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Startup Spotlight
Roving CEO
Gail Goodman
E-Marketing Moves From Silicon Alley to Main Street
by J.D. Renzi

Every e-marketing guru this side of Mars knows the importance of good customer communications. But does the e-marketing department have to take up an entire floor with dozens of employees and computer servers, or could it be outsourced to a third party.

Needham based Roving Software is hoping companies choose the latter, and utilize its email marketing management software, Constant Contact. The brainchild of Roving's founder and CTO Randy Parker, Constant Contact enables companies to build permission-based email campaigns, choosing their own database of prospects and customizing the marketing message-all for a low monthly fee.

Roving targets small and medium sized e-businesses, companies that require affordability and user-friendliness. "We understand the self-service model and designed the product with ease-of-use in mind," says Gail Goodman, Roving Software CEO.

While it sells its service directly, Roving has also been able to partner with some big names. In October of 2001, Roving announced an alliance with Staples to deliver marketing solutions to the office supply giant's small business customers. A similar relationship was announced in December of 2001 with Pitney Bowes.

Although some tech-marketing pundits have sneered at the viability of Internet advertising, the Kelsey Group, an analytical/research firm, stated in a recent report that an estimated 11 percent of small businesses were using e-mail marketing last year [2000].

By the end of 2001, Kelsey predicts that some16 percent of small businesses (more than 1.6 million) will use email marketing in one form or another. About 42 percent of small businesses will likely use e-mail for marketing purposes by 2005.

Roving's current product is essentially a newsletter, but CEO Goodman envisions more down the road. "We definitely have been adding new functionality," she says. "Soon customers will be able to add a survey or a coupon in addition to the newsletters they are currently able to distribute."

Roving Software

Founded:
Roving Software launched its self-service email marketing products in 1998. Randy Parker, the firm's founder and CTO, was responsible for Roving's product vision and strategy, as well as overall management in its early years. Parker's background includes 16 years in professional software development.


HQ:
117 Kendrick Street, Suite 400
Needham MA 02494
Phone: (781) 444-6160
Fax: (781) 444-6155


Web site:
www.rovingsoftware.com

Employees:
Roving Software has 29 employees, all located in its Needham, MA location.

Funding:
Roving Software raised more than $2.5 million in first round financing in August 1999. Investors included Saturn Capital and Longworth Venture Partners. In a second round of funding in April of 2000, Roving landed more than $10 million from Morgan Stanley Dean Witter Private Equity, Commonwealth Capital Ventures, and Longworth. In September of 2001 Roving announced a closing of $5 million in Series C financing from strategic partner VeriSign and existing investors Morgan Stanley, Commonwealth Capital and Longworth. Roving will use this funding for product development, market expansion and operations.

Customers:
Roving Software's customers are small and medium sized e-businesses wishing to establish cost effective, targeted email communications with their customers. Roving's Constant Contact is available through office supply retailers, small business portals, web affiliates and website development software and services companies.

Revenue:
Roving Software is growing at 25% month-over-month, and CEO Gail Goodman expects the latest round of financing to take the company to profitability.

Competitive Advantage:
The software was designed with ease-of-use and self-service as a foundation, which gives Constact Contact a high volume low-cost advantage over other forms of business-customer communications. "Email is an extremely effective way to communicate with customers and Constant Contact is an inexpensive channel." Gail Goodman, CEO

Management Team:
Gail Goodman
Chief Executive Officer and Director

Eric Groves
Senior VP, Sales & Business Development

Margaret Olson
CTO & VP, Architecture

Janet M. Muto
VP, Marketing

Dan Richards
VP, Engineering

Tom Howd
VP, Services

Alec Stern
VP, Strategic Market Development


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