In a bid to continue reframing its business model, Acxiom Corporation (ACXM - Analyst Report) inked a definitive multi-year database contract with global property & casualty insurer, ACE Group, a unit of ACE Limited . The global agreement covers numerous countries, with preliminary developments planned in Mexico, Brazil, Thailand, Italy and Turkey.
Per the agreement, Acxiom will provide a Database Marketing solution to enhance the flexibility, scale and security of ACE Group’s marketing capabilities so as to tackle the latter’s dynamic client needs.
Acxiom’s Safe Haven capability, the solution chosen by ACE Group, will boost customer database without resorting to using or storing Personally Identifiable Information (PII). The solution eliminates PII and substitutes it with anonymous storage of contact history to support expanded analytics, while respecting privacy.
For ACE Group clients, the solution has the wherewithal to boost revenues as well as enhance data security and market sustainability. At the same time, the unique data-sharing technique will take care of the security and privacy of customer data.
Acxiom’s distinctive approach to “data hashing” has cemented its place as the data industry leader, especially among the world’s chief financial services providers.
Acxiom recently reported first-quarter fiscal 2015 financial results, which were disappointing with both revenues and earnings missing estimates. (Read: Acxiom Misses on Q1 Earnings, Maintains Fiscal Guidance)
Nonetheless, the Little Rock-based database and digital marketer is striving hard to reform its operating model, as evidenced by its recent deals and the LiveRamp acquisition. In addition to ACE Group, Acxiom signed Marketing and Data Services agreements with Australia-based Sevenwest Media Group, and renewed similar contracts with Virgin Media and First National Bank of Omaha.
The company recently acquired LiveRamp, a leading service for onboarding customer data into digital marketing applications. The acquisition will enable Acxiom to bridge the gap between offline data and the rapidly growing universe of online marketing applications with a connected ecosystem. Acxiom eventually hopes to venture into the potentially profitable digital advertising business.
The company also divested its U.K. call center business, 2Touch, as a part of its restructuring initiatives to enhance focus on its core marketing and data services operations.
Acxiom currently has a Zacks Rank #3 (Hold). Other stocks in the industry that are worth reckoning include Amdocs Ltd (DOX - Analyst Report), Barracuda Networks, Inc (CUDA - Snapshot Report), both carrying a Zacks Rank #2 (Buy).