In the retail world, it can be extremely difficult to keep track of the numerous moving parts; tracking inventory, customer information, and sales data all at once is a daunting task.
Luckily for complex retailers, ECRS was built as an all-in-one solution. Their software helps businesses optimize their point of sale, inventory management, analytics, reporting, marketing, and more.
How much is ECRS doing in ARR?
ECRS is a software business that generates revenue by charging for licenses, subscriptions, professional services, and hardware. According to CEO Pete Catoe, roughly 90% of the company’s revenue comes purely from software sales at this point in time.
With a variety of features and solutions, pricing varies widely for ECRS. Packages begin at less than $100 monthly, with the average customer paying between $500 and $600 each month.
Catoe explained that ECRS serves 4k total customers and is doing $30M in ARR right now. The business has been relatively flat year over year, growing revenue only 10% in the last twelve months, but is positioned to expand rapidly in 2019 with the roll-out of new features.
What is ECRS’ churn?
Catoe mentioned that the company acquires customers “one at a time” and places a significant emphasis on building loyalty. Today, the business exhibits only 2% gross logo churn annually and typically is able to re-acquire lost customers within 12 months.
ECRS is also very “picky” about the customers they bring onto their platform. They spend roughly $1,700 to land a new deal and aim for payback within 3 months.
How much has ECRS raised?
Founded 30 years ago, ECRS has grown to scale solely by bootstrapping. Going forward, Catoe expressed no interest in raising outside capital and instead shared the company’s intent to operate on an employee stock ownership plan (ESOP). Catoe believes that giving his valued employees a stake in the business will help them reach $100M in ARR within 5 years.
ECRS’ team of 150+ employees is headquartered in North Carolina.