You may know Drift for their popular chat bot, but they also have a growing platform of other marketing tools, like video, email, and AI-powered automation.
Freedom Dumlao, Drift's chief architect, and four other Drift employees formed the "COGS Hunters" — a team with a mission to improve Drift's margins.
As is the case with most fast-moving companies, Drift's tagging was inconsistent. This was preventing them from getting the visibility they needed. With CloudZero's machine learning, they improved tagging from 40% to 80%.
“With CloudZero, we can see what we're spending per individual feature and product easier than within the AWS billing console. We were trying to get this information with raw tags in AWS, but it was never accurate.”
CloudZero automatically sends weekly and monthly updates, plus cost anomaly alerts to Slack channels for each feature team. There's no configuration required for alerting.
“CloudZero’s alerts have been fantastic. They show when something important has changed and tell me where to look to understand what happened. We’re able to be much more responsive.”
CloudZero enabled Drift's engineering and product teams to own the cost of the products they're responsible for. They know exactly what the services they use cost, what their margins are, and get alerted on their own anomalous spend.
The team at Drift was able to quickly identify expensive technical debt and prioritize areas for reduction. They are currently on track to save nearly $3 million in cloud costs.
CloudZero helped Drift quickly discover the feature that provides custom messages to site visitors was hurting their margins the most, especially as customer utilization trended up. Plus, they were including it in their free tier.
Before CloudZero, Freedom said they had to sometimes have tough conversations about why the bill was higher than expected. Today, they can stay on top of their costs and set expectations early, so finance can prepare. They also are able to have more strategic conversations in terms of margins and COGS, rather than just whether the bill is up or down.Learn More
Understanding their COGS gave Drift the ability to make better product strategy decisions. Rather than choose between discouraging utilization or charging for it, they reduced the cost of that feature by 80% — so they can now keep this highly differentiated feature in their free tier.Learn More
CloudZero significantly decreased the amount of manual effort required to manage and report on costs. Instead of pulling together inexact metrics in Excel or dashboards, CloudZero has a continuous view and deep understanding of their COGS.Learn More