By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    data Analytics instagram stories
    Data Analytics Helps Marketers Make the Most of Instagram Stories
    15 Min Read
    analyst,women,looking,at,kpi,data,on,computer,screen
    What to Know Before Recruiting an Analyst to Handle Company Data
    6 Min Read
    AI analytics
    AI-Based Analytics Are Changing the Future of Credit Cards
    6 Min Read
    data overload showing data analytics
    How Does Next-Gen SIEM Prevent Data Overload For Security Analysts?
    8 Min Read
    hire a marketing agency with a background in data analytics
    5 Reasons to Hire a Marketing Agency that Knows Data Analytics
    7 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: Focus, Simplicity and Service
Share
Notification Show More
Aa
SmartData CollectiveSmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Big Data > Data Warehousing > Focus, Simplicity and Service
Business IntelligenceData Warehousing

Focus, Simplicity and Service

RickSherman
Last updated: 2008/11/05 at 12:57 AM
RickSherman
5 Min Read
SHARE

The Boston Globe had an interesting article in its Sunday November 2, 2008 business section “Keeping it simple for the customer.”  The article presents some of the milestones and perspective of Gail Goodman, CEO of Constant Contact (CTCT), from her decision to join the firm in 1999 until now.

Constant Contact is one of the firms listed on our On-Demand Index. The company provides on-demand e-mail marketing and online survey solutions for small bu…

The Boston Globe had an interesting article in its Sunday November 2, 2008 business section “Keeping it simple for the customer.”  The article presents some of the milestones and perspective of Gail Goodman, CEO of Constant Contact (CTCT), from her decision to join the firm in 1999 until now.

More Read

ai low code frameworks

AI Can Help Accelerate Development with Low-Code Frameworks

Tackling Bias in AI Translation: A Data Perspective
How AI is Boosting the Customer Support Game
AI-Based Analytics Are Changing the Future of Credit Cards
Enterprises Are Leveraging the Benefits of AI-Driven ERPs

Constant Contact is one of the firms listed on our On-Demand Index. The company provides on-demand e-mail marketing and online survey solutions for small businesses, associations and non-profits. It has approximately 200,000 customers who are located primarily in the United States. It is expecting sales of about $86 million this year, a 70 percent increase over 2007 and employees about 400 people.

Goodman discusses the milestones, changes and tough times encountered since she joined the firm. Her business insights, though, are worth considering regardless of the business you are in. The insights gleaned from the article are:

Focus. Determine who you are trying to sell to and what you want to sell them. And once you know the who and what, then focus intently on those targets.  Excel at one thing rather than be average in many things.

Keep it simple. Why did the iPod beat out much more sophisticated mpeg players and other portable devices? Apple kept it simple and easy to use. Constant Contact has prided itself on providing a simple to use product that gets the job done.

Service. Too often today it is tough to deal with a vendor’s support organization and you often have to pay for phone support. Constant Contact breaks the mold by providing free and useful customer support. In addition, Constant Contact provides “how to use their product” support resources but also materials and webinars on how to be more effective at e-mail marketing.

Constant Contact went from on-premise to on-demand software because it was simpler and more cost-effective for their customers who are typically small businesses. But, as I have mentioned before, the on-demand aspects of their offerings is a tactic.  Without the right application(s), pricing (their average customer spends $35/month) and support, no one would buy their products whether they are on-demand or not.

The bear market has taken its toll on most stocks but has hit on-demand software stocks especially hard. CTCT is down -44% year-to-date (YTD) but that is still better than the overall on-demand index performance of -52% YTD.

There are those that feel that Constant Contact is vulnerable to an economic slowdown that may hit small businesses hard. A severe recession is likely to continue to hinder growth and keep profitability out of reach. Goodman mentions that business failures could thin the ranks of their customers or prospects. In addition, there is a concern that their customers’ customers may be experiencing e-mail overload or that there is a gradual shift, especially among younger people, from e-mail to Facebook and text messaging. Both of these situations would mean that e-mail marketing may be becoming more ineffective.

The “glass is half full” counter argument is that small businesses will continue to invest in e-mail marketing because it is effective and inexpensive. And in economic slowdowns, it is still important for a small business to reach out to its existing customers and prospects (in fact, it may be even more important than in good economic times.)

When looking to invest in an on-demand software company you need to evaluate its business model, its products, its management and its business execution just like you should in any company.

(I don’t own any Constant Contact stock, but I do use their service for my newsletter BI Briefs.)


Link to original post

RickSherman November 5, 2008
Share This Article
Facebook Twitter Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

smart home data
7 Mind-Blowing Ways Smart Homes Use Data to Save Your Money
Big Data
ai low code frameworks
AI Can Help Accelerate Development with Low-Code Frameworks
Artificial Intelligence
data Analytics instagram stories
Data Analytics Helps Marketers Make the Most of Instagram Stories
Analytics
data breaches
How Hospital Security Breaches Devastate Local Communities
Policy and Governance

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

You Might also Like

ai low code frameworks
Artificial Intelligence

AI Can Help Accelerate Development with Low-Code Frameworks

12 Min Read
data perspective
Big Data

Tackling Bias in AI Translation: A Data Perspective

9 Min Read
How AI is Boosting the Customer Support Game
Artificial Intelligence

How AI is Boosting the Customer Support Game

6 Min Read
AI analytics
AnalyticsArtificial IntelligenceExclusive

AI-Based Analytics Are Changing the Future of Credit Cards

6 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

giveaway chatbots
How To Get An Award Winning Giveaway Bot
Big Data Chatbots Exclusive
AI and chatbots
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?