Recall my Cold Call commentary #reply-12260244? Fortunately for Messagemedia, its large customers do not fall into this category.
As stated previously, a cold call email has a low rate of return #reply-12260244. Of course several variables are at play, like price and demographics, but 1 sale in 1,000 to 5,000 is about all the interest you are going to spark in a cold call.
Now consider two of Messagemedia's clients, Cisco and Adobe. The conversion to sales rate on these messages is much greater than the cold call hence they are more likely to repeat their business with Messagemedia. I'm assuming many of the Cisco and Adobe messages deal with upgrades and new product announcements, in which case, you are probably converting over 50% of the upgrade announcements into sales as people strive to stay competitive or current. New product announcements probably convert to sales at a much lower rate, but an existing client still remains a better prospect than a cold call. What I'm getting at, the quality of the client, is very important and can mean the difference between success or failure. Cisco, for example, has over $13 billion in annual sales and Adobe has about $1 billion. They each have demonstrated they have products many people want.
In short, Messagemedia has combined quality of client with economies of scale to deliver a one-two punch to its bottom line. It may take a couple of quarters before it becomes apparent but this combination will lead Messagemedia to the promise land, which is beyond where KANA fails to go, if you know what I mean.
As for those Yahoos who failed to keep faith and sold the other day below $14 when they should have been buying, you have been justly punished. |
