Category Archives: Misc

First Data Adds Beacon Technology to its Perka Loyalty Solution

First Data, the payment processing giant, has been building up a suite of services that would take the company far beyond payment processing and inject it squarely in the middle of SMB marketing.

The suite as currently configured includes the Clover Point of Sales system; Insightics analytics of transactions; Gyft virtual gift card services; and Perka, a sophisticated loyalty program for SMBs. Each of the services works independently, but are also increasingly integrated as well.

Perka was purchased by First Data roughly one year ago; in tandem with First Data’ purchase of Clover. Competing with Belly, Five Stars, SpotOn and other loyalty services, Perka now has over 1,000 merchants, and has recently increased its monthly fee for new customers from $50 to $59.99.

Co-founder Rob Bethge recently talked with BIA/Kelsey about the service’s progress under First Data – a sale which Bethge says has given it a chance to scale on a global basis– technologically and commercially – much faster than if it had been a standalone company.

Bethge says the company is just now “commercializing” with First Data’s various channels, including the use of up to 1,700 First Data sales reps of various stripes reaching out to SMBs. The service’s latest feature is the addition of proprietary wireless Beacon technology with rolling security codes, which will be provided for free to subscribers. The technology, which requires consumer opt-in, allows stores to know precisely who is in their store at any time – a favorite merchant feature, says Bethge.

Among other things, stores could theoretically craft special promotions based on this knowledge. The service, which is Bluetooth enabled, also allows easy transactions when consumers hands are full (i.e. if they are carrying a baby or a cup of coffee).

Theoretically, using the Beacon, consumers can turn on the feature for the morning at some stores, and then turn it on for other stores in the evening. The Beacon technology also enables individual merchant apps, in addition to Web access. “It allows for very location oriented offers,” Bethge says.

Interestingly, Bethge says the Beacon service would not have had an impact when Perka was first introduced in 2011. At that time, “less than half of locations had WiFi. Now it is not even a question.”

Acxiom Launches Self Serve SMB Marketing Effort

Acxiom_Logo

Consumer data giant Acxiom is moving downstream with a self-serve leads products tailored to SMBs. The new SMB product, “MyAcxiomPartner,” allows SMBs to develop customer lists on a hyperlocal basis, using either addresses or polygon mapping.

The effort is part of Acxiom’s “Audience Operating System,” a consumer data campaign management tool that has been developed at a cost estimated at tens of millions of dollars. The AOS is part of a vision by CEO Scott Howe to enable Acxiom’s data to be easily and readily available to all kinds of marketers across many channels. Howe’s mantra is to use Big Data to enable more precise marketing.

Using MyAcxiomPartner, lists can also be developed based on several other criteria, including behavioral and demographic elements and over 4,000 scored models (i.e. marketing propensities such as “Mid size SUV” or “Brand Name Apparel.”) Costs begin at $100 or $200, based on criteria involved.

In a briefing with BIA/Kelsey, VP of Global Partner Development Jeff Standridge notes that Acxiom is targeting SMB owners for MyAcxiomPartner that have annual revenues ranging anywhere from “a few hundred thousand dollars to tens of millions of dollars.”

“We’re putting audience selection in the hands of SMB owners that don’t have campaign experience,” says Standridge. “We enable smart media purchases; for target audiences to be identified; and for SMBs to plan and execute media.”

A limousine company, for instance, can develop a list targeting several hundred likely customers for a self-serve mobile banner campaign. In this specific example, Acxiom has teamed up with 4Info for the mobile ad component, which also enables customers to upload their own graphics and deployments.

Acxiom CEO Scott Howe is keynoting BIA/Kelsey’s Leading in Local: SMB Digital Marketing event in New Orleans Sept. 22-24. You can register here.

Home Advisor’s Chris Terrill: Poised for Growth, New Services

Almost two years ago, IAC was in a tough situation. It had a leading services referral business in ServiceMagic, whose main rival was Angie’s List, the paid subscription service. But the service wasn’t growing; had relatively low brand awareness; and seemed to be in danger of getting bypassed by a new crop of social media driven services.

In an episode of creative destruction, IAC, along with new CEO Chris Terrill, made the decision to rename the company to “Home Advisor”; and narrow its focus to home services. Terrill later refocused the company’s primary business model from pay per lead to monthly subscriptions that would include a variety of value added social media and directory services (pay per lead options remain available).

Today, the Home Advisor brand may not be as well known as ServiceMagic at its peak. It also remains under the radar in the business world. That is partly explained by the company not being VC backed or publicly traded as a separate company outside of IAC, says Terrill. “We don’t get written about as much.”

But Terrill says that the company remains one of the largest home service networks, with 80,000 service pros, two million reviews and 30 million home owner requests. It is also growing and profitable, and highly focused on “strategic sales.”

And it is focusing more on the awareness issue, conducting an ambitious TV campaign to reach more home owners. It will be spending even more on TV in coming months, with budgets that are in the “tens of millions” of dollars.

The picture looks bright going forward for Home Advisor and the entire home services space, says Terrill. Over the next couple of years, Terrill says Home Advisor will have a singular focus on growing its U.S. business.

“A lot of small entrants are coming into the space,” such as Pro.com, the service launched by former Amazon leaders (not to mention Amazon’s own entrance into the space.) “We see the local home space heating up,” he says. But Home Advisor remains a leader in the space – competing against players such as Angie’s List, Yelp and Home Depot’s Red Beacon — and continues to add building blocks, Terrill says.

Today, for instance, the company announced the purchase of Mhelpdesk, a 30-person Fairfax, VA-based company that helps service pros manage their businesses, and allows home owners to directly book services – especially over mobile phones. The service has over 10,000 service pros.

Terrill says that Mhelpdesk is a leader in a “rapidly growing space” that will prove increasingly important to the company. “It could not have worked 2,3,4 years ago,” he says, before the popularization of cloud-based mobile devices for SMB service providers. “It’s an important piece of the puzzle.”

A Look at the GOLOCAL Finalists: The Best in National Local

The Finalists for BIA/Kelsey’s GOLOCAL Awards have been announced. The winner of the final stage will be announced at LEADING IN LOCAL: The National Impact during a special session on May 8 highlighting finalists.(The conference runs May 7-9 and takes place in Atlanta).

The Awards were the result of a brainstorm with our friends at Balihoo, who agreed to sponsor them. We wanted to showcase the Best in Local online and mobile campaigns by national and regional players in the U.S. and Canada . The results are totally objective – we recruited an ace group of independent “national local” experts. The judges include Dave Walker, Rhonda Hills, Kerry Hatch, Brian Costello, Matt Booth and Tom Bates.

In the end, we had 36 finalists. The quality was phenomenal from everyone. It ended up being quite a learning experience.

The Finalists (in alpha):

1. Eventful/Fox Broadcasting: Fox worked with Eventful to run an integrated digital marketing campaign for Sleepy Hollow fans. It got 30,000+ fans in 2,972 cities to participate (and 1.04 million trailer views).
2. Eyeview/Lowe’s : Lowe’s developed a campaign to target local consumers via Big Data and geotargeted videos that customized pricing and product information from its closest stores.
3. Placeable/AAA Carolinas: AAA Carolinas launched a flexible, scaleable solution to manage and normalize location data and deploy it across its own website, search engines and social nets.
4. Tribune Broadcasting/Walmart. To promote Walmart’s last-minute holiday gift alerts, Tribune replicated the look and feel of a a TV “live shot” news report, customizing it for specific DMAs.
5. Vicinity: One of Canada’s fastest growing loyalty networks ran a digital and print campaign across a variety of targeted channels products over 136 businesses and 25,000+ new cardholders.
6. YP/Quiznos: Quiznos used mobile ads in three markets to target their competitors’ customers, boosting sales 6 percent over national average.
7. YP: YP created a bundled package for advertisers consisting of search, online listings management and mobile display. The program drove $1.2 million YP revenues and reduced lead costs for its advertisers.
8. xAd/Situation Interactive/MAMMA MIA: MAMMA MIA targeted New York tourists and area residents at key points of interest. The effort matched place-based targeting with real-world mobile behavioral data.

Speaker Update for Leading in Local: The National Impact, Atlanta, May 7-9

The spanking new program is set for Leading in Local: The National Impact, which is May 7-9 in Atlanta.

We’ve put together a great list of 55 hand-picked speakers – all centered on what’s really happening in local with a special, unprecedented eye on the all important franchise and brand customer — plus a unique tour of The Weather Company (and a chance to meet weather celebrity Sam Champion.)

Leading executives and thought leaders with advanced franchise and brand applications for local are at the top of the bill, including:

Chip Perry, Independent Consultant, AutoTrader’s ‘First Employee’
Curt Hecht, Global CRO, The Weather Co.
Mark Marinacci, President, Gannett/GO Digital
David Lebow, SVP, National, YP
Mitch Spolan, EVP, Global Retail, Living Social

And we’ve added some great session speakers, including:

John Gregory, Chief Category Development Officer, AOL
JonPaul Rexing, director of sales, ESPN Local
Kevin Vanes, director, national sales and partnerships, Angie’s List.
Meribeth Papuga, Exec VP and Director of Local Activation, MediaVest

The centerpiece of the conference is several key sessions where we go deep on search, geotargeting, digital agencies, cross channel and loyalty programs. Leaders will share their local insights from top franchise groups and brands representing most of the top local verticals, including auto dealers, real estate, restaurants/dining, health services, insurance, travel, consumer packaged goods, moving and cleaning. The companies appearing include a vital cross- section of U.S. commerce:

AAA of the Carolinas
Aflac
AutoTrader
General Mills
Genghis Grill
McKesson Health
Maid Right
Scion
Two Men and a Truck

Will you join the BIA/Kelsey local community in Atlanta? Register

GrubHub IPOs: GrubHub and the ‘Food’ Segment

photo courtesy of Crain’s Chicago Business

All eyes are on “local” this morning on Wall Street, with GrubHub’s IPO off to a great start. The company has placed 7.4 million shares priced at $26, or $192.4 million. The shares closed at $34.

We’ve been watching GrubHub’s IPO with real interest. The Chicago-based online take out ordering company – which merged last August with Seamless, its primary competitor – represents a key local “food” anchor, along with Open Table, UrbanSpoon, Groupon (reservations); Yelp and Google+ (reviews); and eventually, Amazon, WalMart, Google,eBay, TBD (grocery delivery).

It has 28.8K restaurants and 135,000 daily orders. Forty-three percent of its activity now takes place from mobile devices, a key metric in this space which relies on impulse purchasing. The company has operations in most major U.S. cities, but is strongly penetrated in several.

In this area, which might loosely be termed as “food,” the silos are falling fast – they each do a little of each. We expect to see a major land grab by the key players that are already in the space, and the possible addition of other tech and retail players.

At its most basic level, GrubHub views, confirms and tracks food orders, It makes its money from commissions of roughly 10-12 percent. Last year, it made $137 million. But the company’s value extends beyond order taking. It acts as a giant search and discovery engine that can bring customers back to locations, and recommend others when they are in the mood for something else.

The cost to use GrubHub is relatively high. There have been anecdotes in the press about some restaurants quitting GrubHub, seeing a drop in orders, but making higher profits. Obviously, these reports are not the general consensus, as the company continues to grow.

But the best way for restaurants to justify its cost is if they chalk it off as a promotional expense. GrubHub executives like to point out that it is ultimately cheaper and more retentive to spend on GrubHub than on a deals site such as Groupon, with its high commission structure taking 30-50 percent, on top of high discounting off menu prices.

While GrubHub has a nice lead in this space for now, the key for it now will be to extend its brand and reach. Its brand awareness remains low, and it is mostly known among niches such as office workers and college students. The company’s current competitors include Delivery.com, which claims a roster of almost 10,000 restaurants in 50 cities; and Eat24.com, which covers 20,000 restaurants in 1,000 cities across the country.

We’ll be watching for activity from companies such as Yelp, Google and other players too, either via start up or acquisition.

BIA/Kelsey’s Discussion with New ReachLocal CEO Sharon Rowlands


ReachLocal today announced the appointment of longtime B2B and information services leader Sharon Rowlands as CEO, replacing interim CEO David Carlick, who remains chairman; and founding CEO Zorik Gordon, who left in December 2013 and is pursuing his vision for ClubLocal, a consumer-facing home service that has been spun off by ReachLocal. Groupon is among the lead funders of ClubLocal .

Rowlands, a 20+ year industry veteran is an English native currently based in New York. She is on the board of Constant Contact and previously served in many leadership capacities, including as CEO of Penton Media, the B2B publishing and events giant; and as President of Thomson Financial and The Financial Times.

In a conversation with BIA/Kelsey last week, Rowlands noted that she was drawn to ReachLocal’s efforts to provide SMB digital marketing services because the publicly-owned company has achieved “scale and a global footprint.” The SMB market has tremendous potential but “it is going through significant change,” said Rowlands. “SMBs must be overwhelmed with all the options facing them. I really think there is an opportunity to partner with SMBs and solve their problems in a more coherent way.”

One of the keys to Reach’s growth – and keeping its current base of 23,900 customers from churning — is to segment the market correctly, adds Rowland. “There is a lot of difference between someone signing up with one or two employees and someone with 30. The one-size-fits-all-approach is not the right approach,” she said.

The company is also seeking to develop more sticky tools for its customers, including ReachEdge, a comprehensive marketing solution that begins a $399 a month and now has over 1,000 SMB customers; and ReachSEO, a new search package. ReachEdge is also useful for attracting new customers – 65 percent of those signing up were not a prior customer of ReachLocal.

Saleswise, Reach has historically been focused on premise sales. But the company will now embrace “the whole breadth of go to market approaches, including telemarketing, partnership and ‘handholding,’” Rowlands said. “There is not one segmentation lens.”

The company is also moving beyond its emphasis on search solutions, which currently makes up 85 percent of revenue. While traditional search remain a strong anchor, discovery tools must make room for social media, which are increasingly important, Rowlands noted.

Sharon Rowlands, CEO, ReachLocal