One of Canada’s leading design startups has hit some impressive milestones.
Logojoy, the Toronto-based company that uses cutting-edge technology and AI to automate branding design, has sold over 50,000 logos. The company was founded just a year and a half ago, so the growth is unprecedented for a company that melds design and tech together. On top of this, the site company now boasts more than 1.5 million users spread across 182 countries.
“Our team has become exceptional at learning from every design that we sell,” says Dawson Whitfield, co-founder and CEO of Logojoy. “We’ve really tuned our process of improving our algorithms and interface based on these learnings. We track every single colour change, favourite, purchase, and everything in between.
“Our job is to make it feel like you’re working with a designer, and to do that, there are thousands of things that you can only discover by tracking everything.”
One thing Logojoy is tracking closely is, of course, revenue. The company is taking in over $600,000 in revenue each month now, and in February alone Logojoy created more than 6,700 logos for entrepreneurs.
The company is growing at a rapid pace, as the graph below indicates. Logojoy has expanded their services seven times over from January 2017 to January 2018.
“We’ve also managed to shorten our users’ time to purchase, so we recover our Customer Acquisition Cost on day zero for 60 per cent of our customers,” explains Whitfield. “This has allowed us to fuel more customer acquisition with revenue very quickly.”
“Lastly, we have a deep understanding of what really sells design. It’s not features or robust capabilities. A lot of it is based on emotion. Design is very contextual and a lot of the time, people don’t even really know if their design is ‘good’, because they’re not a designer. People go to designers for the peace of mind, for the comfort, for the experience. We’re getting really good at understanding the core motives that really matter to small business owners—beyond a good looking design.”
Logojoy offers a free test of their services to anyone looking for a logo, so a big indicator of their success comes from the conversion rates associated with customers following through and buying a branding package. That number has jumped from just over half a per cent all the way to over four per cent within one year.
Logojoy has room to improve as well. In their own words, the company’s algorithm’s are the equivalent of a designer in their first year of school, and soon the tech will grow to be on par with some of the best designers in the world.