Over the past few years, we’ve watched as a host of payment processing, point-of-sale and scheduling services have popped up, helping local businesses manage day-to-day operations in more efficient ways. Using the cloud, these ‘commerce’ software plays have begun to undercut a number of large legacy companies, shaking up industries which have remained static for decades. In a new report, Street Fight takes a look at the impact of supply-side technologies on the local marketing industry, detailing the opportunities and risks that these emergent services present to existing solutions providers.
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Street Fight-How Back-Office Innovation is Transforming Local Marketing
1. STREET FIGHT INSIGHTS
HOW BACK-OFFICE INNOVATION
IS TRANSFORMING LOCAL MARKETING
@ 2013 Hyperlocal Industries Inc.
2.
The
majority
of
commerce
happens
locally.
$4.4 Trillion in U.S. Retail Spend
95% ‘Local’
$4.2
Trillion in
In-Store/Offline
Retail Spend
5% Online
$.19
Trillion in
Ecommerce
Retail Spend
@ 2013 Hyperlocal Industries Inc.
3. That ‘local’ commerce (the 95%) is being
reinvented by the Internet.
FIND
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.
BUY
A flood of food trucks gave mobile payments a testbed for the
sophisticated digital options that are making the cash register an
ancient relic.
RETRIEVE
RETRIEVE
Ecommerce revolutionized the mundane logistics of getting
goods to consumers; but new technological tools let local
businesses get in on the game, too.
ENGAGE
ENGAGE
Forget mailing lists; emerging CRM systems build on this datarich local stack to bring consumers back in new ways, and
personalize their in-store experience like never before.
@ 2013 Hyperlocal Industries Inc.
4. Demand-Side
Media
Social Media
Email
Loyalty Services
Commerce
In-store
At-home
Scheduling/
Reservations
Payment processing
(in-store, online)
Mobile
Fulfillment
Credit Cards/
Payment Apps
Services/Platforms
CRM
Businesses that sell goods
and services locally
Inventory
Search
Supply-Side
Consumers who buy goods
and services locally
Technology vendors develop tools for each side
of the local market, serving consumers
(demand) and businesses (supply)
Services/Platforms
@ 2013 Hyperlocal Industries Inc.
5. 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
Yelp Launches
Google Local
Released
2003
2004
2005
Groupon IPOs
Yellow Pages
Revenues Peak
$15.3 B
2006
2007
2008
Foursquare
Founded
2009
2010
Patch
Expands
2011
Yellow Pages
Revenues Sink
$7.5 B
2012
2013
@ 2013 Hyperlocal Industries Inc.
6. Innovation is shifting to the supply side,
where vendors use cloud technology to
bring key operations systems online.
Payments
CRM/Analytics
Scheduling/
Booking
Point-of-sale
@ 2013 Hyperlocal Industries Inc.
7. 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.
8. With mobile adoption nearing ubiquity, the demandside of the marketplace is already in place.
A supply side platform solves two looming
problems for the local marketing industry:
1
2
Connectivity at
Point-of-purchase
No way to measure
actions (walk-in, payment)
in-store
Software Silozation
Lots of different systems,
incapable of ‘talking’ to
another (e.g. sharing
data)
STREET FIGHT INSIGHTS
@ 2013 Hyperlocal Industries Inc.
9. Social
Consumer
STREET FIGHT INSIGHTS
Inventory
Search
Transactions Business
Email
Reservations
Supply-Side
Demand-Side
Soon, with both sides of the marketplace online,
vendors will have the ability to automate the
way consumers (demand) and
businesses (supply) interact.
@ 2013 Hyperlocal Industries Inc.
10. 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.”
Social
Inventory
Data is generated when
consumers engage with businesses
Search
Email
Demand-Side
STREET FIGHT INSIGHTS
Social
Ordering
Reservations
POS
Supply-Side
@ 2013 Hyperlocal Industries Inc.
11. Vendors can also use data, generated by the
supply-side system (e.g. inventory, purchase
history), to target consumers and generate
creative automatically.
Data, generated during operations, informs
how merchants engage with consumers
Ordering
Reservations
Supply-Side
STREET FIGHT INSIGHTS
POS
Search
Email
Social
Demand-Side
@ 2013 Hyperlocal Industries Inc.
12. 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.
13. 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.
STREET FIGHT INSIGHTS
@ 2013 Hyperlocal Industries Inc.
14. Street Fight believes the companies that will
succeed in local marketing will integrate supplyand demand-side systems through internal
product development or strategic partnerships
STREET FIGHT INSIGHTS
@ 2013 Hyperlocal Industries Inc.
15. 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.
STREET FIGHT INSIGHTS
@ 2013 Hyperlocal Industries Inc.
16. The Local Marketing Landscape 2013
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.
Company
Partnership
Innovators
Intuit
Foursquare
STREET FIGHT INSIGHTS
GanneB
.
Patch
Yelp
Facebook
@ 2013 Hyperlocal Industries Inc.
17.
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
steven@streeFightmag.com
For
informaGon
and
consultaGons,
please
contact
info@streeFightmag.com
STREET FIGHT INSIGHTS
@ 2013 Hyperlocal Industries Inc.