Businessmodel of DocuSign

Customer Segments

DocuSign serves a range of customers, primarily from the corporate world, who require flexible and secure document delivery and digital transaction management services. The Company has customers from all sectors of business – including the financial services, healthcare, insurance, technology and government industries – currently numbering approximately 225,000.

DocuSign is in particular a popular service within the real estate sector, for both agents and brokers, where it purports to increase the speed with which transactions are completed. The Company consequently offers subscription packages specific to realtors.

DocuSign’s customer base is not limited to the US. On its website the Company claims to serve individual and business users across 188 countries. Among DocuSign’s customers are a number of large multinational companies, including Aon, Expedia, Du Pont and Yamaha, as well as small and medium business and start-ups.

Value Propositions

The DocuSign platform’s principal value is its flexibility, accessibility and ease of use. The Company’s software platform enables users to manage their transactions and document deliveries from any device at any time.

The platform’s flexibility is also apparent in the extent to which it is compatible with existing services and applications, integrating with products provided by popular tech companies such as Apple, Microsoft and Google.

The ability to sign documents electronically in itself eliminates the time and financial costs associated with traditional methods, including fax and mail and, with its encryption capabilities, DocuSign provides a more secure and reliable service to its users. The Company’s electronic signature comply fully with the US ESIGN Act and the European Union’s directive on electronic signatures.

Channels

DocuSign’s platform allows users to manage, sign and send documents from anywhere at any time. This service can be accessed via the Company’s desktop and mobile websites at www.docusign.com, or through its free iOS, Android and Windows apps.

DocuSign functionality has also been integrated into a number of third party applications, including those provided by Microsoft, Apple, Google and Salesforce.

Customer Relationships

DocuSign subscriptions are available on a self-service basis, with larger enterprise subscriptions requiring direct contact with the DocuSign sales team. Following registration and payment, DocuSign’s services are almost entirely automated, providing a digital transaction management and electronic signature service that requires no interaction with DocuSign representatives.

Customers are also able to make self-service support requests directly from the DocuSign app or website using forms that automate workflow and processes. In addition to handling individual support requests, DocuSign also provides online tutorials and webinars, as well as training and self-paced learning resources through the DocuSign University.

The Company collaborates in person with customers through its Executive Briefing Centre, where executives can discuss specific objectives and agendas, receive software demonstrations and attend presentations. DocuSign also keeps its users updated via its social media accounts and blog and interacts directly with customers through its community forum.

Key Activities

DocuSign develops and maintains a software platform through which users are able to manage digital transactions and utilise electronic signature services.

Its cloud-based platform enables individual and business users to manage approvals, decisions, contracts, and workflows digitally, from anywhere and at any time. The Company’s DocuSign Ink offering also allows users to annotate documents and save signatures to be used again later.

Key Partners

DocuSign collaborates with a variety of companies with a view to providing an efficient, fully-automated, cloud-based service for its customers, and expanding the reach of its partners. Its partners include professional services companies, trade organisations – notably regional and national real estate bodies – software companies, document and contract solutions firms, workplace solutions providers and business process companies.

The Company has also released its API, allowing developers to create third-party integration products for DocuSign customers. The Company currently lists several high-profile integration partners, providing distinct DocuSign for Microsoft, DocuSign for Salesforce, DocuSign for Google, DocuSign for Apple and DocuSign for Netsuite products.

Key Resources

DocuSign’s principal resource is its software platform, its intellectual properties, its personnel and its IT infrastructure.

Searches of records held by the US Patent and Trademark Office identified 3 patent applications registered in DocuSign’s name: ‘Systems and methods for cloud data security’, ‘Systems and methods for distributed electronic signature documents’, and ‘Mobile solution for importing and signing third-party electronic signature documents’.

The Company also maintains a network of servers and data centres to host its platform, and employs sales and support and research and development teams.

Cost Structure

DocuSign’s principal costs relate to the development of its platform, the retention of its personnel and the maintenance of its IT infrastructure. DocuSign operates in a number of countries, with data centres and server space across the US, Europe, Asia and Latin America.

The Company also incurs fixed costs that relate to the operation of its network of 13 offices worldwide, including in San Francisco, London, Melbourne, Sao Paulo and Tokyo.

These offices are also staffed with sales and support employees, all of whom account for personnel costs in the form of salaries and benefits.

Revenue Streams

DocuSign operates under a freemium model, providing a basic, free service to its users, with the option to upgrade to more advanced packages that include a greater range of services.

The Company’s platform is available in five paid-for packages all of which are priced on a per user basis and billed either monthly or annually. The most basic paid subscription is the Individual package which costs $10 per month, paid annually. Professional, Business and Business Premium subscriptions are priced respectively at $20, $30 and $125 per user, per month when paid annually. Subscriptions for larger enterprises are negotiated on a case by case basis and are customisable to the client’s requirements.

DocuSign also offers subscriptions to the separate real estate edition of its platform, priced at $10, $20 or $30 per month. While DocuSign does not disclose its revenue figures, recent reports estimate that it generates more than $100 million annually.