The Magic of SMS and MMS Marketing: 11-Year-Old SAAS Platform with 95% Retention Rate and 125 Current Clients
An 11-year-old SaaS platform offering SMS & MMS marketing services to B2B clients with a 95% customer retention rate, providing cutting edge solutions via mobile text messaging. Their client base includes restaurants, retail stores, non-profits, and churches
OPERATIONS
This SaaS platform provides comprehensive B2B text messaging services through a subscription-based plan that offers mass adoption. Their services range from two-way messaging to video messaging, drip text marketing, message scheduling, and text marketing data collection. The business generates additional revenue through offering multiple pricing plans for additional services.
This SaaS platform operates without any employees and is a fully automated system that requires no more than five hours per week to maintain. Their recurring subscription-based model drives revenue growth with minimal inventory risk.
MARKETING AND KEY METRICS
The agency, which has a Facebook account but has not invested in social media marketing, limits their lead generation tools to organic search. A blog on their site drives additional organic traffic. They focus on keeping their services cutting edge in the SMS space, with concatenated messages that allow a phone to send messages longer than 160 characters, and website tracking tools that allow e-commerce clients to analyze and target consumers who haven’t taken a targeted action after receiving the SMS. There are additional growth opportunities through digital marketing and a stronger emphasis on SEO results and newsletter updates to clients
This company’s primary sales channel is their comprehensive B2B text messaging service through their SaaS subscription-based model
This business has a 95% customer retention rate, with their three largest customer accounts having been with them for between six and nine years. Their largest source of revenue comes from clothing boutiques, followed by restaurants, generating $207,723 of gross income annually, and $378,233 in cash flow.
This B2B SaaS platform caters to a diverse clientele of well-recognized, brand-leading clients, particularly in the food and restaurant industry, with some notable clients such as Moe’s Southwest Grill, Hardee’s, and Tropical Smoothie Café
BUSINESS MODEL & RESOURCES NEEDED
This SaaS platform operates without any employees and is a fully automated system that requires no more than five hours per week to maintain.
THE INDUSTRY
The company operates in the digital marketing industry and specializes in SMS and MMS marketing services. Text messaging has been proven to be an effective way to reach millennials and Gen Z consumers and offers brands mass adoption, since everyone with a cell phone is texting today, including on WhatsApp, Snapchat, and other sites. The SaaS product allows businesses of any size to send SMS and MMS containing sale alerts, notifications, web links, coupon codes, informational updates, and promotions
OPPORTUNITIES TO SCALE
There are excellent growth opportunities for this company, including expanding the selection of upsell products and developing a concierge-type service that charges a premium rate for text blasts for interested clients. They could also hire a team of independent sales contractors on a commission basis to assist with outreach to small businesses. Investing in social media marketing would enable the company to build greater brand recognition in-text message marketing, and an affiliate campaign on social media would help the company expand sales through the expertise of their affiliates
Asking Price: $599,000
Gross Income: $207,723
Cash Flow: $378,233
Year Established: 2010
Employees: 1
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