Constant Contact makes sure small businesses never lose touch with their prospects and customers. The company provides small businesses with Web-based marketing software and services for managing e-mail and social media campaigns, as well as offering local deals, managing digital storefronts, and creating online surveys. Its offerings include tools for creating, implementing, tracking, managing, and analyzing marketing materials. Customers include retailers, restaurants, and other businesses, as well as non-profit organizations, alumni associations, and churches; two-thirds of its clients have fewer than 10 employees. It claims more than 650,000 customers for its products. In early 2016 Endurance International acquired Constant Contact for $1.1 billion.
Change in Company Type
The combination with Endurance provides both companies with services and products they didn't have. Endurance gets the small business contact services of Constant Contact while Constant Contact gets access to Endurance's web-hosting and other online tools and services. About 200 Constant Contact jobs were eliminated after conclusion of the deal because of duplication.
Constant Contact has offices in California, Colorado, Florida, Massachusetts, and New York, as well as in London. It serves clients in some 180 countries, although the US has accounted for nearly 90% of sales.
Sales and Marketing
Of course, Constant Contact uses digital marketing techniques to attract customers. Its products are marketed through its own advertising and referral efforts, as well as through partnerships with more than 9,500 local and national small-business service providers.
It focuses on small businesses and organizations, most of which pay a fixed, monthly subscription fee based on the number of e-mail addresses in their account. Subscriptions to its e-mail marketing tools typically cost between $15-$150 per month, which allows Constant Contact to serve a market that is typically ignored by larger CRM and marketing software competitors such as Oracle, SAP, and salesforce.com.
Constant Contact's revenue has risen steadily along with its customer base. In 2015 sales were $367 million compared to $332 million in 2014. Net income rose to about $19 million in 2015 from $14 million in 2014. The company achieved a revenue record for itself in 2015, but net income was below its all-time high of $23 million in 2011.
The company continues to enhance its offerings with new services and tools, and throughout 2012 it expanded its product suite from three products to six. CardStar provides mobile applications for loyalty cards and coupons. SaveLocal manages group coupons for small businesses, and SinglePlatform offers a digital storefront for mobile formats. Previous product launches include online surveys (2007), event marketing (2009), and social media (2010) tools.
It is also looking for growth in new geographic markets. Although international operations are a small part of Constant Contact's business today, it sees opportunity in international markets. Its email marketing templates are also offered in Spanish, and the company opened its first office outside the US, in the UK, in 2011.