10 June 2009

PetLynx Utility - First 151 days of 2009

The first 151 days of 2009 show interesting trends as marketing resources shift from automating communities to programs that add registrations and subscribers to the PetLynx utility in Canada. The relationship between services that are provided as freemiums or point of market entry 'POMEs' and both registrations or subscriptions is a unique aspect of the PetLynx business model.

Figure 1.0 shows the growth in recovery episodes each month across Canada and also shows the relationship between recovery episodes and animals newly registered on the system. In the Canadian market, the 'freemium' lost and found [recovery] service is provided to pet families at no charge by Procter & Gamble Total Petcare for the Iams brand . The number of recovery episodes has doubled in the first five months of 2009. As the observer can also see, in May 2009 just over 2,000 of the animals using the recovery service were new registrations and the balance were those already registered on the system.


Figure 2.0 shows the client activity that is supported by the PetLynx utility. In May of 2009 the system handled just over 25,000 automated transactions from just under 10,000 client sites.


The PetLynx utility has a similar model to Interac which facilitates the distributed cash dispensing services of major banks as well as their IDP debit business. While Interac must grow its installed base of automated tellers and debit machines [the client devices] to achieve an increase in business, PetLynx client services are delivered wherever internet service can be established in the wired and wireless world using simple browser technology. That is why doubling the transaction base has a minimal effect on the direct cost of providing service to twice as many sites or twice as many transactions.

Figure 3.0 shows the growth of the new, and still very small, online activities of the PetLynx utility since launching the Petsecure POME program. The online subscription curve is modest but moving upward. Industry sources who are deeply involved in such programs suggest that we should measure the relationship after a lag of six months to a year.


What is clear from this graph is that there is a positive and proportionate effect in this important new area. The new Iams POME program which is to be introduced by Procter & Gamble later in 2009 is three times larger and will bear watching since the distribution of the PetLynx recovery service is in the kitten and puppy kits provided to new pet families.

Part of the excitement of these programs for the marketing team is navigating this new territory and discovering new and compelling ways to present the PetLynx recovery service. None of this would be possible if we had not achieved a sizeable base of automated communities in Canada during 2006, 2007 and 2008. With 18% of the Canadian pet population now illuminated we expect continued organic growth for our recovery services in Canada.