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Roving
CEO
Gail
Goodman
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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."
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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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