Interview with Aisle 19’s CEO
We spoke with Aisle 19’s CEO David Rutz and we would like to share those Q and A’s with our readership so that they can best judge for themselves the merits of their offerings. Take a look and see what you think…comments always welcome…
Milk Your Money) How long has Aisle19 been active?
David Rutz) Aisle19 beta tested with about 10,000 members for one year and launched to public July 1, 2008. We now have over 500,000 members.
MYM) As stated before, Aisle19 is a free service. Can you explain how it stays in business?
DR) We have a tremendous and lucrative business model. Aisle19 receives a marketing commission from each store (ie, Wal-Mart, Target, etc.) on the purchases made from Aisle19 members. We then take a percentage of that and pass it on to the customer as “Cash Back”. The remainder is used to cover general sales and administrative expenses, or retained as profit. Our forecasts show us reaching profitability in 2009.
MYM) It seems as though most people are put off by the “invite only” aspect…an plans to open it up further? Why this model?
DR) We chose the invitation model for the same reason that Google chose to use it when launching their gmail solution. We believe that Aisle19 is best understood when referred and promoted by a satisfied customer. The intentional act of inviting a friend to use Aisle19 opens more dialog between the satisfied user and the new member. This dialog may be as simple as a positive word of mouth mention, but it may also include saving’s testimonials, efficiencies gained, simplicity of use, etc. In addition to the prior mentioned benefits, we believe that a person is potentially more likely to share information that is exclusive and by invite only. The feeling a satisfied Aisle19 member might feel is, “If I don’t let my friend in on this, they cannot get it.” “Who do I know that can use this?”. We think our growth rate thus far indicates that our strategy is working. At some point, once we have reached critical mass, the added benefits of invite-based marketing may dissipate. It is at that point, that we would further consider membership enrollment without invitation.
MYM) Can you explain a little about how the savings portal works? For example, how does a commercial entity know that you have purchased something through Aisle19 when not online?
DR) The only purchases a person receives the savings, coupons, and cash back from are those purchased online. We have a proprietary system that tracks all stores our members visit, along with purchases they make. The stores as well as Aisle19 track this same information. A customer starts their shopping experience at their personalized Aisle19 portal. They can view the hundreds of deals, sales, and coupons available. Then they simply click on the store they want to shop at. They are forwarded directly to the chosen store’s (ie, Wal-Mart) website where they receive the same options and prices as a regular online shopper would. However, because they came from Aisle19, they may pay less and they will get cash back. Our portal also allows for you to set up reminders for birthdays, holidays, etc. You can search through all the sales and deals using keyword search, and you can even get instant cash back from some of the stores. Aisle19 sends out the “cash back” checks within 30 days of the store paying us. We have a $15 minimum before a check is released and we charge a $1.50 processing/mail fee for each check mailed. We do, however, send the first check regardless of the amount even if less than $15 so that a member can see the system is working. We have a FAQ page that I encourage all members to read so they can see how simple and accurate our system is. They can find that at the bottom of their saving’s portal. There is no fee to be a member, nor is there a fee to use the portal. Our money comes from the stores people shop at.
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Comments
Hi,
It was nice to go through Aisle 19’s successful marketing strategy.
A good buisiness model combined with excellent after sales
is the way to go.
definitely an informative interview; forwarding people to other websites with coupons is a great idea…
How profitable is this?
Is repaid the invested into it energy?
Its good to know that stores and Aisle19 track the same information as well.
I have read that according to the most recent statistics the unemployment rate is over 12 %. It looks like that the mortgage market and car loan industry are on their ways to recover. Mortgage modifications are high in demand as people face difficult situation financially in every corner of the country.
Great interview… In a way I learned a lot of things here.