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Accudata America: Direct Marketing DynamoBy: Editorial StaffOut-of-the-Ordinary Company; Out-of-the-Box Thinking |
“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.
in 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).
Reinvention 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’s Get 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.
Marketing 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.”
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.
Doesn’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.
Data 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