Customer service is something that, if done right, can help you retain accounts for life. Coupling an incredible product with superb customer service is a proven recipe for building loyalty and advocacy.
Kustomer was built to help businesses understand everything they need to know about their customers and support them accordingly. Their platform integrates with data from other tools and homegrown systems to give customer support agents the information they need to provide excellent service as fast as possible.
How much is Kustomer doing in ARR?
Kustomer is a pure-play SaaS platform that charges on a per user per month basis. The company currently offers two pricing plans, Enterprise and Ultimate, at $99 and $169 per user per month respectively. According to CEO Brad Birnbaum, more than 80% of customers are signing up for the Enterprise plan with the average customer paying around $100 per month.
While specifics weren’t disclosed, Birnbaum noted that the company is serving approximately 1k unique logos today. With an ARPU of $100 and 1,000 total customers, a minimum of $1.2M in ARR can be assumed. Kustomer, founded in 2015, just closed their 5th quarter of sales and has grown revenue 6x year over year.
What is Kustomer’s churn?
Still in the early days, Kustomer has yet to churn a single customer with an ACV north of $5k, Birnbaum mentioned. Overall, the company exhibited net negative revenue churn of 40% last quarter and is driving expansion revenue based on number of seats.
Kustomer has raised $38.5M in outside capital to date and recently just secured $26M in June of 2018. Going forward, their team of 52 full-time employees is looking to use this additional capital to become more aggressive with their payback period and customer acquisition efforts.