Businessmodel of Acxiom

Customer Segments

Acxiom has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at organizations across industries and sizes.

Value Proposition

Acxiom offers three primary value propositions: performance, risk reduction, and brand/status.

The company demonstrates strong performance through tangible results. Its proprietary recognition technology links together numerous consumer records and identifiers. The technology uses 100% deterministic matching to link households and individuals to the right mobile device IDs, cookies, and user accounts at social networks, resulting in a high degree of accuracy and speed.

The company reduces risk through high safety and security standards, as follows:

• It established the industry’s first Chief Privacy Officer role, the sole purpose of which was to ensure the responsible use and protection of consumer data
• It utilizes a data Safe Haven, a privacy-compliant environment that enables partners and marketers to connect different types of data while governing and protecting its use

• It created aboutthedata.com, a portal that provides consumers with more understanding of and transparency about how their data is gathered and used for marketing purposes The company has established a strong brand due to its success. It bills itself as the largest provider of data onboarding services. Its technology powers over a trillion transactions.It serves over 3,250 clients directly, including over 50% of the Fortune 100,  and its data is used by tens of thousands of organizations. Its customers include the following:

• 9 of the top 10 insurance providers
• 9 of the top 10 media and telecommunications firms
• 8 of the top 10 automotive manufacturers
• 8 of the top 10 U.S. hotel companies
• 7 of the top 10 retailers
• 7 of the top 10 retail banks
• 7 of the top 10 credit card issuers
• 6 of the top 10 technology companies
• 4 of the top 5 domestic airlines
• 3 of the top 5 gaming companies
• 3 of the top 5 brokerage firms Lastly, Acxiom has won a number of honors, including recognition by *Fortune *and *Computerworld *as one of the best places to work in the United States.

Channels

Acxiom’s main channel is its direct sales team. The company promotes its offerings through its website, social media pages, advertising, and participation in webinars and conferences.

Customer Relationships

Acxiom’s customer relationship is primarily of a personal assistance nature. The company’s employees work closely with clients as they deliver its services.

Key Activities

Acxiom’s business model entails designing, developing, and delivering its services to customers.

Key Partners

Acxiom maintains alliances with entities that supply or access data and technologies; specific types of partners are as follows:

• Media companies
• Developers
• Brands
• Data Providers Specific partners include AT&T Adworks, Cisco, Comcast, eBay, Facebook, IBM, Microsoft, and Yahoo.

Key Resources

Acxiom’s main resources are its human resources, who include the technology employees that design and develop its services and the sales employees that promote them.

Cost Structure

Acxiom has a value-driven cost structure, aiming to provide a premium proposition through significant personal service and frequent service enhancements. Its biggest cost driver is cost of revenues, a variable expense.

Other major drivers are in the areas of sales/marketing, administration, and research/development, all fixed costs.

Revenue Streams

Acxiom has one revenue stream: revenues it generates from the sale of its services to customers. Sales typically occur through the formation of long-term contracts.