PeerIndex is a multi-award winning start-up which helps companies extract intelligence to make faster, more cost-effective decisions by understanding the behaviour of hundreds of millions of consumers on social networks.
Forget likes and followers, with PeerIndex you can understand who & what influences your audience.
With more than 2 billion people active on social media, marketers have unparalleled access to consumers. But what do those consumers care about? Who influences whom and on what topics? How do you build a two-way relationship with those individuals?
We believe that for the first time in history, companies can access and understand their customers directly & answer those questions in real-time.
By tracking and analysing the people and messages on social networks such as Twitter, our product, PiQ, gives marketers real insight into consumer and celebrity influence.
Marketers can improve understanding of their target audience and make faster, better, more cost-efficient decisions on marketing, pricing, product, partnership and customer service.
PiQ is a software-as-a-service (SAAS) platform for marketers which helps them turn data from social networks into real business insight to make better marketing decisions. Examples include:
• Creating and tracking the right audience for your business
• Intelligently segment your audience to get the right message to the right people
• Help you share inspiring content relevant to your audiences
• Identifying the right influencers who could impact your business
We aren't the only ones to recognise this. Leading strategy consultancy, McKinsey & Co says; “Social-intelligence literacy will become a critical asset for C-level executives and board members seeking the best possible basis for their decisions”.
To borrow a famous marketing expression, half of social media followers are unlikely to ever be customers. Unfortunately brands still don’t know which half.
The first generation of social media tools is broken. Countless marketers are dissatisfied with their purchases of listening tools - we know this because our customers and prospects have told us so.
PiQ from PeerIndex exists to help businesses identify what their target customers actually discuss on social media. Our proprietary technology allows our clients to identify and understand their actual & likely customers, turning social media chatter into social intelligence.
Focusing less on who’s following or mentioning your brand and focusing more on what the people who actually will buy your brand care about.
Our research and data has shown that a lot of brands are caught in a cycle of competitions and discounts rather than building valuable content and connections with their customers on social platforms.
We have built PiQ from PeerIndex to become the solution and the future of Social Media.
Substantial accomplishments to date
We won the Grand Prix at the Europa's technology awards three years ago; and launched a consumer service to give consumers insights into their social influence.
PeerIndex has now leveraged our technology platform and database of more than 200m people to help marketers do better marketing.
Since launching our new platform earlier in 2014 we've inked deals with the likes of Unilever, Coral and the Financial Times; & agencies in the US, UK and Canada.
Our unaudited management accounts show that our revenues grew 37% from Q1 to Q2 and our engagement with our enterprise customers is growing steadily.
We've also signed deals with well known platforms that service brands with CRM, creative and social media technology.
These deals should enable our data to be in the hands of potential customers and allow us to learn more about which customer segments use our proposition and need our services most.
There are three strands of potential revenue:
1. Data integration
Some of the largest providers of enterprise marketing software are beginning the process of integrating our data through their platforms.
With these relationships we would have differing models for generating revenue, in some partnerships we could be embedded into the platform and make a small fee on every interaction.
At scale we expect to generate significant revenues through this model. We are currently finalising a deal with the market leader in enterprise CRM and are working closely with the largest provider of enterprise social tools.
The second form of data integration is through applications in app store like marketplaces. We’re in the process of building these applications and have received a positive reaction from our early stage partners.
2. Enterprise sales
Our first model of revenue generation has been enabling brands and agencies to review custom audiences. This form of software as a service (SAAS) generates a regular recurring revenue and this has grown significantly since we launched our SAAS product at the end of the last year.
We've signed annual contracts with several well known brands and have an extensive pipeline of prospects around the world to ensure this continues to grow.
We generate more than 200 sales leads (sign-ups) per week through our 'free' product , which is a heavily cut-down version of PiQ designed to allow customers to test our offering.
Use of proceeds
There are three strands of uses for the proceeds of our fundraising:
Our product roadmap includes extending our data coverage to include Instagram, Facebook and Pinterest. It also includes enhancing our ability to license our capabilities to the major marketing software providers.
Sales and marketing (25%)
This will support our sales and account teams to handle demand for our products.
Operating expenditures (25%)
Covering our various working capital needs.
Enterprises looking for competitive advantage by using social intelligence about their customers to guide decisions across marketing, pricing, product, partnership and customer service.
Our target is the larger enterprise with $100m in revenues or more and the agencies, suppliers and software firms who support them.
For many large enterprises, their customers have 'gone social' across platforms like Twitter and Facebook allowing their enterprises to track and analyse their customer's digital behaviour.
These enterprises need tools that make it easy and accessible to make sense of this social data and turn it into intelligence.
According to McKinsey & Co social intelligence will emerge as a strong complement to traditional intelligence and "social-intelligence literacy will become a critical asset for C-level executives and board members seeking the best possible basis for their decisions." (McKinsey, Nov 2012).
Characteristics of target market
The Chief Marketing Officer will invest more in IT than the CIO by 2017 according to Gartner group. In our top market segment (large enterprises), Gartner has reported the CMO budget will top $110m per annum, of which 25% will be spent on digital.
We divide the market into four key segments:
● Large multinational firms: Multiple products, multiple markets. n=2000
● Media and large national firms: Single market, n=10,000 (US, UK)
● Agencies: Media and PR agencies, n=10,000 (US, UK & Pan-European)
● Software partners: n=1,000 (global)
Across these categories our customers are making increasingly large investments in social intelligence products, to complement the investments they have made in social publishing.
We see some segments, particularly larger customers, starting to standardise their enterprise on large software platforms such as Salesforce, Oracle and Hootsuite. PeerIndex would distribute via these platforms.
PeerIndex plans to go to market through three key approaches:
1. Partnerships with the major enterprise software platforms.
We see our target market standardising their social activities on a small set of 8-10 workflow vendors. PeerIndex wants to secure distribution partnerships with these platforms to ensure our social intelligence capabilities are widely available. We are already building relationships with two of the biggest platforms.
Many of the others are already in our partnership pipeline.
Each partnership would lead to PeerIndex being distributed across thousands (and perhaps even hundreds of thousands) of potential customers, in effect our total addressable market. Each partnership would be typically supported by press releases, webinars and other co-marketing material.
2. Relationships with consultancies and agencies.
Many of our target customers still rely on digital agencies or IT consultancies to support their social intelligence efforts. A lower priority work stream is to work with these agencies and ensure they can help clients realise value from our social intelligence.
We have already worked with major ad agencies like Ogilvy & Mather, JWT and M&C Saatchi; as well as major consultancies.
We are also building a significant sales pipeline with major brands in the UK and US. We will all sell to their customers directly.
The social intelligence market is growing rapidly. PeerIndex is part of a 3rd generation of social intelligence products which have built on the lessons of earlier products. There are several companies growing rapidly in this market area that provide validation of customer demand but which we do not consider direct competitors.
Wisconsin-based Networked Insights has raised a total of $38m from, amongst others, Goldman Sachs and Kegonsa Capital Partners. We consider that Networked Insights differs from PeerIndex in that it is not a SAAS business and relies on professional services.
There are several 1st generation social analytics products (called ‘social media monitoring’ or ‘social listening’). The biggest of these Radian 6 was acquired by Salesforce.com for $326m in 2011.
The ‘social media monitoring’ market is a growing one featuring firms like Brandwatch, Sysomos, Adobe, Meltwater and Synthesio. We do not aim to directly compete with these companies and in some cases are already partnering them.
We believe we have a substantial technology headstart against future competitors. Additionally, we are successfully securing distribution with key platforms used by marketers.