Launched from a conversation with a farmer who wanted to pay his ag input bill online, Alexander Reichert co-founded AgVend in 2017 to offer a farmer-focused marketplace and software to help retailers digitize their business. In 2020, the company sunset its marketplace to focus solely on building Digital Enablement Platforms for ag retailers. Today, they offer customer portals and relationship management tools to digitally enable agronomy, grain, energy and feed business activities.
What’s the goal of AgVend?
Growers’ expectations are changing. They are looking for an easier way to do business with retailers. This can take the form of directly ie. via customer portals or working with sales teams and merchandisers that are more digitally enabled and empowered. We call our platform a system-of-action. And it takes label as ‘Built with AgVend’—not ‘powered by AgVend’—because we are our retailers’ partner on this journey which is extends beyond just the technology. Ultimately our goal is for them to own this as their experience that they can take pride in delivering to their customers and teams.
Three years ago, you changed the company’s direction and focus. What led to closing down your marketplace offering?
We had a different model when we started, and our marketplace was something ag retailers could use as their eCommerce offering to reach a more transactional grower. It did millions of dollars in sales, however, it was serving a small segment of growers who wanted point, click, buy online experiences. There’s no loyalty in the transactional environment. And what we found is that the vast majority of the growers of today and those of the future still want a direct relationship with their retailer. So we took a step back, and while others looked to disintermediate that relationship, we saw the greater opportunity to work with the existing channel and use technology to connect and enhance how they go-to-market. Since day one, we listened to our customers, the ag retailers, it’s one of the main reasons why AgVend is a thriving business today.
What’s your footprint today?
We have 65,000 users of the customer portals we have built. That number isn’t how many growers who have accepted a log in, it’s who logs in on a monthly basis and engage with our retailers’ tools. We are about to set live 13 retailers in Q4, and three of the largest retailers to date. We expect to ecplise the 100,000 grower mark by the end of the year. Today our network of ag retailersrepresent 23% of the U.S. ag input market. We expect to continue our rapid growth in 2024, with the number of growers using our apps to double.
What does digital enablement mean to you?
We are really in Phase 1 of the business – working with retailers to launch digital enablement platforms and maximize adoption of those tools. Once a retailer becomes digitally enabled with AgVend, they become part of our Network Operating System. Beyond enhancing the connectivity between retailers and their customers, our vision is for that OS to serve as the foundation that better connects them with their supplier partners on the upstream side and value-added markets on the downstream side.
How have you seen engagement trend with your apps?
A partner had a portal before AgVend using a legacy tech provider. They saw 8% penetration in their customer base in 5 years. In five months with AgVend, they are over 45% of growers logging in on at least a monthly basis. Over 60% adoption in the grower base is our high watermark that we help our retailers target. Most retailers sit between 40% and 70%.
How do you track activity in the apps?
No. 1 use case, farmers are checking grain prices, looking at scale tickets, viewing invoices/finance balances. The second highest use case is product research. Third, it’s using our file sharing and storage feature for yield maps, soil sampling, as-applied reports. And fourth is e-signing contracts.
What is most important for retailers to find success in using a digital enablement platforms?
It is important to realize that with any new digital initiative, technology is only one piece of the puzzle. Education, development, change management strategies, are all crucial for success and are required on an ongoing basis ie. not just during onboarding. We have a very structured support process. We parachute in with our product and partner success teams, we help you navigate not just the technical side of onboarding but also the business aspects as well. We help train the team, set targets, and ensure you maximize adoption and thus ROI of the platform. And we’re with you on this journey every step of the way long after go-live. We’ve been at this for three years, and we have seen less than 4% churn across our customer base. . Of that 4%, a chunk of that has been because the retailer was acquired by another entity who doesn’t use AgVend…at least not today!When we do a deal, we’re typically losing money out of the gate. In order for our business to work, we need 10+ years of working with a retailer. So we are building relationships for the long haul and we want to see our Partner Retailers win in that future!
What is overlooked or misunderstood about digital enablement?
That it is all about the grower experience in the portal. This isn’t just about making it easier for your customers to digitally do business, but to actually empower your teams with best in class technology to differentiate at the farm gate. There are two sides of the coin. If your grain merchandisers, sales agronomists, or energy reps can access a complete view of their customer with two clicks on their mobile device, they are then more prepared to engage in high value conversations and discover new opportunities for their growers. This in turn will improve the experience for your customers even if they never download your app.
About the Company
AgVend builds technology solutions that transform the way agribusinesses operate and engage with their customers. distributors, and manufacturers. The company has 90 employees—95% of which are in product development or partner success roles to support retailers on their digital journey.
A Bit More Personal
Alexander lives in Austin, TX with his wife Briana. A native New Englander, Reichert spends his spare time spearfishing in the summer and skiing in the winter.
