{ 13 OCTOBER 2009 } In 2009, it isn’t a cool new gadget or some break through technology that won the TechCrunch 50 competition. The winner was U.S.-based RedBeacon, whose simple platform enables customers on the web to connect with local businesses like plumbers or gardeners. And this is no mere coincidence, rather a reflection of the ongoing localization of the web. Welcome to the loc@l age. For years, Internet companies have focused on the borderless potential of the Web and the budgets of large advertisers while neglecting the fact that people spend most of their money around the corner for shopping, personal services and dining out. And these local suppliers were convinced that their business would not be affected by the online world, not to mention that they might profit from this mighty marketing and CRM tool. More than anybody else, Google has already proven that both sides are wrong. Consequently, a new generation of Web companies are having success offering the typical SME around the corner tailor-made services to win and engage their customers.
Livebookings presents two additional ways to attract customers. First, through an online reservation tool tied to the restaurants’ website and complemented by a tool to manage the customer database and more. Second, through the Livebookings network, which consists of over 500 local, national and international websites with some 200 million potential diners, such as lastminute.com, Ticketmaster and Yell.com. These platforms enable restaurateurs to attract customers that would otherwise be difficult to reach. A larger base of potential customers, plus tools to fill the tables more efficiently (e.g., through promotions for difficult time slots), wins over more and more gastronomes and brings in revenue for each reservation. It is interesting to note that, despite the recession, the number of new Livebookings customers nearly doubled between the summers of 2008 and 2009 and strengthened the company’s position as the frontrunner in a market with an estimated size of €1 billion per year in Europe alone.
That being said, it remains a big challenge for reservation and recommendation services to reach the tens of thousands of business that might benefit from this new trend. But three factors will help this new breed of local services get over the hurdle. First, as more and more SMEs reap the benefits of online marketing, word spreads virally. Second, the fact that the Internet generation tends to ignore offline-companies is forcing businesses to expand beyond their websites. And third, for the first time the new services allow local entrepreneurs to stay close to current and potential customers by making use of targeted marketing campaigns. Recommendation and
In under three clicks, Aloqa also enables you to check which Qype recommended restaurants are near you and to book a table through Livebookings – a perfect interaction between three localized web services and, by the way, three Wellington portfolio companies! Their collaboration shows that we have just scratched the surface of possible applications for the localized Web – an area in which we can lay the foundation to build big global companies for around-the-corner services. |
