Constant Contact, Inc. Q1 2009 Earnings Call Transcript

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2009-05-07 17:50:35.0

Tags: Oppenheimer & Co., Call Transcript, Earnings, Conversion Rate, Advertising & Promotion, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

Thank you, sir. (Operator Instructions). We'll take our first question from Brad Reback with Oppenheimer.

Brad Reback – Oppenheimer & Co.

Hi guys, how are you?

Steven R. Wasserman

Hi, Brad.

Gail F. Goodman

Hi.

Brad Reback – Oppenheimer & Co.

So, as you look into your 60 day free trial pipeline, can you give us some sense about what's going on there?

Gail F. Goodman

We have never actually shared much of our trial pipeline. We really do focus on customer account as the most important metric; we drive trials from a wide range of sources all of which have different conversion rates. We know what the individual source's conversion rates are and focus and forecast based on that, but not something that we've shared in the past, what are you trying to get too?

Brad Reback – Oppenheimer & Co.

I’m just trying to understand the visibility and I think you pretty much answered the question in your commentary earlier, but just sort of trying to understand has that increased sequentially as well has that continue to increase month-after-month and along those lines?

Steven R. Wasserman

I mean Brad, we are not going to give our specific numbers as Gail said, but I mean the way our customer account is going up is based on more trials and better conversion rates.

Brad Reback – Oppenheimer & Co.

Okay. And then I was going to ask that next Steve, the conversion rates have continued to improve. So, I guess the question would be do you think the radio program is bringing you a higher quality prospect?

Gail F. Goodman

Yeah. So, we are definitely seeing, the customers we are generating from radio look just like the aggregate customer base, you see that in the average revenue per customer in which pricing tiers they're falling into, we also see that in their speed of engagement and their conversion rates. So, we are really not seeing substantive differences in the folks coming from the various channels.

Steven R. Wasserman

And Brad just to be clear, conversion rates continue to improve slowly overtime, but I don’t want you to think that the net customer ad number was due in large part to dramatic improvements of conversion because that’s not how it works, it goes up slowly and steadily overtime.

Brad Reback – Oppenheimer & Co.

Great. Thanks a lot.

Steven R. Wasserman

 

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