In two years, e-conomic has more than doubled its number of customers and is well on the way towards the goal of reaching 100,000 customers by 2013.
e-conomic, which provides online accounting solutions to small and medium businesses, has now reached 33,333 customers. Many of the 60-70 new customers a day have previously used desktop software such as Microsoft C5 and Navision. At the same time, the strategy in foreign markets is starting to pay off. Approx. 25-30% of newly started companies use e-conomic.
According to CEO Torben Frigaard Rasmussen, there are several reasons for the rapid increase in new customers. One of the main reasons is that more and more accountants are becoming aware of the benefits of online accounting when trying to increase efficiency and get a more dynamic customer approach.
Recommended by accountants
- Online accounting provides accountants with entirely new opportunities for cooperation and optimizes their resources. We cooperate with around 3000 accountancy and administration firms that can increase the efficiency of their business processes significantly by using online accounting. Many of these accountants recommend us to their customers, says Torben Frigaard Rasmussen.
According to Torben Frigaard Rasmussen, newly started companies today are more aware of the existence of cheaper and more efficient solutions. As a newly started company, it doesn't make sense to invest in expensive equipment when you can get access to continuously updated accounting software at a low monthly rate.
Subscription-based service
- We use a subsciption-based business model where a company pays 20 EUR per user per month for access to all basic functionality. This is also why the financial downturn has been beneficial to us. People understand that they don’t have to spend 500-3,000 on buying and customizing an ERP system when they can rent it at a low monthly rate instead, says Torben Frigaard Rasmussen.
The e-conomic solution has been translated and adapted for use in nine countries, but is used in more than 50 countries throughout the world.
Ambitions abroad
The vast majority of e-conomic’s customers are small and medium businesses located in Denmark. In order to reach the goal of 100,000 customers by 2013, an effective expansion abroad is required. Today, e-conomic is present in several foreign markets, including Sweden, Norway, Germany, Spain, France, Poland and the UK. An aggressive go-to-market strategy is in place to ensure success abroad.
- When we expand to new countries such as Germany, Poland and Spain, we start out by hiring people in Denmark to run the process. When the turnover has reached a sound level, we begin working out a more cost-intensive strategy, which may include building a local organization in each country, says Torben Frigaard Rasmussen.
e-conomic is headquarted in Copenhagen and currently has around 60 employees.
Further information
Torben Frigaard Rasmussen, e-conomic CEO, +45 26 16 33 90