As ecommerce companies continue to encroach on brick-and-mortar stores, investment firm HGGC believes MyWebGrocer, a company that provides digital marketing and analytics services for brick-and-mortar grocers, can help traditional retailers push back against ecommerce giants like Amazon. Terms of the deal were not disclosed, but HGGC is rumored to have invested $25 million to $100 million in the Winooski, VT-based tech firm.
Tolman Geffs, co-president of The Jordan, Edmiston Group (JEGI), which helped facilitate the deal, discussed the transaction and CRM’s growing role in marketing with AdExchanger.
Adexchanger: What makes HGGC’s investment in MyWebGrocer important and how is it an example of what you call the “always-on CRM” trend?
TOLMAN GEFFS: This deal points in a direction where a lot more is going to be happening. You’ve got these overfunded point solutions that are competing for specs of revenue when there’s no way they’re going to earn their venture capital back. What’s emerging now is the integrated enterprise marketing stack that integrates software and marketing in a much deeper way.
What the world is moving towards is a marketing model that we’re calling always-on CRM. That’s when a company has a very good idea of who their best audience and customers are. They’re constantly messaging those groups and doing it in a way that allows them to measure the feedback and results in reality instead of testing panels.