The Knot (KNOT.OB) on customer acquisition costs plus the online dating market (quotes from the conf call)

| About: XO Group (XOXO)

David Liu, CEO of the The Knot, discusses his company's marketing strategy and the rationale for its recent purchase of GreatBoyfriends LLC, an online dating company that runs and Only three analysts were on the call:

We have five books in print. We syndicate our content in 70 newspapers nationwide. Our TV series… now reaches over 50 million U.S. homes… also available on Comcast... Augmenting our website's reach are our national and local magazines.

We do not spend money advertising our brand or website. .. our target market and membership replenishes itself each year with a fresh audience without advertising or customer acquisition costs. With our 1 million new members added each year, we have been building a significant database.

The relationship we have cultivated with our members, along with the data we collect about them, offers us a golden opportunity to extend our ability to service the demographic group beyond the wedding event...

… we acquired the assets of GreatBoyfriends… referral based e-dating services that gives singles access to pre-approved potential... Over the past few years, we witnessed brides on our message boards become matchmakers for their single friends. They were essentially referring their single friends to each other. We felt a referral-based on-line dating service where the referrals were coming from engaged women would be a refreshing and innovative take on an on-line dating service.

(Quotes from the CCBN StreetEvents transcript.)

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