North American Sales Intelligence Market Sizing Model (Excel)
The 2017 Market Size of North American Sales Intelligence Vendors. Includes vendor product features, market share, and notes. GZ Consulting Copyright 2018.
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).
In 2017, I estimated the market at $950 million with LinkedIn Sales Navigator as the top vendor. While new firms continue to enter, the top four vendors earn two of every three dollars in the industry. The top four concentration increased 7% last year, mostly due to the acquisitions of Avention and RainKing.
The industry grew 17% over the past year with the majority of this growth being captured by LinkedIn Sales Navigator, DiscoverOrg, and Zoominfo. TechTarget, which was off my radar in 2016, has also seen rapid growth in 2017 and 2018.
DiscoverOrg acquired RainKing at the end of August 2017 so two-thirds of its revenue was recognized as RainKing and one-third as part of DiscoverOrg. Combined, the two firms earned around $118 million least year with DiscoverOrg ending the year with a $130 million plus ARR. DiscoverOrg raked in two of every three dollars within the technology sales intelligence sub-segment.
LinkedIn holds a nearly 30% market share. It has grown rapidly while remaining under the radar of its peers as it is often used as a complementary service to other sales and marketing intelligence services.
Data.com’s 2017 revenue was stable but Dun & Bradstreet forecasted a 30% drop in 2018 (D&B is a revenue share partner on the service). I anticipate that much of this revenue will shift to other vendors in 2018 and 2019. Dun & Bradstreet is in a strong position to take much of this share, but other vendors are pushing hard to acquire Data.com clients.
Zoominfo was ahead of the other sales intelligence vendors in recognizing the value of adding marketing functionality alongside their sales tools. This has put them in a strong position for data services. They also built the deepest set of global contacts with emails and direct dials and were early to build out connectors (CRM, MAP, Sales Engagement, and Chrome).
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.
Several sales and marketing intelligence firms made the 2018 Inc. 5000 list including DiscoverOrg, Zoominfo, and FullContact. Signaling difficulties in the predictive analytics space, no firms from that category made the Inc. 5000 list.
Inc. magazine lists the top 5,000 US firms based upon three-year revenue growth rates. Eligible firms must have at least $100,000 in 2014 revenue and $2 million by 2017.
Zoominfo made the list for the fourth consecutive year, with revenue reaching $59.4 million and a three-year CAGR of 45%. Zoominfo grew its headcount by 50% between July 2017 and July 2018 and raised its customer base to 8,000 enterprise customers.
“The Inc. 5000 is the measuring stick for successful, high-growth, private companies,” said new Zoominfo CEO Derek Schoettle. “Since joining ZoomInfo earlier this summer, I’ve seen the tech innovation and the business demand for trustworthy customer data that makes me confident that ZoomInfo will continue to make this prestigious list for years to come.”
Zoominfo added over 100 staff and 2,000 customers in the past year. At their June Growth Acceleration Summit, VP of Corporate Development Phil Garlick attributed the firm’s success to hard work, teamwork, sweat, and tears.
SalesLoft made the list for the first time as the firm caught fire after launching their sales engagement platform a few years ago. Revenue grew at a 77% three-year CAGR to $13 million in 2017. SalesLoft also placed seventh on the most recent North American Deloitte Fast 500. The Atlanta-based firm recently acquired NoteNinja to integrate its meeting intelligence software into the broader set of SalesLoft sales engagement capabilities.
CEO Kyle Porter is “excited” to “empower” his customers in delivering “a better sales experience. Buyers around the world are recognizing the differentiated benefits of purchasing products and solutions from sellers who use SalesLoft.”
Other first-timers were identity resolution vendor FullContact (76% three-year CAGR to $14.0 million) and data hygiene and enrichment vendor Stirista (23% three-year CAGR to 5.0 million).
“Marketers, product professionals, and data analysts have had a lot of success using FullContact to enrich the data that exists in their CRM, marketing automation, and other databases,” said Scott Axcell, VP of Marketing at FullContact. “From audience insights to customer care, there is no shortage of use cases for accurate, enriched customer data.”
FullContact acquired Mattermark and its company and event database last December to complement the FullContact people dataset.
While Madison Logic once again made the list, their growth stalled with revenue declining $200,000 last year to $54.2 million. Their three-year CAGR was 27%.
“We achieved this honor through the strength of our team and success of our customers. Our platform, ActivateABM, helps the most innovative global companies accelerate growth by converting top prospects into customers. By integrating directly into the martech stack, we can deliver solutions that are simple, strategic and entirely ROI-focused,” said Tom O’Regan, Madison Logic’s CEO. “We are thrilled to be recognized for the sixth time and proud of the momentum we’ve achieved on our mission to make the B2B marketer the driving force for growth and change in the enterprise.”
CreditSafe USA made the list for the second time, growing revenue to $13.3 million last year with a three-year CAGR of 52%. However, most of the growth was in the first two years with 2017 revenue only growing $500,000. The firm has over 100,000 subscription customers, 10,000 in the United States.
“Our team is extremely humbled to be included in such an elite group of high-growth companies,” said Matthew Debbage, CEO of Creditsafe USA and Asia. “When we established here six years ago, there was one large entrenched player in the business credit space in the US, so we felt our success was far from a sure thing. This recognition really helps put our hard work into perspective.”
“Being the younger, more nimble and tech-friendly player in the space has given many advantages as we strive to provide exceptional value to our customers,” continued Debbage. “We know that if are going to disrupt the industry, then we’d need to out-hustle our competition each and every day and really want to thank all those customers who’ve taken a chance on us.”
CreditSafe primarily provides credit data in the US, although they did enter the US and UK sales intelligence market a few years ago with Sales Joe. CreditSafe financials and filings are at the core of several European product lines including DueDil.
CreditSafe maintains offices in eight European countries, Japan, and the United States. The company serves the credit, collections, sales, marketing, and compliance functions.
Private company profiler Pitchbook is no longer eligible for the list as they were acquired by Morningstar, but the firm disclosed a 60% CAGR since 2009. They have grown their user base from 11,000 to 18,000 since the end of 2017. Since the beginning of the year, Pitchbook has grown from “just over” 600 employees to 908.
Finally, Pure Incubation made the list for the fifth year in a row posting a 43% three-year CAGR on $20 million in revenue. The Massachusetts demand generation firm offers data and marketing services for the medical and technology sectors. Products include PureB2B (Content Syndication and Intent Marketing), PureMed (Healthcare Providers and Facilities Database), ProspectOne (B2B Intelligence and Data Services), and Demand Science (Philippines-based Back Office Marketing, HR, Seles Development and Engineering Services).
Pure Incubation’s consistent growth “is another testament that we are building a strategically relevant and innovative company in the demand generation space,” said Chairman Barry Harrigan. “Pure Incubation’s continued placement on the list is not something we take for granted and we are going to keep pushing to appear again in 2019.”
DiscoverOrg made the Inc 5000 list for the eighth straight year with three-year revenue growth of 184%. The revenue was boosted by the acquisition of RainKing last August, but the firm would have made the list even without the acquisition. Over the past six years, DiscoverOrg posted a compound average growth rate (CAGR) of 60%, growing revenue from $5.5 million in 2011 to $91.9 million in 2017.
“For 10 years, our singular focus has been on how to fuel our customers’ pipeline and revenue growth with the best B2B data available anywhere,” said Henry Schuck, DiscoverOrg CEO. “Being named to the Inc. 5000 list for the eighth consecutive year–and especially at the size and scale we are now–demonstrates our continued unwillingness to settle for anything less than excellence.”
Last year, DiscoverOrg more than doubled its database and increased its headcount by 50%. DiscoverOrg’s Annualized Recurring Revenue (ARR) was over $130 million at the end of the year, indicating the firm was in a strong position to make the list again in 2019. DiscoverOrg only recognized around $13 million in 2017 RainKing revenue over the final four months, so approximately $26 million in additional subscription revenue will hit their books in 2018.
2017 organic revenue growth was around $19 million.
“Out of the nearly seven million private companies moving the economy forward every day, only a tiny fraction have demonstrated such remarkably consistent high growth. DiscoverOrg’s eighth Inc. 5000 honor truly puts the organization in rarefied company.”
James Ledbetter, Inc. Editor-in-chief
What is even more impressive is that DiscoverOrg passed InsideView and Avention (now D&B Hoovers) in revenue with a service that focused on the technology space while the broader sales and marketing intelligence services target the technology space, business services, professional services, and financial services.
Sigstr recently announced the launch of its new relationship marketing platform and Sigstr Pulse application. The new cloud offering analyzes email and calendar patterns to determine the strength of relationships between employees and prospects. Instead of determining engagement as clickthroughs and web visits, Sigstr Pulse determines relationship strength based upon employee interactions with prospects. Data is collected passively with sales reps not required to take any action.
According to Sigstr, “Revenue lags relationships. When you understand the quality of relationships, marketers can provide better air coverage and sales can forecast better.”
Sigstr calls out relationships between employees, accounts, contacts, and location; scores the strength of those relationships; assesses relationship strength over time; and helps identify warm introductions. As a relationship marketing platform, Sigstr visualizes the relationships with key accounts and determines “which contacts you know best and which you need to know better.”
Sigstr argues that corporate inboxes and calendars are the best source for measuring relationships. Relationships “live and grow in the inbox,” said Sigstr CEO Bryan Wade.
“Relationships are the lifeblood of every business, and no other system tracks who has relationships with whom better than a corporate email system. Sigstr Pulse allows marketers to effortlessly solve a problem everyone knows they have, making it easy to understand your organization’s complex web of relationships and take action on them. One practical example is in event marketing, as brands can send invitations to potential attendees based on the hierarchy of relationships within an organization,” said Wade. “Our platform is already in the email flow of hundreds of thousands of employees at some of the world’s largest brands, which means they can flip a switch to turn on relationship marketing via Sigstr Pulse. As we’re marketing in the era of GDPR, tapping into coworkers’ existing business relationships means less cold calling and more productive marketing.”
Sigstr provides location-based intelligence to help identify where contacts are located. This intelligence assists with on-site meeting planning, territory assignment, and assessing relationship strength at the location level. Location-based intelligence can also be employed for event planning and marketing.
Sigstr evaluates relationship strength based upon the frequency, recency, and directionality of communications along with the acceptance of calendar invites. Users are able to build targeted lists, identify strong relationships with the company for referrals, and evaluate how relationships are strengthening or atrophying at ABM accounts.
“Sigstr has expanded the opportunity for marketing and sales teams by allowing them to make the person-to-person connections they need through existing relationships within the organization. Email is at the center of nearly every professional’s daily workflow, and now they can use those interactions to build their business beyond just the conversations they’re having.”
Matt Heinz, President of Heinz Marketing
Sigstr does not yet have the functionality to exclude specific individuals or departments from your relationship data, but there are controls that manage which inboxes are integrated with Sigstr Pulse. Users cannot yet block access to relationships for teams involved in confidential communications such as litigation, M&A, and partnerships. Likewise, individuals cannot opt out if they wish to retain control over their relationships. As this is a V1 release, it is likely that their customers will demand such controls to be added.
Sigstr does have GDPR controls in place to modify or delete specific users, if users wish to remove their personal information.
Sigstr Pulse supports a Chrome Connector which provides on demand company and contact relationship insights while browsing the web.
Sigstr Pulse pricing is based on number of users (logging into the application and downloading the Chrome extension) and email volume.
Sigstr also offers an email signature marketing application which provides custom messaging and banners within employee email signature blocks.
DiscoverOrg announced the next generation of its OppAlerts intent-driven technology intelligence service. The premium service now delivers ten-times as many OppAlerts as before and integrates the alerts into its Build-a List-prospecting. Only surging companies with Bombora Surge scores of at least 75 are flagged.
Surge scores are early indicators of intent to purchase based upon B2B media site activity. A 75 signifies companies in the top five to ten percent of interest in a topic as compared to their baseline level of interest in that topic. As much of the buyers’ journey takes place before purchasers contact a firm, reaching out to prospects during the early stages of the journey provides sales reps with an early movers’ advantage.
“The holy grail of the B2B marketing and sales world is to know when customers are actively researching your product or service,” said DiscoverOrg CEO Henry Schuck. “The DiscoverOrg – Bombora partnership allows our customers to know specifically what their prospects are researching and then which decision-makers to connect with, all in one place.”
DiscoverOrg switched from the Bombora firehose API, which delivered bulk raw data, to Bombora’s processed surge feed. The upgraded service allows DiscoverOrg users to identify companies with surging interest in key topics, rank companies by purchase intent, route high-intent prospects to sales reps, and synch intent data with Salesforce for key topics.
Marketers can load a ListMatch file and have it immediately enriched with OppAlerts Surge scores by selected topics. They can then filter by topic, review trends, and assess week-over-week changes in scores. As the list is loaded into their prospecting engine, marketers can further refine the list by firmographics, technographics, biographics, and recent Scoops (sales triggers). DiscoverOrg has mapped all 4,100 topics to related job functions, allowing sales and marketing reps to quickly build targeted contact lists most likely to be interested in surging topics at key accounts.
The OppAlerts Build a List view displays current and historical intent data by company. Users see the week-by-week score changes along with other surging topics at companies. Lists may be saved for ongoing monitoring within the platform or via a weekly alert. Thus, sales reps can monitor their ABM accounts and place calls when intent spikes at them.
The email alert highlights New OppAlerts, Biggest Gains, and OppAlerts by Topic.
“Bombora is the only provider of Company Surge data. Combining our insights about which businesses are more actively researching specific products and services with DiscoverOrg’s best-in-class firmographic and contact data brings the most actionable form of Intent data to B2B sales teams,” said Erik Matlick, Bombora Founder and CEO.
Pricing was not released, but the service is sold in both light and unlimited tiers. Light tiers provide up to 100 surging companies per topic per month for 12, 25, or 50 topics. Joint subscribers only pay a small fee for delivery of Bombora data from within DiscoverOrg.
DiscoverOrg has been working to build out its datasets. They now cover 3.7 million contacts across 150,000 companies.
True Influence rolled out version 2.0 of its InsightBase ABM platform with enhanced intent data, improved contact data, and an Advanced Relevance Engine which ranks accounts according to ABM demand level.
InsightBase provides intent analytics across 4,000 business topics and fifteen countries. Intent is then matched to contacts, firmographics, and location-level technographics.
According to the firm, InsightBase 2.0 “combines the most advanced data and analytic technologies to create a comprehensive monitoring solution that specifically identifies Intent Signals, which are proven pieces of data that indicate buying interest and purchase acceleration. These signals are collected in real-time as the result of web-based activities – such as web impressions, searches, email opens and more — to create a profile showing which companies and locations are actively in the market for a specific solution.”
True Influence offers connectors for Marketo, Eloqua, and Salesforce.
“Today, companies tend to rely on first-party lists or behavioral data to plan their B2B marketing approach, but that is just a small piece of the puzzle,” said True Influence CEO Brian Giese. “The fact is, B2B decision makers take a complex journey before making buying choices by conducting research for their next big purchase. To be truly competitive, it’s critical to have a complete, worldwide picture of your prospects’ overall online purchase journey.”
TechTarget, which offers both IT media sites and technology sales and marketing intelligence, posted $31.5 million in Q2 earnings, up 18% year-over-year. Growth was driven by their Priority Engine Technology Sales Intelligence service which grew revenues 60% year-over-year. The firm noted that “revenue growth continues to be driven by our leadership position in purchase intent data and our customers’ transition to becoming data driven sales and marketing organizations.”
IT Deal Alerts revenue was up 21% to $14 million as the customer base grew from 500 to 600 clients. The firm also signed more than 40 new Priority Engine clients in the quarter (to approximately 250).
The new Priority Engine enhancements, which were released in early May, have been “well received in the market place.” New features included improvements to the user experience, a new Salesforce widget, persistent URLs, list assignments, user roles, and improved topic filtering.
Furthermore, Priority Engine is shifting the firm to a recurring revenue model with 34% of revenue now attributable to longer-term contracts. Approximately 80% of subscription revenue comes from medium and large firms and 20% from smaller firms, “typically VC-backed start-ups.” The revenue renewal rate for medium and large customers is “well over 100%,” said the firm in its earnings press release. “Those customers are finding great value in our purchase intent data and are renewing and buying more from us at high rates.”
However, TechTarget has a higher churn rate on smaller customers due to common issues inherent to smaller firms such as “changing go-to-market priorities, budget or funding reductions, personnel turnover, etc.” The issue of small customer churn exists for both their core services and longer-term contracts. To reduce churn, the firm is taking three steps: improving the ease of use of products; expanding their Customer Success team which owns customer on-boarding, training and monitoring; and building a dedicated sales team responsible for renewing and upselling. Splitting sales into hunters and farmers will allow the “existing sales team to hunt for new opportunities.”