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03

Feb
2017

In None

By admin

Constant Contact Sells for a Billion…redesigned Editor takes credit

On 03, Feb 2017 | In None | By admin

Super proud to have been a part of the Constant Contact Galileo team. Some of my all time favorite UX designs. Congrats on your billion dollar sale!

 Constant Contact Pre-Earnings: Improved Marketing Strategies, Continued Alliances And ‘Galileo’ Could Drive Revenues

Constant Contact (NASDAQ:CTCT) is ready to release earnings for the third quarter on November 5. Despite a rocky start to the year in Q1 (due to a brand repositioning failure), the company has made amends to their strategy, leading to a better Q2. The Waltham-based online marketing company met or exceeded guidance in the second quarter. While revenues were on the lower end of their guidance range, EBITDA surpassed the guidance by more than $2 million. With better marketing strategies, new partnerships, and a consolidated product (Galileo), the company seems to be on the right path to increase growth. [1]

See our complete coverage of Constant Contact

Galileo:

As mentioned earlier, Constant Contact had attempted to reposition their branding earlier in the year. The company hoped to evolve from providing more than just email marketing solutions to one that offered more integrated marketing solutions. In this effort, the management introduced Toolkit, which enabled customers to create multiple marketing campaigns across certain high-yielding marketing channels. However, this new strategy failed considerably as the move confused customers who primarily viewed the company as an email marketing provider. This confusion led to lesser customer conversion rates in Q1, which, in turn, led to lower customer additions.

In order to overcome the issue, Constant Contact changed their advertising strategies in order to focus more on their email marketing solutions. The company decided to drop the Toolkit name and replace it with just ‘Constant Contact.’  Despite this setback, however, Constant Contact still hopes to evolve into an integrated marketing provider. In this respect, the management unveiled a new platform, internally named Galileo. This new platform increases simplicity, while enabling more visually aesthetic campaigns.

As of the last quarter, about 50,000 customers and trialers were using the product. So far Constant Contact has received positive feedback. The company aims to migrate all existing and new customers to this new integrated marketing platform by 2016. The management hopes that Galileo will provide them with a unique competitive advantage, that will lead to greater customer growth.