Big Data at BIA/Kelsey, New Orleans: SMBs and Big Data ‘Sophistication’

SMBs are increasingly incorporating data analytics into their marketing efforts and not surprisingly, data vendors and service providers are working to entrench themselves with SMB digital marketing channels, as several industry leaders noted at Leading in Local: SMB Digital Marketing in New Orleans Sept. 23.

For SMBs, “it is not about size, it is about sophistication,” noted InfoGroup CDO Matt Graves. “Sophistication is what matters in how SMBs target,” and may translate into such channels as multichannel buys and geo-targeting.

But SMBs are not easy to work with. “SMBs are our hardest customers,” says Graves. “They are not as forgiving as our larger customers. They want us to come up with a plan to help them be successful.”

Speaking on the same session, Radius VP Megan Austin Karlen cautioned that data cannot be treated as one homogenous category — it is a living organism with new inputs all the time. There is data at rest (volume); data in motion (velocity); data in many forms (variety); and data in doubt (veracity). You cannot settle on traditional firmographic segmentation, she noted. Data also needs to be paired with software that enables merchants to access, analyze and integrate data in a simple and effective way.”

Radius itself made news at the conference, announcing a Series C raise of $54.7 Million.

Facebook’s Joe Devoy, BIA/Kelsey New Orleans: ‘Pairing Advertising, Sales Data’

Facebook announced today an ambitious program to match sales related data from a variety of sources to show ROI. Speaking at BIA/Kelsey’s Leading in Local: SMB Digital Marketing event in New Orleans, Product Marketing Manager Joe Devoy noted that the program reaches out to Facebook users for feedback because sales results cannot really be ascertained from click thrus. The program is being tested with national advertisers, but is clearly aimed at SMBs, who make up the vast majority of Facebook’s 1.5 million advertisers.

“Within local, our misision is to create the most relevant ads for people on the platform, says Devoy. But “Measuring offline sales has always been difficult,” says Devoy. “Clicks don’t have an impact on the performance of the campaign.” Ninety- nine percent of people who saw an ad on Facebook and later went into the store never click on an ad.

The program’s ad exposure helps tremendously. There is a 70 percent higher ROI from campaigns that maximize reach, and an 8X return on ad spend, says Devoy. At the end of the day, “Facebook reaches the majority of consumers. We can reach any vertical,” he says.

Signpost: CRM, Marketing Automation Enhance Promotions

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Deals and coupons remain anchors for local business promotion. But they can now be customized based on customer behavior and better marketing automation tools.
Signpost is eager to leverage these developments. While the 200 person company launched in 2011 as a “Deals Scout” and promotions manager – initially supporting Google Offers and others — it has increasingly gotten into software development.

Today, the company – which has raised about $15 million from Spark Capital, Google Ventures, OpenView Venture Partners and others — announced a new strategy that measures SMB interactions with customers (calls, email and credit card transactions). That data is then used it to drive a number of automated marketing solutions (coupons, reviews, referrals). It can also be used to generate real time reports on spending behavior, and rank customers by transaction activity, transaction size and recent interactions.

Pricing for the service is set for $199 a month, which represents a $50 increase from the earlier, promotions-oriented effort.

The question for Signpost is whether it can effectively carve out a niche for itself. Other companies, ranging from Marketo and HubSpot to Groupon, First Data and ForwardLine, are also delivering a wider range of SMB targeting services based on customer behavior they are tracking.

Signpost CEO Stu Wall is a featured speaker at Leading in Local: SMB Digital Marketing, which takes place Sept. 22-24 in New Orleans. You can get more information here.


Signpost CEO Stu Wall

A Few Quick Thoughts on Apple’s Big Announcements

A lot of us were glued to our screens today to watch or catch the feeds on the Apple announcements re iPhone 6, iPhone 6 Plus, Apple Pay and Apple Watch. What will the new announcements mean to our local ecosystem? To date, Apple’s focus on local has mostly been geared to Apple Maps. But here are a few things:

1. More content for larger screens. When the iPad was introduced, vendors such as Matchbin bet the bank that it would lead to higher paid subscriptions and new types of advertising. It didn’t really happen. But more content is behind the firewall now than before. The intro of the larger iPhone 6 and the really big iPhone 6 Plus – on top of other Phablets by Samsung et al might push this evolution further – and spur the develop of new tablet-ready and phablet-ready local content.

2. A jumpstart for Digital Payments. Apple Pay is being launched as an NFC wireless payment mechanism. Unlike the struggling Google Wallet, it is being supported by most of the industry’s payment processors and financial institutions; allowing consumers to tie their payment cards to their phones. The introduction of Apple Pay won’t turn plastic extinct overnight – the payments card infrastructure is extremely deep. But it does validate NFC as a wireless payments technology, and should help build acceptance for digital payments. The challenge here: It is not converting Apple users. It is converting Millenials.

3. Enter the Apple Watch. It may take a while for iWatch and other wearables to really catch on beyond the early adopters, who do not really impact local outside of tech centers such as San Francisco. But combined with Apple Pay, the Apple Watch should help build acceptance for local store payments, public transport and other services (and impulse cash less buying.) Again, their immediate importance is in Apple’s validation of both wearables and NFC. See how LevelUp is excited about the prospect .

Apple’s system appears to be overloaded, but don’t forget to download the free U2 album, Songs of Innocence, which will be available on iTunes until 9/13.

Kilponen: SMB Retailers Need to Focus on Foot Traffic Drivers

What should SMB retailers do to level the playing field with larger regional and national retailers? There are no easy answers, but they should really focus on mobile and geo location targeting, says Wanderful Media COO Doug Kilponen. Search has major limitations for them.

“In the old days, you could create free traffic from Google and the like. But SEO is dead for small retailers,” says Kilponen, previously CMO at Merchant Circle. “It’s been taken up by the Amazons and Google of the world. If you do a search term on products, it is a black hole. You can rarely find a way out.”

Mobile, however, represents “new opportunity “ for SMBs — albeit one that is misunderstood. “For small retailers, it is still about foot traffic,” says Kilponen. That means they should tap into location based services; engage local friends via social media; post products in certain categories; and target uses via promotions. Mobile SMB platforms such as Wanderful’s Find&Save Storefront provides “a stronger ROI than what we’ve seen in search,” he adds.

Kilponen is speaking on SMB retail at Leading in Local: SMB Digital Marketing Sept. 22-24 in New Orleans. You can register here.

Merchants Helping Neighboring Merchants: Ex Constant Contacter Launches Alignable

One idea we’ve kicked around for a while is that merchants can generate business tips and customer referrals for neighboring merchants in a strip mall, or down the street. Why shouldn’t the cooking store people refer customers to the gourmet grocery? Or the hardware store people refer customers to plant nursery? At least, they can share tips about landlords, taxes, advertising and supplies.

At this point, several companies have tried it. It has been a leading premise behind the launch of local sites such as MerchantCircle and ShopCity.

The popularization of social media has led former Constant Contact executive Eric Groves to try it once again with Alignable, his new startup. Groves contends that there is vast local knowledge in pockets throughout communities. But many SMBs miss out on marketing opportunities because of the isolated state they operate in. “They never connect with people who are just 10 feet away from their dry wall,” he says.

Alignable makes it easier for merchants to share information; post calendar information; and other information. For SMBs, it is a growth engine, says Groves. What’s in it for him? Because there is generally so little overlap between the customer bases of neighboring merchants, the combined resources of hundreds and thousands of merchants represent a new way to reach a large quorum that could easily rival the reach of a local newspaper or broadcasters.

Informal surveys conducted by Alignable show that overlap rates between customer lists are generally less than two percent. A large community such as Austin, for instance, already has 700 businesses on Alignable. If the majority of Austin merchants were to signup, it would represent a combined reach of 1.5 million, Groves estimates.

Other fast-out-of-the-gate markets for Alignable include Denver, Phoenix and Oakland. In fact, the service is now available in 3000 communities representing every state, as well as Canada.

Looking forward, Groves sees opportunity not only to hook up neighboring merchants and their customers, but vertical players across the county. Health and Wellness has been an early winner, with MindBody Online serving as a strong partner for Alignable, says Groves.

Alignable is a member of the 2014 Future Stars, and will be part of Future Stars Alley at Leading in Local: SMB Digital Marketing Sept. 22-24 in New Orleans. You can register here.

Acxiom Launches Self Serve SMB Marketing Effort

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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.