How This Duo Grew a Video Survey Platform to $10M ARR
Who is Dave Carruthers?
Dave Carruthers, the founder of VoxPopMe, hails from Birmingham, UK, with a background in digital technology and entrepreneurship, having previously run a digital and mobile design agency before starting VoxPopMe in 2013 to innovate in the area of video-based consumer feedback.
What problem does VoxPopMe solve?
VoxPopMe solves the challenge of gathering genuine customer feedback by enabling brands to capture rich video responses, providing deeper insights than typical surveys, which helps businesses make more customer-centric decisions with ease.
How did Dave come up with the idea for VoxPopMe?
The idea for VoxPopMe emerged from firsthand insights into the challenges faced by startups and the growing trend of video technology usage in everyday life. While assisting startups in developing technology, Andrew Barraclough and Dave Carruthers observed a gap in how brands connected with their consumers—through insights that lacked depth and authenticity. They noticed that while traditional surveys provided quantitative data, the emotional and rich qualitative feedback from consumers wasn't being captured effectively.
At the time, video was becoming increasingly prevalent with the rise of platforms like FaceTime and Facebook Live, and people were becoming comfortable sharing video content. This observation led them to explore video as a medium to bridge the gap between brands and their consumers. They believed that video could provide brands with deeper insights into consumer sentiment than textual surveys could.
Before committing to the idea, they validated their hypothesis by testing the appetite for such a service, showing initial video responses to organizations like the BBC and McDonald’s, which demonstrated a significant interest in authentic consumer stories. They used this feedback to refine their concept, ultimately leading them to create a platform that allows brands to gain deeper insights into consumer behaviors and ideas through video surveys.
How did Dave Carruthers build the initial version of VoxPopMe?
The development of VoxPopMe's platform was rooted in both emerging technologies and tried-and-true methods. Andrew Barraclough, along with his team, leveraged a mix of modern programming languages including PHP and Node.js to construct the platform, utilizing Angular for the frontend.
To ensure seamless functionality and scalability, they implemented a centralized API layer and integrated various AWS services such as SQS, SNS, and Lambda. The first iteration of the platform took several months to complete, navigating the complexities of handling video asynchronously for processes like transcription and sentiment analysis.
A noteworthy challenge was ensuring efficient video data processing, which they addressed by employing microservices and collaborating with partners like IBM Watson for advanced analytics. This blend of in-house innovation and strategic partnerships allowed VoxPopMe to quickly iterate and refine their product, despite the technical challenges inherent in pioneering video survey technology.
What were the initial startup costs for VoxPopMe?
- Funding: VoxPopMe raised an initial $750,000 in 2012, followed by a series A in 2019 for about $9 million led by Origin Ventures. Total funding over various rounds has reached approximately $23 million. This information was gathered from a combination of the sources provided, which detail their funding rounds over the years.
How did Dave launch VoxPopMe and get initial traction?
Initial Customer Acquisition Tactics for VoxPopMe
Collaboration with Agencies
VoxPopMe initially reached out to digital and market research agencies to introduce their innovative video feedback platform. Leveraging these agencies' existing client relationships, they were able to integrate their technology as part of the agencies' offerings. This initial collaboration led to some of their first significant clients, such as Manchester City Football Club and Asda.
Why it worked: Partnering with agencies allowed VoxPopMe to gain credibility and reach large clients without direct marketing efforts. These relationships helped quickly validate their product and obtain substantial early revenue.
Strategic Partnerships
The company's U.S. expansion was significantly aided by a strategic partnership with InMoment, a customer experience platform. InMoment discovered VoxPopMe through a mutual client, leading to a collaboration where VoxPopMe's technology was integrated into InMoment’s offerings for their clients. This partnership further solidified their entry into the U.S. market and contributed significantly to their revenue growth.
Why it worked: The partnership provided VoxPopMe with a reliable channel to enter a significant market (U.S.), expand their customer base efficiently, and leverage InMoment's established reputation and client list.
Pilot Studies and Paid Trials
To gain traction and prove their product’s value, VoxPopMe offered potential clients paid pilot studies before committing to a full subscription. These pilots allowed clients to understand the benefits and credibility of video feedback in their specific context, leading to more substantial subscription commitments.
Why it worked: Paid pilots ensured VoxPopMe was compensated while simultaneously minimizing risks for clients, encouraging serious engagement with the platform's functionalities before a larger investment.
Fostering Industry Relationships
By networking with key stakeholders and maintaining relationships with potential partners and early adopters in the industry, VoxPopMe was able to form a strong foundation of industry support. This networking included attending industry events and connecting with decision-makers who could leverage their technology at scale.
Why it worked: This approach helped VoxPopMe create a robust network of industry champions who could influence more extensive adoption and provide valuable client feedback, leading to product improvements and tailored solutions.
What was the growth strategy for VoxPopMe and how did they scale?
Email Marketing
VoxPopMe utilized email marketing in its early days to continually engage with potential clients. Dave Carruthers, the founder, mentioned the significant focus on using HubSpot’s marketing and CRM platform to deliver digital campaigns during crucial growth stages. They transitioned to Salesforce as their client base grew to gain more robust sales analytics and a sophisticated CRM.
Why it worked: Email marketing allowed VoxPopMe to maintain a direct line of communication with prospects and clients. By analyzing email campaign performance, they could also fine-tune their messaging and offers, which was pivotal in nurturing prospects through the sales funnel.
Partnerships
VoxPopMe’s growth was significantly propelled by strategic partnerships. One landmark partnership was with InMoment, which helped them establish a presence in the U.S. early on. This partnership involved an exclusivity deal that significantly increased their revenue and client base.
Why it worked: Partnerships allowed VoxPopMe to leverage the established networks of larger companies. Through such alliances, they expanded their service offerings and penetrated new markets faster than they could on their own. However, they acknowledged that while partnerships could be a powerful tool, they often took longer to deliver tangible results than anticipated.
Enterprise Clients & Networking
VoxPopMe aligned with large enterprises such as Microsoft, Clorox, and Verizon. The founder actively participated in networking events and trade shows, which were instrumental in building industry recognition.
Why it worked: Targeting enterprise clients not only provided substantial revenue per deal but also helped build credibility. By focusing on top-tier clients, VoxPopMe could showcase their solution’s scalability and effectiveness, opening doors to other large enterprises.
Content and Inbound Marketing
VoxPopMe heavily invested in content and inbound marketing strategies. Their marketing team focused on inbound/content marketing, producing engaging content to attract prospects to their site and nurture them through the sales funnel.
Why it worked: Inbound marketing helped establish VoxPopMe as a thought leader in the video insights space. By consistently providing valuable and informative content, they were able to attract a steady stream of qualified leads to their platform, enhancing their brand presence online.
What's the pricing strategy for VoxPopMe?
VoxPopMe offers a subscription-based pricing model for their video insight platform, typically charging around $40,000 per year for enterprise clients, alongside options for customized plans.
What were the biggest lessons learned from building VoxPopMe?
- Focus on Partnerships: VoxPopMe learned that while partnerships can propel growth and access to new markets, they often take longer to materialize than expected. Setting realistic expectations and understanding that partner priorities might not align with yours is crucial.
- Balancing Innovation with Core Product: In its journey, VoxPopMe faced challenges by veering from its core product due to customer demands. The lesson is to protect your core roadmap and vision to avoid becoming distracted by short-term gains that don't align with long-term goals.
- Thoughtful International Expansion: Opening new markets requires intention and research. VoxPopMe's US expansion was successful due to strategic partnerships and understanding market potential, whereas their Singapore expansion taught them the risks of moving too quickly without full comprehension of market dynamics.
- Hiring and Team Building: Early hiring at VoxPopMe was marked by the tendency to hire similar profiles, initially hindering diverse thinking. Over time, the company emphasized the importance of bringing in diverse backgrounds and aligning hires with company values and culture.
- Funding Insights: Iterative angel and venture rounds taught VoxPopMe to be cautious with valuation and terms, understanding that too many price rounds dilute founders' equity. The company stressed the importance of setting clear expectations with investors from the outset to avoid future misalignments.
What platform/tools does VoxPopMe use?
VoxPopMe Acquisition: How much did VoxPopMe sell for and what was the acquisition price?
VoxPopMe was acquired by InMoment in May 2023 for an undisclosed amount, strengthening InMoment's capabilities in video feedback and customer insights.
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More about VoxPopMe:
Who is the owner of VoxPopMe?
Dave Carruthers is the founder of VoxPopMe.
When did Dave Carruthers start VoxPopMe?
2011
What is Dave Carruthers's net worth?
Dave Carruthers's business makes an average of $2.92M/month.
How much money has Dave Carruthers made from VoxPopMe?
Dave Carruthers started the business in 2011, and currently makes an average of $35M/year.
