Own The Entire Space – FanXchange CEO on B2C Customer Acquisition (Part II)
Toronto: During Techweek Toronto Growth Summit 2017, FanXchange CEO & Founder Brandon Koffler, shared his views on the challenges of acquiring customers in the B2C marketplaces and what future opportunities lie in the space. In Part 2 of this 3 part series, Koffler talks about how small B2C companies can compete with large players in the marketplace.
“Shifting from pure-play B2C to B2B2C was our way of differentiating ourselves from major B2C giants” – Brandon Koffler, CEO & Founder, FanXchange
After talking about how B2C companies are focusing on selling more than one product/service (read Part I), Brandon was asked, “With Google, Amazon and Facebook growing in size, how do you survive in the world with them?”
“When we started, none of the big players were really focused on the Canadian landscape. Our original vision was to educate Canadian consumers about a safe and secure marketplace where they can buy and sell tickets to live events.”
However, once StubHub was acquired by eBay, Koffler said they realized FanXchange was competing with big war chests. To differentiate themselves, they moved away from a pure-play B2C model to a more B2B2C approach, partnering with loyalty programs and travel providers.
FanXchange’s first B2B client was a major loyalty reward program provider that catered to large financial institutions, including the Toronto-Dominion Bank. The arrangement allowed loyalty program users to exchange their loyalty currency for live event tickets.
“We saw some really meaningful conversion rates here. And we had zero cost per acquisition as they were doing all of the marketing to consumers.” FanXchange received a share in the revenue from the loyalty program provider.
Koffler said they recognized the scalability of the model when their service was made available to about 50,000 users of the Toronto-Dominion Bank’s employee recognition program. This was their cue to look for similar loyalty program providers in the US. “We rebuilt our products so that they were focused on not just creating ancillary revenue opportunities for our partners, but was also a value-added service for their users.”
“Shifting from purely B2C to B2B2C,” concluded Koffler, “was our way of differentiating ourselves from major B2C giants. There was a ton of engagement as we helped every program operator sell live event tickets to all of their users.”
In the next part of this series, we’ll share Koffler’s advice to budding entrepreneurs and young start-ups.
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