North American Sales Intelligence Market Sizing Model (Excel)
The 2017 Market Size of North American Sales Intelligence Vendors. Includes vendor product features, market share, and notes. GZ Consulting Copyright 2018.
For the past few years, I have been sizing the North American Sales Intelligence Market. This is the largest of the markets as Europe and AsiaPac are more fragmented (the UK is the only other mature market).
In 2017, I estimated the market at $950 million with LinkedIn Sales Navigator as the top vendor. While new firms continue to enter, the top four vendors earn two of every three dollars in the industry. The top four concentration increased 7% last year, mostly due to the acquisitions of Avention and RainKing.
The industry grew 17% over the past year with the majority of this growth being captured by LinkedIn Sales Navigator, DiscoverOrg, and Zoominfo. TechTarget, which was off my radar in 2016, has also seen rapid growth in 2017 and 2018.
DiscoverOrg acquired RainKing at the end of August 2017 so two-thirds of its revenue was recognized as RainKing and one-third as part of DiscoverOrg. Combined, the two firms earned around $118 million least year with DiscoverOrg ending the year with a $130 million plus ARR. DiscoverOrg raked in two of every three dollars within the technology sales intelligence sub-segment.
LinkedIn holds a nearly 30% market share. It has grown rapidly while remaining under the radar of its peers as it is often used as a complementary service to other sales and marketing intelligence services.
Data.com’s 2017 revenue was stable but Dun & Bradstreet forecasted a 30% drop in 2018 (D&B is a revenue share partner on the service). I anticipate that much of this revenue will shift to other vendors in 2018 and 2019. Dun & Bradstreet is in a strong position to take much of this share, but other vendors are pushing hard to acquire Data.com clients.
Zoominfo was ahead of the other sales intelligence vendors in recognizing the value of adding marketing functionality alongside their sales tools. This has put them in a strong position for data services. They also built the deepest set of global contacts with emails and direct dials and were early to build out connectors (CRM, MAP, Sales Engagement, and Chrome).
I am making my market model available for license (See PayPal button at top) as an Excel spreadsheet. It includes revenue numbers by company along with market share, key features, and notes.
Several sales and marketing intelligence firms made the 2018 Inc. 5000 list including DiscoverOrg, Zoominfo, and FullContact. Signaling difficulties in the predictive analytics space, no firms from that category made the Inc. 5000 list.
Inc. magazine lists the top 5,000 US firms based upon three-year revenue growth rates. Eligible firms must have at least $100,000 in 2014 revenue and $2 million by 2017.
Zoominfo made the list for the fourth consecutive year, with revenue reaching $59.4 million and a three-year CAGR of 45%. Zoominfo grew its headcount by 50% between July 2017 and July 2018 and raised its customer base to 8,000 enterprise customers.
“The Inc. 5000 is the measuring stick for successful, high-growth, private companies,” said new Zoominfo CEO Derek Schoettle. “Since joining ZoomInfo earlier this summer, I’ve seen the tech innovation and the business demand for trustworthy customer data that makes me confident that ZoomInfo will continue to make this prestigious list for years to come.”
Zoominfo added over 100 staff and 2,000 customers in the past year. At their June Growth Acceleration Summit, VP of Corporate Development Phil Garlick attributed the firm’s success to hard work, teamwork, sweat, and tears.
SalesLoft made the list for the first time as the firm caught fire after launching their sales engagement platform a few years ago. Revenue grew at a 77% three-year CAGR to $13 million in 2017. SalesLoft also placed seventh on the most recent North American Deloitte Fast 500. The Atlanta-based firm recently acquired NoteNinja to integrate its meeting intelligence software into the broader set of SalesLoft sales engagement capabilities.
CEO Kyle Porter is “excited” to “empower” his customers in delivering “a better sales experience. Buyers around the world are recognizing the differentiated benefits of purchasing products and solutions from sellers who use SalesLoft.”
Other first-timers were identity resolution vendor FullContact (76% three-year CAGR to $14.0 million) and data hygiene and enrichment vendor Stirista (23% three-year CAGR to 5.0 million).
“Marketers, product professionals, and data analysts have had a lot of success using FullContact to enrich the data that exists in their CRM, marketing automation, and other databases,” said Scott Axcell, VP of Marketing at FullContact. “From audience insights to customer care, there is no shortage of use cases for accurate, enriched customer data.”
FullContact acquired Mattermark and its company and event database last December to complement the FullContact people dataset.
While Madison Logic once again made the list, their growth stalled with revenue declining $200,000 last year to $54.2 million. Their three-year CAGR was 27%.
“We achieved this honor through the strength of our team and success of our customers. Our platform, ActivateABM, helps the most innovative global companies accelerate growth by converting top prospects into customers. By integrating directly into the martech stack, we can deliver solutions that are simple, strategic and entirely ROI-focused,” said Tom O’Regan, Madison Logic’s CEO. “We are thrilled to be recognized for the sixth time and proud of the momentum we’ve achieved on our mission to make the B2B marketer the driving force for growth and change in the enterprise.”
CreditSafe USA made the list for the second time, growing revenue to $13.3 million last year with a three-year CAGR of 52%. However, most of the growth was in the first two years with 2017 revenue only growing $500,000. The firm has over 100,000 subscription customers, 10,000 in the United States.
“Our team is extremely humbled to be included in such an elite group of high-growth companies,” said Matthew Debbage, CEO of Creditsafe USA and Asia. “When we established here six years ago, there was one large entrenched player in the business credit space in the US, so we felt our success was far from a sure thing. This recognition really helps put our hard work into perspective.”
“Being the younger, more nimble and tech-friendly player in the space has given many advantages as we strive to provide exceptional value to our customers,” continued Debbage. “We know that if are going to disrupt the industry, then we’d need to out-hustle our competition each and every day and really want to thank all those customers who’ve taken a chance on us.”
CreditSafe primarily provides credit data in the US, although they did enter the US and UK sales intelligence market a few years ago with Sales Joe. CreditSafe financials and filings are at the core of several European product lines including DueDil.
CreditSafe maintains offices in eight European countries, Japan, and the United States. The company serves the credit, collections, sales, marketing, and compliance functions.
Private company profiler Pitchbook is no longer eligible for the list as they were acquired by Morningstar, but the firm disclosed a 60% CAGR since 2009. They have grown their user base from 11,000 to 18,000 since the end of 2017. Since the beginning of the year, Pitchbook has grown from “just over” 600 employees to 908.
Finally, Pure Incubation made the list for the fifth year in a row posting a 43% three-year CAGR on $20 million in revenue. The Massachusetts demand generation firm offers data and marketing services for the medical and technology sectors. Products include PureB2B (Content Syndication and Intent Marketing), PureMed (Healthcare Providers and Facilities Database), ProspectOne (B2B Intelligence and Data Services), and Demand Science (Philippines-based Back Office Marketing, HR, Seles Development and Engineering Services).
Pure Incubation’s consistent growth “is another testament that we are building a strategically relevant and innovative company in the demand generation space,” said Chairman Barry Harrigan. “Pure Incubation’s continued placement on the list is not something we take for granted and we are going to keep pushing to appear again in 2019.”
At last month’s Growth Acceleration Summit, ZoomInfo previewed a lead scoring feature which will be available later this year. Users will build models for ideal customers and the associated scores will be displayed across the product including in lists, profiles, and enriched web leads. The goal is to “customize ZoomInfo to each and every one of you,” said CMO Hila Nir at her Product Roadmap presentation. Customization also includes routing and territory management. ZoomInfo will continue to offer tools which foster sales and marketing alignment and look to “take noise out of sales and marketing organizations.”
The company hinted at email templating and territory dashboards, but did not provide details on these future product concepts beyond conference screenshots. Email templating is most commonly found in Sales Engagement services such as Outreach, SalesLoft, and ConnectLeader.
While Zoominfo has not released financials, Garlick indicated that the firm had a strong 2017 marked by “really fast revenue growth.” The firm also added over 100 staff and 2,000 customers in the past year. He attributed the firm’s success to hard work, teamwork, sweat, and tears.
ZoomInfo pricing is a hybrid between number of seats and number of records licensed. While the firm used to be transparent about its pricing, they stopped posting such details a few years ago.
Zoominfo held its third annual Growth Acceleration Summit in Boston last month. The event projected increasing marketing confidence by the firm, with Earvin “Magic” Johnson keynoting and lectures by many of the top sales and marketing thought leaders including Jay Baer, Convince & Convert; Tiffani Bova, Salesforce; and Keenan, A Sales Guy, Inc. Analyst sessions included Sirius Decisions, Heinz Marketing, and Forrester.
The event also provided a forum for announcing ZoomInfo’s latest Growth Acceleration Platform features. New capabilities include a revamped ReachOut 2.0 Chrome Connector and a HubSpot Connector.
Magic, who has a long history of success in business and team ownership, provided personal anecdotes about his basketball and business career. Key pointers includied hiring self-motivated staff that are smarter than you so as to continuously renew the organization; make sure you over deliver on customer expectations; and reward your staff, not just executives, as it is the staff that will ensure your ability to continuously over deliver; Finally, he said that there are too many competitors out there to ever relax – both businesses and athletes need to continuously improve.
The new Hubspot connector allows users to upload Accounts and Contacts to Hubspot with a click of a button from either a browser or the ReachOut Chrome connector. The HubSpot integration also supports ZoomInfo Complete which provides on demand enrichment at record creation. ZoomInfo Complete for HubSpot is currently in beta.
ReachOut 2.0 streamlines account and contact research from within Chrome, providing instant access to ZoomInfo intelligence while browsing. The service is context sensitive, providing company and contact profiles based upon the current LinkedIn record, URL, or CRM record being viewed. The service also supports quick export to Salesforce, Hubspot, Microsoft Dynamics, Outreach, and SalesLoft. When expanded into an 80% screen view, full company and contact intelligence is displayed. Company insights include location, firmographics, people at company by job function, company locations with contacts and location counts per geography, technologies used (licensed from HG Data), and competitors (licensed from Owler). Contact data includes company intelligence along with an expanded set of social links and contact details.
The 80% ReachOut expanded view supports full prospecting both across companies and within a single firm. Users can quickly select records and share them to CRM (Salesforce, MS Dynamics, HubSpot) or Sales Engagement platforms (Outreach, SalesLoft). Being able to enlarge to the 80% view allows Zoominfo to pack a full-featured offering into ReachOut, helping it expand from a tool to a full-service product.
ReachOut now supports user tagging allowing users to store campaigns, lead source, etc.
“If you combine your own intelligence with Big Data, you create for yourself a crystal ball that gives you the ability to focus your attention on the most important things that need to get done,” said CEO and Chief Scientist Yonatan Stern. “When you focus, it doesn’t cost you more money, but you can increase productivity and profitability.”
“Over the last year, we have doubled down on our strategy of making ZoomInfo’s contact and company data available on the platforms where our customers live,” said Phil Garlick, VP of corporate development. “In keeping with that strategy, we have released two new products that integrate seamlessly with a host of platforms and systems our customers use.”
Also unveiled at the Summit was ZoomInfo’s new ZoomInfo University certification program, “a comprehensive, hands-on certification program that enables B2B professionals to fully leverage its B2B contact and account database for business results.”
The new training program teaches best practices around persona development, lead scoring and routing, market segmentation and territory management, campaign strategies, and data management.
“ZoomInfo University is designed to strengthen your knowledge of the industry and usage of the entire ZoomInfo Product Suite,” said Garlick. “It’s both a deep dive of capabilities and the beginning of a lasting growth acceleration journey.”
ZoomInfo continues to be confident in their data quality due to their Community product which provides them with access to email signature blocks. According to a sales rep, records updated within the past year have a 90% deliverability rate. He noted, however, that deliverability will vary by industry and function due to the underlying contact decay rates of various segments. For high decay functions (e.g. sales) and industries (e.g. high tech), he suggested using the six-month update select to ensure receiving the highest quality leads.
I had the distinct pleasure of attending a keynote by Earvin “Magic” Johnson at Zoominfo’s Growth Acceleration Summit. As the summit was held in Boston, there were numerous anecdotes about Celtic great Larry Bird and their rivalry, but the key business-related anecdote was that you have to continuously improve. Bird was a great competitor that forced Magic to up his game. They were great rivals that made each other better and raised the quality of the game.
There were also a set of business insights as Johnson has taken his game discipline to business. A few of his tips:
Find underserved markets and tailor your product to those markets — For Magic, the biggest underserved market was the inner cities. He knew that there were few movie theaters in urban America even though the per capita theater spend of African Americans was high. His first theater in LA had the 10th highest gross in the country. He then convinced Starbucks that they should open coffee shops in marginalized inner city communities (and opened the first non-Starbucks owned shops). Magic tailored the music and food to the community (e.g. sweet potato pie) and his stores had a higher gross than Starbucks owned locations. The key to business success is “you have to know your customer.”
Out deliver — It’s not enough in today’s market to meet your customer’s expectations, you need to out deliver. There is no lack of competition. If you want customer retention, you need to out deliver. If you want brand ambassadors, you must out deliver. Magic Sodexho (food service) passed on its first Disney RFP and waited three years before bidding on the Disney Land contract. His firm realized that due to the size of the park, many employees had little time to eat. To support the contract, they developed kiosks and carts to bring food to the staff during their breaks. This example of out delivering helped them win the larger Disney World contract when it came up a few later.
Culture is important — Magic emphasized the value of a winning culture whether helping bring back teamwork to basketball or encouraging principles such as everybody gets onboard, no hidden agendas, and do your job. Furthermore, employees are better motivated if their company has a social mission such as bringing jobs and opportunities to Urban America.
Hire self starters and reward them — Look for young employees that come in early, leave late, and ask a lot of questions. Then give them opportunities to grow with your company. His COO began as a secretary and proved herself at each level. He also emphasized the value of rewarding all employees and not falling into the trap of rewarding only the executives. You can win the big contract, but if you only reward the execs for the victory, then you won’t have a team ready to out deliver.
Not many people have the pleasure of excelling in one field of battle. Magic has had great success in both Basketball (Hall of Fame, 5 NBA Championships, 12 All Star Teams, NCAA championship, Olympic champion) and business.
I attended the Salesforce World Tour Event in Boston yesterday and came away a bit underwhelmed. I’ve attended it for the past four or five years, so that may be part of the reason I didn’t stay for the full day.
In attending, I had several topics top of mind:
What is the future of Data.com? Will it be phased out and when? If they are attriting 30% of their revenue this year (a Dun & Bradstreet estimate), how are they guiding their customers to AppExchange solutions in lieu of Data.com?
How is Einstein being infused into their Sales Cloud? How are they ensuring that Einstein Insights are based on accurate and timely data?
What is the future of SalesforceIQ CRM technology (it is being decommissioned in 23 months)?
Meeting with Sales and Marketing Intelligence vendors on the floor.
I stopped by several of their sales and platform booths, but nobody had any answers on Data.com. This is the second year in a row in which there was no mention of data or the future of B2B prospecting, data enrichment, or sales intelligence at the event. Salesforce has never been much of a data company. They botched Data.com from Jigsaw acquisition through decommission. A few months after announcing a detailed roadmap at Dreamforce, they cancelled their Dun & Bradstreet content partnership in early 2017.
But if you are going to build analytics into your platform, license the iconic Einstein name for it, and tout it as an enabling technology for all of your clouds, then maybe you should have a strategy for ensuring that Einstein Insights are based upon quality data.
I did get to see a quick demo of Einstein Insights for the Sales Cloud. It provides lead scoring with recommendations so a sales rep can see whether a lead is likely to convert (or other goals) and review the top reasons for the score. It even goes so far as to recommend additional contacts but fails to justify those names. It appeared the names were mined using the SalesforceIQ technology, but all that was demonstrated was the name — no title, level, or reason to reach out to that individual. Salesforce is on the right track here but needs to expand its explanations for lead scores to its contact recommendations.
As to sales and marketing intelligence, there was only one vendor on the floor — Zoominfo. They were demonstrating their new Clean and Complete services for Salesforce. Clean provides batch account, contact, and lead record enrichment while Complete provides account, contact, and lead record appends during data entry and batch upload. Due to the depth of the Zoominfo database, the Complete service has an 80% account match rate and a 65% contact match rate.
Both services support custom mapping. Pricing is based upon record volume.
The keynote lacked the energy of prior years when Keith Block, COO, performed the duties. While Sarah Franklin, EVP of Developer Relations did a fine job, Block is from Boston and made sure the event was localized. Missing this year were sports heroes (e.g. Tom Brady, Bill Belichick) and the Drop Kick Murphys. If you want to wake up a 10:00 AM keynote, the Drop Kicks and their Irish punk are a great way to do so.
I’m a sailor peg
And I’ve lost my leg
Climbing up the top sails
I’ve lost my leg!
I’m shipping up to Boston, whoa…
“I’m Shipping up to Boston,” Drop Kick Murphys
There was a presentation on Year Up (an inner city business training program) with a local success story, but the 75 minutes were basically rehashed Dreamforce partner videos and content with a focus on B2C. Even the B2B example, 21st Century Fox, was equally a promo for “Dead Pool 2” and other Fox properties as it was a demo of Quip and its marketing and project management tools. The distributor relations aspect of the story was a bit light.
So let’s bring back Keith Block next year and expand the exhibition space. The Hynes Exhibitor Floor was too crowded, too hot, and too noisy.
I don’t mean to grouse. Salesforce is a terrific company. They have a strong social mission, a market leading product, and an ability to keep things fun. It’s just that this year didn’t match prior Boston events, and the company has diversified into so many clouds and capabilities that the Sales Cloud and Sales Partner solutions get crowded out.
Poor data quality is a disease which slowly destroys the value of your marketing database. Quality is damaged through incomplete information, poor data entry, and data decay. A traditional response is to purchase new records, but this only provides a temporary (and expensive) respite from your data quality issues.
The data I’ve seen indicates that contacts decay at a 25 to 30 percent annual rate. This means that a prospect list that is 90 percent accurate today will be little more than 50% accurate two years later. Thus, a prospect list purchase strategy is like steroids, it makes your marketing database look healthier on the day the list is purchased, but it simply masks the growing disease within your database. Treating one or two symptoms does not address the underlying problem — a lack of a broad, continuous data strategy.
However, if you take a holistic view around data quality which includes continuous DaaS validation, ABM look-a-likes, web form enrichment, lead-to-account mapping, duplicate management, data standardization, and reference database appends, you will have a healthy database that ensures your MAP and CRM platforms contain the richest, most accurate data.
Vendors that support holistic data quality include ReachForce, D&B Optimizer (FKA Workbench), Zoominfo, InsideView, Oceanos, and Openprise. So if you are concerned about your ability to target, segment, pass quality leads to sales, score leads, or build predictive models, then begin with a holistic data strategy. Symptoms of poor data quality include high email bounce rates, declining email sender scores, returned direct mail, duplicate records, incomplete records, accelerating unsubscribe rates, and sales reps that ignore your marketing qualified leads.
Any firm that is adopting ABM, advanced lead scoring, a single view of the customer, or predictive analytics, should begin with a holistic data quality strategy. Otherwise, these advanced marketing strategies are bound to fail.