In the marketing world, quizzes have been used for years to engage audiences and qualify customers. By asking just a few targeted questions, you can entertain your potential customers and gain valuable information around their preferences at the same time.
Riddle is a quiz marketing platform built by industry experts that helps businesses collect email addresses through quizzes. Their software helps companies engage and excite their audiences, qualify and segment potential customers, and auto-send messages to convert more customers.
How much is Riddle doing in MRR?
Riddle is a pure-play SaaS company that charges its customers on a monthly subscription basis. They offer a 14-day free trial that does not require a credit card, along with three pricing tiers ranging from $19 per month up to $249. According to CEO Mike Hawkins, the average customer currently pays Riddle around $50 each month.
With more than 700 total customers, Riddle is doing around $35k in MRR right now. Hawkins noted that the company is also growing revenue 10% year over year.
What is Riddle’s churn?
Riddle is currently exhibiting 3% gross logo churn per month. Hawkins has explained that the company has reduced churn by 40% in the last year by placing emphasis on customer service. To this day, the company’s co-founders are still involved in answering customer service emails and assistance during on-boarding.
Customer acquisition for Riddle has come solely from organic channels to this point and the company has not experimented with paid channels thus far. Hawkins elaborated that most deals have come from in-person sales and word of mouth, at this point in time.
How much has Riddle raised?
Riddle has raised $2.1M in total outside capital to date. Hawkins said that this funding was raised from European angel investors and that the founders have maintained complete ownership of the company despite taking on outside cash.
Riddle’s team of 5 full-time employees are based in Germany and the U.K. Going forward, the company is looking to use content from their recently published book to drive growth via paid marketing channels.