In the world of startups, creativity and innovation will always trump heritage and background. Take Picatic, a startup founded in humble Saskatoon that has been making waves in the event management industry for the past two years. Jayesh Parmar, Picatic’s CEO and co-founder shares with us how Picatic is removing barriers and lowering costs with its “Fair Pay” model and how event organizers and small medium businesses cough* your startup* cough can utilize its upcoming products.
Through their travels to Toronto, New York City, Vancouver and Silicon Valley, Team Picatic realized that although they had a slick platform, an establish user base and are generating a profit they were competing in a crowded space with giants like Eventbrite and Ticketfly. While they came to the realization that their platform was a “me too” product during their travels, the exposure to other ideas and businesses also gave Jayesh and the Picatic team ideas on how to expand and stand out from the event ticketing pack. With service fees skyrocketing as high as 62% markup, consumers around the world were desperate for a solution. Jayesh went back to his investors and proposed an audacious idea: Fair Pay.
Fair Pay empowers event organizers to pay what they believe is fair for utilizing Picatic’s services, whether it’s ticketing and/or crowdfunding an event. With the exception of payment processing fee, it does away with the old fee model such as application, setup, service and transaction fees.On top of choosing their own service fee costs, organizers are empowered to create beautiful event websites through an intuitive user experience. Picatic’s features help organizers sell more tickets as does the new value add feature; Picatic Pro for the professional market. In an industry where dominant companies push event organizers and venues to sign long term exclusivity contracts means the cost of missed opportunities are passed on as service charges onto ticket buyers. Fair Pay aims to break the stranglehold by offering event organizers the freedom of choice and ticket buyers’ freedom from miscellaneous fees.
Although it took some time to convince all the investors, the ideas paid off handsomely. When Fair Pay rolled out, not only were people purchasing through Picatic, it was getting referral business as well. Revisions and feedback loops increased compliance (payment) from 62% of its users to as high as 92% with payment ranging from 1.5% to 3% of their net revenue. Metrics built within the platform help Team Picatic perform cohort analysis and discovering which cohorts (usually businesses) were generating the most revenue per event, paying the most for the use of Picatic’s services and frequency in use. Team Picatic knew they were onto something. Within a year of offering both services the company saw over 100,000 tickets produced, 45,000 account signups, $4.2 million gross revenue and year over year growth calculated at over 100%. Understanding customer loyalty is critical to the company’s long term business, Team Picatic measured its own net promoter score. Where a 6 is high in the ticketing industry, the Picatic platform was rated at 9.16, in Jayesh’s own words: “People love our product.” This is mighty impressive for a startup that hasn’t spent a dime on marketing or advertising.
Looking to the future and realizing the potential in decentralization, Team Picatic plans to double down on their achievements by introducing a white label product for small and medium businesses and API for events. Beta tested and soft launched to Picatic’s clients and international partners, the white label product enables businesses to make use of Picatic services and brand it as their own. From Jayesh’s perspective API is where software to software communication is headed. These days, an event management company’s software integration is decided by its IT department rather than event organizers. Picatic’s API easily integrates its services with client’s software without the IT department worrying about disrupting existing tech infrastructure concerns and webhooks. Jayesh concluded that giving power to the people and the event organizers had one underlying premise: “When the consumer purchases, it’s going to be ridiculously easy.”
Being ideally positioned, Picatic has concrete metrics to support it’s customer cost of acquisition, average revenue per user and customer lifetime value. The company has a strong team, proven traction and a disruptive product that will lead to increased profits and fuel it’s current accelerated growth. In an 18 billion dollar general assembly market, Picatic is ready to scale and become the market leader.