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Guest contributor Amit Kotwal on how at least one US marketer is using an innovative option: offshore Indian e-marketing services
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July 6, 2001: Although the country currently offers a home to over 800 foreign software companies from all over the world, including the US, India's next tech wave clearly involves the graphic designers and brand marketers who are ready to adapt to the changing demands of western economies.
First curry, then IT developers, and now e-marketing services? Admittedly such services like affiliate programs and e-mail campaigns may not be India's best known export, but not for long if a diligent group of e-marketers has their way.
How the Net changes things. Riverflow*, a software development firm based in New York, found itself confronted with the challenge of building out and marketing the Internet presence for its client, a 'no-name' firm in the intensely competitive US discount and brokerage industry. Instead of relying on a top US firm, an expensive option that was unacceptable to its low-budget client, Riverflow wisely outsourced to Enfusen, a recently founded e-marketing and online performance marketing firm halfway around the planet, in Pune, India.
The investment paid off: within 6 months, the client found a place in the prestigious Gomez Top 20, an authoritative e-brokerage ranking survey currently conducted quarterly. The secret: competitive e-research for on-going client site improvements, advertising opportunities and affiliate identification; targeted e-mail customer campaigns, spot-on creative messaging via banners and e-mail; real-time customer behavior tracking, backed by effective media negotiations - all conducted from India. "Customer acquisition costs for the client were lowered to $70 as opposed to an industry norm of $250, thanks to the offshore work style," confirms Avinash Kotwal, President, Enfusen. "There's no reason why we can't do the same for a client in another vertical market."
Struggling to stay competitive? Here's a way out
Undoubtedly, the recent dot com debacle has underscored one basic fact: far from outsourcing to 'Net-only' upstarts, marketing decision-makers on the smaller e-business teams must pay closer attention to online customer acquisition imperatives as opposed to indulging in expensive branding and name-recognition extravaganzas - including one-offs like ads during the Super Bowl.
"Several marketers and their ad agencies chose to wait and watch how the dot com phenomenon played out before they bought in. Obviously, even small firms need to integrate the e-channel into your mainstream marketing strategy - but how do you do this without investing in expensive software/marketing talent? Worse, what if you are a small or small-medium firm that doesn't want to be left behind - and currently has neither the time, resources or 'DNA' to clients in any meaningful form?" says Ravi Arapurakal, Brand Manager, Asia-Pacific, AT&T Communications.
Savings vs. expertise: not necessarily a trade-off
Taking a cue from its far more prominent IT cousin, offshore software development, the offshore e-marketing model provides shops an option to ramp up fast - and stay in the game. Like it or not, there are other countries out there besides the US. And yes, they have flourishing domestic advertising industries, with skills like branding, creative and e-marketing to offer. In such a scenario, the obvious option is the cost-effective offshore model. Currently, at least one e-business marketing firm in India offers e-marketing services at 1/3 the costs in the US. All an agency owner needs is a little imagination, an open mind, and the willingness to incorporate the Internet and e-mail into day-to-day operations. "Let's say this is not exactly for the e-mail challenged, but it's not rocket science either,"
Changing work styles
Of course, working with an offshore e-marketing team poses its own set of challenges. "Project communications are critical, and working with an offshore team means incorporating tools like instant messaging into the daily work culture for the US partner. Basically the offshore unit must be prepared to cover the office hours of the partner's marketing people - even if these means putting a night shift in place, something that is definitely a new thing for a marketing group. However, it's all part of customer service, and soon the benefits of putting in those working hours begins to pay off," says Rituraj Borooah, currently project director with X-istech, a web development company in India that partners with several US web development firms on large e-commerce projects.
Offshore e-marketing: happening now
And it's happening fast. Potentially, countries like India, with its established offshore software development model, and net savvy, English-speaking educated class, are poised to benefit. "Those of us who chose to experiment since early 1998 consider themselves experienced Net marketers by now. This group of 'early adopters' has hard data to prove that the Net can be a fertile medium for cost-effective customer acquisition campaigns," asserts Neel, Executive Director with Enfusen, India's first independently owned e-business marketing company, and a veteran of several international campaigns for American and Japanese brands. Recently incorporated, the Enfusen team has been involved in working with US companies on e-marketing campaigns since 1998, although customary NDA restrictions prevent it from publicizing details.
E-marketing without barriers
So is the cost-effective offshore e-marketing option right for you? "The best way is to start with a trial project, " says Kotwal. "Soon, it's pretty apparent if a client's marketing situation lends itself to the offshore model - the answer is in most cases a 'yes'".
Undoubtedly, the Internet is still maturing as a marketing medium. But let's not forget its most useful (and widely accepted) components, like e-mail and instant messaging. Those technologies in themselves are sufficient for a US-based marketing group to partner with an offshore e-marketing team and add a new dimension to their web marketing. As those who have worked with global networks in a previous life would readily confirm, executing creative out of say, Sao Paulo to brand identity standards established on the mainland US isn't entirely unheard of. Neither should the offshore e-marketing option be written off without giving it the old college try.
And, curry jokes apart, India's e-marketing value proposition is hard to resist - especially at a time when cost control is all the rage.
Copyright 2001 Amit Kotwal. Responses: mailto:amit@enfusen.com. All rights reserved. Reproduction in whole encouraged. |
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