Founded in 2012, Capillary Technologies has been at the forefront of revolutionizing the loyalty and customer experience landscape. Established in Bengaluru India, the company has grown exponentially to become a global player in the realm of cloud-based customer experience and loyalty solutions. In the last decade, Capillary has embarked on a fascinating journey of growth, expansion, strategic acquisitions, notable successes, and demonstrated immense potential for the future.
Growth & Expansion
Capillary started as a small firm catering to the Indian market. But their innovative products and customer-centric strategies quickly garnered attention, leading to their rapid growth. Today, they operate across more than 30 countries, with over 700 employees and serving more than 400 brands worldwide.
“Looking ahead, Capillary Technologies’ future appears promising. The shift towards digitization and personalized customer experiences is only expected to accelerate, positioning Capillary favorably for continued growth.”
Capillary’s end-to-end customer loyalty platform leverages AI & ML and offers a comprehensive view of consumers, and unified, cross-channel strategies that deliver a real-time omnichannel, personalized, and consistent experience for customers.
This technological innovation, combined with an understanding of market dynamics, has facilitated Capillary’s global expansion. In particular, their ventures into the Middle Eastern and Southeast Asian markets were strategically timed to leverage the rapid digital transformations in these regions.
Strategies & Successes
Capillary’s strategy revolves around three primary pillars: innovation, client centricity, and regional customization.
Innovation is at the heart of Capillary’s growth. They constantly push boundaries to develop more advanced and efficient solutions. They were one of the first to introduce AI and ML into loyalty & customer experience solutions, which has been a game changer for their clients.
Notable Success Stories: Capillary Technologies has amassed an impressive client portfolio, including renowned global brands like Unilever, Domino’s, Puma, Shell, and more. The company’s solutions have helped these brands achieve remarkable results, such as increased customer retention rates, improved customer lifetime value, and enhanced brand loyalty.
For instance, by leveraging Capillary’s technology, a leading fashion retailer witnessed a 30% increase in customer retention, highlighting the effectiveness of Capillary’s solutions in driving customer loyalty and engagement.
The focus on client centricity ensures that they understand their client’s specific needs and provide tailored solutions. They value the relationships with clients and aim to partner with them for mutual success.
Capillary also recognizes that a one-size-fits-all approach doesn’t always work. They deeply understand the nuances of different markets and customize their offerings accordingly, which has been critical for their global success.
Capillary has reaped the benefits of these strategies. They have won numerous awards for their innovative solutions; most recently six awards at the International Loyalty Awards in London, eight awards at the Loyalty and Engagement Awards in Singapore and being named a Leader in The Forrester Wave™ Loyalty Technology Solutions, Q1 2023 Report. More importantly, they have successfully delivered value for their clients, evidenced by their high retention rate and growing client list.
New CEO
Capillary announced that Sameer Garde would take over as Chief Executive Officer (CEO) in September 2022. The decision to bring Garde onboard comes as part of Capillary’s strategic initiatives aimed at advancing its global expansion, enhancing the product offerings and solidifying its market position.
Garde’s extensive experience and successes in the technology sector aligns with Capillary’s strategic objectives. Prior to joining Capillary, Garde held senior leadership positions in several notable tech companies, where he contributed to business expansion and strategic innovation.
During his tenure as President of Cisco’s India and SAARC operations, Garde led a transformative shift in Cisco’s go-to-market strategy and business model, contributing to significant revenue growth. This experience is instrumental for Capillary as the company aims to expand its business operations.
Hear Capillary’s new CEO, Sameer Garde, describe the company’s strategic direction and roadmap.
The Consolidating Moves: Capillary Technologies’ Strategic Acquisitions of Brierley and Tenerity’s Digital Connect Assets
Capillary has significantly strengthened its market position with the strategic acquisitions of Brierley and more recently, of Tenerity’s Digital Connect assets. These acquisitions further align with Capillary’s growth strategy, allowing the firm to expand its offerings, reach, and market influence.
- The Acquisition of Brierley
In acquiring Brierley, a well-established provider of customer loyalty and engagement strategies, Capillary significantly boosted its global strategic and analytical capabilities. Brierley’s proven ability to deliver high-quality customer engagement, emotional loyalty, analytics, and consulting services serves to bolster Capillary’s already comprehensive portfolio.
Brierley’s expertise in data-driven customer engagement and consultative loyalty solutions complements Capillary’s own strengths, allowing the company to deliver an even broader suite of customer engagement and loyalty management tools. This was a pivotal move designed to meet the increasing demand for a unified, data-centric view of customer behavior and engagement in a rapidly evolving digital landscape.
Moreover, the acquisition expanded Capillary’s geographic reach, as Brierley has a strong presence in North America, a region where Capillary sought to solidify its position. Therefore, this acquisition was as much about product enhancement as it was about market expansion.
- Acquisition of Tenerity’s Digital Connect Assets
The more recent acquisition of Tenerity’s Digital Connect assets (rebranded to Rewards+) represents another strategic milestone for Capillary Technologies. Tenerity’s Digital Connect is known as a digital engagement solution.
The acquisition allowed Capillary to leverage Tenerity’s Digital Connect presence in Europe, as well as their digital assets to reward customers with compelling offers using intelligence and automation.It has also extended Capillary’s services into the financial services and telecommunication verticals; industries increasingly reliant on motivating every single customer in the way they find personally relevant and memorable.
Furthermore, Tenerity’s Digital Connect assets have a strong track record in real-time customer engagement, providing Capillary with the necessary tools to help their clients deliver personalized experiences at scale.
The Larger Strategy
The driving force behind Capillary Technologies’ acquisitions appears to be three-fold: enhancing their product offerings, expanding their geographic reach, and moving into new verticals.
These acquisitions allow Capillary to offer a comprehensive, one-stop solution for customer loyalty and engagement. Brierley’s capabilities provide an additional layer of data-driven insight & consultative approach to Capillary’s existing solutions, while Rewards+ (formerly known as Digital Connect) delivers powerful personalization, optimization, and the broadest offer network, underpinned with commercial flexibility to maximize loyalty outcomes, especially in the telecom and financial services industries.
Geographically, the acquisition of Brierley boosted Capillary’s presence in North America, while Tenerity’s Digital Connect assets offered more European presence and potential growth opportunities in sectors previously untapped by Capillary.
Future Potential
Looking ahead, Capillary Technologies’ future appears promising. The shift towards digitization and personalized customer experiences is only expected to accelerate, positioning Capillary favorably for continued growth.
Capillary’s advanced technology, expansive global footprint, and strong client relationships put them in a strong position. Furthermore, their agility and adaptability indicate they are ready to capitalize on future trends and opportunities.
Photo by Marek Piwnicki on Unsplash
