Tag Archives: Darren Waddell

Reply’s MerchantCircle Relaunches; Heavier Consumer Focus, Less on Listings

MerchantCircle, which was sold to Reply.com in May 2011, continues to rethink the traditional Yellow Pages small business model. The company today unveils a web site that is less oriented towards directory listings, and more oriented – it hopes — towards winning more consumer traffic, generating more SMB leads, and better monetization.

While the new platform has been launched on the core Merchant Circle site, it will soon be available on a white label basis for other publishers, such as Internet Yellow Pages and City Guides. A key driver of the move has been the company’s desire to leverage a larger consumer base for Reply’s “clicks or leads” model.

MerchantCircle has actually been moving towards a “social commerce” model for some time, in recent years adding Answers, community content and other features. But EVP Darren Waddell tells us that the site has now more clearly moved away from an IYP “silo” model, where consumers basically encounter a business and its merchant page.

“It is not about the merchant value proposition,” says Waddell. “It is about helping consumers to connect with local business owners in a meaningful way.” Consumers will be able to seek requests for quote, see pictures – which Waddell stresses are “really important”; build deals; enter business subscriptions; and access the company’s trove of six million+ pieces of user generated content. Merchants, meanwhile, move up from a simple IYP-like enhanced listing to Reply’s Marketplace.

“We really blew out the entire MerchantCircle front-end,” Waddell adds. “We’ve developed an entirely new look and feel.” In beta tests involving up to 10 percent of its user base, the new, improved MerchantCircle has yielded a 2.5 X improvement in consumer engagement.

Being consumer friendly has also required Merchant Circle to crack down on merchants that were aggressively gaming the site and hurting its credibility. “It was a small but loud minority,” notes Waddell. “Algorithmically, we’ve really cracked down on people gaming the system.”

Initially, some of its merchants have not been pleased with the changes, which put most non-featured businesses below the fold. Waddell notes that some merchants on the site’s forums have been “really upset,” but MerchantCircle is sticking with it’s more balanced approach.

In the long-run, the company believes that they’ll realize they’re better off with the consumer-friendly features. In the meantime, Waddell suggests that Merchant Circle has hit an effective balance , with 1.2 million active merchants being able to respond to a strong volume of consumer requests – a capability that he believes is unmatched in the industry.

Waddell appears at ILM East March 26-28 in Boston on our all-star “Local Business Success: Picking Winners” session, along with AT&T’s Maria Kermath, Schedulicity’s Dave Galvan and SMBApps’ Randy Parker . Register here.

Merchant Circle Goes International, Opens API


Merchant Circle, which has established some expertise in launching markets on the cheap, says it is going international with new sites for Canada, the U.K. and Australia. It had previously announced that it is opening up its API to allow sites to use its reviews, ratings and enhanced profiles on an ala carte basis. HelloMetro, 8 Coupons and Center’d's The Deal Map are among those sites already using the APIs.

VP Darren Waddell says that the 25 person site’s approach is to “get live; get pages out there,” using local country data that it is licensing In the meantime, he envisions that the international sites will organically grow.” Until the sites are fully launched, Merchant Circle will only roll out its suite of free products, which include coupon creation, newsletter delivery, pictures and blogs.

The international sites will likely accelerate their growth when local partnerships are put in place. Waddell says that Merchant Circle is looking at SMB firms, YP firms and others to work with. The partnerships will be akin to the relationship in the States that Merchant Circle has established with firms like Web.com. ‘We are looking for someone to drive (membership) to existing merchants. We want to engage folks that aren’t yet online,” he says.