Businessmodel of Red Ventures

Customer Segments

Red Ventures has a niche market business model, with a specialized customer segment. The company targets its offerings at service-oriented brands, with a special focus on those providing home insurance, consumer, business, automotive, remodeling, financial, and educational services.

Value Proposition

Red Ventures offers three primary value propositions: convenience, accessibility, and brand/status.

The company offers convenience by making operations simpler for its clients. It provides end-to-end support for the customer lifecycle, all the way from demand generation to sale closure. It accomplishes this task through the use of proprietary technologies and advanced web analytics.

The company creates accessibility by providing a wide variety of options. While many similar competitors specialize in telephone sales, online marketing, or building technology infrastructure, it maintains expertise in all of those areas. It has also diversified its services by acquiring numerous firms, including Soda (a family of online brands) and Imagitas (a marketing services organization).

The company has established a strong brand due to its success. It bills itself as the largest technology-enabled platform in the U.S. for growing sales and marketing businesses. It has over 3,000 employees and has grown at an average of 30% year-over-year. It has a number of prominent clients, including DirecTV, Premier Growth Solutions, and ADT Security Services. Lastly, it has won many honors, including recognition as one of the top 10 “Best Places to Work in Charlotte“ for eight years in a row and a ranking as one of the top 20 fastest-growing companies in the U.S. on the Inc. 500 list.

Channels

Red Ventures’ main channel is its direct sales team. The company promotes its offering through its social media pages and participation in conferences.

Customer Relationships

Red Ventures’ customer relationship is primarily of a personal assistance nature. The company works with clients to ensure that its solutions identify the most relevant and valuable customers.

Key Activities

Red Ventures’ business model entails designing and developing its services for its clients.

Key Partners

Red Ventures does not maintain any formal partnership programs.

Key Resources

Red Ventures’ main resources are its human resources, who include the sales agents that recruit new consumers on behalf of clients.  Its employee base features individuals with expertise in paid and natural search, sales scripting, cross-selling, and copywriting. It also depends on advanced technologies for data analysis and call-routing.

Red Ventures maintains an important physical resource in the form of a 300,000 square foot structure on its campus that features a sales center, a learning and development center, and a six-story office tower.

Lastly, as a startup it has relied heavily on funding from outside parties, raising $250 million from three investors as of January 2015.

Cost Structure

Red Ventures has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent service improvements.

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

Revenue Streams

Red Ventures has one revenue stream: fees it charges for access to its range of services.