B2BSignals

B2BSignals' departmental filters are more granular than most vendors and span functions across the organization.
B2BSignals departmental filters are more granular than most vendors and span functions across the organization.

Technology sales intelligence vendor B2BSignals offers data enrichment and prospecting across a database of 50,000 global companies, 700,000 locations, and 27 million executives.  Emails are available for over 20 million executives with emails suppressed in countries with opt-in email regimes (e.g. Canada, Europe).

B2BSignals maintains a proprietary taxonomy for product categories, roles, departments, seniority, skills, and industries.  Over 20,000 technology products are tracked across 8 million product users.  Products and executives are identified at the location level.

B2BSignals does not license any data but acquires it through an open web crawl combined with social listening and editorial review by 900 staff in the Philippines and India.  The web crawl completes every 45 days.

Company prospecting filters include company name, industry and sub-industry, product category and sub-category, employee range, revenue range, domain, international region, country, state/province, city, and “HQ only”.  Contact filters add name, title, email availability, email id, department, and seniority level.  Users may upload suppression files as well as suppress previously downloaded records.

Executive profiles display location address, emails, corporate phones, work histories, roles held, title, department, level, tags and firmographics.  Users may add tags and download the profile as a PDF.

B2B Signals Contact profiles are quite detailed and include emails, titles, roles, products used, work history, tags, and firmographics.
B2B Signals Contact profiles are quite detailed and include emails, titles, roles, products used, work history, tags, and firmographics.

While the prospecting module has clear strengths concerning product and functional responsibilities, sizing data is limited to ranges and location prospecting lacks postal codes, counties, metro areas, and ZIP radius filters.

Company profiles include contact information, Google map, revenue and employment ranges, products installed, contacts by department, and tags.  However, the profile lacks social links, news, sales triggers, and business descriptions, all content which could be gathered via its web crawl.

The User Experience is modern and straightforward.  Separate home pages are provided for sales and marketing.  The Sales Home focuses on prospecting with filter variables, saved searches, recently viewed companies and contacts, and company and contact counts.

Pricing begins at $500 / month with unlimited search, read, and discover, but restrictions on the number of exported contacts and users.  If multiple users download the same record, the user is not charged for subsequent downloads.

In Q4, they will roll out an enterprise edition with APIs and connectors.  A recently introduced Salesforce connector supports batch and on-demand enrichment; custom field mapping; “stare and compare” updates; company and contact prospecting; and i-frame display within account, contact, and lead records.

The B2BSignals Find Contact Prospecting tab in Salesforce
The B2BSignals Find Contact Prospecting tab in Salesforce

The company has an analytics product in beta called Market Insights which provides installed technology segmentation analysis by geographical region, industry vertical, company size, and department. The product is similar to analytics offerings from BuiltWith, Datanyze, and HG Data.

The data cleanse and enrich function pre-processes the records before attempting to match them (many vendors skip this step).  The cleanse steps validate company and contact data, flag obsolete records, remove special characters, dedupe the file, and normalize company data. Cleansing helps improve match rates while flagging out of business companies and contacts no longer at a firm.  Data enrichment then appends firmographics, installed products at both the company and contact level, title, role, department, email, and products used at the contact level.

DiscoverOrg’s recent acquisition of number two technology sales intelligence vendor RainKing cemented their position as the leading vendor.  However, B2B Signals is positioning itself to take a run at the number two position in the technology sales intelligence space with data enrichment, market analytics, and prospecting.  Other contenders for the second position are Aberdeen Services, HG Data, and Corporate360.

Salesify had 2014 revenue of $16.9 million according to their Inc 5000 listing.  The firm was acquired in 2015 by Ziff Davis.  They launched B2BSignals last October.

Correction: B2BSignals was spun off as a separate business unit from Salesify after the Ziff Davis acquisition.   The article originally referenced Salesify, but that is a separate business unit.

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 $770 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 over 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.

 

 

 

News Alert: DiscoverOrg Acquires RainKing

DO plus RK

Marketing and Sales Intelligence vendor DiscoverOrg acquired RainKing on Friday and announced it this afternoon.  Both firms employ large editorial teams for building and maintaining company and contact datasets and technology platform details (e.g. vendors, products, project plans).  This is the second acquisition of a competitor by DiscoverOrg which bought iProfile two summers ago and quickly integrated iProfile’s international coverage into the DiscoverOrg universe.

According to Inc., RainKing posted 2016 revenue of $33.9 million, up $6.9 million.  Combined, the two firms had 2016 revenue of $88.3 million and a 160% three-year growth rate.  The combined firm has an Annual Recurring Revenue (ARR) in excess of $120 million.  DiscoverOrg’s 2016 end-of-year ARR was $71 million.

“The path to rapid revenue growth is paved with highly accurate, actionable, and predictive sales and marketing data, and the combination of RainKing and DiscoverOrg means that our joint customer base has access to an extraordinary portfolio of data, contextual buying insights, and predictive intelligence.  We are building a company that is to sales and marketing intelligence what Salesforce is to CRM.”

  • DiscoverOrg CEO Henry Shuck

The plan is to immediately merge their coverage into a single database delivered via both platforms.  RainKing customers will benefit from deeper coverage of non-IT execs (e.g. sales, marketing, HR, product management), the assignment of Customer Success Managers to their accounts, and access to DiscoverOrg’s TiLT training for SDRs.  DiscoverOrg users will benefit from deeper company and contact coverage, particularly in Europe, along with a larger editorial team building out and maintaining the combined database.  Both groups of customers will benefit from additional datasets in the DiscoverOrg research pipeline including a new one which will be announced in the next sixty days.

RainKing customers will continue on their current platform for at least a year until RainKing functionality is merged with that of DiscoverOrg.

The combined datasets will span over two million contacts and over 100,000 global companies.  As both firms maintain high quality data standards, DiscoverOrg’s 95% accuracy guarantee will be maintained.

The deal is a cash transaction, though DiscoverOrg did not reveal the price.

Schuck provides additional details on his vision for DiscoverOrg and the acquisition in this YouTube video:

GZ Consulting Take

I have been tracking DiscoverOrg and its CEO Henry Schuck for over a decade.  For a long time, I viewed them as a niche offering in the tech space competing against three other firms of roughly the same size (RainKing, iProfile, and SalesQuest).  Due to competition and the cost of editorial resources, I figured they would plateau in their market coverage below that of the Hoover’s editorial dataset of 43,000 companies.  With more exacting editorial standards and three direct competitors, it was difficult to see how the marginal cost of adding and maintaining the 40,000th profile was less than the marginal revenue for the 40,000th profile (Microeconomics 101 would contend that the rational firm would keep building additional profiles until MC = MR).

But I made several errors in my assumptions.  Most importantly, I built in the additional cost of editorially maintained content without properly understanding the value of the data to clients, particularly as DiscoverOrg and RainKing extended their functionality into the marketing department and added light predictive tools such as ranking and scoring of prospects.  Adding marketing and integration tools greatly increased the value of every profile within their databases and allowed clients to distribute the cost of licenses over both sales and marketing departments.  The advent of Big Data and Predictive Analytics also increased the value of high quality company and contact data within CRMs and MAPs.

DiscoverOrg and RainKing quickly outgrew their other competitors resulting in the acquisition of SalesQuest by Avention and iProfile by DiscoverOrg.  While other firms have entered the IT profiling market, they either focus on technographics (e.g. Datanyze, BuiltWith, HG Data) or remain much smaller (e.g. Corporate360).

Finally, the growth of ABM and a focus on top accounts increases the value of a top company database with rich targeting variables such as tech platforms and projects.  “As the market continues to move toward account-based engagement built on a deep understanding of buying centers, investing in high quality data has become even more critical,” opined John Donlon, Sr. Research Director at SiriusDecisions.  “Simply relying on information scraped from the web is not enough to succeed, but leveraging human-verified sales and marketing intelligence gives organizations a distinct advantage in all aspects of revenue generation.”

Initially, the merger is a win-win for the 4,000 DiscoverOrg and RainKing clients, immediately providing deeper company, contact, and technology opportunity coverage for their 70,000 clients.  It also provides a runway from which DiscoverOrg can quickly grow its coverage including RainKing’s new Federal IT dataset.  According to the firm, “Our roadmap is focused on accelerated data collection, deeper practical predictive intelligence, enhanced account-based marketing capabilities, and seamless data optimization and enrichment in CRM, marketing automation, and sales engagement tools.”

While DiscoverOrg could use the merger as an opportunity to raise prices, my guess is that prices will remain stable so that DiscoverOrg can position itself to take on sales and marketing intelligence vendors such as D&B Hoovers, InsideView, LinkedIn Sales Navigator, and Zoominfo.  However, if DiscoverOrg is going to become the Salesforce of sales and marketing intelligence, the firm needs to expand its non-IT content beyond executives to include strategic company and industry intelligence.  It is through the marriage of best-in-class executive intelligence (emails, direct dials, responsibilities, bios, social links, and org charts) with financials, filings, news, industry overviews, and SWOTs that DiscoverOrg will be able to go mano a mano with Dun & Bradstreet and LinkedIn in the broader sales intelligence market.  Under this scenario, DiscoverOrg can continue to build out its best-in-class content set while licensing non-core content from other vendors.

This has been a year of significant M&A activity which has reduced the number of sales intelligence datasets on the market.  Beyond DiscoverOrg/RainKing, Avention was acquired by Dun & Bradstreet to become their new D&B Hoovers platform (Dun & Bradstreet content fueling Avention’s functionality and connectors), Moody’s purchased Bureau van Dijk, Zoominfo was bought by PE firm Great Hill Partners, and Unomy was picked up by co-working company WeWork.  The result is the phase out of the old Hoovers platform, uncertainty about Bureau van Dijk’s commitment to its Mint sales platform, and the withdrawal of Unomy and RainKing from the market (they will continue on in the near term, but are no longer being marketed).  The future of Data.com is also in question as Salesforce has failed to announce a path forward for their AppExchange solution now that Dun & Bradstreet content is no longer available to new clients.

DiscoverOrg named “Great Place to Work”

DiscoverOrg was named a “Great Place to Work” with very high employee ratings for challenges, atmosphere, rewards, pride, communication, and bosses.  Employees lauded the firm for providing ‘the resources and equipment to do my job” (97%), management competence (95%), and recognition from management for “good work and extra effort” (93%).  Over the past year, the firm has grown employment by 39% to 353 employees and plans to add another 130 headcount in the coming twelve months.  DiscoverOrg has a 24% turnover rate over the past year.

“We built a culture that is based on making sure employees understand how their contribution drives the entire company forward,” said DiscoverOrg CEO Henry Schuck. “It’s not all about ping pong tables, video games, and happy hours. We believe that employees love coming to work at DiscoverOrg because they appreciate seeing their contribution, believe we’re doing important work, and are more fulfilled achieving new goals and learning new skills.”

In other news, DiscoverOrg once again made the Inc. 5000 list with a three-year CAGR of 40%.  This is the seventh consecutive year DiscoverOrg made the list.  2016 revenue hit $59.4 million and is likely to make the list once again this year as their December 2016 ARR clocked in at $71 million.

DiscoverOrg made the Inc. 5000 list for the seventh consecutive year.
DiscoverOrg made the Inc. 5000 list for the seventh consecutive year.

HG Connect for Salesforce and HG Audience

HG Data Vendor and Product Intelligence
HG Data Vendor and Product Intelligence

Last month, technographics vendor HG Data rolled out two new services: HG Connect, a Salesforce Data Exchange connector, and HG Audience for digital targeting.  HG Connect supports competitive and complementary targeting of prospects based upon installed hardware and software.  HG Connect use cases include sales intelligence, lead qualification, and demand generation.  Account records are enriched in near-real time via the Data Exchange and updated on a monthly basis.  Matching is done via corporate URLs.

“It is our mission to help companies achieve extraordinary results in their marketing and sales outreach through the use of accurate and comprehensive technographic data,” said Barbara Winters, VP of marketing at HG Data. “With HG Connect, customers don’t even have to think about how to integrate technographic data into their workflows, it’s already there, ready for them to use, so that they can begin creating targeted segments for their campaigns immediately without needing to work with an IT or operations person to integrate the data.”

The HG connector is Lightning enabled, delivering HG Data’s technographics to mobile devices, reports, and dashboards.  The data is also available for triggers and workflow.  Along with Vendor and Product data, HG Data publishes Confidence and Intensity Scores (accuracy and frequency of uniquely dated documents).

Sample HG Data Connect Lightning-enabled dashboard
Sample HG Data Connect Lightning-enabled dashboard

Data enrichment is limited to Account records with plans to enrich Lead records in the future.

Customers license access to HG Data segments which is enabled via a Salesforce Data Integration rule (formerly called a Clean rule).  HG Data tracks 13 million global companies and 88 million technology installations. Their taxonomy spans 3,800 vendors and 7,500 products.

The Data Exchange is a Salesforce enrichment service associated with Data.com.  The Data Exchange does not yet support prospecting.

HG Data also launched HG Audience for programmatic advertising on platforms including Krux, Lotame, Adobe Marketing  Cloud, DataXu, MediaMath, and TheTradeDesk.  Marketers will be able to target audiences based upon technographic variables, firmographics (e.g. sector, revenue, employees), job function, and job level.

HG Data Audience Solutions
HG Data Audience Solutions

“HG Audience allows companies to modernize their digital advertising targeting strategy in a profound way,” said John Connell, Vice President of Digital for HG Data. “Instead of deploying digital ads based on just traditional firmographics or Internet content consumption, companies can now use our precise custom segments to apply ABM-style focus to traditionally broader-reach display media tactics.  With HG Audience, we’re giving our customers access to the influencers and decision makers at the companies that matter to them, leading to better engagement, greater efficiency and much better ROI on their advertising dollars.”

Over the past few years, a number of content vendors have released programmatic products.  These include Infogroup (B2B and B2C selects), Dun & Bradstreet (B2B), HG Data, Bombora (B2B Intent), and LinkedIn (Member targeting).

“In the last year to 18 months, there’s been a shift with B2B companies doing more programmatic media buying,” says Ashu Garg, general partner at Foundation Capital, a venture capital firm that has invested in the ad tech space. “What’s behind the change is the greater ability to connect anonymous data with PII (personally identifiable information) data. Secondly is the ability to get much more precise targeting from niche segments and audiences across platforms, whether that be social, display or video platforms.”

An AdWeek BrandShare study commissioned by Dun & Bradstreet in September 2016 found that 65% of B2B marketers were deploying programmatic campaigns, a ten percent jump from 2015.

DiscoverOrg Startup & SMB Dataset

"Building a Winning Dataset" from DiscoverOrg Collateral.
“Building a Winning Dataset” from DiscoverOrg Collateral.

Sales and Marketing intelligence vendor DiscoverOrg announced their latest database earlier today.  The new Startup and SMB dataset covers more than 60,000 small and mid-size businesses and 400,000 executives.  The initial North American coverage profiles companies with between 50 and 1,000 employees.

All of the contacts are editorially verified and will be maintained via the same sixty-day review cycles as their other contacts.  Executives cover “all key departments, including IT, Engineering, Marketing, Sales, Finance, HR, and Operations.”

“DiscoverOrg’s data difference is its team of 250+ researchers who constantly augment and verify the data in our platform,” notes Henry Schuck, DiscoverOrg CEO. “Unlike other vendors that provide SMB lists with thousands of irrelevant contacts, companies, and incomplete and duplicate records, the DiscoverOrg Startup & SMB dataset is as rich and accurate as our enterprise data.”

CMO Katie Bullard said that DiscoverOrg has “aggressive plans” to invest in SMB dataset development due to customer benefits.

With more companies, our researchers won’t have to skip over Triggers that they find through their research. We’re able to return a greater number of companies that use a certain technology, and our predictive tools like AccountView and DealPredict have larger reach with more matched accounts.

  • DiscoverOrg CMO Katie Bullard

The initial dataset is limited to North America as that is where they have the greatest current demand, but DiscoverOrg plans to internationalize the Startup and SMB dataset in the future.  While the goal is to cover all firms with at least 50 employees, the initial dataset consists of firms requested by their customers.

The press release noted how difficult it is to find reliable, actionable intelligence for SMB sales teams.  Along with company and executive profiles, the database provides 6,000 “research verified buying triggers” per month.

In smaller businesses without media coverage or press releases, almost none of the buying intent triggers that DiscoverOrg gathers – including planned investments, key projects, personnel moves, and internal spending budgets – is made available to the public. This is where DiscoverOrg’s team of researchers provides a clear advantage: While there are millions of registered companies in the US, the difficulty is identifying and gathering intelligence on the small percentage of these companies who are 1) legitimate entities and 2) have true spend / budget. By continuously verifying contact info, conducting interviews, and engaging in research activities, DiscoverOrg overcomes the shortcomings of web-scraping for hard-to-find data on the SMB space, ensuring the intelligence customers receive is highly relevant and immediately useful.

  • DiscoverOrg Press Release

“Sales and marketing teams that want to reach the SMB market have had a very difficult go of it,” said Nancy Nardin, President of advisory firm Smart Selling Tools. “There’s been a real dearth of verified, accurate data on SMBs, quite simply because it’s harder for data companies to get. DiscoverOrg is solving for this very real pain point by bringing their best-in-class research verification model to the SMB space. You can expect the same high-quality data you get from DiscoverOrg’s broad datasets. ”

Across all databases, DiscoverOrg now covers 1.5 million executives and 90,000 companies.  Customers may purchase access to the full database or various databases by job function, company size, or region.

 

SalesTech Landscape

Snippet of SalesTech Super Graphic developed by Nancy Nardin of Smart Selling Tools.
Snippet of SalesTech graphic developed by Nancy Nardin (Smart Selling Tools).

Yesterday, I wrote about the recently released MarTech Landscape.  While SalesTech isn’t as large, it is also receiving significant funding.  Nancy Nardin, of Smart Selling Tools, published her SalesTech Landscape spanning more than 400 firms.  As it is a first generation edition, there are a number of errors and omissions.  The most glaring gap I spotted was the Installed Tech Stack category which was missing  RainKing, Datanyze, Aberdeen, D&B Hoovers, and Corporate360, but I’m sure she will receive plenty of feedback to fill gaps.

In fact, she is maintaining the graphic and is already up to 1.2a.

If you want more details on the companies in these sections:

  • Database Cleanse & Append
  • Lead/Lists Building
  • Outreach Email Workflow
  • Installed Tech Stack
  • Sales Personalization/Trigger Events/Social Selling

Feel free to reach out to me for my Market Insights Newsletter and market research.  If you are looking for quick profiles of companies, check out CabinetM which focuses on Martech but also covers a fair number of SalesTech firms.

CabinetM helps modern marketing teams build, manage and optimize their marketing technology suite in a rapidly transforming digital marketing environment. The platform enables full lifecycle support around digital tool discovery, qualification, implementation and management by individual marketers, teams, and throughout enterprise organizations.

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