Austin, Texas-based Convio, which operates on a software-as-a-service basis, said its eCRM software includes a suite of modules for fundraising, advocacy, email marketing, and web content management, complemented by consulting services.
It sees a big market for its products. According to the Internal Revenue Service, in 2006 1.5 million NPOs in the US reported over $1.6 trillion in revenue, representing 12.2% of the US gross domestic product. More than 83,000 NPOs reported 2006 revenues of $1m or more, according to the IRS.
Convio said traditional methods deployed by NPOs include direct mail, events, face-to-face solicitations, telemarketing, and direct response television and radio. While it expects NPOs to continue to use these methods, it said these approaches suffer from a number of limitations including limited ability to expand a constituent base, high acquisition costs, difficulty in retaining constituents, poor constituent experience, and limited ability to respond in real time to current events.
It said its on-demand eCRM software, built around its Constituent360 core platform, enables a fundamental shift in how NPOs use the internet to engage constituents, raise funds, and mobilize advocates.
Convio is loss-making but growing. In the year to December 31, 2006 it cut its net loss from $5.8m to $4.9m on revenue that increased 62% to $21.5m. It boosted its operations with the acquisition of GetActive in February, but on a pro forma basis, it increased its net loss from $6.2m to $7.4m on revenue that increased by 34% to $20.7m.
It said its competitors are companies that focus on NPOs, including public companies such as Blackbaud and Kintera, and to a lesser extent, various smaller private companies. However, it said it can also see the threat of Microsoft, Oracle, Salesforce.com, and The Sage Group moving into the market in the future.