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Customer.com

by Brad BarnbaumLaunched 2015-09via Nathan Latka Podcast
See all SaaS companies using enterprise direct sales
MRR$90k/mo
Growthenterprise direct sales
Time to PMF1.5 years
Pricingsubscription
Built in1.5 years
The Spark

Brad Barnbaum had spent the last 20 years building customer support companies. His first major exit was Assistly, which sold to Salesforce for over $50 million and became Desk.com. After three years at Salesforce learning the enterprise SaaS game, he wanted to strike out again. He briefly served as CTO at Airtime (Sean Parker's social network venture), but realized his heart was in B2B, not consumer. In August 2015, Brad and his long-time co-founder Jeremy Seeley (who had worked together since 1996 through multiple companies) decided to launch something new: a modern customer support platform for the post-Salesforce era.

Building the First Version

Customer.com was incorporated in September 2015, but Brad and Jeremy made a deliberate decision not to rush to market. They spent the first 18 months building a proper platform—one designed for scale from day one, with extensibility so others could build apps on top. "We set up the company that way. We structured it. We capitalized on it. We wanted to build the proper product for scale," Brad explained. First customers started getting the product in November 2016, and they officially began billing on April 1st, 2017. This long build phase meant they were "in market for five quarters" by the time of this interview, even though the company was founded in 2015.

Finding the First Customers

The platform's value proposition was clear: most customer support systems use basic ticketing that knows nothing about the customer. If someone emails saying they have a problem with pants they ordered, the support agent can't correlate it to their order, invoice, SKU, or size. Customer.com solved this by pulling in data from Shopify, Magento, WooCommerce, Spree, and custom proprietary systems. When a customer contacts support, the agent sees everything and can take action with a single button push instead of navigating three to five systems. Brad focused on mid-market companies and above, targeting customers with ACVs over $5,000. He had zero net churn and was seeing existing customers expand by 40% quarterly—some growing from 10 seats to 100 seats in 12 months.

What Worked (and What Didn't)

Their pricing model was simple: $50/month, $100/month (enterprise), and $169/month (ultimate), with seat-based expansion as the primary lever. Most customers landed on the enterprise tier. Rather than chase SMBs on the $50 plan, Brad doubled down on mid-market and above, where 80% or greater of recent deals landed. By the time of this interview (June 2017), they had between 1,000 and 10,000 customer logos, though some had thousands of seats, meaning impact far exceeded pure customer count. They had fortune 50 companies using the platform. The VC rule of thumb is triple-triple-double-double growth; Customer.com was 6X'ing revenue in their first two years post-launch, which Brad noted was "quite strong compared to other companies at our stage in time of market."

Where They Are Now

By June 2017, Customer.com had raised $38.5 million across a seed round of $2.5M, Series A of $10M, and a Series B of $26M (just closed). They had 52 employees, all in New York originally but expanding to the Bay Area, LA, Austin, Seattle, and Toronto. With the fresh capital, Brad said they would "get a little more aggressive" on payback period, entering "hyper growth mode." The average customer paid about $100 per month with expansion driving net negative churn well into negative territory. Brad's advice to his 20-year-old self: he wished he'd thought about SaaS earlier. His on-prem struggles in the late '90s and early 2000s could have been avoided with a cloud-first mindset from day one.

Why It Worked
  • Brad's 20-year track record in customer support and prior $50M+ exit gave him deep domain expertise and credibility to attract enterprise customers directly without reliance on marketing channels.
  • The 18-month pre-launch development phase ensured a scalable, extensible platform that solved a real pain point (fragmented customer data across systems), enabling rapid expansion within landed accounts and zero net churn.
  • Focusing exclusively on mid-market and enterprise customers with $5,000+ ACVs allowed the team to capture high-value accounts where seat-based expansion could drive 40% quarterly growth without chasing unprofitable low-tier customers.
  • The combination of founder-led enterprise direct sales, seat-based pricing, and clear data integration value proposition created a self-reinforcing loop where early wins (Fortune 50 companies) validated the product and attracted similar-tier prospects.
How to Replicate
  • 1.Spend 12-18 months building a scalable, extensible platform before launching—prioritize architectural quality and third-party integrations over speed to market if your TAM supports the investment.
  • 2.Identify a specific, quantifiable pain point in your domain (fragmented customer data) and build your core value proposition around solving it with a single action, then validate this resonates with mid-market and enterprise buyers.
  • 3.Leverage founder domain expertise and prior exits to establish credibility for direct enterprise sales; use early wins in recognizable companies (Fortune 50) as proof points in subsequent prospecting.
  • 4.Choose a pricing model that scales with customer success (seat-based expansion) rather than one-time licenses, and focus sales efforts entirely on segments where ACV exceeds $5,000 to ensure efficient unit economics.

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