Intouch Insight offers a complete portfolio of customer experience management (CEM) products and services that help global brands delight their customers, strengthen brand reputation and improve financial performance. Intouch helps clients collect and centralize data from multiple customer touch points, gives them actionable, real-time insights, and provides them with the tools to continuously improve customer experience. Founded in 1992, Intouch is trusted by over 300 of North America’s most-loved brands for their customer experience management, customer survey, mystery shopping, mobile forms, operational and compliance audits, and event marketing automation solutions.

Note: Maj covers a few points in his discussion with management at about the 10 minute mark.

Video Outline

Clarity on business model – earn revenue 3 different ways

1. Per transaction (collecting data from customer transaction that occur at retail locations)
2. Volume of transaction (fee based on volume of transactions)
3. Recurring monthly fees

The balance sheet and cost cutting efforts the company made in response to the virus outbreak puts the company in a good position to avoid racing money for a lengthy period of time.

Near term risks

1. Less revenue due to reduced activity to drive transaction and volume fees.
2. Unclear how much recurring monthly revenue they will collect.
3. The longer the economic shutdown, the harder it may be to maintain its current customer base. However, many of the customers are big brand names that can likely weather the storm better than smaller businesses. 
4. Some customers may possibly abandon brick and mortar and focus on more online platforms.
5. The longer the shutdown continues, that greater the chance of a reduced labor force which may lead to increased training costs.

Opportunities

1. Its compliance services business could benefit if customers have to implement new safety standards relating to retrofitting its stores.
2. The market is very fragmented and includes many smaller players. If these competitors/peers go out of business, it should bode well for market leaders such as INXSF.

Our take

If the crisis is contained within 6 months, we think the company can recoup a good amount of lost business as well as capitalize on new growth opportunities created by the crisis.