. 50% of customers end up purchasing
competitive or unrelated product
50%
Source: Digital River

21. RECOMMENDATIONS & STRATEGIES
WHERE-TO-BUY
PARTNER FULFILLED ORDERS
OUTLET STORES
PRIVATE STORES
HIGH-VALUE PRICING
PRODUCT DIFFERENTIATION
GEOGRAPHICAL TARGETING

22. WHERE-TO-BUY

23. WHERE-TO-BUY

24. SHIP FROM STORE
PICK-UP IN-STORE
RETURN IN-STORE
PARTNER SERVICES
PARTNER-FULFILLED
ORDERS

25. 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

26. OUTLET STORE

27. 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

28. MSRP INTEGRITY
PREMIUM SERVICE
HIGH-VALUE
PRICING

29. PRODUCT
DIFFERENTIATION
PERSONALIZATION
UNIQUE COLORS
CUSTOM BUNDLES
ENDLESS AISLE
ADD-ONS
ACCESSORIES
REPLACEMENTS
CONSUMABLES

30. PRODUCT
DIFFERENTIATION

31. PRODUCT
DIFFERENTIATION

32. LOW BARRIER
LOW CONFLICT
LEVERAGE PARTNERS
GEOGRAPHIC
TARGETING

33. GLOBAL
Three billion consumers are
expected to drive cross-
border ecommerce revenue
to more than $300 billion
by 2018.
.

34. 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

35. GOING GLOBAL MEANS GOING LOCAL

36. 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+

37. 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

38. CARDS VS. ALTERNATIVE PAYMENTS

39. GERMANY NETHERLANDS SWEDEN FINLAND
30%
20%
30%
10%
ADDING LOCAL PAYMENTS CAN
DRAMATICALLY INCREASE REVENUES

40. CHANNEL BALANCE

41. OPPORTUNITIES & CHALLENGES
OPPORTUNITIES CHALLENGES!+
FINANCIAL!
CHANNEL RELATIONSHIPS!
EXPERTISE!
SYSTEMS & OPERATIONS!
CULTURE!
FINANCIAL+
CUSTOMER ACQUISITION+
COMPETITIVE DIFFERENTIATION+
BRAND AWARENESS+
CUSTOMER SATISFACTION+
ASSORTMENT+
INNOVATION+
BUSINESS INTELLEGENCE+

42. 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+

43. Go Global, Go Direct!
Why a Global Direct-to-Consumer Channel is Right for Your Business
http://www.digitalriver.com | @digitalriverinc