Crexendo (formerly iMergent) would like to help increase the volume on your e-commerce business. Catering to home-based, small, and medium-sized businesses, the company's cloud-based software helps merchants create, manage, and promote their e-commerce website and process orders. Premium services include site and logo design, supplier integration, and search engine optimization. The company has primarily used training seminars around the country to sell its products to aspiring e-commerce mavens, but hopes to open more sales channels. More than 90% of sales come from customers in North America (US and Canada). Chairman and CEO Steven Mihaylo, founder and former CEO of Inter-Tel, owns more than a third of Crexendo.
Taking into account the company's fiscal year change, revenues dropped 13% over the comparable prior period. The drop was due to weaker performance in principal collected on accounts receivables, commissions from leads through its StoresOnline business (98% of sales), and fewer seminars held during the year.
Crexendo has historically made most of its sales through those workshop seminars, but feels it needs to grow other sales channels. Key to that is its ascent into the cloud. In 2010 about 80% of its software sales transitioned from traditional software licensing to a software-as-a-service (SaaS), or hosted, model. The company expects the transition to help it with opening up new distribution channels through such avenues as affiliate marketing, direct online sales, and private label partnerships.
On the frontlines of Crexendo's battle plan for retaining clients is customer education. The company offers and continually works at expanding its instruction on subjects such as website design and marketing, and recognizing marketplace opportunities.
In 2011 it launched a hosted telecom offering that provides VoIP-based voice and messaging over broadband networks. Crexendo's aspirations are to continue offering new services like this to help its target market. Its grand scheme is to build a stable of services that help them run their business. Future product expansion plans include services for bandwidth, operator, conferencing, and call center, as well as mobile features for its Internet and telecom offerings.