Money2020: First Data, Poynt Show Off Mobile POS Solutions


The Point of Sales revolution that began with Square’s introduction of its iPhone fob in 2009 has continued unabated. Rising consumer expectations, increased mobile and WiFi access and more tools have made POS a strategic tool that could not have been imagined a few years ago.

Among the new breed of solutions are ReachLocal’s ReachCommerce suite; Groupon’s Genome; Heartland’s Leaf; and First Data‘s Clover, which now has 26,000 terminals in the field after its initial release seven months ago.

First Data purchased Clover in October 2013. The tablet-based system was seen as the cornerstone of a new strategy that would update First Data’s reliable, table-based POS terminals. The acquisition of Clover was also designed to integrate with its Perka loyalty program, which was acquired at the same time; and its Insightics analytics.

At Money2020 in Las Vegas this week, First Data unveiled a new mobile -first extension of its Clover station. Poynt similarly showed off its own new mobile-first terminal. Both companies’ mobile terminals are attractive, Apple-like, white hardware mini-tablets. Clover boasts a handle to better hold on to its tablet, while Poynt features a large bump.

A major part of both their strategies is to accept a number of third party Apps. Clover now has dozens of Apps in its store and hopes to have 100 by year-end. The Apps often carry monthly add on charges of $5-10 a month, instead of just being sold for a flat fee, like consumer Apps. The Apps provide such features as employee punchcards; instant ratings and reviews; virtual giftcards; coupon managers; and charity donations. Clover and Poynt also boast printing options.

New at ILM SFO 2014: Brad Stone, Author, ‘The Everything Store: Jeff Bezos and the Age of Amazon’

Local’s 800 lb. gorilla is always Amazon. It has already had a huge impact on retail via showrooming. Now it has invaded Groceries, and is heading towards Services. Plus it wants to provide a full range of promotional and fulfillment services for SMBs via Amazon Offers, Amazon Web Services and other services.

At Leading in Local: Interactive Local Media, which is Dec. 3-5 at the SFO Hyatt, we’ll talk up and down Amazon and its impact on local with Brad Stone, the author of “The Everything Store: Jeff Bezos and the Age of Amazon.” (We’ll probably get some copies as door prizes for audience members). Stone, who won the Business Book of the Year award for The Everything Store, also serves as Bloomberg Businessweek’s senior writer in San Francisco.

The show itself continues to build and build — it is likely to be one of the biggest yet.

Some of the highlights of the two-and-a-half-day show — out of many — include a keynote from Pinterest VP Joel Meek; two sessions dedicated to Google and its transformation of local; a VC session with Mucker Labs’ Will Hsu and Comcast Venture’s Michael Yang; a keynote from YP CMO Allison Checchi; a keynote from Yodle CEO Court Cunningham as Yodle preps its IPO; and a dual keynote from Deseret Media’s Clark Gilbert and Chris Lee, taking the lessons of disruptive media to heart in their remaking of the media company. Gilbert and Lee recently did a briefing for the BIA/Kelsey analysts – it was, by far, the most enlightening briefing for us this year.

We’ll also be presenting a great deal of cutting-edge BIA/Kelsey research, including findings from our exclusive survey of top loyalty executives, where we have worked to see what is working, what is not and where the momentum lies. Great insights are coming in. The Cardlinx Association has partnered with us on the survey, and Cardlinx head Silvio Tavres will be co-presenting.


Author Brad Stone, Recipient of Business Book of The Year

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.”

Gannett’s Key Ring: Integrating Circulars With Loyalty Programs


Gannett’s acquisition of Key Ring two years ago was something of a head shaker. Was the media giant diving into online loyalty marketing, an area mostly dominated by financial institution-related companies? Two years later, more light has been shed on the Key Ring acquisition.

Key Ring is a mobile app that lets consumers electronically enter their loyalty card in in one digital location. In this regard, it is like Constant Contact’s CardStar. What we’ve learned is that Gannett is using the App to drive targeted traffic to its big box and retail circular advertisers from ShopLocal, the sister G/O Digital brand.

CEO Chris Fagan tells us Key Ring, which has 15 full time employees, now provides circular content from 160 retailers. Of these, 90 are providing exclusive content via ShopLocal. Offers can be triggered on user cell phones by geo location or via in-store beacons. You might access “Here is what is on sale at Target” for instance. Consumers can use it to explore and discover what is nearby.

The ShopLocal ties makes it possible to scale all the merchant and brand relationships without having to deal with each merchant and brand – a major barrier for other companies, says Fagan. The app also incorporates 65,000 coupons a month from Clipper Magazine.

What Key Ring really brings to the table is enormous scale. Fagan says the App has a surprisingly high 11.1 million customers. Active users may access it five or six times a month, with the more steady users not only accessing circular content, but the site’s shopping lists. These consumers have really high retention and recurring usage, says Fagan.

Interestingly, the majority of the customers are driven organically by good consumer press and other sources, he says. For instance, the comapny recently got a good mention in Good Housekeeping Magazine that really drove usage. Gannett’s cross media ads in USA Today and on its TV stations have been helpful, but not especially critical.

It’s Out: The Lineup for Leading in Local: ILM 2014 (Dec. 3-5, SFO)

The initial lineup for Leading in Local: Interactive Local Media 2014 is now officially released. This year’s ILM – our flagship event — takes place Dec. 3-5 at the SFO Hyatt, close to San Francisco and just up the road from most of the Silicon Valley leaders and startups. We expect 45+ hand-picked speakers, and more than 500 senior level attendees for the show, which remains local’s premier networking (and dealmaking) event.

Of special interest: The Local Tech Expo on Day 1, where we’ll feature some of the great technology innovations rocking our local world: everything, potentially, from Google Glasses to Connected Cars. Another key session: The Venture Capitalists. Former local leaders Will Hsu (AT&T) and Michael Yang (Yahoo) give the rundown on local venture from their respective perches at Mucker Labs and Comcast Ventures. We’ll also be showcasing plenty of BIA/Kelsey research, including new survey results on online loyalty marketing that we have been conducting with The Cardlinx Association.

Beyond that, our deep analyst team has developed six key themes in building ILM 2104.

1- Rethink and Extend Local Search. As local search begins to mimic natural discovery, we increasingly look at intelligent personal network and natural language capabilities to enhance and enlarge the search platform.

Google goes deep at ILM, highlighting five key categories that represent its commitment to local. Microsoft is going deep, too. Bing’s Kelly Thomas Nojaim and Ken Weyel have similarly chosen ILM to showcase Microsoft’s Cortana intelligent personal network – it should be a fantastic demonstration. We’re equally excited about Weotta founder Grant Wernick, who will highlight the role of natural language search in local discovery. On a related note: YP CMO Allison Checchi will highlight how YP’s approaching local discovery for the next generation of usage.

2- Social’s Growing Reach and Impact on Local. It’s not just Facebook. Social media has now emerged as a search bypass in some cases, and is being integrated into all measures of local business marketing success.

Pinterest VP Joel Meek keynotes Day 2, highlighting the incredible impact of Pins on every conceiveable local activity. Another Day 2 Keynote: Deseret Media CEO Clark Gilbert and President Chris Lee discuss the impact of native advertising and social on media’s future. Those guys have practically created a living laboratory in Utah., Our marketing automation and social leadership session also takes a broader look at social, with Where2GetIt CEO Manish Patel, MomentFeed Chief Innovation Officer Rob Reed and EuroWeb CEO Christoph Preuss. Preuss provides a uniquely German perspective on social media.

3- The Explosive Growth of The Share Economy. It seems that every vertical is going through the process of Uberification – where consumers can “buy” from lists of pros, enhanced by their social reviews.

We have especially strong players in Home Improvement, with The Home Depot’s Anthony Roddio; Thumbtack CEO Marco Zappacosta; and ex ReachLocal head Zorik Gordon talking about his new venture, Serviz. Also Joining us: Urgent.ly CEO Chris Spanos, who will discuss the Uber model for auto repair.

4- Do it With Me? The biggest questions in local still come down to scale in reaching and serving SMBs, and the utility and value of the services. Is the ideal platform Do It for Me. Or DIY? Our strategist Stacey Sedbrook focus on Do it With Me as a hybrid effort.

Yodle CEO Court Cunningham — one of our highest rated speakers – keynotes. McClatchy/TruMeasure GM Charity Huff and Vendasta Technologies CEO Brendan King are similarly set to share their deep insights. Vendasta is set to showcase some deep market analysis at the show.

5- Mobile, Mobile (Video). The emergence of Mobile as a true advertising and media channel has had wide ranging implications for local. One area we’ll focus on: the use of mobile for local video. This area is busting loose.

Datasphere SVP Gary Cowan will detail the company’s advanced mobile video program, while StudioNow President Dan Corts and Media Distribution Solutions COO Brian Russell provide insights into scaling video with style.

6- Go Deep with Analytics and CRM. Local businesses need to see the ROI. And with the rising impact of social, they especially need better guidance in their campaign planning.

Salesforce VP Randy Wootton — a longtime BIA/Kelsey favorite from his Microsoft days –lays out how CRM plays in our space on Day 3. Also on Day 3: First Data SVP Krish Mantripragada shows how “you are what you buy” via the Insightics analytics platform. And our Call Management and Analytics Superforum provides real insight into what can be done. Marchex’s Brooks McMahon, IfByPhone’s Irv Shapiro and CallRail’s Mark Sullivan are set.

Sound good? You may easily register here.

All Roads Lead to Groceries: Groupon Adds ‘Snap’ Loyalty Program

When it comes to local commerce and loyalty programs, all roads lead to groceries. That’s the feeling of key companies in the space, including WalMart, Amazon, Google and eBay. Groupon this week announced Snap, a grocery coupon and loyalty program that gets it into groceries in a more meaningful way than prior efforts to go in via daily deals – where the discounts were not sustainable in an industry that is more dependent on “cents off” than “55 percent” off.

As reported in Chicago Business, Snap replaces Freebies, a coupon program launched in 2013 that has attracted 30,000 coupons from 7,000 retailers. Users of Snap receive offers and get money back after they aggregate $20 of discounts — if they upload photos of receipts showing the goods that were promoted. (This validation effort could prove a little klugey.)

While a robust grocery and delivery program has its own value, it may also lead to a key gateway into women shoppers; strong user behavior analytics; and peripheral deliveries or transactions with other goods such as electronics, etc. Groceries are also used more often than other key anchor promotion verticals, such as restaurants and services. Google similarly entered the grocery coupon business last year with the rollout of Zavers.

In Groupon’s case, the Snap program also supports its broader Marketplace effort, which allows advertisers to participate in many different channels (deals, coupons, ads). Seventy-five percent of Groupon business advertisers currently use Groupon for at least one feature in addition to the one-off deals. One of the key issues with Marketplace has been to provide a volume of listings so that searchers will always find things when they search for them. Currently, 9 percent of Groupon’s transactions emanate from Marketplace.

The Snap program does not get Groupon into dedicated home delivery — yet — but it does build out the marketplace, and could serve as an effective building block.

Ex Reach Local CEO Revisits Home Improvement; Groupon is Lead Investor

ReachLocal cofounder Zorik Gordon left the company last year after veering sharply to the left with ClubLocal, a consumer-facing brand that would collect home improvement pricing and reviews, and assign jobs to home improvement pros.

Now, Gordon and several ClubLocal alumnis are back with Serviz, a similar service that has launched in southern California after running a beta since February. Groupon is Serviz’s largest investor, with an undisclosed ownership share. ReachLocal, where much of the intellectual work was developed, still controls 19.8 percent of the company.

Groupon could theoretically apply its sales forces to recruit home improvement pros, but Gordon tells us that Serviz is being launched with its own sales forces. Most of the core concepts remain the same from ClubLocal –recruit consumers with convenience, price and service guarantees and a strong review base, and recruit home improvement pros with guaranteed work. “They are fundamentally on demand home services,” said Gordon. “”What we’ve done is focus on transparency, and transparency of pricing. Uber has shown what it takes to really hold and disrupt the conventional ecosystem.

The key differences this time take off from this theme: there is a focus on sole practitioners, who have more flexibility in their time and ability to charge, and ultimately, much lower prices. “You don’t need to charge $250 for a home visit from a home tech, who is being paid $15 an hour,” said Gordon.

Gordon acknowledges there is a lot of competition in the space, with the emergence of players like Thumbtack, Pro.com, Handy, Home Joy and even Amazon coming in, all building on a base that already has Angie’s List and Home Advisor.

Amazon will come in as a marketplace, and won’t be a direct competitor, he says. In fact, he hopes to participate in the Amazon marketplace. “No one is going to come to your house with an Amazon shirt,” says Gordon.

The other services range from what Gordon characterizes as directory listers, like Thumbtack and Pro.com; to low end service fulfillment players like Handy. Serviz will work at higher point in the value chain by focusing more on specialized service providers like HVAC and electrical. “We’re building a horizontal platform around higher end home services,” he says.

Zorik Gordon and Thumbtack CEO Marco Zappacosta are among the initial speakers appearing at Leading in Local: Interactive Local Media, Dec. 3-5 in San Francisco. Get early pricing now.