Businessmodel of BloomReach

Customer Segments

BloomReach has a niche market business model, with a specialized customer segment. The company targets its offering at retailers, particularly those with an online presence.

Value Proposition

BloomReach offers three primary value propositions: customization, performance, and brand/status.

The company’s solution creates accessibility. Its Personalization Platform has a core technology called the Web Relevance Engine (WRE). The WRE identifies the components of a client’s website content that are most relevant to a particular online consumer (based on search history) and ensures that it surfaces prominently. This allows clients to more effectively reach consumers of interest.

The company’s solution has demonstrated strong performance through tangible results. The WRE analyzes over one billion consumer interactions and semantically interprets goods and services on more than one billion webpages each day. It then adapts websites to capture consumer demand across channels, driving an 80% increase in non-branded natural search traffic. High-profile examples of positive outcomes for specific customers include the following:

• Tilly’s used BloomReach’s solution to power its product discovery experience, resulting in a 20% lift in organic search traffic and a 16% lift in mobile RPV (revenue per visitor)
• Giggle used BloomReach’s solution to create relevant content for customers, resulting in 2,300+ inlinked pages and a 10x lift in thematic page visits
• GUESS used BloomReach’s solution to gets its products noticed, resulting in 24%year-over-year increases in natural search traffic and 50% higher conversion rates
• Bellacor used BloomReach’s solution to improve the user experience, resulting in a major year-over-year increase in natural search traffic that continued a two-year trend of growth
• AllModern used BloomReach to increase its site’s visibility, which resulted in an increase in traffic and revenue, positively impacting profits The company has established a strong brand as a result of its performance. It has several clients in the Fortune 500, including Staples, Nordstrom, Toys ‘R Us, Neiman Marcus, and Pottery Barn. It has also won a number of honors, including a gold medal in the “Innovative Services” category at the Edison Awards (2016) and recognition as one of the “Best Places to Work” in the Bay Area.

Channels

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

Customer Relationships

BloomReach’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 “Resource Library” that includes self-help tools such as articles, white papers, eBooks, case studies, infographics, webinars, and videos. The site also has an engineering blog.

That said, there is a personal assistance component in the form of phone and e-mail support.

Key Activities

BloomReach’s business model entails maintaining a robust cloud platform for its customers.

Key Partners

BloomReach maintains the following types of partnerships:

• Technology Partners – Firms that integrate their platforms with BloomReach’s solution to enhance their offerings at scale for their customers. Specific partners are IBM, Demandware, Radial, SAP Hybris, Ensighten, Tealium, Mad Mobile, MoovWeb, Signal, Netbiscuits, Skava, and Sööryen.
• Solution Partners – Firms certified in BloomReach technology that work with the company’s clients to help them improve their customer experience strategy. Specific partners include Rise Interactive, Pmdigital, Ovative, BlueSky, 360i, Guidance, Brooks Bell, iProspect, CrossView, and Three Ships. ### Key Resources

BloomReach’s main resource is its proprietary software platform.

It depends on its engineering employees to maintain and update the platform, its sales staff to promote and sell it, and its customer service staff to provide support.

As a startup it has relied heavily on funding from outside investors, raising $97 million from six investors as of January 2016.

Cost Structure

BloomReach has a cost-driven structure, aiming to minimize expenses through significant automation.

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

Revenue Streams

BloomReach has one revenue stream: the subscription fees it charges for monthly access to its software-as-a-service platform. Published sources suggest the fees start at $7,500.