This interview was recorded several months ago, but is still relevant despite the pandemic. Colin Nederkoorn, the co-foun...
Communication is key to building strong relationships but businesses often miss the mark
Marketers want to deliver meaningful customer experiences, but struggle to stitch together the data and tools to make it happen.
For early to mid-stage businesses, great customer experiences are often the difference between winning against large incumbents or failing.
A communication suite powered by customer data
Companies need insight into how their customers are interacting with them to communicate effectively. Today, Customer.io solves this by:
1. Aggregating all first-party data a business has about its customers.
2. Giving tech-savvy marketers the knowledge and tools to automate emails, push notifications, and SMS messages powered by that customer data.
Using Customer.io, businesses now can communicate the way their audience expects.
Automating an engaging customer experience
With a simple integration, customers stream real-time business data into Customer.io.
Marketers design and send relevant communication, unique to every customer, across email, push notification, sms, whatsapp, and other channels.
If you can dream it, you can do it.
Inside the platform, each customer for a business has a profile with data that is always up to date.
The power of Customer.io is in the demographic and behavior based segmentation engine.
Businesses design their custom logic and rules for who receives messages and when they get sent.
With robust metrics and testing tools, businesses get feedback and can continually improve.
With Customer.io, businesses can spend more time on strategy and less on building, allowing them to grow by making strategic data-driven decisions.
What's next on our roadmap?
- Multiple identifiers: Unlocks merging data in from many different sources into a unified customer view.
- Mobile SDKs for Android and iOS: Lowers friction for mobile app developers to start using the product and unlocks advanced mobile capabilities.
- SQL Sync: Direct database connections to simplify or provide another alternative to get data in.
Customer.io is growing 74% YoY at $21M+ in ARR
Customer.io has accelerated growth by 74% YoY revenue from April 2020 to April 2021
Diversified customer revenue with the largest customer representing only 2.1% of total revenue
New Customers show 125%+ Net Revenue Retention after Year 1 with cohorts continuing to increase for years
Customer retention increasing in most recent cohorts.
Our cash retention is the percentage of MRR received in the last 12 months from customers that were paying us during the same period in the prior year. In calculating cash retention, multi-month contracts are amortized proportionally over the life of the contract. Our cash retention rate for the 12 months ending in April 30, 2019, 2020, and 2021 was 110.2%, 106.0%, and 125.6% respectively.
2600+ companies trust Customer.io with their messaging
On average, a customer stays with Customer.io for 60 months.
Our customer lifetime value is $26,036 and we recover the $2,900 it costs to acquire each customer in under one year.
We are successful when our customers are successful
Our pricing is simple: we bill based on the number of people a business tracks with Customer.io. This aligns our incentives with our customers. We earn our money when we help them gain more customers.
Marketing automation expected to be a $47B market by 2027
Customer Engagement merges marketing automation, mobile marketing automation, and email marketing. Solutions in this space are responsible for every interaction between a business and its audience.
Customer Engagement connects companies and their customers on every channel
Customer.io's functionality is often considered Marketing Automation and we're an early leader in a new market: Customer Engagement. Businesses will purchase Customer Engagement Platforms instead of "point solution" marketing automation tools. People now expect companies to have a shared brain and consistent behavior across every interaction they have. Customer Engagement Platforms are the answer.
Source: Verified Market Research
Empowering early and mid-stage companies with advanced marketing tools
Small Business competitors strip down functionality, forcing companies with advanced needs to migrate as their sophistication grows.
Enterprise-focused competitors have raised hundreds of millions in funding. They abandon growing, but early companies in need of advanced functionality.
These two approaches create a gap in the market for Customer.io to work with companies as early as pre-launch to be the first and last tool they implement to design, build, and automate intricate messaging workflows for every stage of their business.
Interacting with a business should feel like they understand you
Customer.io is often the "source of truth" about a businesses customers. We're creating a future where every customer facing team has a complete picture of a customer so they can make better automated and manual decisions.
We're also focused on building a big independent company and we're not looking to sell. There appears to be a viable path to grow beyond $100m in ARR within 5 years. We'll seek to create liquidity for investors via rapidly evolving private markets or in the public markets.
Fundstrapping our way to $100M+ ARR
We've proven businesses can be both capital-efficient and fast-growing. We call that approach "Fundstrapping".
We've grown to 21m+ ARR on $3.54M raised from Oregon Venture Fund, Kima Ventures, Techstars Ventures, Box Group, notable Angel investors like Fabrice Grinda and many others.
Pioneering using real-time analytics data to trigger messages
The founders met working at a venture-funded startup in New York City. Recognizing that marketers struggled to do their job with no access to message content buried in code, and customer data locked in production databases, they left to solve that through starting Customer.io in 2012.
Note: The company conducts its business through its wholly-owned subsidiary Customer.io, Inc., a corporation formed under the laws of Canada, incorporated on July 20, 2015. Please see our Form C for additional disclosures.