Chatbots continue to generate buzz in the marketing community. With the ability to deliver targeted content and collect valuable user data, chatbots are rapidly becoming a viable channel for customer outreach.
Tars is taking advantage of this trend and was built to help marketers replace their landing pages and forms with chatbots to increase conversions. Their conversational landing pages are hooking potential customers and helping businesses increase PPC conversion rates by 50-200%.
How much is Tars doing in MRR?
Tars is a pure-play SaaS business that charges its customers between $100 and $150 per month. They charge based on both the number of conversations driven and the number of unique chatbots deployed.
The company serves 150 total paying customers and is doing $20k in MRR today, according to CEO Ish Jindal. Up from just $5k in MRR 12 months ago, Tars is currently growing 300% year over year.
What is Tars’ churn?
Tars is exhibiting 2-3% gross revenue churn per month at this point in time. Jindal noted that gross and net revenue churn are similar figures today, as the company has just begun placing emphasis on driving expansion revenue.
In the early days, customer acquisition was driven from outbound sales efforts however, today new leads are coming solely from organic channels. Through content marketing and click-throughs from their “Powered by Tars” branding, the company is landing new customers without any paid advertising.
How much has Tars raised?
Tars is a completely bootstrapped company. They’ve grown to scale without any outside funding are not currently looking to raise. Jindal noted that he has his sights set on hitting $1M in ARR before considering investment.
The company’s team of four full-time employees are based in India and St. Louis today and estimates lifetime value (LTV) at $2k over 15 months.