Retention pushes significant Q3 growth for Fleetmatics


Fleetmatics talks its third quarter, customer retention, new products, and global expansion

Retention pushes significant Q3 growth for Fleetmatics
Fleetmatics Reveal mobile home menu.

 

Global workforce software company Fleetmatics Group has recorded significant revenue and subscriber growth in its third quarter results on the back of customer retention and new market successes.

Fleetmatics, which provides mobile workforce solutions to subscribers in a software-as-a-service (SaaS) package, increased revenue by 22 per cent to US$73.5 million in 2015 thanks to global subscriber numbers growing by 25 per cent year-on-year to over 650,000 active vehicles.

Speaking with ATN in the wake of the announcement, Fleetmatics global customer experience vice president Joe Boyle says the numbers are a "testament to not only the value of the platform but also the quality of the service that we deliver."

"The most important validation point of what we do shows up in our retention rates," Boyle says.

Delivering a real-time platform for customers to observe and aid their workforce’s productivity and operations, Fleetmatics works as a pre-packaged solution that can be tailored to answer customer problems.

Boyle says the retention rates stem from keeping promises made during the "evaluation stage".  

"We work closely with our customers to make sure those cost savings and those operational improvements become a reality," he says, "when that happens we retain customers for the long term and it makes it easier to go out and get the next customer."

"We operate in a large global market but the world is still pretty small.

"The word of mouth and the reputation that you build by delivering on what you say you’re going to do for your customers really help you take the business where you need to take it."

The nature of the business has also made it easier to grow, Boyle says, as growth from successful customers means more subscriber vehicles for Fleetmatics.

"When that growth occurs, it absolutely results in additional subscribers on our platform," he says.

"We have seen that from the very early days of our business; if you look at where our subscriber growth comes from, more than 20 per cent of the subscribers that we have, in any given period, come from sales back into our customer base."

Customer retention is also a mindset, Boyle says.

"I think a lot of players in this space think about it as a one-time hardware sale, and we very-much think about it as a recurring service sale, where we need to be partnered with our customers to help them realise the long-term benefits," he says.

"We continually re-engage with them to help them figure out how to get more out of the platform they have already invested in."

 

Fleetmatics Reveal live map traffic overlay.

 

Company expansion

While Fleetmatics started out with small service-based businesses, Boyle says it now has "very good footprint in enterprise-class customers."

This customer base ranges from transport and logistics companies to telecommunication and utility industries to ‘white van’ businesses, such as tradespeople.

"If you have a mobile workforce, we are the platform that can help you not only understand what is happening with your business, in terms of visibility, locations, and actionable information to drive productivity, but we can also extend that further by providing a suite of applications to make the worker, themselves, more affective," Boyle says.

This is an area that is becoming "increasingly important for a highly efficient, connected workforce," he says, as "the proliferation of mobile technology" means smartphones have opened opportunities for greater communication.

For managers, they can "communicate in real-time with that worker in the field… not only on where they need to be, but what can be accomplished," he says.

This includes "being able to capture signatures from customers, and capture images from the job site or from the delivery."

For the transport industry, Boyle says the company is focusing on driver safety and driver behaviour in all markets, and continuing to expand its electronic driver diaries capabilities on the back of increased levels of mandates in Europe, North America and it "becoming more of a talking point in Australia."

Launched in May, the company has a new Routist offering for fleet managers, which organising routes for vehicles after taking location, vehicle, time window, technician skill, and cost data into consideration.

"Fleetmatics Routist also incorporates historical traffic data into its algorithm, elevating traffic and routing optimisation effectiveness for customers operating in metropolitan areas," Fleetmatics says.

"Once the routes are live, dispatchers and managers stay current on a driver’s progress against route stops in real-time on the Fleetmatics Reveal live map and can make real-time adjustments as needed."

Fleetmatics has also expanded its physical reach in recent times, with acquisition of a Visirun in Italy, which added 28,000 vehicles and 3,000 customers, and growth of operations in France and Holland.

 

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