ERA Brings Accreditation to Direct-to-Consumer Commerce

By Sieglinde Friedman

In an effort to enhance consumer confidence, trust and exemplary business practices, as well as to demonstrate leadership in direct-to-consumer commerce, the ERA Board of Directors recently approved an Accreditation Program for ERA members and non-members. Although currently in its development phase, this program will be launched at the 2008 ERA Annual Convention in Las Vegas.

The ERA Accreditation Program is an investment in the multichannel direct response profession's future, as it provides a mechanism to validate accountability and value for the consumer. The successfully accredited multichannel retailer or supplier will receive recognition for the quality and value of services he or she provides. It also strengthens the viability and competitive position of organizations that have employees providing these services. There is compelling research that demonstrates that professionals who obtain certification produce positive effects on service quality, service outcomes and company revenues. As multichannel retailing enters the next generation of new and improved technologies, it is increasingly important that the focus of their expertise and judgment ensures consumer confidence and professional growth.

LOOKING AT THE RESEARCH
Citing three independent studies of accreditation and certification programs within global associations (including the National Association of Manufacturers, International Capital Markets Association, The Media Rating Council, British Interactive Media Association, among others), the following benefits and competitive advantages were identified for members who participated:

Business

• Overall, between eight and 10 percent more leads were received
• Sales increased between six and 15 percent, depending on the level of employees certified (i.e., c-level employees = higher percentage)
• Increased revenue per customer was between two and five percent
• Customer-retention rates in three of the cases topped 60 to 70 percent
• Customer satisfaction led to lowered service and support costs for publicly traded companies; shareholder interest rose between 15 and 20 percent
• Businesses that required their vendors to participate developed better relationships with those vendors

Employee

• Sixty-five percent of employees valued their company and its brand for increased third-party educational opportunities
• Employee turnover decreased seven to nine percent
• Forty percent of employees valued career development opportunities when assessing new employers
• Improved employee team communication and interaction
• Supports competency-based recruitment and promotion of staff
• Improved performance
• Increased income potential (higher education is associated with higher lifetime earnings)
• Greater global awareness (better comprehension of local, national and world issues in your chosen field)
• Ability to share knowledge learned (giving back to family, friends and community)

ACCREDITATION OFFERS LEGITIMACY
The difference between accreditation and certification is clear: accreditation is the voluntary process by which a non-profit, such as ERA, grants a time-limited recognition, verifying that its members have met pre-determined and standardized criteria; while certification differentiates pre-determined and standardized criteria among its members, using principles--sometimes developed through a consensus-driven process--based on existing best practices and legal requirements.

The ERA Accreditation Program will enhance ERA members' adherence to and understanding of best practices, responsibility and consumer trust. It will advance the industry as a whole by promoting the respect and sense of conscientiousness these retailers and their suppliers offer their consumers on a daily basis. The program will increase ERA members' visibility in the industry and elevate their status as premier retailers or suppliers among consumers and peers alike--offering a competitive edge. Simultaneously, this initiative will not only advance ERA's leadership role in the industry, but also demonstrate a commitment to its members by securing access to: educational materials, developed and written by industry-acknowledged top 50 retailers and direct response technology experts, and also to seminars and workshops delivered by qualified and respected specialists, and in partnership with major higher education institutions such as New York University, Stanford and UCLA.

Further, direct-to-consumer retailers and suppliers who become certified under the Accreditation Program will receive national recognition by their peers for their commitment to excellence, superior customer service and the highest professional standards in direct response. The Accreditation Program will recognize those communicators who have reached a globally accepted standard of knowledge and proficiency in their chosen field and will be an important component of career development. The Accreditation Program provides a mechanism to ensure that employees are up-to-date on the latest technologies and emerging trends in the industry. Professionals who achieve certification status will also have added prestige at their job.

Finally, the Accreditation Program is a fair, valid and reliable process by which professionals may demonstrate their advanced business practices and trustworthy performance to the consumer. The Accreditation Program will be the emerging paradigm relative to developing and nurturing customer relationships. Consumers commonly associate enhanced value and quality with certification status. Therefore, companies whose staff has obtained certification status will be recognized and rewarded by consumers with an increase in sales revenue.

In fact, looking at ERA's competitive landscape, its three not-for-profit counterparts do not offer such a fully developed program. For instance, the Direct Marketing Association launched a search engine marketing program leading to certification in September 2006 directly tied to two learning programs. It differs from ERA's program in that it has no predetermined, standardized criteria for participation. Further, the program is not promoted to build industry credibility and has no ties to the consumer, but rather is intended for webmasters or small business owners wanting to learn how to market their own website. Shop.org has no accreditation programs. However, its parent company, the National Retail Federation, has several accreditation programs leading to certification. They differ from ERA's Accreditation Program because they do not have a direct response component nor are they intended for the online retailer.

The Interactive Advertising Bureau has standards and guidelines for measurement, affecting the currency of the media. Standards are used for measurement certification purposes, as well as for resolving reporting and billing issues. This differs from ERA's Program in that no accreditation leading to certification is offered. In short, ERA's competitive advantage is that the Program is geared toward best practices in the direct-to-consumer industry, which enhance consumer protection and improve industry standards. Currently, no other association in ERA's realm has such a focused and well-developed program.

Those interested in becoming accredited under the Program will be required to meet the following qualification requirements to become certified:

• Have a minimum of 24 months experience in the multichannel retailing industry;
• Be currently employed in the multichannel retailing industry;
• Complete an online application form and remit an application fee;
• Successfully pass the certification examination; and
• Maintain at least 10 hours of continuing education credits in a three-year period following achieving certification status.

All continuing education credits will be approved by ERA. Once accredited under the Program, the successful retailer or supplier will receive recognition as a Certified Electronic Retailer.

The ERA Accreditation Program, beyond serving to increase consumer confidence, business value and standards for direct-to-consumer retailers and their suppliers, will advance the industry as a whole and create a recognized certification of leadership, knowledge and excellence.

Sieglinde Friedman is ERA's vice president, board & strategy. She can be reached at (703) 908-1021, or via e-mail at sfriedman@retailing.org.