INSERT PRESENTATION TITLE HERE

DIGITAL RIVER WORLD PAYMENTS

OPTIMIZING ECOMMERCE THROUGH PRIVATE STORES

TODAY’S PRESENTERS

James Gagliardi, VP of Product Strategy, Digital River

• In his role, James is responsible for the strategy behind the company’s global product roadmap.

• Over 15 years of experience working with some of the world’s most recognized brands to help them design and implement successful, global ecommerce channels for both B2C and B2B

Namrata Sinha, Sr. Manager of Global eBusiness, Western Digital

• In her role, Namrata over oversees the development and implementation of Western Digital’s global ecommerce strategy for direct-to-consumer

• Experience managing online stores across the globe – North America, EMEA, and Asia

DIGITAL RIVER AT A GLANCE

$390M in 2013 revenue

$31Bannual online transactions (ttm)

20 years of experience

31 offices around the world

50% revenue outside the Americas in 2013

1,300+ commerce experts

243countries and territories where we do business

200+ payment methods

TRANSACTIONS BY GEOGRAPHY

AMERICAS51%

EMEA39%

APAC10%

TRANSACTIONS BY REGION

OUR CUSTOMERS INCLUDE TOP GLOBAL BRANDS

TODAY’S AGENDA

1 WHAT ARE PRIVATE STORES?

PRIVATE STORE CONCEPTS

WESTERN DIGITAL: CASE IN POINT

PLAN STRATEGY & PLANNING

2

3

4

PRIVATE STORES

Private Stores enables the segmentation and targeting of “known” sets of customers and offer them a custom shopping experience with differentiated product assortment,

special discounts and merchandising offers.

EMPLOYEES PARTNERS AND

ASOCIATIONSFRIENDS AND

FAMILY

STUDENTS EVENTSLOYALTY AND FAN CLUBS

5 - 50% of Revenue

0% 50% 100%

MEMBERS ONLY

CHANNEL CONFLICT

B2BContract PricingVolume DiscountsPurchase Orders

Retail PricingPromo Discounts

Credit Cards

Tiered PricingPurchase PlansPrivate Stores

B2C

HOW IT WORKS

Rods and Reels

40% OffLimit 2 per category

Accessories

15% OffLimit 2 per item

Bait and Tackle

25% OffNo Limit

MEMBERS ONLY

SEGMENTATION

EMPLOYEE STORE

FRIENDS AND FAMILY

PARTNER PROGRAM USE CASE

14

Product availability and discounts variable by Partner

Product availability and discounts variable by Partner

AFFINITY PROGRAM

AFFINITY PROGRAM

AFFINITY PROGRAM

EXTENDING YOUR ENTERPRISE (B2B) PROGRAM

EDUCATION

PRODUCT LIFECYCLE

PRODUCT LIFECYCLE

Pre-Order End-of-LifeA-Stock Slow Refirb

PRODUCT LIFECYCLE OPTIMIZATION

PRODUCT LIFECYCLE OPTIMIZATION

WESTERN DIGITAL

WESTERN DIGITAL PRIVATE STORES: CASE IN POINT

• Western Digital wanted a vehicle that would allow them to target and engage specific new customer segments

• Needed a capability that would provide the ability to extend specific promotions and offers to specific customer segments without disrupting the rest of their ecommerce business

• Customized private stores offering special discounts/pricing to specific customer segments including:

o Students

o Seniors

o Employees

o Channel Partners

BUSINESS IMPACT:

• Implementing Private Stores has helped Western Digital:

o Avoid channel conflicts

o Easily manage purchase limits

o Create custom pricing discounts

o Strengthen customer relationships

o Tailor promotions to specific audiences

o Regionalize based on business need

PRIVATE STORES IN ACTIONWHY PRIVATE STORES?

WESTERN DIGITAL PRIVATE STORES: IMPLEMENTATION

IMPLEMENTING PRIVATE STORES . . .

DOMAIN VALIDATION/ FILTERING

1. IP VALIDATION/ FILTERING

2.

−Student Stores: abc@university.edu

−Senior Stores: abc@seniororganization.org

−Partner Stores: abc@partner.org

−Employee Stores

WESTERN DIGITAL PRIVATE STORE EXAMPLES

PARTNER STORESSTUDENT STORES

PLAN STRATEGY AND PLANNING

Students

Teachers and Faculty

Businesses

VARs

Associations / Tradeshows

Military

Government

Non-Profits

First Responders

Social Influencers

VIP Customers

Email Address White List

Email Domain

@company.com

.edu

Unique Identifier

Generic Code

@socialmedia

Referring URL

IP Address

Email Invitation

a.k.a. Friends and Family

Verification

2. AUTHENTICATION RULES1. TARGET MARKETS

PLAN STRATEGY AND PLANNING

Product Inclusion / Exclusion

Quantity of products in a given

period of time

Individual products or across all

products in a group

Example: You can buy a limit of 2 of each TV vs.

You can buy a limit of 2 TV’s in a given period.

Time period

lifetime, month, quarter, year or custom.

Minimum and maximum quantity

Example Plan Limit of 10, Line Item of 2. Shopper

would need 5 or more separate orders to reach

maximum.

Branding Approach

Price Discounts

per group, category, or product

Discount approach

Percent Off, Amount Off, specific pricing

Country support

Pricing per currency, shipping costs

4. PRICING PLAN3. PRODUCT STRATEGY