As Amazon and other ecommerce players continue to revolutionize retail, brick-and-mortar firms respond. In this battle for customers, the players are relying more and more on data and using intelligence to make sense of the numbers. And cashing in on these changes in Triangle ecommerce firm MaxPoint, as CEO Joe Epperson explained to Wall Street analysts during a conference call to discuss the firm’s latest financial results.
MaxPooint reported a loss of 55 cents per share, which was 12 cents better than expected by analysts. Its revenue came in at $23.16 million, just short of expectations.
Epperson told analysts that revenue is growing in large part to new tools designed to produce what MaxPoint recently described as an “optimal mix” of data between traditional and online markets.
And MaxPoint, using proprietary technology, assess a LOT of data.
In a recent graphic posted at Twitter, MaxPoint touted the amount of customer information it processes data daily: “12 trillion.”
The company is “expanding the reach of our intelligence across the entire marketing ecosystem. The partnerships we announced last year have helped to expand the accessibility of MaxPoint’s data and intelligence. Customer requests for custom data segments have accelerated significantly during the first half of the year.”
“This new segment requests from our customers represent unique data sets created specifically to support their individual programs. These are new products for us and we are still learning how requests for these specific data convert to revenue,” he added, according to a transcript of the call as provided by financial news site SeekingAlpha.
“However, the increase in overall activity furthers our confidence that expanding the reach of MaxPoint’s data intelligence across the entire marketing stack in ecosystem is the right strategic direction.”
MaxPoint recently struck a deal with LiveRamp in the U.K. and is preparing for further international growth as a result. Driving customer interest globally is what Epperson described as the “arrival of a convergence” between ecommerce and retail such as Amazon’s deal for While Foods.
“This convergence is bringing the data and customer intelligence of online activity to the brick and mortar environment, and is an indicator of an underlying evolution of retail that has been going on for a while. While Amazon maybe on the front-end of this convergence, they are hardly the only ones,” he explained.
“Several retailers are starting to compete in new ways and are responding to the changing buying dynamics and customer needs. The message is clear, retailers need to evolve to compete in a new, converged e-commerce and brick and mortar reality. In particular, they need to invest in new technologies that enabled deeper consumer behavior insights to inform the customer experience.”
MaxPoint offers a growing variety of tools to help customers capitalize on data generated in stories as well as through their networks.
“Last quarter, we announced the collaboration with Adobe Audience Manager that enables Adobe customers to activate CRM list that have been enriched by MaxPoint’s Customer Catalyst directly through Adobe’s Audience Manager. Marketers, who store their first party data in Audience Manager, can now take advantage of continuous data enrichment from Customer Catalyst,” he noted.
“Customer Catalyst enhances their customer profiles with intelligence about store visits, household level brand preferences and real time purchase intent. The enriched list can be activated across any marketing technology that syncs with Adobe Audience Manager. This collaboration is one example of our efforts to provide unique business intelligence to our clients and widen our relationship with existing marketing technology partners.”
The product now “matches e-mail addresses to households for use across desktop, display, video mobile and social channels, resulting in a more unified customer view. Our proprietary matching technology delivered higher match rate than solutions that largely rely on cookies. Customer Catalyst can also add households to list based on an ideal customer profile that may not be reflected in the customer’s current list by using MaxPoint’s proprietary in-market location and product preference data.”
The end result is that MaxPoint providers its customers with individual data “at the scale needed to achieve highly personalized efforts on a national level. Our clients have recognized the unique value Customer Catalyst offers and as a result, we have signed multiple Customer Catalyst engagements since its launch late last year.”
MaxPoint also continues to drive interest to its PathPoint product, which is in pilot development.
“Overall,” Epperson said, “revenue from new products grow by over 75% from Q1 to Q2.”
Read the full transcript at: