Business Editors/High-Tech Writers
SAN MATEO, Calif.--(BUSINESS WIRE)--March 13, 2000
Digital Impact (Nasdaq:DIGI), the company that brings science to eMarketing, today announced that Egghead.com, Inc. (Nasdaq:EGGS), a leading Internet retailer and auctioneer specializing in technology products for the office and home, is using Digital Impact's eMarketing services to help drive auction sales. Egghead.com, which also offers travel packages and sporting goods through its auction site, utilizes Digital Impact's comprehensive eMarketing services to deliver auction notices to its customers on a rapid-fire basis for each of its 24-hour auction sessions.
Working hand-in-hand over the past eighteen months, Egghead.com and Digital Impact have developed a robust eMarketing program, and Egghead.com attributes a 20% increase in sales to its email marketing. This has helped Egghead.com sustain one of the highest customer valuations on the Internet at an average 12-month spend of $810 per buyer. In addition, Ernst and Young's Holiday Season '99 Internet Survey Report estimated that Egghead.com had the second highest average spend per customer at $217.
"We have worked diligently with Digital Impact, challenging each other to take eMarketing to a new level in our campaigns to reach out to auction participants and move inventory in record time," said Bari Abdul, senior vice president of marketing for Egghead.com. "We were one of Digital Impact's first clients, and our eMarketing efforts have advanced significantly together."
"Egghead.com's results demonstrate the power of online direct marketing through the combination of one-to-one data-mining, expert testing, analysis and quality assurance," said William Park, chief executive officer and co-founder of Digital Impact. "Egghead.com and Digital Impact have forged a strategic relationship that continues to optimize marketing communications, maximizing the lifetime value of online customers."
Digital Impact currently launches email campaigns six days per week to Egghead.com customers who have requested email notifications through the company's customer subscription management and profile page. Personalized email offers are generated based upon customers' self-reported preferences. For example, a customer who is looking for multimedia products can check the "multimedia" box on their profile page, and be notified of current multimedia-related packages from Egghead.com's auctions. Through personalization of its direct email programs, Egghead.com has generated a 300% increase in the number of customers clicking-through on their email offers.
"Digital Impact has certainly played an important role in our direct marketing programs," said Barry Peters, director of relationship marketing at Egghead.com. "By addressing our customer's self-reported preferences, as well as integrating bidding behavior data, we can offer the best matches from a variety of products such as computers, electronics, sporting goods and vacation packages that are available for a limited time. Digital Impact's services help us communicate effectively with our customers on a daily basis."
About Egghead.com
The new Egghead.com is a leading Internet retailer specializing in technology products for the office and home. Egghead merged with Onsale, Inc. in November 1999, and offers a wide range of items from computer hardware and software to consumer electronics, sporting goods and vacation packages. Its auction site offers bargains on excess and closeout goods and services. Egghead.com combines broad selection, low prices and excellent service to provide an outstanding online shopping experience for businesses and consumers. Egghead.com is located on the Internet at www.egghead.com.
About Digital Impact
Digital Impact, Inc. (Nasdaq:DIGI) offers Internet direct marketing, or eMarketing, services to businesses that wish to communicate more effectively online with their customers through email. Digital Impact combines proprietary technologies, rigorous business processes and expertise developed over thousands of email campaigns to provide a comprehensive, outsourced eMarketing solution. The services Digital Impact provides are designed to maximize its clients' return on their marketing investment. Digital Impact is a member of both the TRUSTe Privacy Program and CAUCE, the Coalition Against Unsolicited Commercial Email, and works only with companies that are advocates of strict consumer privacy guidelines. Currently, the company works with approximately 100 clients, including Dell Computer Corporation, Egghead.com, Inc., Hewlett-Packard, Macy's, Mastercard, Preview Travel and The Sharper Image. Founded in 1997, Digital Impact is headquartered in San Mateo, California, with East Coast offices in New York City.
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, including statements regarding Digital Impact's or Egghead.com's expectations, beliefs, hopes, intentions or strategies regarding the future. Forward-looking statements include statements regarding future sales, product introduction and acceptance, market acceptance and financial stability. Digital Impact's or Egghead.com's actual results and the timing of certain events may differ significantly from the results discussed in the forward-looking statements.
Note to Editors: Digital Impact is a trademark of Digital Impact, Inc. Egghead.com is a registered trademark of Egghead.com, Inc. All other brands or trademarks are the property of their respective owners.
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