Here’s proof that you need a good bit of technology behind you if you want to keep your retailers using Local Search. The following chart from Borrell Associates shows the churn rate of retailers on systems with and without good software.
Now, even with good software I think the churn rate is too high but there are other things you can do to keep your retailers using Local Search.
First let’s realize that we are reinventing local advertising as we move dollars from Yellow Pages and newspapers to the Internet and it’s not going to be real easy even if it is the right thing to do.
Let’s say you have 1,000 retailers that you want to enable to use Local Search effectively. According to this chart about 25% of them will do it for awhile and then quit.
Here’s how we think you can do better than that.
Make sure you have a good technology partner that can make the process easy for the retailer and scalable so you can have all 1,000 of your retailers online all the time with an effective program.
Then, make sure the Local Search purchase is incorporated with your online advertising portal so it’s easy for the retailer to incorporate this buy into his normal routine. The Internet program can’t be an orphan.
Do a pilot program to set the expectations for your retailers, no wild claims necessary as Local Search really works.
Make sure you control the landing page so you control the look, feel and content. And, most importantly, track and report to the retailer what happens on the landing page which is even more important than what happens on Google.
Then make your Local Search Program 100% co-op. That will keep the retailers interested and save you money in the long run as you move advertising dollars from the less effective newspaper to the much more effective Internet.
And, make sure that the goal isn’t to just get clicks but to get sales.