Constant Contact Explores Non-Profits As Its New Market

by Trefis Team
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Constant Contact
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Constant Contact Inc. (NASDAQ:CTCT), which helps small organizations connect with their customers through a suite of online engagement marketing tools, recently conducted a survey and the results indicate that non-profit organizations are a potential future market for its operations.

The company offers a complete set of online marketing tools, including email, event, social media and mobile marketing, and competes with Groupon (NASDAQ:GRPN), Living Social, Eventbrite, iContact, Surveymonkey as well as Salesforce.com (NASDAQ:CRM).

We currently have a $30 Trefis price estimate for Constant Contact, which is nearly 57% above its market price. Online content marketing accounts for all of its value.

See our complete analysis for Constant Contact

A surprising trend from the survey suggested that most non-profits believe enhanced supporter engagement and attracting new supporters are more important from a marketing perspective than generating funding. Even though generating funds is the primary motive, increased focus on support based expansion could mean better business possibilities for the company.

For marketing-related activities, email marketing, websites, in-person interactions, events and social media were the most popular. Almost half of those surveyed believe in-person interactions to be the most effective. Facebook was the most popular social media for promotional activities.

The surveyed non-profits opined that almost three-quarters of their supporters would recommend them to their friends. This provides them with access to a large number of second and third degree contacts. With almost 20% of their budgets spent on marketing, these non-profits can utilize the services offered by the company to effectively promote themselves across various platforms. With over 525,000 existing paying customers and services that let the customers customize, schedule and measure the performance of their initiatives, the company has a new avenue of institutional customers to explore.

As per the survey results, almost 67% of the non-profits expect to grow this year. With increased operating costs being a concern for almost half of the surveyed non-profits, offerings such as the Social Campaign product from the company, which is free for users if they have less than 100 fans, will help the organizations get results while keeping costs in check. The additional analytics based services from the company means that the non-profits can even save on additional labor.

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