Making it easy for favorite customers to refer your product or service is an easy way to grow rapidly. If you provide an amazing experience, you need to to encourage your advocates to spread the word and shout your praise from the nearest rooftop.
CloudSponge is a software tool built to optimize your product’s invitation form and improve your business’ referral program. Their platform integrates with dozens of address book providers all at once and provides bulk invitations and contact importing.
CloudSponge is a pure-play SaaS business that charges customers on a recurring monthly subscription basis. While pricing and features have changed over the years, the company’s current average customer pays them $100 each month.
According to CEO Jay Gibb, CloudSponge now serves 350 total customers and is doing $35k in MRR at this point in time. Gibb shared that growth has been a big concern for the business recently and that the company has been flat for the last two years.
What is CloudSponge’s churn?
Churn was at one point a massive issue for CloudSponge, but back in 2014, the company decided to move upmarket and has since improved retention. Today, the company is exhibiting 2% gross logo and 1% net revenue churn per month.
Customer acquisition has been a struggle for CloudSponge to measure thus far and not a metric the company has strong analytics around. Gibb explained that a large portion of their new deals come through referrals and from the vitality they designed through “powered by” branding.
How much has CloudSponge raised?
CloudSponge is a product that launched out of an agency back in 2010 and has grown to scale with a small amount of funding from the agency. Going forward, Gibb is not interested in selling the company despite being flat and feels there is a lot of opportunity to grow the business through a reseller and agency program.
CloudSponge’s team of 3 full-time employees and 7 contractors is remotely distributed.