Strategic Internet Marketing Lessons From (Possibly) The World's Most Effective Ecommerce Site

Want to make an average of ten times as much in sales as you spend on marketing, a 10x ROI?  That's what multimedia software producer Roxio, a division of Sonic Solutions makes.  Want to know how they do it?

Marketing Sherpa has a case study that reveals how Roxio uses strategic Internet marketing to achieve these phenomenal results.  It's available to view for free until October 28, 2005 (after that, there's a charge to view it).  Here's a quick summary:

Roxio uses strategic Internet marketing technology to try to do "one-to-one" optimization.  Each visitor gets content optimized just for them.  Content, click paths, offers, and emails are all targeted specifically to what they know about an individual based on all data they have collected about that individual - including their needs and budget.  All of this is dynamic and integrated across all of their internet marketing, with constant a/b testing and multivariate testing using the latest technology.

Roxio has outsourced almost all of their strategic technology to high-end, stable vendors (see list of vendors at the bottom of this article) who provide services such as:

  • A/B, multivariate testing, and presentation scenarios
  • Ad serving
  • Email broadcasting
  • Affiliate management
  • Web analytics
  • Shopping cart

But outsourcing to multiple vendors doesn't work very effectively if each vendor has separate databases of customer and prospect data, so Roxio centralized all of their data in one strategic Internet marketing data warehouse and reporting system.  The system allows them to store and generate reports based on:

  • All data they collect from every traffic source
  • All data about individual visitors' activities throughout Roxio's systems
  • Demographic data on groups and individuals
  • Site usability data
  • A/B and multivariate test results data

Their web site's content management system automatically serves dynamic content, offers, hotlinks, and pop-ups based on the data in the database about each visitor.  Their strategic Internet marketing system serves offers that a particular prospect is most likely to find appealing, but also serves secondary offers (just in case...) or runs a/b tests with groups of similar prospects.

Roxio's strategic Internet marketing system is dynamic enough that it can even make decisions based on the visitor's activities in real time.  For example, if the data about a given prospect indicates price sensitivity and the visitor abandons their shopping cart, the system can quickly send an automated email that offers a discount on the items in the abandoned shopping cart!  That's just plain cool...and very smart!

Roxio uses the following vendors in their strategic Internet marketing system:

Conversion optimization and marketing tests (a/b split testing, multivariate testing, etc.):

Web analytics:

Shopping cart:
Digital River

Basic email broadcasts (not dynamic and not individualized):

Affiliate Program:
Commission Junction

Read more about Roxio's strategic Internet marketing sytem in Lessons From (Possibly) The World's Most Effective Ecommerce Site...