Competitive Analysis - Drip

Part
01
of three
Part
01

Competitive Analysis: Klaviyo

Klaviyo has been in business for seven years and has more than 15,000 customers and 17 corporate clients (companies with 500-1000 employees). 63% of Klaviyo's market is in the United States. This spreadsheet and the research brief below provide further details of our findings.

KLAVIYO

NUMBER OF CORPORATE CLIENTS
TARGET GEOGRAPHIC AREA
  • 63% of Klaviyo customers are in the United States.
  • Majority of their customers are in the United States, the United Kingdom, Canada, and Australia
TARGET CUSTOMERS
  • Klaviyo targets businesses of every size, from entrepreneurs to iconic brands.
  • Based on data from Enlyft, Klaviyo's largest market is in the retail industry, with 926 companies followed by apparel & fashion with 611 companies.
  • Other industries that use Klaviyo include consumer goods, health, wellness & fitness, wholesale, food & beverages, restaurants, cosmetics, furniture, and consumer electronics industries.
OFFERINGS/DIFFERENTIATORS
ONLINE/DIGITAL MARKETING PRESENCE
  • Klaviyo's website had 1,550,000 total visits as of May 2019 from desktop & mobile web.
  • Countries that contribute the most website traffic for Klaviyo's website include the US (36.88%) followed by the UK with 10.88%.
  • Klaviyo is active on social media platforms such as Facebook, YouTube, WhatsApp, LinkedIn, and Reddit, and they contribute 2.6% of Klaviyo's website traffic.
  • The company uses platforms such as Facebook and Twitter to post announcements, current events, company news, and new product features.
  • Klaviyo is more actively posting on its Twitter account (5,195 tweets), to promote its brand awareness strategy.
  • Klaviyo's online contact details are available on the company website and social media platforms.
  • The company also has designated contact forms for customer queries, available on the website.
  • Klaviyo's YouTube channel has 523 subscribers and 61 videos. Most of their uploaded videos reveal their newest features and business insights.
  • Of Klaviyo's 61 videos on YouTube, 13 were uploaded four weeks ago.

Research Strategy:

Most of the requested data points were available on Klaviyo's website, and your research team's strategy was straightforward except in obtaining Klaviyo's revenue, target geographic area, target customers, and online/digital marketing presence. The team had to use some third-party websites like SimilarWeb, ZoomInfo, and Enlyft, to address and provide all the requested data thoroughly. The team considered Klaviyo's corporate clients as companies with 500-1000 employees.

Part
02
of three
Part
02

Competitive Analysis: Mail Chimp

A competitive analysis of Mailchimp was completed. Our findings were entered into the attached spreadsheet and are summarized below.

Key Findings

  • Mailchimp has been in business since 2011, which translates to approximately 8 years in business.
  • Mailchimp has an estimated annual revenue of $160 million.
  • Mailchimp has 486,171 companies as customers.
  • Mailchimp has 7,901 customers with over 1,000 employees.
  • Mailchimp's main geographical area is the U.S., accounting for 41% of customers followed by the U.K. with 9%.
  • Mailchimp serves businesses of all sizes with the majority of its clients having fewer than 50 employees (65%) and making less than $50 million annually (81%).
  • Mailchimp most often serves companies in the business services, manufacturing, organizations, technical services, retail and hospitality industries.
  • Mailchimp's features include marketing CRM, an audience dashboard, "lookalike audience finder," address finder, tags & segments, social posts and ads, landing pages, sign up forms, email automation, reports and analytics, and integrations with many apps and services.
  • Mailchimp has a social presence on Facebook, Twitter, Instagram, LinkedIn and YouTube and also has an engaging website.

Research Strategy

Your research team used a variety of sources to gather the requested information, including Mailchimp's website and social media profiles along with business insights websites, such as Zoominfo and Crunchbase. All requested information was readily available in these sources. However, given that "corporate clients" was not defined, we had to make some assumptions about what this meant. We assumed that the goal of this row was to identify how many of mailchimp's customers are large businesses and therefore used the definition of large enterprise companies, which includes companies with more than 1,000 employees. Based on this, we added the figures we found for 1,000-5,000 employees (3,213), 5,000-10,000 employees (604) and >10,000 employees (983) for a total of 1,800 customers in this segment, which we entered in row 6.
Part
03
of three
Part
03

Competitive Analysis: Constant Contact

The competitive advantage of Constant Contact is their tools, which is a much better alternative for small businesses, startups, and new entrepreneurs, as they are cost-effective. What makes them really standout is their effort on onboarding where they conduct "live webinars, classes, and day-long courses" to help their users to become proficient with Constant Contact system.

The link to the spreadsheet is here.

Constant Contact

  • Constant Contact was founded in 1998 by Randy Parker and is located in Waltham, Massachusetts. The company helps small business organizations through their email, social media and event marketing tools that will ensure building stronger relationship with their customers base.
  • The company became public in 2007, but was eventually delisted in February 2016 after it was acquired by Endurance International.
  • Constant Contact has an estimated 0.5 million (500,000) subscribers where it mainly caters to small businesses with 80% of their clientele are businesses with 25 employees or fewer.
  • Majority (81%) of the customers of Constant Contact are in the United States, followed by Canada and the United Kingdom.
  • Constant Contact focused their marketing expenditures to strategically market their products and gain new customers through search engines, advertising, email marketing, and social media.
  • Constant Contact is a much better alternative for small businesses, startups, and new entrepreneurs as they offer cost-effective tools. What makes Constant Contact standout among competitors is their effort in onboarding where they conduct "live webinars, classes, and day-long courses" to help their users to become proficient with Constant Contact system.
  • Revenue: $410,052,000
  • The link to the official website of Constant Contact is here.

Your Research team applied the following Strategy:

Despite an extensive search, we were unable to find precompiled information to identify the definitive number of how many of Constant Contact clients are corporates. Therefore, we triangulated the information by processing the data found on the company's customer base. According to the annual report, 80% of Constant Contact customers are small businesses, which leaves us with 20%. According to Merriam Webster Dictionary, corporates are large companies and large companies are defined to be having more than 249 employees. From these, we have cross-referenced it with Enlyft.com which states that 10% of Constant Contact customers are large companies. We further calculated it by multiplying the percentage to the total number of customers as follows:
  • (500,000*10%= 50,000)
Sources
Sources

From Part 03
Quotes
  • "Constant Contact provides email marketing, social media marketing, event marketing, and online survey tools to help small organizations grow their businesses by building stronger customer relationships."
  • "More than 500,000 small businesses, nonprofit organizations, and member associations rely on Constant Contact's easy-to-use, affordable online tools to create and deliver personalized, professional communications that engage customers, members and prospects wherever they congregate online -- from their email inboxes to their social networks. Launched in 1998, "
Quotes
  • "Constant Contact is most often used by companies with 10-50 employees and 1M-10M dollars in revenue."
  • "Looking at Constant Contact customers by industry, we find that Nonprofit Organization Management (8%) and Retail (5%) are the largest segments."
  • "Looking at Constant Contact customers by industry, we find that Nonprofit Organization Management (8%) and Retail (5%) are the largest segments."
  • "81% of Constant Contact customers are in United States."
Quotes
  • "For small businesses and startups, Constant Contact is a great option. It is a cost effective tool with a very flexible pricing setup where the rates are based on the number of email contacts. "
  • "But what makes it really special is that they strive to provide the extra effort to help their users become more proficient with the system by conducting live webinars, classes, and day-long courses. Plus, the team is constantly working to make Constant Contact very intuitive."
  • "The app makes it easy for businesses and individuals to gather contacts from across different databases and corral them into a unified list without breaking a sweat. Whether you are importing contacts from Gmail, Outlook or uploading a spreadsheet, Constant Contact makes it happen."
  • "The platform also comes with hundreds of email templates that are beautifully designed so that you don’t have to waste your time building one from the ground up. Constant Contact also has a selection of awesome event management tools, social media campaign manual and features, and access to comprehensive learning materials."
Quotes
  • "Our email marketing segment consists of Constant Contact email marketing tools and related products and our SinglePlatform digital storefront solution"
  • "Although we operate through numerous brands, we are focusing our marketing expenditures on our strategic brands, which include Constant Contact, Bluehost, HostGator and Domain.com."
  • "For our email marketing segment, we market our products and acquire our customers through a variety of sources,including online marketing, such as search engines and advertising with online networks and other websites, offline marketing through television and radio advertising, partner relationships, outbound sales efforts, referrals from our customer base, general brand awareness and a link to our website in the footer of substantially all of the emails sent by our customers."
  • "As of December 31, 2018, we had approximately 4.8 million subscribers, of which approximately 3.6 million were web presence subscribers, 0.7 million were domain segment subscribers and 0.5 million were email marketing segment subscribers."
  • "We estimate that approximately 80% of subscribers of our email marketing segment employ 25 or fewer employees."