Drift became the latest RevTech unicorn following a strategic equity investment by Vista Equity Partners. The firm did not disclose the size of the investment nor its valuation, only that the valuation exceeded $1 billion. Vista will hold a majority stake in Drift when the transaction closes in Q4.
“In partnership with Vista, Drift will continue to invest in its customers’ success while expanding its product leadership, scaling globally and bringing Conversational Commerce to more B2B businesses,” announced the firm.
Vista exclusively invests in enterprise software, data, and technology-enabled businesses.
Cancel told TechCrunch that Drift’s goal wasn’t to create a unicorn but that he and founder Elias Torres are proud to be examples for other Latino entrepreneurs:
“Drift is now part of the less than 1% of #latinx founded companies to ever achieve that milestone [$1B+ valuation].
Elias Torres ⚡️ and I believe we have a responsibility to pay it forward, to inspire other people, who are often marginalized and don’t believe they can break the glass ceiling to know that they too can do it. So today we want our #latinx community to know that together we have taken another step forward in our fight for an equitable future.”
Drift CEO David Cancel
Drift, which offers “conversational commerce for B2B,” has over 50,000 sales and marketing customer teams on its Conversational Sales platform. Drift integrates chat, email, video, and artificial intelligence to power conversations on the website and with sales reps.
75% of its customers were described as mid-market enterprise clients by Cancel. Customers include ServiceNow, Okta, Grubhub, Mindbody, Adobe, Ellie May, and Snowflake.
“Over the next decade messaging will continue to eat the world and that in order to survive and compete, enterprise businesses will need to flip the traditional model, remove friction, and put customers first. The businesses that win will be the ones that make it simpler for customers to buy from them…
Our bet is that conversations will transform the entire B2B revenue function, and with a partner like Vista, who has helped to transform and grow companies like Marketo and Wrike in recent years, we are excited for what’s next.”
Drift CEO David Cancel
Drift continues on its hypergrowth path, growing ARR 70% in 2020 with a similar growth trajectory this year. However, the company is not yet profitable as it is focused on growth.
“Our purpose as a company remains simple and consistent: Build a platform that makes it simpler for customers to buy from you. We have an opportunity to bring learnings from the B2C buyer experience to the enterprise and introduce Conversational Commerce as a new B2B category,” said Drift CEO David Cancel. “Given its extensive experience investing in next-generation SaaS companies, we believe Vista is the best partner to help Drift – and our customers – further these efforts. I am excited to work with Vista’s team of investors, operators, and technologists who will help us fulfill our ambitious vision and lead the Conversational Commerce category for decades to come.”
Cancel has his eye on taking the company public, with Vista providing a “clear path” to an IPO.
“As a next-generation SaaS company with a strong leadership team, differentiated platform, and passionate customer base, Drift is uniquely qualified and well-positioned to define and lead this new market of Conversational Commerce,” said Monti Saroya, co-head of the Flagship Fund and senior managing director at Vista. “It is a privilege to partner with talented founders like David and Elias, and we look forward to supporting them and the entire Drift team to help advance their vision to remove the friction from business buying, and in turn, create tremendous value for customers as Drift’s hypergrowth continues to accelerate.”
Boston-based Drift slowed its employment growth rate with the advent of the pandemic but accelerated its hiring in 2021, with an increase of 151 employees since December. In addition, the sales team has grown 33% over the past six months to 136.
Drift accelerated its headcount growth in 2021 after slowing it at the advent of the pandemic (Source: LinkedIn)
The company appears to have started a consulting organization, growing from 2 to 18 consultants over the past year. In August, the firm hired Ryan Slinkard as their VP of Professional Services.
RevTech is a field with several minority immigrant founders of unicorns. I have recently also covered Manny Medina (Outreach CEO; Ecuador; $4.4 billion Valuation) and Tope Awotona (Calendly; Nigeria; $3B+ Valuation). Awotona was recently named a board member of SalesLoft, another RevTech unicorn.
(Continued from Part I)SalesLoft also announced that Calendly’s founder and CEO Tope Awotona joined SalesLoft’s Board of Directors. Both RevTech firms are based in Atlanta. Porter and Awotona met seven years ago at Atlanta Tech Village.
“It was clear from day one [that] he was an incredible leader who had a clear vision harnessed around delivering delightful customer experiences,” posted Porter on LinkedIn. “Most of us know the success of Calendly and have learned of Tope‘s fascinating story. We’re stoked to partner together and grow from his strategic wisdom, leadership learnings, and product-focused excellence. Our ultimate goal together is helping our current and future customers deliver revenue excellence at scale.”
Salesloft Calendaring Functionality
Porter and Awotona discussed potential conflicts of interest, but those concerns were laid aside. While SalesLoft has calendaring features similar to Calendly, SalesLoft maintains an open architecture and partner ecosystem with Calendly as a partner.
Porter echoed a recent Gartner observation that SalesTech is in a period of “mayhem” where customers are looking to consolidate their revenue platforms to simplify workflows and operations. Porter sees SalesLoft as being at the vanguard of this preference for broad, open platforms.
“There’s been massive trends towards digital selling that have taken place,” said Porter. “And then there’s another trend that we’ve seen emerge, which is companies have been using so many different revenue tools, but they really want to consolidate on a very few that they love, and that’s where SalesLoft comes in.”
Continue to Part III which discusses Porter’s long-term plans for SalesLoft.
ZoomInfo has been talking about its LTV/CAC (Lifetime Value to Customer Acquisition Cost) ratio for a few years and is now boasting about its sales efficiency ratio. For every dollar the firm invests in Sales and Marketing, it is growing $1.50 to $2.00 in revenue with even better results on the retention business side. These values are well above the SaaS industry average and indicate that the firm should increase its revenue operations investment.
“On the new business side, we aim for somewhere between one and a half to two X return for every dollar that we spend on a customer. And then on the retention and growth or account management side, we look for a six to eight X return for every dollar that we spend there. It’s a super-efficient go-to-market motion. Most software businesses, you put a dollar in, you get like 70 cents out in the first year. We’re putting a dollar in and getting one and a half to two X out.”
ZoomInfo CEO Henry Schuck
Schuck described their go-to-market efficiency as one of their “big strategic levers” when acquiring firms with less mature go-to-market motions. ”So when we find companies that don’t have a very sophisticated go-to-market motion, that aren’t truly optimized in the way that they get clients, they’re not doing one and a half to two X efficiency or a 15 X LTV to CAC. Those are great fits for us.”
ZoomInfo has a track record of improving sales efficiency, helping unlock value in acquired assets where the go-to-market motions are aligned. “In our big acquisitions – RainKing, ZoomInfo, and, most recently, Chorus.AI — we really felt like we could leverage the go-to-market motion to accelerate growth within those companies. That’s a key piece.”
When DiscoverOrg acquired RainKing, which had a $40 million ARR, he was convinced that DiscoverOrg could treble their EBITDA to $30 million and accelerate their top-line growth within six months. Within one year of acquiring RainKing, DiscoverOrg’s market valuation grew from roughly $600 million to $2 billion.
One of the inherent advantages of SalesTech is you don’t have to teach sales reps the value and use cases of your product. This shortens ZoomInfo’s ramp time for new reps from several quarters to four months. “it makes it way easier for you to be able to sell to your counterpart on the other end of the line. It’s a big difference for us,” said Schuck.
ZoomInfo heavily hires sales reps directly out of college or soon after and trains them as SDRs, responding to inbound leads and performing outbound prospecting. “In nine months, we start promoting them into the account executive role. So we got value out of them in that ramp time. Then four months after they’ve gone into the account executive role, they’re fully ramped. Thirteen months from when you’ve never sold something until you’re an account executive at one of the fastest-growing technology companies in the country, that’s a really fun promotion to see.”
And because ZoomInfo is hiring sales reps to sell sales and marketing solutions, Schuck does not consider complicated or technical product categories for acquisition. Instead, he looks for solutions that broadly meet the needs of his 20,000 customers and which are easy to understand. Chorus.AI, the Conversation Intelligence vendor that ZoomInfo acquired last month, fits the bill: “We use it, all of our sellers use it. It’s really simple to understand, ‘Hey, we’re going to record and transcribe all your calls, and then you can go do instant coaching on the key moments in those calls’,” remarked Schuck.
The Chorus app for Zoom records, transcribes, indexes, and analyzes calls, providing insights to sales reps and sales managers. As reps no longer need to worry about notetaking, they can focus on the topics at hand and be more present during the meetings.
Gong’s Five Operating Principles of Revenue Intelligence.
Revenue Intelligence vendor Gong announced plans to open its first European office in Dublin. It already has over one hundred European clients, including Aircall, Hopin, GoCardless, and MOO.
“After many international companies reached out to us, looking for access to the insight uncovered by our revenue intelligence platform, we knew it was time to meet global demand in a strategic and thoughtful way,” said Gong CEO Amit Bendov. “With a physical presence in Europe, we can continue to demonstrate our category leadership, support the massive growth we’ve seen in the past year, and deliver the product customers are asking for.”
The new office will be managed by Gong’s newly appointed VP of EMEA, Wendy Harris, who previously led European sales for CarGurus and Dropbox. The firm is hiring for sales, marketing, customer success, and G&A positions.
“Gong’s revenue intelligence platform is transforming the way companies do business by empowering sales organizations to adopt data-driven strategies,” she said. “Joining a high-growth company and leading its global expansion in my hometown of Dublin is truly the opportunity of a lifetime.”
Gong supports 26 languages, including French, German, Italian, Dutch, and Portuguese, with additional languages planned. The Revenue Intelligence platform captures and analyzes phone, email, and meeting conversations, providing insights into deals, people, and the market.
Gong has also been building out its partner network, including Bain & Company, Sandler, and SBR Consulting.
Gong’s June Series E valued the firm at $7.25 billion. Over the past year, it grew its headcount by 89% to over 700 employees. The Israeli firm was founded in 2015. The firm will see stiffer competition from Chorus, which was acquired by ZoomInfo two weeks ago. ZoomInfo provides it with deep pockets, global data enrichment, workflow tools, a chatbot, and a sales engagement platform.
ZoomInfo launched its Business Contact Preference Registry (BCPR), a centralized registry for recording B2B opt-out requests which will be shared across the industry. The BCPR is ZoomInfo’s latest step in burnishing its data privacy positioning.
“The collection of data is central to businesses in the B2B data industry, but the responsibility of ethical data stewardship falls onto the shoulders of each individual company,” wrote the firm. “As industry leaders in data privacy, ZoomInfo has made it easier for businesses in the B2B data marketplace to address the preferences of consumers by building, maintaining, and sharing access to the BCPR.”
“It’s critical for data-focused companies to prioritize privacy. The Business Contact Preference Registry offers businesses a convenient way to prioritize privacy by supplying the entire B2B data industry with a ready-made list of consumer opt-outs. We’re proactively sharing our opt-outs as an invitation to B2B companies to join us in putting privacy first.”
Bubba Nunnery, ZoomInfo’s Senior Director of Privacy and Public Policy
I had been flagging data privacy as a weakness in ZoomInfo’s model, which could slow their entry to the European market post-COVID, but they have been actively working to shore up their data privacy practices and demonstrate that they are respectful of the data they hold.
ZoomInfo developed a proactive data compliance program based upon “notice and choice” that notifies business professionals about ZoomInfo’s data. The program is global in scope, so not limited to countries that require notifications. ZoomInfo also expanded its data privacy team earlier this year, naming Hannah Zimmerman, ZoomInfo’s Privacy Counsel and Bubba Nunnery, Senior Director, Privacy and Public Policy.
ZoomInfo data privacy certifications
“Our business is founded on the trust our customers have in our data,” said General Counsel Anthony Stark back in March. “Collecting data is central to all businesses, and it’s our job to be ethical stewards of the data we hold. ZoomInfo adheres to its core privacy tenets of transparency and control, showcasing that we are respectful of the rights of consumers while providing critical service to our customers.”
In May, ZoomInfo announced that it received GDPR and CCPA Practices Validation from TrustArc, saying that its policies “are in line with the strictest privacy regulations in the world.”
“Organizations of all sizes must become privacy-forward to earn the trust of their customers,” said Chris Babel, CEO, TrustArc. “ZoomInfo understands that building trust requires an ongoing, scalable approach to data privacy. The organization has consistently prioritized privacy as the enabler of a better experience for its customers and their subscribers, and the TrustArc GDPR and CCPA Validations reinforce that standing.”
“ZoomInfo is leading the way in data privacy. We are working to accept opt-outs from other vendors as part of our efforts to elevate privacy standards across the B2B data industry.”
CEO Henry Schuck
The BCPR is an excellent idea, but I’m not sure whether the registry should be hosted by one of the major vendors in the space. ZoomInfo plans on accepting opt outs from other vendors, but It is unclear whether other vendors would promote ZoomInfo in the lead data collection role. Preferably, it would be hosted by a government agency such as the FTC, which manages the US Do Not Call Registry, or a neutral body similar to the ICANN domain registry. DataGrail, a leader in data privacy compliance, could administer an independent database across businesses and consumers.
Drift Sales Seat can activate SEP sequences in Outreach.
Revenue Acceleration vendor Drift announced a pair of new services last week. I covered Fastlane, its new webforms/chatbot hybrid service yesterday. Today I’ll be discussing Sales Seat, Drift’s entry into SalesTech.
Sales Seat alerts reps when intent and engagement signals have exhibited buying activity. Drift monitors the website, SEPs, MAPs, and CRMs for buying intent. Sales Seat is Drift’s first sales product and helps reps with timing, messaging, and discovering the buying committee. Sales professionals can reach out with personalized messages via chat, email, or video, based on intent and engagement.
Sales Seat is integrated with Outreach, letting reps create sequences from the service.
A mobile app notifies reps, supports conversations, and lets reps record and send Drift videos.
A Chrome extension displays all conversations happening in Drift, monitor engagement (e.g. email opens and clickthroughs, page visits), and drop calendar information in Gmails. Reps can optionally bcc Gmails to their CRM for tracking.
Drift Profile Page
The Drift Profile acts as an online business card with a link that can be dropped into emails and social media messages. Recipients can chat with the rep or book a meeting. The profile contains the rep’s title, location, a short bio, headshot, phone, and social links. The chat supports default messages to display when the rep is available and when not.
“Sales success is all about engaging today’s buyers on their terms: Digitally and immediately when they express interest,” said Drift Chief Product Officer Leo Teneblat. “With Fastlane and Sales Seat, Drift customers can ensure their best buyers and highest intent visitors receive express treatment without overloading the sales team. Not only that, but sellers have context to engage buyers with a personalized experience on the exact topics they care about in the moment they’re expressing interest.”
According to Drift, reps are six-fold more likely to book a meeting if they engage with a buyer during the first hour. Thus, immediately transitioning webform submissions into chats and notifying reps that high-scoring prospects are engaging with the company dramatically increases the likelihood of converting a lead into a meeting.
“Not all accounts are created equal. Your target accounts should receive the most personalized and high-touch buying experiences. Account-based marketing lets you create this experience while engaging with VIP buyers and connecting them to sales. By cutting through the noise, you can close more deals – faster,” blogged Drift Product Education Marketer Gauri Iyengar. “When it comes to booking meetings, there is literally no time to waste. Speed is essential to not just set up a meeting but to turn that meeting into revenue.”
The pair of services was released to early adopters that enjoyed an 82% increase in meetings booked, a 77% jump in opportunities created, and a 67% rise in pipeline influenced.
Sales managers are looking to diversify their hiring across two dimensions: geographic and cultural. With work from home proving itself over the past year, managers are now confident that they can hire the best talent, regardless of location.
Likewise, sales professionals believe that their firms have succeeded in their efforts in opening up sales teams by gender, race, etc. 35% of sales professionals believe their sales organizations have “exceeded goals around diversity hiring initiatives,” while another 45% say their sales organization has “met” their diversity hiring goal.
On the buying side, 83% of purchasers said that all things being equal, they would give a preference to more diverse teams.
LinkedIn argues that Sales Intelligence is a crucial tool for building trust in the absence of face-to-face meetings. LinkedIn broadly uses the term to include Conversational Intelligence tools such as Gong and Chorus, which help understand the prospect’s state of mind, and sales intelligence solutions such as Sales Navigator.
“With in-person meetings limited, sales technology provides a key pathway to gaining insight and understanding into potential customers. It’s no surprise, then, that our survey indicates that both usage of and investment in sales technology are increasing,” stated LinkedIn.
73% of respondents employ a sales intelligence solution weekly, and 23% use one daily. 54% said SalesTech helps reps build stronger relationships, and an equal percent said it helps them close more deals. The top three categories for closing deals were CRM (70%), sales intelligence (69%), and sales enablement (69%).
Both usage and investment in SalesTech will increase in 2021, with CRM (49%), Sales Intelligence (43%), and Sales Planning (42%) seeing increased usage. On the investment side, the top categories are CRM (41%), sales intelligence (40%), and sales engagement (40%). Nearly seven in ten sales professionals anticipate greater SalesTech investment this year.
Data continues to be seen as critical, with 47% of sales organizations using it for account targeting, 44% for industry targeting, 43% for performance assessment, 41% for geographic targeting, and 39% for defining the buying committee.
While LinkedIn did not delve further into buying committee discovery, this is a nascent development area with multiple approaches, including conversational intelligence (meetings, emails) and machine learning.
Understanding the demand unit is critical for sales teams. 85% of reps reported that at least one opportunity was lost or delayed due to the departure of a client stakeholder.
Sales Navigator usage continues to be robust, with a 400% increase in self-bought Sales Navigator licenses over the past two years, “a surge that indicates sales professionals are investing in their own growth and have a willingness to use sales tech even if not prescribed by their company.”
59% of the Forbes Global 500 companies and 64% of the Forbes fastest-growing companies have Sales Navigator users.
Finally, message quality trumps quantity. Simply sending high volumes of email or sharing many content pieces does not move the revenue needle. The key is quality outreach that generates engagement and message acceptance. “This is a strong indication that salespersons ought to be mindful of the value to the customer before sharing content or sending an InMail.”
InMails should be “short, personalized, and conversational.” Messages with fewer than 400 characters are the most effective, with a sharp drop-off in response rates for long-in-the-tooth messages.
LinkedIn surveyed 400 sales and 400 US and Canadian purchasing professionals in January 2021. Separate surveys were conducted for other geographies but have yet to be published. [Original Report]
In its recently published State of Sales 2021 survey, LinkedIn stated that “Virtual selling is good for sellers and even better for buyers.” 50% of buyers say that “working remotely has made the purchasing process easier.” Buyers have benefited from the greater acceptance of sales intelligence and sales enablement services.
Furthermore, 70% of buyers want to retain remote work at least half of the time. 48% of buyers do not expect to be meeting face-to-face until H2 201, and 17% anticipate waiting until 2022.
“The bottom line is this situation requiring virtual selling skills won’t be changing anytime soon,” commented LinkedIn.
59% of buyers do not anticipate attending live events until H2 2021. While 90% of the surveyed buyers have previously attended events, 48% of sales reps have now closed deals above a half-million dollars without meeting the buyer in person.
“Sellers will go back to face-to-face meetings but not remotely close to pre-pandemic levels. Digital transformation was coming no matter what. COVID-19 just accelerated everything. In other words, digital transformation is here to stay.”
Gartner VP-Analyst Craig Rosenberg
Sales Managers recognize the acceleration of change and digitization, with 86% agreeing that “the ability to cope with change is more important than it was five years ago,” up 16% over the past year.
“Generally speaking, sales is slow to adapt,” opined Gartner VP-Analyst Craig Rosenberg. “If the way sellers are doing things works, then they will keep doing it. This drastic event is driving change. Also, when the buyer changes, sales is forced to change. We often think of ‘sales’ as having to move virtual as the driver, but actually our buyers moved virtual. Ultimately, sales is going to gravitate to the buyer’s preference. In other words, it is much easier to adapt to change when you have to.”
The top three sources of change cited by sales managers are measuring sales processes and outcomes in different ways (51%), adding new technologies (50%), and instituting new hiring policies (50%).
LinkedIn State of Sales Report 2021
Remote sales job postings increased five-fold in Q3 2020 year-over-year, with remote positions growing 8.8X in Canada and 4.5X in the United States. The transition hasn’t been easy. 67% of sales managers said that managing remote teams is more challenging than expected, and 65% of sales reps found it more difficult than anticipated.
Sales Operations and Customer Success roles proliferated between 2018 and 2020. LinkedIn captured a 38% increase in Sales Operations roles over this period, 4.8X the growth of sales titles.
Customer Success positions trebled between 2018 and 2020.
Continue to Part II, which discusses diversity effort in sales, SalesTech, and Sales Navigator.
Meeting Automation vendor Chili Piper closed on its $33 million “Series Spicy” led by Tiger Global with participation from existing investors Base10 Partners and Gradient Ventures, Google’s AI-focused venture capital fund. The Series B raised total funding to $54.4 million, most of which was raised over the last nine months.
The additional funds will be used to accelerate product development and global expansion. The round will also help them build out its sales, marketing, and customer success teams.
“We’re excited to partner with Tiger Global, one of the most successful and prolific software investors in the world,” said Chili Piper CEO Nicolas Vandenberghe. “With hundreds of customers and tens of thousands of reps using Chili Piper adding spice to their calendaring efforts daily, we thought, why not raise $33 million to ensure we up our Scoville game?”
Chili Piper Funding (Source: Crunchbase)
Like many SalesTech companies, Chili Piper enjoyed pandemic tailwinds as businesses went remote and looked to streamline their calendaring.
“We’re proud to have so many customers scheduling meetings and optimizing their calendars with Chili Piper’s Instant Booker. We know some people can’t handle how hot our platform is, but believe me, once you use software as pungent as this, you’ll never go back,” said CPO Alina Vandenberghe.
Chili Piper positions itself as a Meeting Lifecycle Automation company. Beyond booking meetings, it handles inbound meeting requests, sets up follow-up conversations, and maximizes the value of meetings. Meeting workflow features include setting and sharing agendas, booking next steps, logging notes and follow-up actions, and syncing with the CRM.
“Before we launched our inbound solution, Concierge, every company had accepted the industry standard 40% conversion rate on inbound demo requests — meaning that 60 out of every 100 inbound meeting requests (aka inbound leads) never converted into a held meeting. The biggest culprit was speed to lead. The moment a prospect submits a meeting request form on your website, you should be connecting to get a meeting on their calendar.”
Chili Piper, founded in 2016, has 101 employees across 22 countries. The company is structured as a fully remote organization.
Customers include Gong, Spotify, Intuit, Twilio, and Airbnb. Expect more spicy pepper puns in the coming months.
Chili Piper isn’t the only Meeting Management vendor to be gaining attention from the VCs. In January, Calendly closed on a $350 million Series B with OpenView Venture Partners and Iqoniq Capital. The funding round valued the Atlanta-based scheduling firm at greater than $3 billion. Last year, it doubled its subscription revenue to $70 million and grew its user base to ten million.
Calendly has been profitable since 2016. Nigerian immigrant Tope Awotona founded Calendly after a series of failed businesses.
The funds will be used to provide liquidity for early shareholders and employees. It will also fund ongoing product innovation, including expanded appointment setting enhancements and integrations. The firm plans to double its headcount (at 200 in January) and continue to build out its R&D operations in Kyiv.
As a freemium service, users can test out Calendly and license the service for either $8 or $12 per month. The service is generalized, supporting business people, teachers, contractors, and freelancers. It offers integrations with calendars (e.g. Outlook, Exchange, Google Calendar), video conferencing (e.g. Zoom, Teams, GoToMeeting, JoinMe), and payment services (PayPal, Stripe). Calendly offers apps for Android, iOS, Outlook, Chrome, and Firefox.
“We really see ourselves as a leading orchestration platform,” explained Awotona. “What that means is that we really want to remain extensible and flexible. We want our users to bring their own best-in-class products. We think about this in an agnostic way.”
“Calendly has a vision increasingly to be a central part of the meeting life cycle,” said Blake Bartlett, a partner at Openview. “What happens before, during, and after the meeting. Historically, the obvious was before the meeting, but now it’s looking at integrations, automations, and other things so that it all magically happens. But moving into the rest of the lifecycle is a lot of opportunity but also many players.”
“It’s a feeling of expansion, born of learning so much from our customers, and born of the digital transformation that has happened in the last year,” said Demandbase CEO Gabe Rogol. “This is an intentional step for us beyond being solely an ABM leader and into broader B2B go-to-market. That’s important because ABM is just a part of the go-to-market challenges that B2B companies face.”
The new services are packaged as an ABM Suite consisting of four clouds: ABX, Advertising, Sales Intelligence, and Data. Customers will have the flexibility to order various elements of the suite, selecting the clouds and services that fit their needs.
“Our focus has been on building the most complete ABM solution (we call it ABX, because it’s not just marketing),” said Rogol, “and that was the impetus behind acquiring Engagio, putting a lot of the top of funnel and lower funnel stuff together. That will still be important.”
While some may view this as Demandbase growing beyond ABX, it is an opportunity for them to complete the ABX vision. I have long been critical of Demandbase’s limited framing of ABM within the marketing department. While they acquired Spiderbook, a small sales intelligence vendor, a few years ago, it withered on the vine and is no longer mentioned by the firm. InsideView provides them with an opportunity to realize ABX as a complete customer lifecycle solution. There are still missing elements such as sales engagement tools and chatbots, but they are now working on a much wider canvas.
Demandbase is in a sprint to establish the ABX platform space against vendors such as Terminus, 6Sense, and Dun & Bradstreet. It has been using the ABM three-letter acronym for a dozen years and was a lonely voice extolling ABM for half of that time, arguing for a shift from demand generation marketing to account-based strategies. Earlier this year, it shifted from ABM to ABX (Account Based Experience), which places a greater emphasis on long-term relationships with customers and the broader revenue team (sales, marketing, customer success).
“We’re proud to join forces with these two great companies. Our vision is bold. We are transforming how B2B companies go to market, helping them deliver great experiences at every stage of the account journey. This requires great data — and we now have the premium B2B data and intelligence solutions to help companies identify, understand, and engage their customers and prospects. With this move, Demandbase moves from being ‘just’ a leader in account-based programs to being the definitive leader in B2B go-to-market…
These new offerings let us work even more flexibly with our customers. Customers can mix and match to focus on the areas most important for them, whether that’s data embedded to their existing systems, or advertising, or sales intelligence, or a full account-based transformation. We are moving aggressively to deliver on this mission, and no company will move faster than us to achieve it.”
Demandbase CEO Gabe Rogol
Acquiring InsideView and DemandMatrix strengthens its position in both marketing and sales. Furthermore, InsideView’s sales triggers provide Demandbase customers with a rich set of talking points for account managers and customer success teams, letting them know if there are executive changes, M&A events, new partnerships, etc.
Demandbase One added the Sales Intelligence and Data Clouds with this week’s acquisitions.
Demandbase, which offers an ABX Cloud and an Advertising Cloud, now supports a Data Cloud and Sales Intelligence Cloud. The Sales Intelligence Cloud is based upon InsideView and supports:
Prospect Finder – A traditional list-building feature for company and contact data. Along with firmographic and biographic data, the InsideView prospect finder includes connection variables (Who Know Who “six degrees”), sales triggers (17 + custom variables), data availability (e.g., LinkedIn Connections, Email), and suppression lists.
Browser Extension – A Chrome extension for quick lookup and prospecting. The extension displays InsideView company and contact profiles from LinkedIn, company websites, and CRMs. Records may be sent to the CRM or Sales Engagement Platforms.
News and Social Insights – InsideView publishes daily email alerts based upon their sales triggers. As these are event-based, most company noise (e.g., stock price fluctuations, scores for teams playing at branded stadia) is removed and duplicates suppressed. They also support inline social media viewing for Facebook, Twitter, and Company Blogs. Inline viewing helps account managers and customer success teams stay abreast of key accounts. It also assists marketing and CI professionals in monitoring key partners and competitors.
Corporate Hierarchies – Family trees assist with lead-to-account mapping, selling deeper into an organization, and ensuring that leads are accurately scored and routed.
The Data Cloud consists of Demandbase, InsideView, and DemandMatrix assets. InsideView contributes close to 100 million global contacts and 17 million companies. DemandMatrix supports technographics (current tech stack, future technology needs, technology-based skill set trends, cloud consumption revenue, and IT Spend).
Other Data Cloud services include Demandbase Account Identification, InsideView Apex (ICP Discovery and Expansion), InsideView Data Integrity hygiene tools, and the InsideView API.
“For the last 15 years, we’ve been focused on empowering our customers to experience rapid revenue growth through the power of data. InsideView’s leadership in sales intelligence made it clear to us years ago that stronger ties between sales and marketing lead to more revenue—and data is the key. By joining forces with Demandbase, we’re combining our legacy and leadership in sales, and the industry’s freshest, most reliable data, with leading marketing technology. Our customers will be able to do more with data across more B2B revenue channels from sales, to advertising, to account-based campaigns. We’re taking the convergence of data and workflow to the next level.”
InsideView CEO Umberto Milletti
InsideView was highly rated in The Forrester Wave B2B Marketing Data Providers Q2 2021 report, scoring a five (highest score) across 14 of Forrester’s 24 evaluation criteria. Among the categories in which they excelled were data management, data coverage, and customer support.
Rogol emphasized the value of technographics for enterprise technology companies, saying that “for technology companies, the number one feature in a data science model is what technologies your prospect owns.”
“B2B data is complex, and customers consistently ask us for help with their data stack,” said DemandMatrix CEO Meetul Shah. “We started with further innovating technographic data to give customers valuable insights into their prospects and what other technologies they might buy. By now being part of the Demandbase Data Cloud, we’ll be able to provide customers access throughout the B2B data stack to help them realize their revenue goals.”
Both Milletti and Shah will continue running their respective businesses and join the Demandbase executive team as general managers. The two subsidiaries will operate separately, but the firm will consolidate the data across the offerings.
Acquisition prices for the two firms were not disclosed. The InsideView service lists its revenue at $30.5 million and 275 employees, which has remained stable over the past few years. DemandMatrix is listed at $3.0 million in revenue with 90 employees.
InsideView’s self-profile (May 4, 2021)
“At Demandbase, our vision is bold. We are transforming how B2B companies go to market, helping them deliver great experiences at every stage of the account journey. This requires great data,” said Demandbase. “We now have the premium B2B data and intelligence solutions to help companies identify, understand, and engage their customers and prospects. With this move, Demandbase goes from being ‘just’ a leader in account-based programs to being the definitive leader in B2B go-to-market.”
InsideView and DemandMatrix customers benefit from the more extensive go-to-market capabilities of their parent. The DemandMatrix suite helps customers:
Design and orchestrate their entire buyer’s journey across marketing and sales
Personalize their website experience, track account-level engagement, and attribute revenue
Deliver account-based display, native, and social media advertising that is brand safe for B2B
Target and segment their market
Rogol admitted that the integration work would not be easy. “Obviously, we still have a lot of the execution work ahead. One thing to point out is that these are different types of acquisitions than Engagio. With Engagio, the goal was to get to the most comprehensive ABM platform. These are adjacent expansions, so they’re going to operate as standalone businesses pretty much.”
Barb Mosher Zinck of Diginomica was bullish on the transactions, calling it a “smart move” to consolidate the data from three companies under a single platform. “It’s essentially a Customer Data Platform (CDP) without the CDP name (and some CDP capabilities), providing all the critical information sales and marketing need to find the right accounts and contacts within those accounts. The intelligence DemandMatrix brings on technology is key, as is the ability from InsideView to see when things are changing in a company.”
“I also like that Demandbase has broadened its offering from only account-based marketing to sales intelligence because the two groups are tightly aligned,” continued Mosher Zinck. “These two solutions can operate separately but bringing them together under the same umbrella with access to the same data is key to ensuring a company-wide focus on customer experience.”
The following Market Flash published on May 4th to my newsletter subscribers. I also offer a detailed InsideView product review for purchase ($349).
