MILWAUKEE, Wis. – Social media and online marketing services will be key to the future growth of ARI Network Services, the company’s president and CEO said.
Olivier said the web platform business of ARI is between $16 million and $17 million annually, with web marketing services accounting for just $1 million. (The company was recently approved for trading on the Nasdaq exchange, he added.)
“I think that ratio should be one-to-one,” Olivier said. “If we have a $16-$17 million web platform business, we should also have $16-$17 million in digital marketing.”
To that end, Heather Blessington, the owner of Duo, is now ARI’s chief marketing officer. “Her first assignment is to re-engineer our digital media strategy,” Olivier said.
Olivier noted that the industries they serve – including powersports dealers and original equipment manufacturers – are seeing shopping patterns migrate online.
“I think the business will continue to transition to where digital marketing will play a much more important role in driving customers to websites,” he said.
Revenues for the first quarter of fiscal 2014, from Aug. 1 to Oct. 31, totaled $8.2 million, up from $5.9 million year-over-year. Olivier attributed increased revenue to the acquisition of 50 Below Sales and Marketing in November 2012.
Of the $8.2 million in revenue, recurring revenues were $7.7 million, or 94.8 percent, an increase from 82.8 percent for the first quarter of 2013. Olivier said recurring revenues are a priority for the company.
“The cost for retaining existing customers is much less than the cost to acquire new customers,” he said, noting that the customer acquisition cost ratio – the number of months it takes to recoup investment in a new customer – averages 23.