Independence and integrity: The secrets to Fastmail’s success as a leader in email
With over 100,000 users worldwide and a US acquisition under its belt, Fastmail is a great example of an Australian start-up that has achieved successful growth.
With over 100,000 users worldwide and a US acquisition under its belt, Fastmail is a great example of an Australian start-up that has achieved successful growth. According to Fastmail chief of staff Nicola Nye, the company’s growth story is a simple one, built on a strong set of core values and a determination to treat its customers as people, not products, and a commitment to protecting its customers’ privacy online.
Nye spoke to SmartCompany about the company’s scale up experience and the secret to its success.
An independent email provider with powerful features
Fastmail is an Australian, subscription-only email hosting service that places the privacy of its customers at the centre of all it does. Fastmail was founded in Melbourne in 1999, and has achieved slow and steady growth over the past two decades.
“We’ve been around for 23 years (we predate Gmail). We’re an independent email service that provides easy to use, powerful features for our users,” says Nye. “Our business is email. That’s all we want to do, and we do it very well.”
Being an independent provider has been instrumental to Fastmail’s growth and has allowed it to invest in and expand powerful features for its customers, mostly individuals and families though the company also serves a small percentage of businesses.
“As an independent email provider, all we do is email. We’ve got no split loyalties and our business is entirely employee-owned,” Nye explains. This has given the company the ability to invest in growing its product offering and improving its services, including the 2015 acquisition of the US-based IC Group, which includes the company’s Pobox and Listbox.
Fastmail’s customers pay for their privacy, not with it
The understanding that people want – and deserve – full ownership of their personal data online has set Fastmail apart from free email providers and is something that all email users should care about, because as Nye puts it, “if you’re not paying for the product, you are the product.”
“Email is your gateway to all your online services. Whether it’s the place you buy your shoes from, your books from, food delivery services or your bank. Everything is tied to your email address,” says Nye.
The determination to protect its customers’ data is why Fastmail developed Masked Email, an innovative partnership with password manager 1Password that allows customers to generate alias email addresses, providing them with ironclad protection from online attacks. The partnership saw Fastmail shortlisted for the Cyber Security and Online Safety Innovation Award in the 2022 Australian Communications Awards.
“We’re a company with email expertise, not payment expertise”
As an Australian company operating globally – the USA has always been Fastmail’s largest market – there was never any question that Fastmail needed support from a dedicated payment provider for managing customer payments, particularly for its overseas users. So, Fastmail turned to Pin Payments.
Being able to facilitate USD processing and settlement into its Australian bank account was a priority for Fastmail, and something Pin Payments was able to easily facilitate.
“As an Australian company ourselves, finding a provider who understood the challenges of currency conversion for an online service that wasn’t based in the US, with support in our time zone was wonderful,” Nye explains.
“They understood the limitations of Australian banks, particularly in the early days, as far as managing international currencies.”
Having tried two other payment providers in the past, Fastmail found the support Pin Payments were able to offer was the key differentiator, and is the reason why nine years later, their partnership has continued.
“With Pin Payments [there’s been] friendly, knowledgeable support, in our time zone. It’s been fantastic. We don’t have problems often, but when you’re talking [about] payment providing systems, you want any problems solved straight away, and that’s been our experience with Pin Payments.”
The secret to Fastmail’s growth: attracting and retaining customers
Nye credits Fastmail’s ability to scale with its ability to build a positive reputation with customers. Thanks to its independence, the company has been able to channel its energy into offering high-quality support.
“Coming to an independent email provider, not only are you getting the service you pay for and nothing else, you’ve got friendly, helpful, knowledgeable people who can help you out when there’s a problem,” says Nye.
Being a company that respects its customers’ values has resulted in steady growth that came largely through referrals. “We’ve seen slow and sustainable growth year on year, primarily from word of mouth, and that comes from having a business that has a solid reputation. To get to that point means you’ve got to deliver what you say you will deliver.”
Equally important is the ability to adapt to your customers needs and change with the times.
“Being able to understand the shifts in the landscape is an important aspect of making sure that you are sustainable, because particularly in the tech industry, nothing stays still.”
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