Businessmodel of KISSmetrics

Customer Segments

Kissmetrics has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at all firms that want to better understand the behavior of their websites’ visitors.

Value Proposition

Kissmetrics offers three primary value propositions: innovation, performance, and brand/status.

The company’s solution innovates analytics processes by identifying useful, typically untracked information:

• Platform Tracking – The software collects website visitor data from all of the browsers and all of the devices (desktop, laptop, smartphone, tablet) a person uses. This information helps to paint a more accurate picture of behavior.
• Marketing Attribution – The software identifies the various marketing channels from which a visitor comes to the website. For example, it can tell if a customer first came through a pay-per-click campaign, then re-visited from a referring traffic source such as a blog, then returned to the site directly and converted (made a purchase). This data can enable clients to understand how effective various types of campaigns or marketing tools are in driving traffic to the site.

• Conversion Tracking – The solution examines all of the different ways a site’s visitors are converting and identifies the specific site sections that are limiting conversions. The company’s solution has a history of enhancing performance. Outcomes for specific customers include the following:

• Appaloosa – 750% more conversions
• Lucidchart – 30% more conversions
• ClickMechanic – 20% more conversions
• Ecwid – 17% more conversions
• Mention – 50% more churn
• Nitro – 20% more subscriptions
• PagerDuty – 25% more trial interactions The company has developed a strong brand due to its performance record. Since its inception, it has obtained more than 1,900 customers and tracked more than 36 billion interactions among 4.5 billion people. In addition to the firms mentioned above, customers include Toll Brothers, Unbounce, Outbrain, and MercyCorps.

Channels

Kissmetrics’ main channel is its direct sales team, which acquires customers through phone calls and attendance at industry networking events. The company also markets its offerings through its website and social media pages.

Customer Relationships

Kissmetrics’ customer relationship is primarily of personal assistance nature. When companies sign up, they receive free implementation support, one-on-one consultations, and access to Customer Success Specialists whose goal is to help grow clients’ business.

The firm also offers general phone and e-mail support. That said, there is also a self-service component as its website features a wide variety of resources, including “how-to” guides, marketing guides, webinars, reports, infographics, and answers to commonly asked questions.

Key Activities

Kissmetrics’ business model entails maintaining and enhancing its platform for its over 1,900 customers.

Key Partners

Kissmetrics does not have a dedicated partner program; however, it forms technology partnerships with firms such as Optimizely and marketing partnerships which companies such as Interarrow.

Key Resources

Kissmetrics’ main resource is its proprietary software platform, which features a wide variety of analytics tools. It also depends on its human resources in the form of engineering, sales/marketing, and customer support employees.

Lastly, as a start-up it has relied heavily on outside funding, raising $10.8 million from six investors as of July 2013; the investors are True Ventures, Felicis Ventures, Azure Capital Partners, Signatures Capital, Cameron Lester, and Tony Conrad.

Cost Structure

Kissmetrics has a value-driven structure, aiming to provide a premium proposition through personal service. Its biggest cost driver is likely sales/marketing expenses, a fixed cost. Other major drivers are in the areas of customer support/operations and administration, both fixed costs.

Revenue Streams

Kissmetrics has one revenue stream: the subscription fees it charges for use of its software. Its specific solutions and pricing options are as follows:

Engage - This solution profiles website visitors based on past behavior and targets campaigns towards them accordingly. Pricing is $250 a month (although it is occasionally discounted to $150).

Engage and Analyze – The company offers a package that combines Engage with Analyze; Analyze is a solution that presents visitor behavior metrics and determines their lifetime value. Price points vary by depth of service, as follows:

• Starter – Features events, engagement views, quick launch onboarding, and e-mail support. Pricing is $200 per month.
• Basic – Features everything in Starter plan plus dedicated onboarding from experts, dedicated support, training, and reports. Pricing is $700 per month.
• Pro – Features everything in Basic plan plus implementation support. Pricing is $2,000 per month.
• Enterprise – Features everything in Pro plan plus unlimited engagement views, custom onboarding, a Strategic Account Manager, custom overages, and custom implementation. Sales staff must be contacted for pricing.