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Constant Contact Inc (CTCT)
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CTCT » Topics » Business Strengths

This excerpt taken from the CTCT 10-K filed Mar 12, 2009.
Business Strengths
 
We believe that the following business strengths differentiate us from competitors and are key to our success:
 
  •  Focus on Small Organizations.  We have maintained a consistent and exclusive focus on small organizations, which has enabled us to design a full customer experience tuned to their unique needs. Through the website experience, product usability, affordable price point and personal touch of our communications consultants and customer support representatives, we work to ensure that small organizations feel that we are committed to their success.
 
  •  Efficient Customer Acquisition Model.  We believe that we have developed an efficient customer acquisition model that generates an attractive return on our sales and marketing expenditures. We utilize a variety of marketing channels to acquire new customers including online advertising, partner relationships, radio advertising, online and in-person seminars and brand awareness. In 2008, our cost of email marketing customer acquisition, which we define as our total annual sales and marketing expense divided by the gross number of email marketing customers added during the year, was approximately $304 per email marketing customer. For 2008, our average monthly total revenue per email marketing customer, including all sources of revenue, was $35.01, implying payback on a revenue basis in less than one year.
 
  •  High Degree of Recurring Revenue.  We benefit from a high level of customer loyalty. From January 2005 through December 2008, at least 97.4% of customers in a given month have continued to subscribe to our email marketing product in the following month. We believe this represents a high level of customer retention, particularly given the transient nature of many small organizations. These customers provide us with a significant base of recurring revenue and generate new customer referrals.
 
  •  Consistent Commitment to Customer Service.  We seek to provide our customers with a high level of customer support in order to encourage trials and ongoing usage of our product. We conduct online webinars and in-person events to educate potential customers about the benefits of email marketing. In addition, our communications consultants seek to contact all new U.S. and Canadian based trial customers to help them launch an initial campaign and address any questions or concerns. In 2008, we won the Stevie® Award for “Best Customer Service Team” for The 2008 American Business Awards. As a result, we believe we have a highly satisfied customer base.
 
  •  Software-as-a-Service Delivery.  We provide our product on an on-demand basis, meaning that our customers can access and use our product through a standard web browser. This enables our customers to rapidly begin using our product with few up-front costs and limited technical expertise. It also enables us to serve additional customers with little incremental expense and to deploy new applications and upgrades quickly and efficiently to our existing customers.


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Table of Contents

 
This excerpt taken from the CTCT 10-K filed Mar 14, 2008.
Business Strengths
 
We believe that the following business strengths differentiate us from competitors and are key to our success:
 
  •  Focus on Small Organizations.  We have maintained a consistent and exclusive focus on small organizations, which has enabled us to design a full customer experience tuned to their unique needs. Through the website experience, product usability, affordable price point and personal touch of our communications consultants and support representatives, we work to ensure that small organizations feel that we are committed to their success.
 
  •  Efficient Customer Acquisition Model.  We believe that we have developed an efficient customer acquisition model that generates an attractive return on our sales and marketing expenditures. We utilize a variety of marketing channels to acquire new customers including online advertising, partner relationships, radio advertising, online and in-person seminars and brand awareness. In 2007, our cost of email marketing customer acquisition, which we define as our total sales and marketing expense divided by the gross number of email marketing customers added during the year, was approximately $255 per email marketing customer. For 2007, our average monthly total revenue per email marketing customer, including all sources of revenue, was $33.63, implying payback on a revenue basis in less than one year.
 
  •  High Degree of Recurring Revenue.  We benefit from a high level of customer loyalty. From January 2005 through December 2007, at least 97.4% of customers in a given month have continued to use our email marketing product in the following month. We believe this represents a high level of customer retention, particularly given the transient nature of many small organizations. These customers provide us with a significant base of recurring revenue and generate new customer referrals.
 
  •  Consistent Commitment to Customer Service.  We seek to provide our customers with a high level of support in order to encourage trials and ongoing usage of our product. We conduct online webinars and in-person events to educate potential customers about the benefits of email marketing. In addition, our communications consultants seek to contact all new U.S. and Canadian based trial customers to help them launch an initial campaign and address any questions or concerns. As a result, we believe we have a highly satisfied customer base.
 
  •  Software-as-a-Service Delivery.  We provide our product on an on-demand basis, meaning that our customers can access and use our product through a standard web browser. This enables our customers to rapidly begin using our product with few up-front costs and limited technical expertise. It also enables us to serve additional customers with little incremental expense and to deploy new applications and upgrades quickly and efficiently to our existing customers.


5

Table of Contents

 

EXCERPTS ON THIS PAGE:

10-K
Mar 12, 2009
10-K
Mar 14, 2008

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