Prime Response Group Inc is one of those rare examples of a UK software company that had venture capitalists hammering on its door. The moneymen arrived earlier this year in the form of General Atlantic Partners, the US venture backer of such European success stories as Baan NV, Uniface (now part of Compuware Corp) and Coda Group Plc (recently acquired by Baan), after the group had independently stumbled on Prime Response and its foray into marketing automation software.
They came looking for us, because this is a hot product in a very hot market, says chairman and chief technology officer James Carling, a veteran of the direct marketing industry. The UK has been at least 18 months ahead of the US in marketing automation. In the US they’re smart at data mining and data warehousing, but in our area, the UK has the lead. The company doesn’t have the market entirely to itself, however. US-based firm such as Rubric Inc, MarketFirst Software Inc, Exchange Applications Inc and Annuncio Software Inc, as well as another UK company, Recognition Systems Group Plc.
General Atlantic has invested $28.7m in Prime Response since October 1997, allowing the company to strengthen its product line and expand internationally, particularly in North America. It now has its main offices in Denver, Colorado as well as Brentford in West London. Established in 1987, Prime Response was originally a traditional marketing services bureau, offering merge, purge and de-duplication of UK list data and the management of clients’ customer databases. But then Carling joined in 1991 and became the architect of a new strategic direction. Software goes right to the heart of automating the marketing process, says Carling. And after three years of development, the company launched Prime Vantage, a marketing campaign management suite.
Prime Vantage helps large organizations plan marketing initiatives across multiple channels – direct mail, television, telemarketing, sales force automation and the Internet. The software promises immediate returns on investment from improved customer loyalty and a better focus on key clients, boasts Prime. Scottish Power was the first customer in 1995, but the blue chip list now includes Air Touch Cellular, British Airways, Credit Suisse and Honda. About 85% of the company’s revenues are generated outside of the UK, with offices added over the last few years in France, Ireland and Australia to complement the two Prime Response locations in the US. About 50 of the company’s 200 staff are in the US.
Revenues to December 1997 were $12m, and for 1998, Carling expects revenues in excess of $20m, with a tripling of software license income. Peter Boni, most recently head of Cayenne Software in the US, has just been appointed CEO. Prime Response is also planning a public debut, definitely on Nasdaq with probably a joint listing on Easdaq, says Carling, most likely before the end of this year.
