Client Success: Corporate Revenue Growth Strategy
Client: A small, private software company acquired by a large private equity firm
Problem: The private equity firm had one basic question: What are the strategic
options and tactics to grow the SaaS (Software as a Service) based software
company over the next three years and at least double that company’s existing
revenues?
Approach: A multifaceted approach was taken including evaluating the size, drivers,
and competitive structure and situation of both the SaaS and travel and expense
management markets in the small and medium business space. Market size
opportunity was analyzed from a top-down and bottom-up perspective. A winnable
market share model by customer segment was created based on total market
accounts, market demand estimates, and current company opportunity sales win
rate percentage data. Analysis of revenue growth history compared to key
competitors was done and an assessment was made as to revenue growth efficacy
relative to competition. The current customer installed base was analyzed to
characterize and identify the revenue and profit maximizing customer segments, and
ROI calculations were created to evaluate the revenue and profit return of
incremental investment into the various customer segments. Current sales and
marketing efficacy was analyzed and benchmarked against key competition. The
Return on Marketing Investment (ROMI) was calculated for current year and future
year marketing investments. Customer acquisition costs was also calculated and
analyzed. A market demand curve model was created, and a price sensitivity
analysis performed.
Results: A detailed report was generated with analysis results and implications.
Specific recommendations for growth, based on data and analysis, included the
correct customer segments to focus on, key cross-sell/up-sell opportunities, price
increase opportunities, and changes to marketing activities to increase efficiency
and ROMI. A detailed competitive analysis of the primary competitor was done.
Finally, an industry map was created to indicate competitive partnerships by
partnership type to provide direction on potential channel partnerships to grow
through indirect channels rather than relying solely on direct channels