ReachLocal Powers Local Commerce With New SaaS Products and New Consumer Service

  ReachLocal Powers Local Commerce With New SaaS Products and New Consumer
  Service

    New Products Provide End-to-End Customer Acquisition System From Lead
             Generation and Lead Conversion to Booking and Buying

Business Wire

WOODLAND HILLS, Calif. -- February 26, 2013

ReachLocal, Inc. (NASDAQ:RLOC), a leader in powering local online marketing
for SMBs, announced today that it will be launching three new product suites
in 2013. Together, these new initiatives will expand ReachLocal’s focus on
offering online marketing and lead generation to now bringing the entire local
commerce process online for both merchants and consumers.

As a pioneer in local online marketing, ReachLocal has helped SMBs acquire
leads online for nearly a decade. In fact, the company has delivered more than
100 million leads to clients through its lead generation products:
ReachSearch, ReachDisplay, ReachCast and ReachRetargeting. Its success in
helping local businesses market themselves online has fueled the company’s
expansion to 12 countries on five continents, with a global distribution
network that includes more than 1,000 sales and service professionals, along
with select third-party agencies and resellers. Currently, the company has
22,000 customers across five core verticals: healthcare, automotive, home
services, professional services and specialty services.

“We founded ReachLocal to solve the local marketing problem for SMBs by
developing innovative solutions to help them generate leads from local
consumers,” said CEO Zorik Gordon. “Now, we’re innovating again by helping
local businesses convert more leads and enable their customers to digitally
book and buy from them. This is really the next evolution of solving the
‘local’ problem, and we’re excited to yet again be leading the way.”

ReachLocal is leveraging its successful model to offer new marketing and
transaction Software-as-a-Service (SaaS) solutions that help local merchants
close more business. The company is also announcing the beta release of its
new consumer service, ClubLocal, which allows consumers to instantly book and
buy home services online.

New Marketing Solutions: ReachSite, ReachConvert

“As a leader in lead generation for local businesses, we have seen the
difficulty many merchants have converting website visitors into leads and then
converting those leads into customers,” said Kris Barton, chief product
officer. “In fact, roughly three-out-of-four Internet leads fall through the
cracks because businesses don’t have a smart website that captures contacts or
simple tools for lead conversion.”

To solve this problem, the company is announcing two new lead conversion
products within its marketing suite. The first is ReachSite, a smart website
product that helps businesses turn more of their website visitors into leads.
This product includes basic search engine optimization, dynamic content
optimization and lead capture technology, which work together to drive more
contacts, automatically build the business’s marketing list and track the
effectiveness of all of the business’s marketing tactics. ReachSite will
release as a beta in North America in the second quarter and launch the second
half of 2013.

The second offering, ReachConvert, is a SaaS product that helps businesses
manage their leads and convert more of them into customers. ReachConvert
notifies the business of every new lead in real time via text message, email
or the ReachLocal mobile app, so that they can follow up within minutes.
ReachConvert helps the business stay top of mind during the customer
decision-making process by automatically sending new prospects targeted emails
and sending alerts to the business’s staff reminding them to follow up on each
lead. During the initial beta test, clients using this product converted 30
percent^1 more of their leads into customers. ReachConvert is currently in
beta in North America and will launch in the second quarter of 2013.

New Transaction Solution: ReachCommerce

Once merchants have converted leads into potential customers who are ready to
buy, they need a better way to manage bookings and transactions. The majority
still use an inefficient offline process to book appointments, schedule their
technicians, provide estimates and invoices, communicate with consumers and
take payments. Ultimately, this costs merchants lost bookings, customers and
profits.

To solve this problem, ReachLocal is developing a new SaaS product,
ReachCommerce, that enables local businesses to take their entire booking and
buying process online. This product dramatically improves the entire
experience for consumers. Now, when interacting with a merchant who is using
ReachCommerce, consumers will be able to book online via the merchant’s
website, receive online notifications when the service pro is en route, get a
digital estimate and pay online.

In addition to providing a better consumer experience, ReachCommerce also
digitizes the merchant’s entire back-office operation, including scheduling,
employee and fleet management, estimating, transaction processing, invoicing,
retention, business intelligence and reporting. ReachCommerce will enter beta
in North America in the second quarter and launch in the second half of 2013.
The product will initially be focused on merchants in the home services
vertical.

New Consumer Service: ClubLocal.com

Just as the company saw the opportunity to transform local marketing for
merchants by bringing it online, ReachLocal also saw the opportunity to
revolutionize the consumer buying experience for local services. Today,
finding a local service provider is still an antiquated process that takes too
much time and work for the consumer. They experience information overload when
trying to figure out who to call. There’s zero pricing transparency about what
it will cost them. They waste a lot of time waiting because there’s limited
visibility about when the technician will arrive. The buying process for the
consumer is still 100 percent paper based. Essentially, consumers buy local
services similar to the way their grandparents did.

To solve this problem, ReachLocal developed a new consumer service, ClubLocal,
(http://www.clublocal.com) that has been in beta in Dallas-Fort Worth since
July 2012. ClubLocal is a revolutionary new one-stop service that enables
consumers to instantly book 17 home services via its website or mobile app.

ClubLocal provides consumers with two-hour appointment windows and sends
alerts and notifications when their Service Pro is en-route. ClubLocal
pre-screens and background checks all of the Service Pros and pre-negotiates
pricing with merchants to provide pricing transparency to the consumer. Once
the work is complete, consumers simply pay ClubLocal, and all their receipts
and warranties are stored online in their account. ClubLocal stands behind
every job with its ClubLocal Satisfaction Guarantee and is 100 percent free to
join. ClubLocal is launching in its second beta market, San Francisco, in the
second quarter of 2013.

About ReachLocal, Inc.

ReachLocal, Inc. (NASDAQ: RLOC) develops online marketing and transaction
solutions that power local commerce for SMBs, from lead generation and lead
conversion to booking and buying.  Our global distribution network includes
local Internet marketing consultants and service professionals, along with
select third-party agencies and resellers throughout the United States,
Canada, Australia, New Zealand, the United Kingdom, Germany, the Netherlands,
Japan, Poland, Czech Republic, Slovakia and Brazil. ReachLocal is
headquartered in Woodland Hills, Calif. Subscribe to ReachLocal’s free
newsletter to receive news, tips and other online marketing insights.

1.This statistic is based on an early alpha test of the product in a very
    limited distribution. Based on this alpha, starting from their first use
    of the product, clients experienced, on average, a 30% or more increase in
    customer conversions. However, no assurances can be made that such
    conversion rates will be maintained when the product is in full
    release.Conversion rates may vary due to a number of factors, including
    business type, customer type, client engagement with the product and other
    factors.

Caution Concerning Forward-Looking Statements

This document includes certain forward-looking statements. These statements
are based on the current expectations or beliefs of management of ReachLocal
and are subject to uncertainty and changes in circumstances. Actual results
may vary materially from those expressed or implied by the statements herein
due to (1) changes in economic, business, competitive, technological and/or
regulatory factors, (2) difficulties that ReachLocal may encounter as it seeks
to develop software-related and consumer-facing products, (3) failure of the
AdWords strategic relationship with Google to produce expected results; (4)
failure to compete successfully in a highly competitive and rapidly changing
marketplace, (5) failure to retain key employees, and (6) other factors
affecting the business operation of ReachLocal. More detailed information
about these and other factors that may affect current expectations may be
found in filings by ReachLocal with the U.S. Securities and Exchange
Commission. ReachLocal is under no obligation to, and expressly disclaims any
such obligation to, update or alter its forward-looking statements, whether as
a result of new information, future events, or otherwise.

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Contact:

Investor Relations:
The Blueshirt Group
Alex Wellins, 818-575-6840
alex@blueshirtgroup.com
or
Media Contact:
ReachLocal, Inc.
Jason Treu, 214-294-0307
Vice President of Public Relations
jason.treu@reachlocal.com
 
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