Date post: | 12-Nov-2014 |
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HOW BACK-OFFICE INNOVATION IS TRANSFORMING LOCAL MARKETING
STREET FIGHT INSIGHTS
@ 2013 Hyperlocal Industries Inc.
The majority of commerce happens locally.
$4.2 Trillion in
In-Store/Offline Retail Spend
$.19 Trillion in
Ecommerce Retail Spend
$4.4 Trillion in U.S. Retail Spend
95% ‘Local’ 5% Online
@ 2013 Hyperlocal Industries Inc.
A flood of food trucks gave mobile payments a testbed for the sophisticated digital options that are making the cash register an ancient relic.
That ‘local’ commerce (the 95%) is being reinvented by the Internet.
FIND
BUY
RETRIEVE
ENGAGE
Far beyond the yellow pages, a web of data providers combine basic information with rich content to help consumers make purchase decisions about where to shop.
Ecommerce revolutionized the mundane logistics of getting goods to consumers; but new technological tools let local businesses get in on the game, too.
RETRIEVE
ENGAGE Forget mailing lists; emerging CRM systems build on this data-rich local stack to bring consumers back in new ways, and personalize their in-store experience like never before.
@ 2013 Hyperlocal Industries Inc.
Technology vendors develop tools for each side of the local market, serving consumers
(demand) and businesses (supply)
Search
Media Social Media
Loyalty Services
Dem
and-
Sid
e
Inventory
Scheduling/ Reservations S
upply-Side
Credit Cards/ Payment Apps
Payment processing (in-store, online)
Fulfillment
Commerce In-store
Mobile
Businesses that sell goods
and services locally
At-home
Con
sum
ers
who
buy
goo
ds
and
serv
ices
loca
lly
Services/Platforms
Services/Platforms
CRM
@ 2013 Hyperlocal Industries Inc.
Over the past decade, the bulk of the
innovation has occurred on the demand side.
Companies built large businesses aggregating consumer demand, and selling that demand to
advertisers
2013 2012 2011 2010 2009 2006 2005 2004 2008 2003
Google Local Released
Yelp Launches Groupon IPOs
Foursquare Founded
Yellow Pages Revenues Peak
$15.3 B Yellow Pages Revenues Sink
$7.5 B
Patch Expands
2007
@ 2013 Hyperlocal Industries Inc.
Innovation is shifting to the supply side, where vendors use cloud technology to
bring key operations systems online.
Payments Scheduling/Booking
Point-of-sale CRM/Analytics
@ 2013 Hyperlocal Industries Inc.
So how does this relate to marketing?
The job of the digital marketer is to bring together demand and supply, facilitating
commerce.
STREET FIGHT INSIGHTS @ 2013 Hyperlocal Industries Inc. @ 2013 Hyperlocal Industries Inc.
With mobile adoption nearing ubiquity, the demand-
side of the marketplace is already in place. A supply side platform solves two looming problems for the local marketing industry:
Connectivity at Point-of-purchase No way to measure
actions (walk-in, payment) in-store
1 2
STREET FIGHT INSIGHTS @ 2013 Hyperlocal Industries Inc. @ 2013 Hyperlocal Industries Inc.
Software Silozation Lots of different systems, incapable of ‘talking’ to another (e.g. sharing
data)
Soon, with both sides of the marketplace online, vendors will have the ability to automate the
way consumers (demand) and businesses (supply) interact.
Consumer Business
Social Search Email
Inventory
Transactions
Reservations
Supply-Side
Dem
and-
Side
STREET FIGHT INSIGHTS @ 2013 Hyperlocal Industries Inc. @ 2013 Hyperlocal Industries Inc.
Consumer
Business
Inventory
Transactions
Reservations
Social
Search
Data is generated when consumers engage with merchants
(e.g. food delivery, mobile payments, loyalty programs etc.)
Data is generated when consumers engage with merchants
(e.g. food delivery, mobile payments, loyalty programs etc.)
Inventory
Ordering
Data is generated when consumers engage with businesses
Business
When demand- and supply-side systems are
linked, vendors can push users into a reservations or booking system, helping
marketers measure success and “close the loop.”
Demand-Side
Social
Supply-Side
Reservations
POS
STREET FIGHT INSIGHTS @ 2013 Hyperlocal Industries Inc. @ 2013 Hyperlocal Industries Inc.
Search
Data is generated when consumers engage with merchants
(e.g. food delivery, mobile payments, loyalty programs etc.)
Data is generated when consumers engage with merchants
(e.g. food delivery, mobile payments, loyalty programs etc.)
Ordering
Vendors can also use data, generated by the supply-side system (e.g. inventory, purchase history), to target consumers and generate
creative automatically.
Supply-Side
Social
Demand-Side
Reservations
POS
STREET FIGHT INSIGHTS @ 2013 Hyperlocal Industries Inc. @ 2013 Hyperlocal Industries Inc.
Data, generated during operations, informs how merchants engage with consumers
Data is generated when consumers engage with merchants
(e.g. food delivery, mobile payments, loyalty programs etc.)
Data is generated when consumers engage with merchants
(e.g. food delivery, mobile payments, loyalty programs etc.)
By automating the content creation and attribution processes, vendors will be able to
simplify the workflow for local businesses.
This will reduce adoption costs, expanding the addressable market and accelerating the
shift of spend from analog to digital.
STREET FIGHT INSIGHTS @ 2013 Hyperlocal Industries Inc. @ 2013 Hyperlocal Industries Inc.
The emerging supply-side systems will serve as a platform for marketing software, making businesses’ data and back-end systems easily
accessible to vendors.
This will dramatically reduce the sales and support costs associated with growing a local
marketing service, enabling smaller firms to scale efficiently and with less capital.
Data is generated when consumers engage with merchants
(e.g. food delivery, mobile payments, loyalty programs etc.)
STREET FIGHT INSIGHTS @ 2013 Hyperlocal Industries Inc. @ 2013 Hyperlocal Industries Inc.
Street Fight believes the companies that will succeed in local marketing will integrate supply-
and demand-side systems through internal product development or strategic partnerships
STREET FIGHT INSIGHTS @ 2013 Hyperlocal Industries Inc. @ 2013 Hyperlocal Industries Inc.
Companies across the local marketing landscape range from those with weak digital
marketing capabilities and no operations offerings, to the market-leading combination of
strong automated marketing and operations offerings for businesses, whether through
product expansion or partnership.
Data is generated when consumers engage with merchants
(e.g. food delivery, mobile payments, loyalty programs etc.)
STREET FIGHT INSIGHTS @ 2013 Hyperlocal Industries Inc. @ 2013 Hyperlocal Industries Inc.
Company
Partnership
Innovators Intuit
FoursquareYelp
Facebook Patch . GanneB STREET FIGHT INSIGHTS @ 2013 Hyperlocal Industries Inc. @ 2013 Hyperlocal Industries Inc.
This chart represents a handful of key companies innovating digital demand- and supply-side business models in local marketing and their legacy predecessors. There are of course thousands
more companies in the entire local marketing ecosystem.
The Local Marketing Landscape 2013
This deck is based on the full report
“How Back-‐Office Innova=on Is Transforming Local Marke=ng.”
Author: Steven Jacobs, Deputy Editor, Street Fight
For informaGon and consultaGons, please contact [email protected]
STREET FIGHT INSIGHTS @ 2013 Hyperlocal Industries Inc. @ 2013 Hyperlocal Industries Inc.