Businessmodel of AgilOne

Customer Segments

AgileOne has a niche market business model, with a specialized customer segment. The company targets its offering at mid-market enterprises (typically firms with 100,000 or more customers).

Value Proposition

AgileOne offers three primary value propositions: convenience, performance, and brand/status.

The company offers convenience by providing a comprehensive solution. Its platform combines predictive customer analytics, integrated campaign management, and advanced database management capabilities, making it easier for marketers to fully understand customers. Its built-in predictive models reduce the need for end users to rely on in-house data scientists or consultants.

The company has demonstrated strong performance through tangible results. It claims its solution allows clients to do the following:

• Recover as much as 45% of carts by providing the best incentives for each customer
• Triple conversions and increase lifetime value through the use of targeted content

• Reduce email opt-outs by as much as 40% by adjusting email frequency by segment High-profile positive outcomes for specific clients include the following:

• Shaklee used AgilOne’s solution to improve its abandoned cart campaigns, resulting in a 48% open rate and a 28% conversation rate, and identified factors that drive 3x lifetime value
• Mavi used AgileOne’s solution to carry out effective clustering, resulting in a 20% reactivation of inactive customers and a 7% increase in overall revenues
• PetCareRx used AgileOne’s solution to create highly targeted promotional campaigns, resulting in a 14% rise in quarterly retention and a 0% increase in overall marketing budget
• UncommonGoods used AgileOne’s solution to enhance its e-mail marketing campaigns, resulting in an increase in its average open rates from 14% to 19% and savings on email sends
• Arcelik used AgilOne’s solution to implement a new marketing platform, resulting in 140 campaigns capturing significant additional revenue in the first year of operation The company has established a strong brand due to its performance. It bills itself as the first predictive marketing cloud enabling marketers to deliver customer relationships online and offline. It has created more than 525 million personalized customer experiences, and has more than 150 clients. These include prominent firms such as The Body Shop, Lilly Pulitzer, Shazam, and Moosejaw. Lastly, it has won a number of honors, including recognition as one of OnCloud’s Top 100 Private Companies (2015), one of Gartner’s“Cool Vendors“ (2014), and one of Red Herring’s Top 100 (2013).

Channels

AgileOne’s main channel is its direct sales team. The company promotes its offering through its social media pages and participation in trade shows, summits, and conferences.

Customer Relationships

AgilOne’s customer relationship is primarily of a self-service, automated nature. Customers utilize the service through the main platform while having limited interaction with employees.

The company’s website features a section called “AgilOne Academy” that includes self-help resources such as articles, reports, eBooks, data sheets, and video tutorials. The site also offers case studies, infographics, a blog with posts written by its experts, and answers to frequently asked questions.

Key Activities

AgilOne’s business model entails maintaining a robust cloud platform for its clients.

Key Partners

AgilOne maintains the following types of partnerships:

• Technology Partners and Integrations – Specific partners include Adobe Omniture, Bigcommerce, Coremetrics, Demandware, Ensighten, Experian Marketing Services, Facebook, and HubSpot.
• Services Partners – Specific partners include Acadaca, Canvas, Cinder, PFS Web, Revenue Automation, Sequence, The O Group, OIC, SM, Wednesday, WhatCounts, and You. The company indicates that benefits of being a partner include the following: mutual referral fees, co-branded collateral, co-branded industry event integration, co-branded dedicated event integration, and access to its variety of tools.

Key Resources

AgilOne’s main resource is its proprietary software platform, which serves over 150 clients.

It depends on its technology employees to maintain and update the platform, its data scientists and retail marketing leaders to share their expertise, its sales staff to promote its offering, and its customer service staff to provide support.

As a startup it has relied heavily on funding from outside parties, raising $41 million from five investors as of April 2014.

Cost Structure

AgilOne has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions.

Its biggest cost driver is likely sales/marketing, a fixed cost. Other major drivers are in the areas of product development and customer support/operations, both fixed costs.

Revenue Streams

AgilOne has one revenue stream: the annual subscription fees it charges for access to its cloud-based platform. It offers two subscription plans – one for an Enterprise Edition and one for a Digital Edition. Specific prices for each plan change with the number of active customers that clients have.