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Credit card-linked marketing rewards system edo Interactive has just announced plans to launch in Europe via Visa Europe. Using credit card transaction data, the marketing platform allows brick and mortar stores to offer targeted deals to customers. Visa Europe’s over 500 million card users and local marketplace knowledge could allow edo to quickly scale its offers to a big set of potential customers.
“It’s a big audience and a big opportunity,” said Ed Braswell, CEO and founder. “Visa gets to take advantage of a lot of [our] learnings. We think we can help them avoid some of the pitfalls [of marketing rewards].”
Entering new markets, especially international markets, can be capital intensive and fraught with missteps. “This is one of the key reasons we are working with Visa Europe,” said CTO Jeff Sippel. “For a startup to move into an international market it is very expensive. People on the ground, managers in each country really allow us to accelerate growth.”
Though edo is launching in the UK first, a country chosen for its similarities to the United States and because it is Visa Europe’s headquarters, the startup expects the European continent to present a few obstacles to its business model.
“One of the difficult things Americans don’t recognize are the nuances each of these markets have,” said Sippel. “Control of your data has been a much more prominent part of regulatory regimes in Europe.” edo’s consumer data-based business model will have to tread carefully as it launches in each new market. However, Visa Europe’s incumbent status should help edo clear some of those regulatory hurdles.
“The other nuance in particular in Europe that we have to understand is: ‘what is the ideal way to communicate with customers?’” said Sippel. “We have to align ourselves with what technologies they are using.”
In the United States edo relies on a number of marketing methods to connect consumers with local deals, but “email is still a really important channel for us, followed closely by mobile,” said Chris Campbell, VP of product and marketing. edo’s technology also allows partners to display offers natively within their apps. The company expects European consumers will appreciate email and app marketing methods, but again regulatory hurdles like stricter email marketing regulations may force the startup to adjust.
If companies like edo can bring enough brick and mortor clients on board, perfect deal targeting and improve the notification process they may be able to offer consumers a more convenient reward system than standalone apps like Groupon. Visa Europe’s 500 million members should be a step in the right direction.
edo Interactive will be rolled out to the UK as a pilot program in early 2015, before pushing out to the rest of Europe. As part of its growth and expansion edo has recently moved into new Chicago offices and plans to be expanding its technology team.
