Transcript Advertising Agencies Brand Marketing Consultants Publishers

Collabry’s Inc.
Postscript
Ken Peffers
UNLV
November 2004
Management Question
 Which of the two alternative business plans
should Collabry’s choose?
 Be an analytics software company
 Product intrigued customers
 Value easy to explain
 Module for CRM page or platform for applications
 Customer base: existing CRM firms
Be an agency providing managed solutions for firms in
product launch and introduction
 Favorable responses to applying LaunchPad
 Close to original mission of the firm & skill base
 Brand manager the potential customer
Collabry’s Inc
2000 startup to target customers with
individualized messages
Businesses spend $163 billion to create
awareness and $137 billion to deepen
customer experiences
Competition: LifeMinders offered
customers daily e-mail personalized to
their interests.
Many potential competitors
Collabry’s
Collaborative Branding Research Systems
Financed with loans from venture
capitalists, including Versant
Channels
Advertising agencies
Many hours of presentations. Interest, but
presenting new media to clients too risky.
Cosmetic firm
July 2000 12 month contract for emails
Personal care company
3 month test in Q1 2001
Few sales
Difficulty of differentiating service
LaunchPad Prototyping 2002
Fundamental Successes
90% of opt-in subscribers remained loyal
25% of viewers visited brand web sites
80% of vie3wers viewed URLs with product
offers
10-15% of online interactions resulted in sales
Client firms experienced up to 30% increased
sales
Funding
Danger of bankruptcy
Falling economy in 2001
Series B financing of $11 million received
March 2002
Still no sales
VP of marketing problem
Selling to the wrong audience: marketing
managers, market research people and ad
agencies
Have only sold to brand managers
VP goes
What should the firm do?
Advanced Analytical Software or
Marketing Services
In Financial Services
Collabrys plays a key role in assisting institutional
investment, insurance, and banking companies
with lead generation, cardholder acquisition,
client retention, and growing customer value on
an ongoing basis. Whether you sell directly to
the general consumer market or to specific plan
sponsors or business customers, Collabrys can
help you succeed in cost-effective acquisition,
retention and marketing insight.
Solutions
Collabrys provides full-service solutions to improve
customer acquisition, retention, compliance, and
insight. Our solutions combine the power of emarketing, targeted content, research, and
analytics with solid underlying database
marketing technology. Collabrys solutions
enable our clients to accelerate acquisition,
increase lifetime and annual value, and gain
actionable insight into customer needs and
behavior. Programs can be launched in as little
as two weeks and typically pay for themselves
within the first 90 days.
Clients
AT&T Broadband
Bank of America
BayBio
Brita
Capital Advisors
Capital One
Coalescent Surgical
Clean & Clear
Clinique
Clorox, Inc.
Estée Lauder
ev3
Forbes
GE
IBM
Jergens
Johnson & Johnson
K-Y
LuMend
New York Life
Oppenheimer Funds
Ortho-McNeil
Quantum Dot
Rodney Strong
Vineyards
Starwood Hotels
Twinlab
Wyeth Consumer
Partners
Advertising Agencies
Brand Marketing Consultants
Publishers
Board of Directors
Benjamin Wayne, CEO
Rebecca B. Robertson
Managing Director, Versant Ventures
Greg Sands
Managing Director, Sutter Hill Ventures