ReachLocal Provides Turn-Key Lead Management for Small Business

There are about 3 million companies with revenue between $1 million and $5 million in the U.S., according to Manta. This is an enticingly huge market for marketing automation vendors, and one that seems largely untapped. The largest marketing automation vendor in the segment, Infusionsoft, has under 20,000 clients. This is barely scratching the surface.

But this perspective is misleading. Many small businesses do their marketing through CRM, email, and search advertising. Search marketing is particularly important as online searches replace newspapers and telephone directories. Companies that provide small businesses with online directories and ratings, search engine optimization, Web sites, and paid search marketing all have client bases that dwarf the small business marketing automation industry.

Those other vendors could easily see marketing automation as a natural line extension, since it would help their clients make better use of the traffic those vendors generate. Last month ReachLocal – a $450 million public company that purchases online ads for more than 23,000 local businesses -- moved in exactly this direction.

ReachLocal’s new service, called ReachEdge, provides clients with a custom Web site, contact database, automated email streams to leads and customers, and automated alerts to company staff.  All the Web and advertising design is done for the client. There’s no automated lead scoring or branching campaign flows: when a new lead enters the system via a Web form or phone call, the user receives an alert, reviews whatever information was provided on the form or voice mail message, and manually classifies the lead as active, long term, new customer, or existing customer. Each category kicks off its own stream of messages (to the leads) and alerts (to company users), which can be spaced over time. Messages are sent by email; alerts can be sent by text, email, or a mobile app. Users can enter notes, add tags, and record revenue on contact records, providing a very light CRM option, or they can manually export the contact list to an external CRM system. Revenue can be used in campaign Return on Investment reports.

And that’s it, features-wise. If you’re used to looking at all-in-one small business marketing automation systems like Infusionsoft, Ontraport, or Venntive, the list may seem laughably primitive. But it’s a safe bet that many ReachLocal advertising clients have no interest in anything more complicated. The stumbling block facing all of marketing automation – that it takes more training, skills, and effort than most potential users can invest – is higher for very small businesses than anyone else. ReachLocal has reduced its clients' preparation to a minimum, and then left it up to them to pursue each new lead individually.

When a vendor does this much of the work, the key questions are less about the system than quality of the marketing.  ReachLocal said that each Web site is custom designed, based on interviews with each client by U.S.-based industry specialists. I looked at a samples for three different plumbers (here, here, and here) and found they were indeed different and detailed enough to be effective. I’ll assume that advertising and email are similar. ReachLocal’s service includes one hour of customization per month and a completely new Web site every two years. The price is $299 per month, which is comparable to low-end marketing automation systems although higher than simple auto-responders.

Let me be clear: ReachEdge doesn’t provide the process automation or even email segmentation of a conventional marketing automation system, let alone serious CRM, ecommerce, or external integration. So small businesses that want to market aggressively will probably find it insufficient. But small businesses that just want to generate a stream of new leads while they focus their energies elsewhere may well find ReachEdge an appealing alternative.

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Vocus Marketing Suite: Still Mostly Social But Marketing Automation is On the Way

If you’ve heard of Vocus at all, it’s probably as vendor serving public relations professionals. Its core offerings include a huge database of media contacts; media monitoring and social listening; and press release distribution. But since late 2011 the company has also offered a suite aimed at marketers, which now has more than 4,000 paid clients.

Even in the small business sector, that count would make Vocus one of the largest marketing automation systems.  But Vocus doesn’t quite match the profile of standard marketing automation products.  It lacks the Salesforce.com integration of B2B systems (due early next year), the lightweight CRM of micro-business systems, and the lead scoring and distribution of both. On the other hand, it does offer email and landing pages, two marketing automation basics, as well as several features borrowed from Vocus PR software.  So it's best to treat Vocus Marketing Suite as a class unto itself.

The product's two most intriguing features draw on Vocus’ monitoring of social media and news outlets. “Recommendations” finds conversations on client-specified topics across 130,000 online outlets, 10,000 print outlets, 35 million blogs, and posts on Twitter, Facebook, and other social sites. It presents these to Vocus clients with an interface that suggests a reaction but lets users decide how to reply or repost across several social channels. Clients can have Vocus add new topics, a process that takes a couple of weeks to allow testing and fine-tuning of the selection mechanism. “Recommendations” will also identify influencers for a selected topic, based on actual influence (number of reposts or references) rather than the number of followers.

“Buying Signals” draws on Twitter only. It identifies Tweets with a dozen or so purposes related to a client’s product, such as fact checking, asking for recommendations, shopping, or reporting that something has been lost or broken. As with Recommendations, users are presented with a list of messages they can review and reply to individually as appropriate.

Other features include press release posting via Vocus’ PRWeb subsidiary; Facebook promotions such as sign-up pages, sweepstakes, and fan offers; a central image library; and management of local directory listings. I’ve already mentioned email, which is reasonably powerful, and landing pages. The email engine will be enhanced with multi-step campaigns by the end of this year. Other traditional marketing automation features will be added as well.

User rights are organized around “profiles”, which might relate to a company, brand, or product line. Users are either assigned to a profile or not; there are no finer divisions of rights for specific features. This approach makes sense for small businesses – the bulk of the system's current client base – and for marketing agencies who manage separate profiles for each client.

Pricing is defined in tiers ranging from $3,000 to $30,000 per year, based on the number of profiles, amount of content monitoring, email volume, press release formats, and other variables.

As both the pricing variables and features suggest, Marketing Suite is still mostly a social media monitoring and public relations tool. This will change as Vocus adds conventional marketing automation features. But until those features mature, companies who want to do much beyond email will find they need a separate marketing automation product as well.

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Optify Lets Agencies Provide Small Business with Marketing Automation, Distributed Marketing, and Sales Enablement

In case you were wondering, I see four themes emerging today in B2B marketing automation:

• services: vendors are bundling their systems with services to help marketers use them, either by offering the services themselves (LeadLife, MakesBridge, Ontraport (formerly OfficeAutoPilot), RightWave, SalesEngineInternational) or by creating versions that agencies resell to their clients (Optify, MindFireInc, many others).

• sales enablement: systems to share marketing information with sales (Genius, SalesFusion, LeadFormix, RightOn Interactive, Optify)

• distributed marketing: systems shared between central marketing organizations and local branches, dealers, distributors, sales agents, etc. (NitroMojo, Marketing Advocate, OptifiNow, Optify, Balihoo)

• new options for small business: systems targeted at very small businesses (Venntive, Optify, Vocus)

The first three trends strike me as defensive: small vendors need niches to compete against the huge resources of the big general purpose marketing automation products, who are all now part of larger companies (Eloqua, Pardot/ExactTarget), public (Marketo) or heavily funded (Act-On, HubSpot). By contrast, the fourth trend seems to be driven by recognition that small business presents a huge opportunity.

I only mention this because I’ve recently been looking at a lot of new (to me) vendors and haven’t been able to write about many of them. Placing them in the larger industry perspective gives me a chance to at least drop all their names and makes it easier to decide which to profile next. I’ll use the extremely scientific approach of selecting Optify, since it appears in all four categories.

Optify was founded in 2008 and launched its original product, a search engine optimization (SEO) tool, about a year later. Its primary clients were then, and still remain, digital marketing agencies. Both the agencies and their clients have been mostly small businesses – in the survey for our soon-to-be-published VEST report, Optify reports that 60% of its clients have under $5 million revenue. This makes it a system for both small business and service vendors: two of my four themes. Its distributed marketing capabilities stem from its agency roots, since the fine-grained, hierarchical permissions needed to let one agency manage installations for multiple clients are similar to the permissions needed to distribute permissions between central marketers and local affiliates. That's theme number three.

Finally, Optify has expanded into conventional marketing automation over the past 18 months and most recently added basic contact management and distribution of lead information, scores, and alerts to sales people. This is enough sales enablement to complete its sweep of the four themes.  I guess I should send them a t-shirt or something.

You can also think of Optify as having worked its way down from the top of the funnel (SEO) to the middle (marketing automation) and towards the bottom (CRM). This will remind marketing automation aficionados of HubSpot, which has made a similar journey. The biggest obvious difference (if you ignore HubSpot’s $100 million or so in venture capital funding) is that HubSpot offers its own blogging and Web content management, while Optify provides WordPress and Drupal plug-ins for visitor tracking and landing pages.  This is the standard approach among marketing automation products – as Optify says on its Web site, “We know you already have a website and a favorite marketing CMS.” The system can also create Facebook landing pages and track visitors to them.

What Optify does offer inbound marketers is extensive support for search engine optimization.  This includes detailed research into keyword rankings for the client and competitors, analysis of Web pages for features that improve search ranks, an inbound link manager, and a Twitter client to publish posts and embed trackable URLs that measure campaign results.

Moving towards the middle of the funnel, Optify offers reasonably powerful email and landing page builders, based on templates or HTML. Landing pages can be attached to an auto-responder email, while standard fields on forms are automatically mapped to Salesforce.com. Emails are delivered through ExactTarget. Users can create lists and segments based on all contact properties, activities, email history, and custom fields. There are no real multi-step campaigns, however.

Sales enablement includes lead scoring, with multiple scores per lead; alerts based on search keywords and lead scores; a live ticker showing current Web site visitors with companies identified via reverse IP lookup; and appending of company data from Dunn & Bradstreet. The system can send each salesperson a daily email of newly qualified leads, selected with shared rules or separate rules for each salesperson.. Salespeople can view their contact list, drill down to individual profiles, aand drill further to see behavior details – even as far as each page viewed during a Web site visit. Users can send the contact a system email or add it to a list.

CRM integration is currently limited to sending data to Salesforce.com. A proper API for bi-directional integration with any CRM system is under development.

Reporting is a particular strength.  Optify can build a unified contact profile by connecting names, email addresses, social accounts, and multiple cookies for the same person, using site log-ins, email clicks, and form submits on different devices. This lets reports show Web visits, conversions and other subsequent activity from search, social, and email campaigns.  A dashboard lets users pick widgets to display selected information.  Data can be exported to Excel, which is what many of Optify's agency clients prefer.  The company is planning an API to let clients export data directly.

 All told, this is a pretty reasonable package for a small business marketing system. It’s broadly similar to the scope of small business leaders Infusionsoft and Ontraport, although those products offer more elaborate campaigns and process flows. Pricing is also competitive with other small business systems if not especially cheap: company marketers pay based on page views and emails sent; starting at $350 per month for 10,000 views and 25,000 emails, . Agency pricing is based on the number of Web sites and email volume. Distributed marketing also has its own pricing.

Optify has more than 400 agency clients and many more individual sites using the system.

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Venntive Adds Communities to Small Business Marketing Automation and CRM

It has taken me some time to form a clear picture of Venntive. It is clearly “all-in-one” sales and marketing software for small business, combining marketing automation, CRM, and ecommerce along the lines of Infusionsoft and Ontraport (formerly OfficeAutoPilot). It also includes full Web site management and social media monitoring and posting, but those are natural extensions for sales and marketing.  More puzzling was Venntive’s decision to include a full accounting system and a community management features such as private discussion forums, Wikis, events, and custom fields for groups within its database. The other micro-business systems have avoided accounting, presumably because they saw little value in trying to displace Intuit QuickBooks. And community management – well, that just doesn’t have much to do with how most small businesses operate.

The hint at an answer – a giant flashing neon sign, actually – was in Venntive CEO Lydia Sugarman’s description of its client base, which my notes recorded as “chambers of commerce, schools, Boy Scout troops, coaches, law firms, financial advisors and associations”.

You can be certain that this is the first time “Boy Scout troops” has come up as a category of marketing automation users. But Venntive makes perfect sense once you consider their needs.  A scout troop has many subgroups that need to communicate among themselves: how better to manage that field trip to the National Duck Stamp Museum?  They also have simple finances and simple Web sites. Venntive’s pricing model – starting at $25 per month for up to 1,000 contacts, with unlimited email – also fits a small organization without a big prospect list, since it would pay about that amount for basic email and Web hosting.

In fact, Sugarman said the custom fields for groups were originally added to track Boy Scout merit badges – although they’re now used more often for things like dealer certifications.

Venntive's scouting heritage notwithstanding, I want to make clear that it is suited for much larger organizations.  Venntive offers the full set of “all-in-one” system features, meaning it can serve the full set of “all-in-one” clients: those coaches, law firms, financial advisors, and others that Sugarman mentioned, plus online retailers, service companies, and small manufacturers. In fact, Sugarman said most of the company’s clients are B2B not B2C marketers.

One problem with writing about a system like Venntive is evaluating its huge number of features.  In some alternate universe where sleep is optional, I would have explored each function in depth before writing about it. But things don’t work that way on my little corner of planet Earth.  The best I could do was take a whirlwind tour of the system and capture some screenshots. Based on that limited research, I came away impressed with the sophistication of the features as well as their scope.

Let’s start with the group functions, since groups are such a key component of Venntive. At the simplest level, a group is just a list. People enter groups in the usual ways: email or form response, user-defined filters, conversion events, list import, or manual assignment. Entry can trigger an email, assignment to a drip campaign, or sales agent notification. So far pretty normal. But groups also support those community and collaboration features.  Members can share discussion forums and Wikis and be assigned rights such as access to specified information about each other. Each group can also have a parent organization, member log-in, physical location, custom fields, and its own settings for email, event, and drip campaign practices. Beyond membership organizations, those group functions could support all sorts of peer-to-peer communications, arguably making Venntive just the thing for cutting-edge, community-driven marketing.

Looking at the other functions:

- emails can be built on user-customizable system-provided templates, on imported templates, or from scratch.  They can include social sharing buttons, surveys, event links, contact data, or dynamic content selected by embedded if-then rules. Completed email can be previewed and spam scored. The system can automatically assign recipients to different groups based on their response (read, click, forward, or take a survey).

- surveys are built from a list of independent questions.  This means all answers to the same question are automatically placed in the same data field, regardless of where the question is asked. That’s the right way to do it, at least in my opinion.

- events can be either physical or on-line. The system stores details about the location, captures registrations, collects fees, offers multiple options for reminder emails and text messages, and reports on actual attendance after the fact.

- CRM goes beyond the basics (contact attributes, activity history, calendar reminders) to track opportunities and sales quotes, allow searchable tags for segmentation, and store files associated with a contact. Standard integration with RapLeaf let users add demographic, interest, and purchase data from external sources by matching on email address.

- lead scores are created in two ways: conventional user-created scoring rules, and automated predictive modeling. There are two conventional scores, one for activities and one for demographics.  The demographic score is based on contact attributes, while the activity score incorporates contact activities (email, Web, event, survey, purchase, and social behaviors) plus salesperson activities (sent an email, left a messages, etc.).  Activity values can be set to decay as time passes, which is one hallmarks of advanced lead scoring. While there's just one pair of conventional lead scores, users can have as many predictive model scores as they want.  Each score predicts visits to a different Web page, typically representing a stage in the purchase process. The system automatically looks at the demographic, activity, and CRM data to build a model formula and score the contact records.

- campaign features in Venntive are uncharacteristically limited.  Users can set up a sequence of emails, but there is no branching based on response and emails are the only action a campaign can control directly.  Users gain a bit more power from the ability of email response rules to assign contacts to different categories.  But this is still far from the process automation that adds great value to other micro-business systems. 

- Social media support includes keyword searches and alerts; real-time or scheduled posting to multiple Twitter, LinkedIn and Facebook accounts; and detailed tracking of results. This is a reasonable set of features for a small business system.

- The Web site builder is much more robust.  It supports pages, blogs, member sign-in, stores, coupons, advertising, support tickets, and tracking via Google Analytics. Users can assign point values to specific pages for use in lead scoring and can see a list of who visited each page. Venntive hosts the Web site for its clients, but clients can assign their own Web address to hide this.

- Financials include account tracking, journal entries, receivables management, and reporting. Invoices are automatically added from CRM and Web orders and funds can be collected via PayPal. The system can also integrate with QuickBooks.

- There’s also project management, a media library, SMS messaging, and print integration. And probably other things I haven’t mentioned.

Given the depth of its features, Venntive’s interface is reasonably straightforward. But there's a lot to learn and users will need help.  Each screen include buttons for on-demand videos explaining individual functions. There are also video tutorials and non-video explanations (using a technology called "text") for users over age 30.

Pricing of Venntive is based primarily on the number of contacts in the system, starting at $25 per month for 1,000 contacts. A system with up to 25,000 contacts would be $200 per month. There are some additional fees for extra users, Web analytics, SMS messaging, and external data. Users can send unlimited emails.

Venntive was launched in 2006 and is nearing its 1,000th client.

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InfusionCon 2013: InfusionSoft Keeps Its Focus on Helping Entrepreneurs

I spent part of last week at Infusionsoft’s annual conference, InfusionCon, drinking the Kool-Aid and soaking up the Arizona sun.


Pleasant as the 80 degree temperatures were to a refugee from the still-wintry Northeast, the real warmth at the conference came from 2,300 attendees bubbling with enthusiasm for their entrepreneurial adventures and how Infusionsoft supports them. Keynote speaker Jay Baer captured the mood perfectly when he went “all Oprah” on the crowd by promising them each a free Camaro. (Either he was joking or I registered incorrectly.) The group was indeed drenched in Oprah-style self-empowerment.

As you’ve probably guessed, this isn’t my native habitat. Even though Raab Associates itself is a small business and runs in part on an Infusionsoft-like system (OfficeAutoPilot), I’m a professional manager by training and most of my clients are mid-size and big businesses. What really matters, though, is that Infusionsoft itself remains committed to its small business customers, despite growing to nearly 400 people and $40 million revenue. This consistency is no accident: Infusionsoft managers are quite vocal on their very conscious efforts to build a culture that is committed to helping entrepreneurs and is itself entrepreneurial. It’s a tall order, but there’s some serious missionary zeal at every level, so they might just succeed.

In any event, I did manage to spend most of the conference in my own comfort zone of analyzing Infusionsoft’s business. A long conversation with Chief Marketing Officer Gregg Head provided some interesting tidbits, including:

- the company’s customers fall into three main groups, each roughly one third of the total.  hese are: Internet-enabled business coaches and experts, who are selling books, videos and other products in addition to their personal time; local service providers, such as dentists, home services, and fitness centers; and businesses selling to other small businesses.

- most clients want either to increase sales or free up the owner's time. The latter goal – taking back your life from an all-consuming business – seemed to resonate more than anything with the attendees. Reducing costs is a lower priority.

- Measuring return on investment isn’t much of an issue. Small businesses can see changes in revenue or free time immediately.  Detailed analysis isn't needed.

- Some companies are too small even for Infusionsoft. A client must have a stable revenue base to expand, or be successful enough that the owner is looking for some free time. The average Infusionsoft client has been in business for five years, which means that nearly all were in business for at least several years before purchasing the system.

- Facebook is by far the most important online channel for Infusionsoft customers, in many cases replacing Web sites as the primary online presence. Search engine marketing and blogs are much less important. The primary sources of new customers are still offline: referrals, partners, events, and direct mail. (Incidentally, trendsters, direct mail in general and post cards in particular are hot. But that might be old news. I did receive a message about personalized pizzas today, but am pretty sure it was an April Fools joke.)

And what of Infusionsoft itself? The company did announce its next release at InfusionCon, although by its own admission the changes were incremental enhancements in usability rather than major expansions in function. The main items were more efficient scheduling of personal tasks, a simple way to prepare quotes, and branding templates that automatically deploy style changes across all types of content. Campaigns can also now easily include GroSocial Facebook campaigns (GroSocial being a social marketing firm acquired by Infusionsoft in January.) Modest as these changes are, the company says its users wanted them more than new acquisition channels.

Infusionsoft also announced several non-technical initiatives, again with the goal of making users more productive. These included a set of prebuilt campaigns. including actual content; on-demand training videos integrated with the product, and accelerated expansion of sales and service partner networks. The onboarding process has also been revamped to deliver results in 30 days rather than 60, the main change being that Infusionsoft staff now does more of the actual setup for new clients and spends less time on a conceptual success map.

All these changes confirm what was already obvious: that Infusionsoft’s entrepreneurial customers are a separate breed from the professional marketers who use traditional marketing automation systems. The functional differences between the two sets of systems may be hard to spot, but there’s no mistaking the difference in the services and attitudes that surround them.

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