Business Model Snapshot: Airtable

Introduction

Many startups have tried and failed to take on Big Tech Giants Microsoft & Google, but Airtable shows that you can carve a respectable niche by following a Disruptive Innovation strategy. Birthed in 2012, Airtable’s rise to fame is truly inspirational. Backed by reputable early funders such as Ashton Kutcher and Caffeinated Capital, Aitable navigated a competitive landscape with grit and innovation before finally reaching Unicorn status in 2018- 5 years later. Today we take a deep dive into Airtable’s Business Model.

What does Airtable do?

Airtable is a cloud-based collaboration platform that combines the simplicity of a spreadsheet with the complexity of a relational database. It allows users to create, organize, and manage data in a flexible and visual way. Airtable can be used for a wide range of purposes, including project management, data tracking, task tracking, customer relationship management (CRM), content planning, and more.

Here are some key features and functionalities of Airtable:

1. Database Creation: Users can create custom databases with fields to store various types of data, such as text, numbers, dates, attachments, and links. Each field can have its own data type and format.

2. Forms: Users can create customized forms to collect data from others, which is then automatically populated into their Airtable database.

3. Collaboration: Airtable supports real-time collaboration, allowing multiple users to edit and view data simultaneously. Comments and mentions can be added to foster communication within the platform.

4. Filtering and Sorting: You can easily filter and sort records to focus on specific data or create custom views.

5. Integration: Airtable integrates with various third-party apps and services, including popular tools like Slack, Google Calendar, and more. This enables you to connect and automate workflows.

6. API: Developers can use Airtable's API to build custom applications and automate processes.

7. Templates: Airtable offers pre-designed templates for different use cases, which can help users get started quickly.

What is the value proposition?

As alluded to earlier, Airtable’s Value Proposition Statement clearly articulates what it does and the value it creates for users: Airtable enables any team, regardless of technical skill, to create apps on top of shared data and power their most critical and unique workflows (source: Airtable Website).

When Airtable launched, the major customer segment was anyone who wanted to create workflows and apps but had no coding skills. But as they continually listened and acted upon customer feedback, Airtable has been able to build a user base of more than 450,000 users/organisations. Users can seamlessly build relational databases and applications with no fuss and without learning SQL scripting. This convenience, coupled with releasing its API, eventually won over experienced app developers as well.

How does Airtable Capture Value?

Airtable uses the Freemium Revenue Model. A Freemium revenue model is when a company offers both free and premium (paid) versions of its product or service to customers. The basic, free version provides limited features or functionality, while the premium version offers enhanced capabilities or additional benefits. Airtable uses this revenue model in order to acquire as many users as possible so that they eventually convert a percentage of them to paid versions.

Like most SaaS or subscription models, Airtable encourages users to pay annually by incorporating discounts for annual subscriptions.

The pricing has 4 tiers:

1. Free: Free plan with limited features and capabilities

2. Team: $20 per seat/month billed annually. This rises to $24 if billed monthly

3. Business: $45 per seat/month billed annually. This rises to $54 if billed monthly

4. Enterprise Scale: price agreed upon request

Some estimates suggest that 30% of Airtable users use one of the paid plans. According to LATKA, Airtable is expected to make $148 million in revenue this year.

How Airtable Accelerates Growth By Leveraging Key Partners

In addition to the key investors that helped fund its growth, Airtable has built a robust network of service and integration partners. Airtable runs a global Services Partner Program. The Program is a world-class initiative that offers accreditation and continuous assistance to partner organizations, enabling them to provide a range of services on the Airtable platform. These services encompass identifying workflows, designing solutions, implementing solutions, managing changes, providing training, and offering ongoing support. It is a mutually beneficial partnership program that grants accredited service providers brand exposure, business growth and ongoing support.

How does Airtable Cultivate Customer Engagement?

In such a competitive environment, cultivating customer engagement is imperative. Airtable achieves this by using three key tactics:

1. User Feedback Loop: From the very beginning Airtable’s founders prioritized customer feedback. According to Mira, the founders got feedback from early beta users to unearth potential new features. This is still true today as Airtable consistently improves and adds new features based on consumer feedback.

2. Promotions: In order to entice free users to upgrade to any of the paid plans, Airtable regularly offers promotions and discounts. Users can even get extra benefits if they invite other people to use the platform.

3. Learning Centre: If customers struggle to use your product, they are more likely to leave. Airtable mitigates this risk by offering an extremely informative learning centre and library of templates users can easily customise.