Passenger gets $8M for market research on private social networks
Although Passenger calls itself an “on-demand customer collaboration” company, it’s probably simpler and more accurate to call it what it is: A market research firm operating through private, white-label social networks.
Putting consumers in a controlled online environment, where they can nevertheless interact with each other, gives marketers and product analysts from companies like Coca-Cola and Disney, both Passenger clients, insight into what people think of their products.
Using online social networking tools is gaining credibility as a better way than traditional panel-based research to get the true opinions of consumers. The trend has helped Passenger increase its yearly revenue ten times over, according to publicly released figures, with a 100 percent customer retention rate.
The $8 million funding was provided by existing investors. StarVest Partners led the round, and was joined by Shelter Capital Partners and Steamboat Ventures. The Los Angeles, Calif. company has taken $20.5 million to date.
Next Story: Wi-Fi could be coming very soon to flights — and you might just get it free (if you pay for iPass)
Previous Story: Because you asked for it (right?): Disqus and Seesmic team up for video comments
About the Author, Chris Morrison
Chris Morrison writes about cleantech and environmental issues for VentureBeat, with occasional forays into gaming and semantic technology. He got his start writing about tech for Business 2.0 magazine, but quickly realized new media was the ticket when that institution closed its doors in 2007. Chris has also covered public equities and regulatory issues. He originally hails from southern Virginia, graduated from Evergreen State College in Washington, and now lives in San Francisco.