Category Archives: Verticals

Connectivity’s Matt Booth: SMB Marketing Automation ‘Unfolding Like B2B’

As marketing automation platforms have become more efficient, we’ve seen them being increasingly used by SMBs and multi-location merchants to localize advertising, leads management and promotions with listings, reviews and Websites.

One such platform is provided by Connectivity, which handles presence management for enterprise and franchise groups such as Sky Zone, Pie Five Pizza and Grocery Outlet, as well as “thousands” of SMBs. The 40-person, Burbank-based company was founded in 2005 by IAC/CItyGrid/CItysearch alums Emad Fanous and Erron Silverstein as Yellowbot, a Yelp-like review site/directory. In 2014, the company made a sharp turn towards marketing automation, coinciding with the arrival of my former Kelsey colleague Matt Booth as CEO.

Booth tells me that marketing automation in the B2C space is unfolding in the same manner as B2B companies like HubSpot did several years ago. Basically, there is a central repository of information, and a marketing automation platform that allows businesses to manage their workflow and interact with customers in different ways.

The marketing automation space, of course, has become very competitive. “Many companies have seen the same trends as us,” said Booth. It is “the quality and robustness” of the database that will give companies a leg up, he noted.

To this end, Connectivity has focused especially hard on “very specific vertical segmentation.” It also incorporates calling data. All of it supports the company’s new “Customer Insights” intelligence platform, which automatically creates customer lists using call data and emails sent to businesses. Customer Insights also generates a detailed demographic profile on each lead or customer.

JK Volvo Specialists in Pasadena, for instance, did not previously have an ability to market to its customer base because data was locked into invoicing software that lacked marketing abilities. After using Connectivity’s Customer Insights for a month, the platform built more than 300 customer profiles from incoming call logs. Three months later, more than 2,400 profiles were built including phone numbers extracted from the business’s invoicing software.

Connectivity CEO Matt Booth

Sneak Peek at BIA/Kelsey NEXT Show: 6 Things I’m Watching For

“End of Big” Author Nicco Mele Keynotes BIA/Kelsey NEXT Dec. 9-10

BIA/Kelsey’s December event has been local’s flagship, and always ahead of the curve in all of local’s iterations. It has been widely imitated, but never totally duplicated! I‘ve been producing it for a long time, but this year, handed it off in midstream. I’ll be moderating some great sessions, though, and the conference team has ended up with 52 hand-picked speakers, a Tech Expo and two full days of programming. Here are some of the things I’m most excited about:

1. The New Cut on Local and Community. Local’s still at the concept stage in a lot of areas. Why think small? Two leaders from USC’s groundbreaking Annenberg School (my alma mater) will point to the new directions in separate keynotes. First up is Nicco Mele, the author of The End of Big (2013), a tour de Force on “radical connectivity.” He’s also fresh from his stint as deputy publisher at The LA Times, where his team’s efforts to seize new initiatives in local had already produced major new revenue streams. He’ll have a lot to say about what’s going to work. Leading off Day 2 is Dr. Karen North, Director of Online Communities, a dynamic presenter who is focused on Millenial applications and behavior – you’ve heard, perhaps, these kids live on the phone?

2. Keynotes from Google and Facebook: The latest in local from the two dominators and trend setters in local. Danny Bernstein at Google is set to highlight its deep linking efforts (Google Now). He is sharing the stage with Button’s Chris Maddern and Local Seo Guide’s Andrew Shotland.

3. Big Thinking about MarTech: Big Data’s impact on local cuts many ways – analytics, leads, targeting, planning, But it’s only a subsegment of the broader “MarTech” movement. Those in the know attend Scott Brinker’s annual MarTech conference in Boston. Scott, who also runs ionactive, is going to focus on local and highlight what’s important and why for us at NEXT. He’ll be joined on stage by Surefire Social’s Chris Marentis.

4. The Mobile App-Driven Marketplace. The mantra is that it isn’t really about search right now, because Mobile apps are driving the marketplace. What’s that really mean for local? One of the best analysts I know is Mark Plakias, who has been running Orange’s think tank in Silicon Valley for several years. He’ll be joined by Quick.ly’s Paul Ryan and DialogTech’s Steve Griffith. This will be quite a session.

5. Local and The Internet of Things. We’ve been pondering iOT’s impact on local — when everything is linked, from transit cards to vending machines. So has the new venture, Instersection, which is a partnership from Google Ventures and former Bloomberg head and NYC Deputy Mayor Dan Doctoroff. CSO Dave Etherington will provide insights on what they are up to. He’ll be joined on stage by Cisco’s Andy Noronha.

6. Close Up on The New Local Marketplaces. We’ve been saying for a long time that local marketing has gone beyond advertising. Now it’s “closing the loop” with transaction data, offer targeting and complete behavioral profiles reshaping the game. Groupon’s Dan Roarty, Microsoft’s Neal Bernstein and MOGL’s Jon Carder share their insights. Cardlinx CEO Silvio Tavares will add data and help me run this session.

Haven’t got your ticket yet? I have a *little* influence and can get you $400 off. Please use this discount code: LOCALONLINER. You may register here.

G5 Raises $75 Million; Extends Vertical Marketing Focus

We like vertical specialization for local marketing, and have long admired the approach of G5, the Bend, Ore- based local marketing firm that started with a focus on self-storage unit owners in 2005, and later added senior housing, multi-unit property managers and student housing. The 175-person company has 425 customers controlling 6,900 properties. Sixty percent of its business now comes from multi-unit property managers.

Last week, G5 hit the big time with a $75 million raise from Peak Equity Partners. The company says it will use the funds to extend its Marketing Cloud, which has gone beyond G5’s origins in search, and now also provides a full slate of analytics, search, social and advocacy.

CEO Dan Hobin told BIA/Kelsey that the key is to recognize the individualities of each vertical. Self storage takes about a month to fill a vacancy. Multi-family units take two weeks. Senior housing has a longer cycle: three months.

Most vertical owners perceive their marketing efforts as too expensive for property owners, and too cumbersome for consumers, says Hobin. It takes three days for consumers to get an apartments, from the time they look at it to the time they sign the lease, he says. “It is easier to buy a car than rent an apartment. You should be able to find a place in five minutes.”

Hobin says G5 works with all levels of property owners, but in the apartment space, for instance, most of them are the “middle level” below the publicy-owned, giant REITs which have traditionally used sites such as apartments.com. They could use G5 to complement those big site efforts, he says. G5’s emphasis on a wide range of channels, including lower cost channels such as social media and ratings and reviews, saves them money and drives more traffic to their sites. The analogy is to a site such as Kayak in the travel space.

While G5 is focused on its four verticals today, it is looking to expand to additional verticals. If it adds a vertical, it will really focus on its individual characteristcs, says Hobin. “It is difficult to enter new verticals,” he said.

On Demand is New Focus for Some Home Service Providers

Competition in the home services leads space has been heating up – and so are the tensions. Just this week, Angie’s List has filed suit against Amazon, contending that Amazon Home Services has been egregiously signing up for the member’s- only service around the U.S., and grabbing proprietary service recommendations.

On Demand home services is something that several of the companies are hoping to differentiate themselves with. We saw it with HomeJoy at our LODE event a couple of weeks ago in San Francisco. Home Advisor has also been rolling out its Instant Booking on demand service.

Mizamin, an Israeli Startup with international ambitions, also hopes to get ahead with on demand home services. Its mobile app has gotten 200,000 downloads in Israel, mostly generated from a small social media ad campaign and word of mouth. CEO Yuval Aronov told us that providing home services on an on demand basis has some quirks to it. Many home pros resist keeping to real schedules and are eager to take jobs as they come up. On the other hand, certain types of jobs, such as pest control, need to be scheduled in advance.

Mizamin has built an App that enables multiple providers to receive queries in real time. When a plumbing assignment goes out to Mizamin’s roster of 40 plumbers in Tel Aviv, three-to-six usually answer, he says. The biggest channel for most plumbers have been SMS. “Some don’t use their smartphones professionally,” he says. “They are afraid to drop them in the toilet.”

Booker Software Raises $35 Million; CEO Josh McCarter Talks to BIA/Kelsey

Booker Software announced today that it has raised $35 Million, which it will use to invest in sales and marketing capabilities and in developing vertical-specific products that “drive more value to merchants,” said CEO Josh McCarter, in a discussion with BIA/Kelsey.

McCarter noted that 9,000 locations are under contract and over 60,000 business users. These are users who are “logging in every day. They are not just signing on once a month” to create a promotion or similar feature. They use Booker’s services as an integral part of their business.

Next steps for the company will further leverage all the trends impacting services-based SMB marketing, including CRM; retention marketing; Point of Sales services; scheduling; and mobile apps via a partnership with Como.

“Last year, we refocused on things that help you grow and operate more efficiently,” said McCarter, noting that the company rebranded from Gramercy One to specifically focus on the SMB space, which now accounts for 80 percent of its revenue. “The data that Booker can aggregate really powers the growth engine,” he said. Services such as email and CRM are only as powerful as the data they can use.

While spas and salons continue to account for a significant portion of the company’s business (dating to its origins as SpaFinder), a number of verticals hold great promise, said McCarter. Pet services, daycare and after-school services (music lessons, art lessons) are doing “very well.” Another area of growth is a JV with The Golf Channel that enables customers to book tee times and other services.

The new round of funding is on top of $40 million previously raised. Several mid-sized funders that specialize in SMB services were included in the round, including Signal Peak (InfusionSoft) and Jump Capital (Swift Pages). The round was led by Medina Capital, a cloud infrastructure specialist.

Other investors included Revolution (Steve Case and Ted Leonsis), Bain Capital, TDF Ventures and Grotech Ventures. In addition, a “strategic investment” was made by First Data, the payment processing giant, who will be announcing details of its relationship with Booker in coming months.

McCarter noted that each investor brings a unique appreciation of Booker’s goals in serving the SMB community, which has been “underserved” by larger VCs, which McCarter called “SMB-averse.” But there is a definite need for SMB services, which focus less on return policies or other ecommerce issues. They are more about everything that a business needs, from scheduling services to POS innovation to equipment rentals. It is a $2.4 trillion space, he argued.

Booker Software CEO Josh McCarter

Yelp Buys Eat24, Taking Online Delivery In House

Yelp is acquiring Eat24, the online delivery and pickup service that competes with GrubHub, Delivery.com and other national and regional players for order-taking, food search and discovery. The service is being acquired for the equivalent of $134 million ($75 million in cash and 1.4 million Class A shares).

Eat24 currently provides menus, order=taking and tracking services for more than 20,000 restaurants in 1,500 cities – 10,000 fewer than GrubHub. Like GrubHub, its revenue model is based on commissions (industry standards are typically 10-12 percent per order.) The service is free to the consumer, although restaurants can charge their own delivery fees.

The service is largely dependent on customer pick up at restaurant locations, but delivery is becoming a larger factor. In several California cities, for instance, Eat24 will soon be providing delivery via SideCar, the shared-car service.

Founded in 2008, Eat24 has been integrated with Yelp’s mobile app since 2013. By bringing Eat24 in-house, Yelp can strengthen its platform of services, which have grown beyond advertising and now includes scheduling, reservations/booking and offers. Yelp reports that it has over 93,000 active local accounts.

While Eat24 currently lags behind GrubHub, online delivery is still a nascent category. Moreover, it is ripe for cross-over activity with other food-related segments, including rating/reviews (i.e Yelp and Zomato, which just acquired IAC’s UrbanSpoon); online reservations (i.e. Priceline’ s OpenTable); and eventually even grocery delivery (i.e. Amazon, WalMart and Google.)

‘Selling Services on Amazon’ Launches Beta in Nine Markets

After months of rumors, Amazon has entered the increasingly crowded service pro referral space with a beta test in nine markets. According to a dedicated web site for the launch, service pros will pay Amazon 20 percent for services that cost $1000 or less, and 15 percent above that amount, as well as monthly subscription fees – although those fees are waived through June 2015. The 20 percent fees are comprised of 15 percent service platform fees, and 5 percent transaction fees.

The service is launching with a strong focus on consumer electronic installation and repair, fitting with sales on the Amazon site. Auto and bike services are also featured, with more categories likely to be added. All pros must undergo background checks, which will cost $50 (plus $40 per employee); have appropriate licenses, and carry insurance. All listings will also feature Yelp reviews as well.

Amazon will be competing against a number of other players in the space, including market leaders such as Angie’s List and Home Advisor; Pro.com, a new site launched by former Amazon exec Matt Williams; Serviz, a new site launched by former ReachLocal exec Zorik Gordon; and The Home Depot’s Red Beacon service.

http://