With all the gloom in the global economy, I got to wondering whether there is anything else going on in the world of business. I'm looking for growth because I think that's what will ultimately bring the economy out of the doldrums. Not surprisingly, that growth is coming from technology companies. In Growth Matters, I look at consumer technology companies that point the way to growth trends -- and in the process introduce services and products you may want to explore.
Do you ever struggle to schedule a dinner with friends or a business meeting? If so, Doodle may be the service for you. Doodle -- which is growing 10% per month on a "mouth-to-mouth" or viral basis -- has an interesting history. According to my interview with Tilman Eberle, Doodle's Vice President of Communications, "In late 2003, Michael Naf was trying to organize a dinner for friends. He started sending around emails to work out the details. He thought there should be an easier way but, he could not find a service to do this, so he programmed one himself. His friends used it, and it started to become something he worked on besides his normal job."
Eventually Doodle grew to the point where Naf could not manage it on a part-time basis. As Eberle said, "The user base grew to 200,000 clients per month in 2006, and Naf realized that it was not a hobby and it had huge potential. So he founded Doodle with Paul E. Sevinc in 2007. They got money from investors to make the site professional."
Doodle makes money from membership fees and advertising. It has two kinds of membership fees. According to Eberle, "Doodle charges individuals to personalize Doodle, and it also charges corporations to make Branded Doodle, which is tailored to each company's needs."
Doodle also gets significant advertising revenues. As Eberle said, "Our advertisers include the Swiss National Airline, Helvetica Tours, and Interhouse (which rents chalets). We have display advertising, but only for really high-end products and services, and we don't want to overload our users. We just want to advertise really well known products and services."
Doodle has the biggest share of the market where it got started -- Switzerland. As Eberle said, "We have 2.5 million clients per month, mostly in Switzerland, where we have a high penetration. The second largest market for us is in specific countries in Europe – such as Germany, France, Belgium and the UK. And finally we are targeting the U.S."
It seems to me that people all over the world could benefit from Doodle. What do you think?
Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College. His eighth book is You Can't Order Change: Lessons from Jim McNerney's Turnaround at Boeing. He has no financial interest in the securities mentioned.
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