Jonathan Dyke is the Nashville-based co-founder and executive chairman of Spring Marketplace Inc., a Chicago-based digital marketing company whose Spring Rewards subscriber shopping service launched in late 2013 (it began in Nashville in May) and is preparing to establish a presence in 10 more markets in 2015.
Dyke, a former chief operating office Edo Interactive COO, oversees the company’s Southeast region office, located at the Woodmont Center at Harding Pike and Woodmont Boulevard. He cofounded Spring with Bruce Mitchell, who runs the Chicago office.
Post Managing Editor William Williams recently chatted briefly with Dyke.
You already have 60 Nashville locations and what you say is consumer spending in the market of more than $1 million. What are your target numbers in, say, five years?
[We expect there will be] over 300 high-quality establishments in the Nashville area that will see value in joining the Spring Network within the next three years. Consumer spending across the Spring Network in Nashville will be over $50 million, which will be the largest digital consumer audience in Nashville. Access to this size of audience, with this level of spending, clearly represents a significant opportunity for local businesses to acquire new customers and grow their revenue.
You note that revenue at your clients’ companies is expected to increase about 20 percent annually. Thoughts?
For clients using the Spring marketing platform [since the company launched last November], we typically see 20 percent revenue growth in their business after six months. Spring designs and launches a "rewards program" for the business that encourages their customers to come back more often — for example, "spend $200 and get $15 back.” This increase in revenue is seen as an increase in visits and spend per visit, which increases the overall average ticket for our client.
For example, when a Spring client begins working with us, we benchmark their average ticket. Let’s say it is $20. Because we track every transaction from their "member" visits, we can show "lift" because their customers who are members are coming back more often and they spend more each visit. In this case, the member average ticket grows to $25, which is over 20 percent revenue growth.
How would you explain the "refer-a-friend" feature?
"Refer-a-friend" is a very powerful way for Spring clients to grow their business. Members of a client's rewards program can send an email or post on Facebook a "gift" ($10 for a visit) to their friends who are not members of that program. All the friend needs to do is enroll in the program and visit the business. Then they receive $10 in their credit/debit card account. The Spring client gets a new "member" from a high-value source that is a current customer — their friend. This feature is also a good way for businesses to use their social networks they have been building for years at no cost to the business — basically advertising on Facebook for free.
How did your work at Edo Interactive prepare you for this job?
Edo (stylized as edo) is a great company creating substantial value for large financial institutions and large merchants. At Edo, we were very early in connecting offers to consumers via a credit/debit cards. We all see opportunity to transform marketing by proving full attribution to advertisers and providing true ROI of their marketing spend.
Spring got a nice write-up in Crain’s Chicago Business (read here) this past January. How has that helped your company's visibility?
Good press always helps get the word out about how we create value for small and mid-size businesses. With Spring, our clients have the opportunity to grow their top line while creating a strategic marketing asset in the form of a customer database that provides powerful insights into their business. For example, they can see their top spenders as well as lapsed customers who need an incentive to come back and visit. The Spring team also runs your marketing for you so you can focus on running your business.
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