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“I’m a business starter, not a business manager,” concedes Vilnis Ezerins, the founder and owner of AccuData America, as he describes his business skill set. He might well have added that his ability to hire and promote the right managers has been the catalyst that is driving his company’s growth. In 2000, Cape Coral-based, AccuData America pushed past $30 million in revenue and 200 employees. Even Vil would probably not have predicted such a steep growth trajectory, when he sat with just 3 employees and $500,000 in sales back in the early 1990s.style="mso-spacerun: yes"> Today, AccuData America is the largest independent seller of marketing data and database analysis services in the U.S.—with 20,000 clients throughout the country. AccuData successfully positions itself as a comprehensive marketing solutions company. It is a relative giant in a segment that has traditionally been highly fragmented among small players that saw themselves simply as sellers of mailing lists. Named as one of Inc. Magazine’s ‘Inc. 500’ list of fastest growing small companies for the past four years, AccuData envisions annual revenues of $50 million within two years. A Modest Beginningin 1990 Vil Ezerins had moved down from Massachusetts in 1990, after having run a successful advertising and marketing firm where he had developed highly respected database and direct marketing expertise. Back in the 1980s, using the venerable database software tool, dBase II and the CP/M operating system, he could sort 10,000 business records overnight on a microcomputer. That was pretty hot stuff at the time. Almost everyone else was using expensive mainframes and minicomputers to do the work When he opened the doors of AccuData America in Cape Coral in 1990, he leveraged his technical expertise to concentrate on the direct marketing business. He realized that comprehensive direct marketing and database expertise was in short supply. Vil was able to provide it both directly to business clients and to resellers of business data. But this didn’t translate into overnight success. When Mary Jo Yafchak walked through the doors in 1993 AccuData America was growing, but slowly. Vil was still doing his own data processing and accounting. She was employee #9 as the company was finally approached $1 million in sales. Mary Jo was hired as a sales rep, after a successful sales management career in the medical supplies industry. She saw an opportunity to make a difference at a young venture that was still struggling to boost its growth rate. Vil quickly recognized her ability to drive more revenue to the company. More importantly, he recognized her leadership potential.style="mso-spacerun: yes"> Vil gradually shifted more responsibility her way. Within a year, he knew that Mary Jo was the kind of leader he needed to take AccuData to its ultimate potential. He named her President in 1994. In December 2000 she became Chief Executive Officer of both Accudata America and its spin off, Alvion Technologies (See Sidebar). ContinuousReinvention Key to High Growth What Mary Jo and her team have accomplished since the early 90s is a continuous reshaping of the organization in order to benefit both clients and employees. What began as a relatively simple business--providing mailing lists to business clients--has become a highly sophisticated enterprise that fully leverages both sophisticated database and Internet technology. It also deploys best practices in customer relationship management. Needless to say, this didn’t happen overnight. Once she took the helm, Mary Jo began to focus on improving customer service in order to retain clients and to increase their lifetime value to the company. At the same time, she began formalized training of the employees who were expected to grow sales and keep clients happy. As she puts it, her objective was to “give them the tools and motivation to succeed.” Paul Theriot, promoted to President of AccuData in December 2000, joined the company shortly after Mary Jo. He, too, quickly became a sales standout. Commenting on fundamental elements of their success from his earliest days, Paul notes about clients, “If you build a strong relationship and help them build their build their business, it is hard to lose the account.” As this client-centric perspective became the norm—form-fitting the data to the clients’ needs rather than force-fitting off-the-shelf products—a hockey stick curve began to take shape. The growth curve is nothing short of astonishing: $2 million for 1994, $6 million in 1996, $16 million in 1998, and $30 million in 2000. According to Mary Jo, “I still don’t see a limit to our growth.” AccuData’s success stems from the fact that they live rather than parrot best practices. This is especially true in terms of sales & marketing, technology, and human resources. For example, Paul stresses that everyone lives the one-to-one marketing mantra by putting themselves in the minds of their prospects. And, on the human resources front, Mary Jo adds that the result of looking after their employees is that “People love coming to work.” The energy and enthusiasm that abound among employees interviewed certainly support her remark. As for technology, their interactive database capabilities have positioned them effectively on the Net. It has also spawned a new company, Alvion Technologies, to sell that capability to other large direct marketing users and resellers. More than enthusiasm and energy are at work. AccuData has become very sophisticated in selecting the right people for the right jobs. The results speak for themselves, particularly in the sales arena where top performers have formed the infrastructure for 21st century growth. The best sales people over the years have embraced the industries into which they sold and have become invaluable to their clients—and to AccuData as internal experts on vertical markets. Moreover, out of the box thinking that generates customer solutions seems to be more the norm than the exception at AccuData. Let’sGet Vertical! Sales Structure Reflects Client Orientation AccuData has evolved from its one department/three employee beginning to a sophisticated five division structure that revolves around the size and type of clients being handled--from large resellers to small end-user companies. In each case the goal is the same: to offer optimum customer service based on each company’s unique requirements. It’s worth noting that each division and group is a separate profit center with considerable latitude in doing what it takes (including spending more money) to accomplish ambitious growth objectives. Two recent initiatives that target particular industry segments merit a closer look. Building CompleteMarketing Solutions: The Strategic Alliance Division "Let's face it, when agencies talk about the creative genius of their campaigns, they're not talking about the data selection process," says AccuData's National Director of Strategic Alliances Sandy Wilson. "That's where AccuData's brilliance comes in. We honestly thrive on coming up with the best data solutions for direct marketing campaigns.” Since most advertising agencies don’t count direct marketing and sophisticated list selection among their core competencies, AccuData saw an opportunity to fill the void. Their Strategic Alliance Division, formed in March 2000, offers soup to nuts multi-option turnkey programs to their agency clients. These programs are created in such a way that the ad agency can, in turn, present the complete marketing package to their own clients. This focused and comprehensive approach reflects the transformation of AccuData into what Marketing Director, Lara Gold, describes as “a marketing strategies company.” Embracing Target Markets: The Premier Division Strategy Groups What began as individual sales reps’ efforts to immerse themselves in the businesses of their clients, has emerged as a formal sales and marketing strategy. Because getting into the minds of their prospects often meant understanding more that the client company—but often an entire industry--AccuData began moving toward a vertical market strategy more than two years ago. In January 2000, the first formal Strategy Group was formed to target the Broadband industry which lives in a complex universe all its own. The goal with this industry segment, as with all others, is to live in the shoes of the industry marketers with whom the AccuData account folks work. “We’re going to make darned sure that we’re experts,” stressed Marketing Director Gold. The Broadband Data Group delivered results within five months that tripled expectations. Their success has spawned new groups in energy, travel/tourism, and retail. As many as fifteen vertical market groups are anticipated over the next several years. Conclusion: GrowthDoesn’t Just Happen Great ideas don’t always spark the creation of a great company. For AccuData America, success required the building of a talented, driven management team that has made real the great ideas that had first launched the company. That team, in turn, created a corporate culture that rewards performance, out of the box thinking, and risk-taking. The net result is a high growth company that values both its clients--and the employees who create and deliver the marketing solutions that bind those clients to the company. Sidebar: DrivingData to the Internet—AccuData and Alvion Technologies In the early 90s,Vil Ezerins anticipated the need to enable customers around the country to make their own list selections without human intervention. In fact, he began working on a software solution in 1994 long before the Internet had become the standard for business connectivity. Using the Microsoft product, FoxPro, he built a system that permitted clients to dial a private connection, make their request, and receive a count of names and demographics within two hours—a big improvement over the overnight 10,000 record sort achieved in the 1980s. The next two generations of software have moved the application to the Internet and finally enabled clients to receive their lists in digital form with near real-time performance. Because the required investment exceeded what AccuData could cost justify for itself, Vil spun off a new company, Alvion Technologies. It’s goal is to provide a turnkey eCommerce platform for other users and resellers of list data. Alvion’s current product, 8.5pt'>ListKey 3.0,style='mso-bidi-font-size:8.5pt'> brings the full functionality of web basedquerying and order processing to its customers. It’s upcoming iteration, 4.0 will offer even more functionality. Alvion designed itssystem to use numerous smaller processors and to load balance simultaneous requests among them. This design allows for "real time" responses to users, and has the added advantage of easy scalability. The ListKey system is now handling 2000 queries/day—that’s a ten-fold increase from January 2000. What is the growthpotential of Alvion? Well, it’s worth noting that Vil has recently named Mary Jo as CEO of both Alvion Technologies and Accudata America. So stay tuned. Sidebar:FunWork.com Heaven knows,recruiting great people may be the greatest challenge of doing business in Southwest Florida. It can be even more difficult for a rapidly growing company like Accudata. Its website, FunWork.com does a wonderful job of capturing the flavor of the company and displaying the quality and diversity of its employees. After checking out FunWork.com, a prospective applicant will have a very clear idea of whether he or she would thrive in the unique AccuData environment. |