Biz Lessons: Constant Contact

Last week, Constant Contact (Nasdaq: CTCT) had its IPO and the stock surged more than 70% on its first day of trading.  The company provides an on-demand service that allows businesses to manage email marketing campaigns (such as newsletters, promotions, surveys and so on).

What are some of the takeaways?

Constant Contact lives up to its name.  That is, the company contacts everyone that signs up for the service.  I think this is a great investment – in terms of building the customer base.  According to the company:  the “customer experience is designed to first make sure that every customer is successful in sending their initial email campaign and then to retain customers and generate referrals.”

Interestingly enough, Constant Contact’s phone staff is based in Waltham, MA. (but email support is outsourced to Bangalore, India).

Something else:  Constant Contact has many helpful resources, such as videos, FAQs, and webinars.

The pricing is right.  Basically, the average customer pays $33 per month for Constant Contact’s service. 

What’s more, the company has a 60-day trial period, which provides a user enough time to get accustomed to the service.  There is no credit card required (only a valid email).

In other words, the company makes it tough for customers to say “no.”