Creditsafe Expanded Country Coverage

CreditSafe Global Coverage Map
Creditsafe Global Coverage Map

Commercial credit and business profile vendor Creditsafe expanded its coverage footprint to over 100 countries with the addition of sixteen Middle Eastern and North African countries.  Creditsafe is now able to provide real-time reports for 240 million companies.  Key new countries include Saudi Arabia, UAE, Kuwait, Lebanon, Jordan, Egypt, and Lebanon.  In 2016, the firm added Southeast Asian coverage along with 40 million Chinese company profiles.

“This mark’s the single largest and most significant database expansion we have done to date.  And, it completes our global offering.  No one in the marketplace offers such a comprehensive solution supported by an incredible portfolio of analytics,” said Matthew Debbage, CEO of Creditsafe USA and Asia.  “Not only have we added critical financial data on thousands of public and private companies to our platform, but we are providing insight on many located in Middle East and Africa which have proven to be complex economies in the past. We can now provide International Database Reports on millions of companies instantly online. No one else in the market offers the level of data that we do.”

Based on its coverage map, the most significant gaps are in Latin America (e.g. Argentina, Chile, Colombia, Costa Rica) and Africa (e.g. South Africa, Ghana, Morocco, Tunisia).

Creditsafe processes over one million daily updates collected from over 200 sources.  Furthermore, the firm claims that 99.9% of report requests are delivered in real-time.

Last year, Creditsafe launched US and UK sales intelligence services under the Sales Joe brand.  The product provides prospecting, look-a-like customers, light SFA tools (e.g. notes, dialer support, meeting scheduling), task tracking, and deal opportunity forecasting.

Sales Joe Deal Opportunities assist with pipeline tracking.
Sales Joe Deal Opportunities assist with pipeline tracking.

“The big development during the year was launching our new lead management tool, Sales Joe, which enables businesses to build effective sales campaigns using company information gathered from Creditsafe’s extensive database,” said Chris Robertson, global sales director at Creditsafe Group.  “Our positive results have been fueled by strong customer retention, an increase in new business, and a further expansion and strengthening in our international offering to UK customers.”

Creditsafe revenue has grown 28% over the past twelve months.  The firm maintains 18 offices and supports 200,000 users each day.  Globally, Creditsafe employs 1,500 headcount.

Creditsafe USA posted $12.8 million in 2016 revenue with a three-year CAGR of 75%.  Creditsafe opened US operations in 2012 and services 14,000 US customers out of its Lehigh, PA office.  “Over the past several years, we have focused incredibly hard on building our business and brand in the US,” said Debbage.

Creditsafe UK also posted strong growth with 2016 revenues up 12% to £35.5 million and pre-tax profits of £8.1 million.

“More growth is expected in 2017, our 20th anniversary year,” added Robertson.  “The growing sales force and the new products and technology being introduced this year will ensure our momentum continues and we further set ourselves apart from our competitors.”

Are you ready for EU GDPR Compliance?

On May 25, 2018 the EU General Data Protection Regulation (GDPR) goes into effect, creating data privacy and security concerns for firms both inside and outside of the EU.  The GDPR covers both companies that provide goods and services to EU residents and those that are part of the value chain.  The regulation covers all individuals domiciled within the EU, regardless of where the company is headquartered.

According to Forrester, the regulation has five key requirements:

  • If a firm has “regular, systemic collection or storage of sensitive data,” they need to hire or designate a Data Protection Officer (DPO).  The function may be filled by individuals with legal, privacy, security, marketing, or customer experience.  The International Association of Privacy Professionals (IAPP) estimates that the regulation will require 30,000 privacy officers.  The DPO will need to work with security leaders with respect to identity and access management (IAM) and encryption.  They will also be involved in purchasing decisions around CRM, analytics, and other platforms.
  • Should a data breach occur, firms have a-72 hour window for reporting breach details to the authorities and customers.  The window begins as soon as the breach is detected.
  • Privacy must be built into any new projects with a “Privacy-by-design” philosophy.  Forrester stated that “sustained collaboration between teams will be critical, so firms will have to establish new processes to encourage, enforce, and oversee it.” For example, privacy officers will need to review business requirements and development plans related to new apps.
  • Extraterritoriality places requirements on firms outside of the EU, making it a global requirement.  Forrester notes that “a US-based data aggregator that collects and resells EU customers’ data to other business partners will need to comply fully with GDPR requirements, rather than simply meeting international data transfer rules.”
  • Firms will be responsible not only for securing data but providing evidence that they have implemented appropriate risk mitigation.  Thus, a firm can be held in violation even if they have not had customer complaints or data breaches.

US companies are still obligated to comply with the 2016 Privacy Shield agreement between the US and EU.  Forrester also warned UK firms to comply with the GDPR as lowering British privacy standards would only serve to complicate UK-EU data transfer rules post Brexit.

Forrester suggested that firms take a cost-benefit analysis to data instead of simply storing everything:

“Firms will learn to better assess the costs and benefits of records they process, store, and protect. They will progressively focus on collecting, buying, processing, storing, and protecting only the data that offers them the most value and will kill the rest.”

Forrester also suggested that privacy should be part of a firm’s DNA and some firms will integrate privacy into brand perception and the customer experience, providing a basis for competitive advantage.

Osterman Research conducted a survey of mid to large companies subject to the law to identify technology expenditure increases for GDPR compliance.

GDPR compliance expenditure increases (January 2017)
GDPR compliance expenditure increases (January 2017)

GDPR non-compliance costs are potentially very high with penalties up to the greater of €20 million or 4% of total worldwide annual turnover of the preceding financial year.

Quora: Why is My Information on Zoominfo?

I recently answered two posts on this question.  As Zoominfo data collection is opt-out versus opt-in, executives are sometimes concerned about what is being collected and how they can opt out.  Here is my post:


ZoomInfo collects data about US and international businesspeople. Information is gathered via web crawling (for bio data) and email plugins that collect signature information such as name, title, company, direct dial, and email. This information is then available to its customers who use it primarily for sales, marketing, and executive recruitment. Customer use cases include prospecting lists for B2B email and telemarketing campaigns, data hygiene (i.e. confirming you are still at a company and that your contact information is accurate), and call prep prior to telemarketing or recruitment calls.

Here is an example of how they provide additional information about you to LinkedIn users via their ReachOut Chrome plug-in:

The ZoomInfo ReachOut Chrome connector provides just-in-time company and executive intelligence from corporate websites and LinkedIn.
The ZoomInfo ReachOut Chrome connector provides just-in-time company and executive intelligence from corporate websites and LinkedIn.

ZoomInfo does not collect any consumer or credit information. Thus, they have no lifestyle data, political affiliations, donations, income estimates, age, family details, credit histories, personal emails, mobile phone numbers, or housing data. They focus strictly on your professional persona.

ZoomInfo’s privacy rules and how to opt out of their database can be found on their website.

If you would like to know more about ZoomInfo, I cover them on my blog.

2016 North American Market Size

2016 North American Sales Intelligence Market Sizing Model (Excel)

The Market Size of North American Sales Intelligence Vendors. Includes vendor product features, market share, and notes. GZ Consulting Copyright 2017.

$750.00

For the past few years, I have been sizing the North American Sales Intelligence Market.  This is the largest of the markets as Europe and AsiaPac are more fragmented (the UK is the only other mature market with Bureau van Dijk, Avention UK, Artesian Solutions, and DueDil offering full solutions).

In 2016, I estimated the market at $750 million with LinkedIn Sales Navigator as the top vendor.  While new firms continue to enter, the top ten firms (now eight following the 2017 acquisitions of Avention and RainKing) earn seven of every eight dollars in the industry.

I am making my market model available for license (See PayPal button at top) as an Excel spreadsheet.  It includes revenue numbers by company along with market share, key features, and notes.

The LinkedIn Market Share Section of the 2016 North American Sales Intelligence Market Sizing
The LinkedIn Market Share Section of the 2016 North American Sales Intelligence Market Sizing

I have also broken out two sub-categories: Predictive Analytics and Tech Sales Intelligence.  Predictive Analytics vendors continue to scuffle in the marketplace.  Last September, Gartner sized the global market at between $100 and $150 million.  I have gone back and forth on whether to include them in the larger sales intelligence space, but several of the sales intelligence vendors have added light predictive tools (e.g. Avention, DiscoverOrg, RainKing) while the predictive analytics companies have moved to add enrichment and provide more insights to sales reps.  As such, I see the two product categories moving towards each other so chose to include Lattice Engines, Leadspace, and similar firms.

The Tech Sales Intelligence category (e.g. DiscoverOrg, RainKing, Aberdeen, Corporate360) continues to show strong growth and makes up just shy of 15% of the market.  Both DiscoverOrg and RainKing have posted remarkable growth over the past few years and merged their efforts last month.  Post acquisition, they are the number three vendor in the space and may hit $120 million in 2017 revenue.  The new powerhouse has 4,000 customers and is looking to expand beyond technology sales to become a general purpose sales intelligence solution.

Acquiring RainKing should move DiscoverOrg well past Data.com (Salesforce) which will likely see declining 2017 revenue.  Salesforce has dropped the ball on Data.com.  They overpromised and under-delivered for years, relying on their ability to bundle the offering with other SFDC products.  As of last month, they are no longer able to deliver Dun & Bradstreet content (D&B WorldBase, Hoovers, and First Research) to new customers (legacy customers retain access).  Unless Data.com has a major content partner announcement at Dreamforce, it is likely to see significant revenue declines in 2017 and 2018 as customers switch to D&B Hoovers for Salesforce and other offerings.

Dun & Bradstreet re-established itself as the #2 vendor in the space with the January 2017 acquisition of Avention and the rebranding of Avention OneSource as D&B Hoovers.  Both companies have struggled to grow revenue with Avention growing slowly over the past few years and Hoovers declining.  However, infusing Avention products with Dun & Bradstreet content both reduces the underlying cost structure of Avention offerings and improves the depth and quality of the content.  Furthermore, Dun & Bradstreet has a much larger sales force which previously has lacked a credible global sales intelligence offering.  Hoovers classic generated nearly all of its revenue in the United States.  Over the next two years, expect to see significant revenue shift from Hoovers Classic to D&B Hoovers.

Three-Toed Sloth By Stefan Laube (Tauchgurke) - Public Domain.
Three-Toed Sloth By Stefan Laube (Tauchgurke) – Public Domain.

Finally, LinkedIn Sales Navigator has established itself as the clear number one vendor in market revenue.  The product didn’t exist five years ago and its competitors still tend to dismiss this gorilla in their midst.  How can they be missing the #1 vendor in the space?  Easy — the gorilla is well camouflaged and appears to be more of a three-toed sloth sleeping in the forest canopy.  Sales reps all use the freemium version of LinkedIn so give little thought to delve further when they ask “how are you obtaining your account intelligence today?” and the response is LinkedIn.  Thus, they enter LinkedIn as the competitor into their CRM, not Sales Navigator.  A few months later when they lose the opportunity, the rep then enters “no decision” into the CRM instead of recognizing a competitive loss.  I have been warning vendors in the space for years about this phenomenon, but they have failed to understand the threat of a gorilla that looks like a three-toed sloth.


N.B. Three-toed sloths inhabit Central and South America and gorillas Central Africa.  This is a metaphor.

 

 

 

Sales Intelligence Vendors in the Inc. 5000 List (2017)

Several Sales Intelligence and business data vendors made the 2017 Inc. 5000 list.
Several Sales Intelligence and business data vendors made the 2017 Inc. 5000 list.  Data from Inc. with analysis by GZ Consulting.

Inc. published its annual Inc 5000 list of fastest growing US private companies this week. Several firms covered by this newsletter made the list including Synthio, DiscoverOrg, RainKing, Zoominfo, and Pure Incubation. To qualify for the list, companies must be private and have at least $200,000 in 2013 revenue.

DiscoverOrg made the list for the seventh year in a row with 2016 revenues of $59.4 million, up $15 million. The firm is in a strong position to make the 2017 list as they closed 2016 with an ARR of $71 million. DiscoverOrg’s three-year Compound Average Growth Rate (CAGR) was 40%.

“Our mission remains focused on accelerating our customers’ pipeline and revenue growth—we can only grow when they grow,” said CEO Henry Schuck. “Since our inception 10 years ago, our customers have experienced the difference our unmatched data has on their own sales. Making the Inc. 5000 list for the seventh time is a reflection of their trust and of our mutual success.”

Along with financial growth, the company has continuously grown its editorial-based content while expanding the functional and integration capabilities of its service. While originally focused on providing company and IT executive profiles for US sales reps, the company has globalized its coverage, extended into marketing tools, and added additional job functions including sales, marketing, HR, and Product Management (TEDD) to its database. By including CRM and MAP connectors, analytical tools, and light predictive scoring, the firm has increased the value it provides to companies across a broader set of job functions (marketing, exec recruitment, strategic sales, and sales operations) and found additional ways to augment the value of each record. In so doing, they have been able to maintain a profitable, cash-flow positive growth trajectory over a decade.

“Only a tiny fraction of the nation’s companies have demonstrated such remarkably consistent high growth,” said Eric Schurenberg, President and Editor in Chief, Inc. Magazine. “This achievement truly puts DiscoverOrg in rarefied company.”

DiscoverOrg’s top competitor RainKing also made the list for the fourth consecutive year. 2016 revenue rose $6.9 million to $33.9 million. RainKing has a three-year CAGR of 29%.  Two weeks ago, DiscoverOrg acquired RainKing.

“This has been a transformational year for RainKing and this award is a recognition of the satisfaction of our customers and the accomplishments of our employees,” stated RainKing CEO John Stanfill. “We have had some significant accomplishments over the past twelve months which have helped fuel our growth, but the biggest factor in our success is our ability to help our customers grow their businesses faster.”

Among the recent content and platform enhancements were a new user interface, coverage expansion to 65,000 companies and one million executives, the launch of a Federal IT dataset, and rebranding. The firm also moved to larger office space in Bethesda, Maryland.

New York-based Madison Logic made the list for the fifth consecutive year with a three year CAGR of 43%. CEO Tom Regan said, “We’ve developed the only comprehensive account based marketing solution that unifies display advertising, lead generation and advanced measurement capabilities that enable marketers to achieve a quantifiable return on investment.”

Zoominfo, which was bought by private equity firm Great Hill Partners last week, had a three-year CAGR of 39% with 2016 revenue of $39.8 million. The firm successfully pivoted into marketing services a few years ago with contact data enrichment services, list building, web forms, segmentation analysis, and cluster analysis. The firm has over 5,000 enterprise clients.

“ZoomInfo’s positioned for staggering advancement on both the employee and technology front,” said CEO Yonatan Stern. “As we continue on this journey we are focused on creating even more value for our customers.”

Zoominfo was acquired by PE firm Great Hill Partners in August.

Other sales and marketing firms that repeated on the list were Pure Incubation (44% three-year CAGR), Synthio (111% three-year CAGR), and List Partners (27% three-year CAGR).


2016 List

Orbis: Analysis of Global Financial Disclosure Rates

Orbis Coverage Table
Orbis Coverage Table

I came across an interesting analysis of financial disclosure rates by regions around the world.  The blog, written by Mark Bodnar, a librarian at Simon Fraser University (British Colombia), observed limited financial disclosure in North America and much of AsiaPac, but broader financial availability in Europe.

Of the 18 million North American companies covered, only about 35,000 have detailed financials.  That’s about 0.19%. Those would be from the relatively rare cohort of publicly traded companies we mentioned earlier.  The other 99.81% of the companies are privately held, and in North America that means that they are under almost no obligation to reveal their financials.

Compare that to Western Europe, where about 10 million of their 30 million companies in the database have detailed financials…

Oceania (incorporating AUS, NZ, and many wonderful island nations) is also down around 0.2%, largely because there are detailed financials for only about 0.15% of the companies based in the biggest country in the region, Australia.

While none of this would be a surprise to people in the business information sector, it was a good way to surface the information for students and non-experts.  European countries have a long history of requiring non-public (aka non-quoted or non-listed) companies to publicly file annual returns.  The depth of filing varies by country and size of company, but Europe has a deep set of financials available to assist with credit and supplier risk analysis, prospecting, company research, KYC/AML, and market analytics.

In the US, disclosure is limited to public companies, non-profits, and financial services companies.  Of these, only public company financials, which are filed via EDGAR (SEC), are fully transparent with few accessing state insurance filings, IRS 990 filings (non-profits), or the FDIC (banks).

I would take the author’s analysis of countries with deepest coverage of financials with a grain of salt.  It is likely that many of the countries with the highest disclosure rates have limited coverage of companies not subject to financial disclosure.  Furthermore, some of the filing regimes do not require financials for smaller companies.

 

 

 

Unomy Acquired by WeWork

Unomy B2B Prospecting spans 6M companies and 50M contacts.
Unomy supports both B2B company and contact prospecting

I was going to address the Unomy acquisition yesterday, but DiscoverOrg acquired RainKing so Unomy was bumped to today.  This is the fourth deal in the news this week (Moody’s acquisition of Bureau van Dijk closed at the beginning of the month and Zoominfo was acquired by PE company Great Hill Partners.

The WeWork acquisition of Unomy is an out of left field deal.  WeWork has been using Unomy for the past year to assist with their sales process.  The firm is looking to integrate Unomy into its workflows to improve both close rates and pipeline velocity for their co-working offices.  WeWork views Unomy as a key dataset for expanding enterprise sales.  While the firm provides office space for companies of all sizes, they would like to expand enterprise sales beyond 30% of their monthly revenue and 20% of their membership.

“Their B2B intelligence layer will be able to help us enrich our data sets when we’re driving sales in the enterprise market,” said WeWork SVP for Digital Product Ron Gura.

For WeWork, Unomy’s platform will become the backbone of our growing internal sales platform. The Unomy software will be integrated into WeWork’s current systems and the Unomy team – now part of our Sales & Marketing and Digital Products groups – will work with our enterprise sales team to help them go to market most effectively and improve their targeting capabilities, conversion rates, and productivity. More broadly, the Unomy team will also help streamline sales processes, build robust sales intelligence infrastructure, and close member prospects for our enterprise and regional sales teams around the world.

  • Ron Gura, WeWork SVP for Digital Product

WeWork will be retaining Unomy’s staff of twenty which will operate out of a Tel Aviv office.

WeWork did not indicate whether Unomy would be available to their tenants as a free or discounted service.  WeWork offers a services store to its tenants with over forty sales and marketing partners.  Amongst the firms with partnership discounts are Salesforce, CrunchBase, and RelPro.  However, WeWork does not plan on continuing the commercial product and will phase out the Unomy service, helping to transfer clients to other sales intelligence solutions.

Unomy’s database covers 17 million global companies and over 100 million executives.