RedBeacon Taps AmazonLocal to Promote Usage

Here’s a novel strategy, a bit like “a riddle wrapped in a mystery inside an enigma”: startup RedBeacon is using AmazonLocal to generate awareness and usage.

In the context of the home repair and maintenance services that RedBeacon offers it makes a great deal of sense. What do you think about this as a marketing/awareness strategy?

Other posts about RedBeacon: 

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7 Responses to “RedBeacon Taps AmazonLocal to Promote Usage”

  1. Andrew Shotland says at

    I like it as a marketing tactic to incentivize trial.  That said one of the issues I have with giving discounts on home services is that unless there’s a standardized menu of offerings, it’s hard to tell if you really are getting a discount.  Not sure if that’s the case with Red Beacon (it may be), but I always find it funny when a painter offers 10% off a painting job when all quotes are usually custom.  It’s not like getting 10% off a Big Mac where there’s total price transparency.

  2. Greg Sterling says at

    Well . . . .RedBeacon is giving you $70 bucks on a $100 job so the value is fairly tangible. 

  3. Daniel Hollerung says at

    I think the approach can be successful if they offer something more to return customers. With local deals, loyalty is the name of the game. Without repeat business, these small businesses are subject to the change in trends. What’s hot today, might not be tomorrow.

  4. Andrew Shotland says at

    I guess I could have read the offer more carefully, but the question is what the real value of the job they are saying they are discounting?  $100?  $30? or somewhere in between?

  5. Jonathan Swanson says at

    $70 consumer acquisition cost is really high. SEO or even SEM are much cheaper channels, though this kind of thing does carry some extra brand recognition / chatter.

  6. Jonathan Swanson says at

    Though, you do have to factor in coupon usage. But even if only 50% are used that’s a $40 acquisition cost ($30 + $30 – $100).

  7. Service says at

    Jonathan I was going to say the same thing. $70 to acquire new customers is a super high number. At that rate they may as well be advertising on TV and getting much broader brand exposure.

    In Australia we’ve been monitoring what local service based deals have been coming through, and have noticed that in fact there have been very few indeed. Mainly for the reasons that Andrew points out.

  8. HomeDepot Buys RedBeacon says at

    […] The thing that HomeDepot brings to the table, beyond additional money, is national visibility and distribution. RedBeacon has built a worthy platform but has failed to gain much consumer traction. It recently experimented with AmazonLocal to acquire new consumer-users. […]

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