HG Data announced the acquisition of London-based Pivotal iQ. The acquisition brings together two complementary tech vendor datasets: HG Data’s Vendor / Platform database and Pivotal iQ’s IT contract data and spend intelligence. The combined content set will help clients target accounts, evaluate purchase likelihood, and identify when best to reach out to prospects.
“For years companies large and small have relied on HG Data to identify the software, hardware and cloud services being used by millions of companies worldwide. With the addition of Pivotal iQ, we are the first in the market to deliver a unique blend of IT spend, IT install and contract renewal intelligence,” said HG Data CEO Elizabeth Cholawsky. “This information can be accessed through the Pivotal iQ platform, allowing our customers to act more quickly on the best technology datasets with the deepest insights.”
Like HG Data, Pivotal iQ employs web crawling and natural language processing to build its dataset. Coverage spans 186 countries representing over 90% of the global ICT spend. The database is matched to D&B WorldBase, providing account and location level views across corporate hierarchies. The firm claims to cover installed technology for all global firms with $50M in revenue and global publics with $25M.
Pivotal iQ intelligence covers 600,000 companies, 8,500 vendors, 10 million supply-side announcements, and 40,000 contracts. Data is updated daily.
The Pivotal iQ InstalledView service details hardware and software installations at the account level. SpendView provides market and country-level analytics and competitor take-out campaigns across 21 spending categories and 22 sectors. SpendView includes a visualization engine for competitive and account analyses. The BuyerView service provides enterprise IT and purchasing departments with intelligence around which vendors are being deployed and which companies are managing outsourced projects within their peer group.
“Our vision for Pivotal iQ has been to deliver the best intelligence on the ICT sourcing activities of Organizations to empower businesses to make better supply and purchase decisions,” said Pivotal iQ CEO Tim Royston-Webb. “By joining with HG Data, our joint customer base now has access to an unparalleled portfolio of firmographic and technographic data along with intuitive decision tools that will help their businesses grow and succeed.”
Zoominfo announced that it acquired both San Mateo-based Datanyze and Israeli firm Y Labs last month. Datanyze provides Zoominfo with a deep set of technographics and segmentation visualization tools to complement Zoominfo’s company and contact database. Y Labs, which is moving into Zoominfo’s recently opened office in Ra’anana, Israel, will operate under the name ZoomInfo Israel Limited (Ltd.). Y Labs will supplement Zoominfo’s product development and security operations.
“I am thrilled to be joining ZoomInfo at this time of tremendous growth in the organization,” said Datanyze CEO Ilya Semin. “Bringing together our two organizations is a perfect union, combining Datanyze’s real-time technographic data with ZoomInfo’s unparalleled – and the industry’s most current – company and contact data.”
Semin is joining Zoominfo as the Vice President of Data.
Both vendors heavily employ natural-language processing for building their respective datasets. Zoominfo also mines signature blocks of its voluntary community members. Zoominfo has some technographic intelligence available to its customers, but Datanyze provides a significantly more mature dataset and technographic capabilities. Datanyze has captured technographic intelligence for 35 million companies.
“Business data is rapidly changing and your data platforms must be built to adapt,” said Zoominfo CEO Derek Schoettle. “ZoomInfo has the largest, most complete data set of companies and contacts and a goal to enable our customers to automate, process, curate, and present the data on-demand and in real-time. Delivering industry-leading technographics, the Datanyze technology will be a significant addition to help us deliver the right data, at the right time, to the right person.”
Schoettle, who joined the company in July, just completed 50 customer discussions over five weeks providing him with insights to both Zoominfo’s strengths and gaps.
“The (customer) advocacy for the company and the product is phenomenal,” Schoettle said. “The second part of our effort now is to round out the data factory we have, looking at all the right data sources, the data quality, and present it to the right end users.”
The acquisition follows a blowout August with billings 53% above July’s numbers. August billing were up 71% year-over-year.
“The growth we experienced in August will continue as we build the industry’s most robust and frequently updated platform for sales and marketing teams thirsting for real-time, on-demand customer data,” said Schoettle. “As we look ahead, we see significant potential to create a world-class development capability in Israel that will allow us to harness leading artificial intelligence and security capabilities which translates into smarter services for our 7,500-plus customers. The rate and pace of change in the data space requires a commitment to innovation and we are thrilled to have this team become part of ZoomInfo.”
Zoominfo also announced the hiring of Brad Noble as VP of Product Design. Noble previously led product design and advocacy teams at IBM Watson, Cloudant, Boathouse Group and MullenLowe.
Datanyze customers will continue to receive support for the Datanyze product offering. Terms of the two deals were not disclosed. Nathan Latka’s database of SaaS vendors listed Datanyze’s 2016 revenue at $6 million, up 50% year-over-year.
Zoominfo has more than doubled its staff over the past year. They are stratified over six locations: Waltham (MA), San Mateo (CA), Grand Rapid (MI), St Petersburg (Russia), Kazan (Russia), and Ra’anana. The Waltham headquarters office is relocating at the end of the year to Constant Contact’s old site along I-128.
Technographics, which were a relatively small segment five years ago, have grown rapidly and are in the midst of a consolidation phase. Three years ago, DiscoverOrg acquired iProfile and then picked up RainKing last August. This week, HG Data acquired London-based Pivotal iQ, Zoominfo acquired Datanyze, and DiscoverOrg rebranded.
Both acquisitions expand the scope of coverage of the acquiring firms. Zoominfo had limited technographics prior to the Datanyze deal and now holds a deeper set of technographics along with analytics and visualization tools. HG Data has expanded beyond product / vendor data to include contract and spend intelligence.
By my research, the IT sub-sector represents 18% of the sales intelligence space with DiscoverOrg in the pole position. Overall, the IT sub-sector is $170 million and it is growing faster than the overall Sales Intelligence market.
“The recent acquisition activity shows the value and appetite for technology data enrichment,” said HG Data VP of Product and Marketing Kineon Walker. “This consolidation cycle is happening as new companies continue to enter the space. As technology data continues to evolve and become more valuable to businesses of all sizes, we expect this sector to continue to grow and flourish.”
What we are seeing is the transition of technographic intelligence from a delighter five years ago to a must have content set for sales and marketing intelligence products. Ten years ago, it was contacts and SMBs that made this transition. Eight years ago it was sales triggers. Four years ago it was emails and direct dials. Now it is technographics.
Next up it may be third-party intent data and the integration of first-party visitor intelligence into more sophisticated lead scoring and prioritization.
I will be covering both acquisitions over the next few days.
Last month, I discussed intent data, one of a trio of datasets that assist with lead scoring. This month I’m touching upon Fit data and next month I’ll be discussing Opportunity data.
Fitness data consists of firmographics, technographics, and verticalized datasets that help define whether a company is a good prospect. Biographic values such as Job Function, Level, Skills, and Responsibilities should also be employed when evaluating contacts or leads.
Firmographics are the basic variables that have long been used to define a good prospect. Firmographics include location, size (e.g. revenue, employees, assets, PE/VC funding, and market cap), industry, and year founded. Other commonly used dimensions include Ownership Flags (Minority Owned, Woman Owned, Veterans Owned, SOHO, Franchise), Ownership Type (Public, Private, Nonprofit, Government), and Parent/Sub/Branch.
Ownership flags are used for both inclusion and exclusion with SOHO and Franchise flags generally used to exclude small businesses and those with limited purchasing authority. Subsidiaries and Branches are often excluded as they also have more limited purchasing authority, but are included when looking for locations to sell into after an MSA is signed or when evaluating entry into overseas markets. In these cases, knowing all of the locations of current accounts and top prospects is quite valuable. Likewise, logistics companies look for companies with many locations.
Several vendors support radius searching around a ZIP code. This select is valuable for both event planning (e.g. 50 miles from a tradeshow) or for sales reps when traveling and looking to include additional accounts and prospects on a trip.
A recent study by Dun & Bradstreet found that three of the top five dimensions used when targeting B2B accounts are firmographic (Location, Industry, and Company Size).
Furthermore, Account specific lists for ABM generally employ firmographic criteria when building or extending ABM lists. (Online activity is an intent variable which was discussed in my last What Is.)
Technographics are an example of a verticalized dataset. Generally they consist of vendors, products, and product categories. Originally, such data was only available from technology sales intelligence vendors such as DiscoverOrg and HHMI (now Aberdeen Services), but HG Data built and licensed a technographics dataset which is now widely available in data marketplaces, predictive analytics, and sales intelligence platforms. Aberdeen followed suite in licensing their dataset as well.
LinkedIn Sales Navigator offers a set of unique selects for targeting departments, department headcount growth, and employment growth. Unfortunately, this data is not downloadable or available for lead scoring.
Biographic variables are also important when determining fit. Job function and level help determine whether a lead is likely to be a decision maker, influencer, or noise. Most vendors map job titles to taxonomies of between 8 and 60 job functions and 4 to 8 levels. Other biographic variables include education, years at company, former companies, and interests.
Data availability and currency may also play into Fit both directly and indirectly. If a select is weakly populated (e.g. Education, Skills), then many potential targets will be omitted from lists or given low scores. In some cases, lowering the lead score due to a missing field makes sense. Lead scores should incorporate the availability of emails, direct dials, and LinkedIn handles because this information increases the likelihood of successfully communicating with a prospect.
TIP: When evaluating vendors, ask about the fill rates on key fields you anticipate using in your lead scoring or prospecting.
In a similar vein, last update dates should also be used as a filter. Data from SHRM indicates a 2016 average contact decay rate of 27% when accounting for job departures, lateral moves, and title changes. And this is only at the contact level. The rate is even higher when including company name changes, relocations, and bankruptcies / facility closures. Thus, the last update field is a relevant fitness variable for prospecting but not inbound lead scoring.
In short, lead fitness can be defined by a broad set of who, what, and where variables related to companies and contacts.
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.
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.
Tucked into the tail end of TechTarget’s earnings release last week was notice that they had acquired Oceanos Marketing, a contact data management company. Both firms are based in the Boston suburbs. Oceanos brings “data quality and data management expertise that will help us improve our offerings and deliver better results to our customers.”
Oceanos began as a list broker in 2002, but has since evolved into a B2B contact aggregator and data refinery. The firm aggregates 97 million active US contact records (as of August 2017) and retains millions of inactive names and emails to assist with hygiene. Data is aggregated from over a dozen vendors and includes social data from FullContact and Pipl. Oceanos provides data enrichment, TAM analysis, net-new contacts, and a set of data specialists to assist with projects.
TechTarget manages a smaller set of 18 million subscriber profiles, 16 million of which are technology professionals. The Oceanos acquisition should allow TechTarget to improve both the quality of their subscriber dataset and expand coverage into non-technology positions. As technology purchase decision making has expanded beyond tech titles, Oceanos provides significant lift into other job functions. Oceanos contacts are mapped to 12 Job Functions, 109 Sub-functions, and 7 Job Levels.
Oceanos President Brian P. Hession identified their differentiators as their unique blend of technology, professional services, and data quality. With data quality being critical to ABM sales and marketing initiatives, the inclusion of real world project fulfillment through their program specialists provides Oceanos with data quality insights that are used to continuously inform and enhance the data quality processes. “We apply both technology and real-world insights to ensure the highest quality of data before we are releasing it. We are incorporating a continuous stream of data quality insights into our code to address the many nuances that a program specialist encounters manually on a dataset,” said Hession last summer. “The way that Oceanos is going to be successful in the future is if we can assemble an internal contact database that is of the highest quality in the industry. So there’s been a lot of focus on putting models on top of our contact data.”
“Social data plays a role in our data hygiene process and serves as a ‘signal’ within both our Data Quality Score (DQS) and ABM Usability Score. The social information is sourced from reputable partners,” said Hession. “Oceanos does not scrape contacts across LinkedIn or, in that vein, any social media site. All of our contact records originate from carefully selected third party data providers.”
The acquisition cost was not announced but was deemed “non-material.” Oceanos 2017 revenue was around $5 million.
HG Data recently unveiled a set of enhancements to its HG Data for Salesforce app. The Lightning Data app now supports integrated account prospecting and lead enrichment, features heavily requested by their customer base. HG Data’s firmographic and technographic content is also available for lead routing, scoring, and segmentation.
Lead Enrichment supports both real-time and scheduled batch enrichment with firmographic and technographic intelligence. Lead records are updated every fourteen days. Webform leads passed through Marketo and Pardot are processed in real-time, enabling immediate lead scoring and routing.
HG Data technographic intelligence is also available for Salesforce reports, dashboards, workflows, and triggers. For example, Salesforce admins can build reports based upon technology usage scores or trigger Chatter messages informed by which platforms are deployed at leads.
According to CEO Elizabeth Cholawsky, “Our lead enrichment capabilities allow marketing groups to engage with prospects earlier and more meaningfully in the sales cycle for things like contextual outreach programming, more personalized lead nurturing, targeted content marketing, and other top of funnel activities.”
The new Discover Companies functionality supports both direct account lookup and list building. Selection facets are displayed in a right-handed window and include firmographics (e.g. HQ country, state, and city; revenue and employee ranges; industry) and technographics (product, product category, and vendor). The results list flags current accounts to help prevent duplicates but does not contain a suppress current accounts feature. Users may select up to 25 accounts at a time for immediate import to Salesforce.
Technographic prospecting helps expand the scope of target accounts as it helps identify firms using both complementary and competitive platforms. Users can then refine the list via firmographics.
“One of the biggest discoveries B2B sales and marketing teams make when they start using our technographic data is that their known available market might be 3 to 5 times bigger than they had thought,” said Cholawsky. “The latest version of our app enables users to take fast and precise action by allowing them to import net new accounts directly into their Salesforce CRM instance based on our leading comprehensive tech installation data and supplemental firmographics.”
“Everyone and everything is getting smarter and more connected than ever before, and companies are looking to transform the way they connect with customers, partners and employees,” said Kori O’Brien, SVP, ISV Sales, Salesforce. “By leveraging the power of the Salesforce Platform, HG Data provides customers with an easy way to use and access technographic data to better inform their marketing and sales programs.”
Pricing begins at $5,000 per annum for HG Data for Salesforce. If the Discover Companies module is included, the minimum price begins at $6,000. Volume pricing is available with tiers at 50 and 500 employees.
HG Data offers sales and marketing intelligence services to tech titans (e.g. Microsoft, HPE, IBM, Dell, Salesforce), predictive analytics companies (e.g. LeadSpace, Everstring, Lattice Engines), and sales intelligence vendors (e.g. TechTarget, Dun & Bradstreet, Zoominfo).
HG Data employs 65 and has raised $24 million in funding to date. Investors include Updata Partners, Rincon Ventures, Epic Ventures and Stepstone Capital.
Data coverage now spans 12.4 million global locations across 8,000 technology products and 4,000 vendors. HG Data uses advanced data science to parse billions of structured and unstructured documents each month. Technographic insights are derived from over twenty different document types including case studies, white papers, press releases, blogs, job postings, and government documents.
As I discussed in Part I of this article, technology media and intent purchasing firm TechTarget recently launched a set of enhancements to its Priority Engine service that improved the user experience, added persistent URLs, list assignments, and added user roles.
The release also supported a new Salesforce widget and a repackaged offering. The Salesforce widget identifies which technology topics are actively being researched by the prospect and whether the prospect is actively evaluating vendors. Other features include a persistent URL link to the full dashboard and available prospect counts.
TechTarget repackaged its offering with the Q2 release. While it has premium pricing compared to other technology sales intelligence service, TechTarget’s ability to identify firms which are actively looking for solutions by product segment, recommend the key stakeholders around the buying decision, and flag which competitive or complementary vendors are of interest to each prospect differentiate it from other vendors. This “Active TAM” approach helps sales reps focus their attention and messaging to the best opportunities currently in the market for solutions.
Priority Engine has market momentum. TechTarget added 50 new Priority Engine accounts in Q1 after adding 40 new accounts in Q4. Revenue more than doubled in Q1 versus a year earlier. The firm is also shifting its sales and marketing focus from media and lead generation to data solutions and insights. On his recent earnings call, CEO Michael Cotoia remarked that the firm has “the leadership position” in B2B IT purchase insights and that the TechTarget salesforce is now leading with data solutions.
Cotoia described the Priority Engine value proposition as “purchase intent insights happening in our world across our universe of sites and topics” which are integrated into the customer’s workflow. Furthermore, Priority Engine informs sales and marketing about “what accounts are active and what accounts are active with your competitors, oh, and what accounts are not active with you.”
TechTarget is successfully rolling out the service to firms which target technology companies, nearly doubling its user base over the past six months.
Technology media and intent purchasing firm TechTarget announced a set of enhancements to its Priority Engine service “that vastly improve ABM performance, increase sales productivity and maximize demand generation success for enterprise B2B technology organizations.” Amongst the enhancements are improvements to the user experience, a new Salesforce widget, persistent URLs, list assignments, user roles, and improved topic filtering.
Priority Engine combines executive intelligence with purchaser specific demand signals spanning 10,000 IT Topics across its technology research sites. The service marries HG Data technology intent intelligence with DiscoverOrg contacts, Owler firmographics, and TechTarget intent data and prospects. Priority Engine assists sales and marketing professionals by “expanding access to total buying teams at active accounts and showcasing rich purchase details such as installed technologies, vendor shortlists and specific, relevant topical interests.”
Priority Engine is GDPR compliant across its 18 million professional profiles who have opted into TechTarget partner marketing programs. Furthermore, because TechTarget has opted-in user profiles, it is able to provide intent data at the individual level. This contrasts with other intent networks which gather anonymous intent information at the company level.
User Experience enhancements include a left-side navigation menu and search bar. The navigation bar provides account list management, export functionality, and export monitoring. The search bar provides a type-ahead company list to expedite account searching.
Account profiles contain Owler headquarters information along with a business description, logo, sizing data, and social media links. Also displayed in the business summary are an account interest gauge, Buying Team counts, Vendor Interests based upon downloaded vendor content, and Top Interests. The account Interest gauge evaluates site readership (number of readers, type of content, scope of vendor interest) to determine whether the prospect is Evaluating Vendors, Ramping Up, or Not Active in the segment.
TechTarget also offers a set of intent signals based upon readership patterns: Widespread, Sustained, Late Stage, Stakeholder, and Cross-Vendor. According to the firm, “the more blue dots that are lit up, the more focus sales should commit to the account.”
At the top of each Account Profile are the licensed segments. Sales reps can click on any of the segments and the profile is filtered for the segment across TechTarget Buying Teams, DiscoverOrg Contacts, HG Data products, and the business summary. TechTarget offers 300 technology market segments with over 200 available for North America.
Priority Engine users are now assigned to one of three roles: Administrators, List Builders, and Read-Only. Administrators have full system functionality along with account management responsibilities. Both Administrators and List Builders can build and assign account lists to other users. Only Administrators can export records. Priority Engine suggests that Administrators are usually marketers and that List Builders are typically Sales Managers. View only users would be inside sales reps that would be working account lists but not building them.
Account List Building was redesigned with reorganized and expanded filters displayed on a single page. Filters have been separated into common and advanced screens with common filters spanning firmographic, technographic, and intent variables. Advanced filters include Last Touch, Purchase Signals, and HQ location. Within any filter, users may select Includes Any (OR), Include All (AND), and Exclude (NOT) Boolean logic.
Users can also rank results by market segment. Most Priority Engine subscribers have between one and five licensed segments. Except for the largest technology firms that operate in many segments, the firm contends that focusing on key segments provides better results than including adjacent technology segments.
Previously defined lists are available for both suppression or sub-list targeting.
TechTarget Priority Engine List Building
Lists are ranked according to intent signal strength for a market segment. Clicking on a different segment results in a different set of priorities.
The new Ranked Accounts list view includes the navigation bar along with company logos, the top areas of interest, and the company most influencing the account over the past 90 days (based upon TechTarget content viewing patterns). Clicking on any account takes the user to the account profile.
The persistent URL provides a direct link between sales and marketing platforms to the Priority Engine Dashboard. “The sales-to-marketing handoff can be one of the most challenging aspects of implementing modern marketing strategies, especially ABM. To properly inform and empower salespeople, you must be able to pass along valuable account-level insights with each lead — and few systems or workflows support this,” said Michael Cotoia, CEO, TechTarget. “Priority Engine addresses this challenge by providing a persistent and portable account link that can be embedded within any existing sales or marketing systems.”
Please continue to Part II which discusses the Priority Engine Salesforce connector, product repackaging, and market momentum.