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Mindshare Technologies raises $20M for tracking customers with surveys

Mindshare Technologies has raised $20 million for its business of tracking customers with online and phone surveys.

The company issues surveys, collects the responses, analyzes them and provides reports in real-time for company management. The growth shows that customer feedback is increasingly valuable.

The company completes more than 175,000 surveys each day in 106 countries, 28 languages, and 25 industries. Companies use the surveys to improve operations, foster consumer satisfaction, build customer loyalty, and retain employees. Respondents can use voice and text to supplement their responses to surveys.

Private equity firm Sorenson Capital led the investment, while the PrivateBank and Trust Company contributed an additional credit facility.

Mindshare, based in Salt Lake City, Utah, said it has grown recurring revenues for more than 100 consecutive months. The company says it has a retention rate for its customers of 93 percent. Revenue grew 33 percent in 2010, and the company is on pace to grow 40 percent to $19 million in revenues in 2011. Customers include Arby’s, Hertz, Tony Roma’s, Comcast and Marriott. Mindshare has been profitable for six years.

The company was founded in 2002. John Sperry, chief executive, and Kurt Williams, chief technology officer, were working at a mystery shopping company and asked themselves, “Why don’t we automate all of this manual work?”

Richard Hanks is chairman and president of Mindshare. Fraser Bullock, managing director at Sorenson Capital, and Ron Mike, c0-founder of Sorenson Capital, will join Mindshare’s board. Mindshare has 80 employees and competes with Empathica and TellUsAboutUs.