TechTarget is taking a soft launch approach to their new Priority Engine Express service for small software vendors and VARs with an early 2020 launch date. CEO Michael Cotoia said the firm is building a platform which is “simple, streamlined, and scalable.” Cotoia noted how smaller firms differ in sales and marketing requirements and capabilities from TechTarget’s enterprise clients:
Our smaller customers lack a lot of resources. They don’t have a marketing automation [platform] many times. They don’t have an integrated nurture campaign. They need to understand and have a very friendly user interface, and they’re also very focused on identifying and using this solution as a sales use case with their inside sales reps and even their outside sales reps. So what we’re really focused on is doing a very simple user interface, focus very much on a sales use case, and understand that we can help them build different types of lists and customized lists; for example, an ideal customer profile list, which is really going to focus on exactly their sweet spot so we can get them the right updates at the right time. They don’t have the resources; they don’t have the complexity. If they need it simple, they want it towards sales use cases, and we’re learning a lot from that.TechTarget CEO Michael Cotoia
Cotoia said that TechTarget is taking a market feedback approach to Express development. As they engage with small customers, they are pausing during the sale to gather feedback to better understand what smaller firms are looking to do. As they bring on early Express users, they are “tweaking, modifying, adjusting and getting ready to go into 2020.” Cotoia called the initial feedback in this new market “very positive.”
TechTarget began building an SDR team two years ago to provide a team of appointment setters for their outside sales reps. “We built that with a vision that we’re going to be looking at additional products that we are going to roll out,” said Cotoia. “We want to make sure we have the resources on the bench” who are trained in the TechTarget methodology and ready to support new opportunities such as Express “so they are ready to make and take action when we see fit.”
TechTarget has raised the price for Priority Engine since it was launched a few years ago. “We believe we have pricing power,” said Cotoia. “We’ve had a couple of pricing increases year-over-year, and we believe we are in the best position to deliver real and observed purchase intent, make it very clear who’s in-market, by which technology segment, by which region and help our customers rank, prioritize and mobilize their sales and marketing efforts again, and we hope that creates some pricing leverage.”
Yesterday, I discussed TechTarget’s strong Q2. The above discussion was held in their Q2 2019 earnings announcement.