Sizing and targeting regional markets for B2B software

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ZIP Pointe©

Sizing and Targeting Regional Markets for B2B Software

GIF Software

� Sales of GIF Software’s flagship B2B product have been flat in the South Atlantic region.

� A sales support engineer was assigned to the team and quickly determined that there was little rhyme or reason to how the South Atlantic region was attacked.

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� Using a market sizing, segmentation and prioritization tool, the engineer was able to show the team how to prioritize markets, down to the 5-digit ZIP Code, and generate a prospecting list.

GIF’s Market

� Based on prior market research, GIF has determined that its SaaS product should be targeted at businesses with at least 50 employees who can spend at least $100k per year on all software (not just SaaS).

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� With these parameters in mind, the sales support engineer had GIF’s customer data loaded into a market sizing, segmentation and prioritization tool and found the following…

The Market for SoftwareThe overall market for software in the South Atlantic region, excluding gov’t, is about $30b (based on US

Census and Bureau of Economic Analysis 2012 data), spread across about 1.4m employer business

locations.

The overall market for software in the South Atlantic region, excluding gov’t, is about $30b (based on US

Census and Bureau of Economic Analysis 2012 data), spread across about 1.4m employer business

locations.Potential Spend =

amount site might be able to spend on SW given its

firmographicsDistribution of sites

by 2-digit NAICS

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Business sites tend to

be small, have low

potential spend and

be in the services

verticals.

But high potential clearly exists among some key

verticals.

The Market for GIF SoftwareThe market for GIF software in the South

Atlantic region is quite sizable at about $18b, spread across about 25k locations.

The market for GIF software in the South Atlantic region is quite sizable at about $18b,

spread across about 25k locations.

High potential verticals are even more pronounced.

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Filters applied

Focusing on Top VerticalThere is nearly $5b in potential software spend

among locations in the Information vertical, spread across about 2,000 sites.

There is nearly $5b in potential software spend among locations in the Information vertical,

spread across about 2,000 sites.

Concentrations of On average, 2,000

sites have a

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Concentrations of

potential spend exist at

the CBSA level

Concentrations of

potential spend exist at

the ZIP Code level

30005 ZIP Code, Atlanta: $6,300k

per site (average); 17 sites

sites have a spend potential of

$2.4m each.

Atlanta CBSA: $3,300k per site (average); 320

sites

GIF Customers

� But not all of this potential is up for grabs since GIF already has customers in the region.

� So need to reframe in terms of “opportunity spend” –difference between potential spend and what customers are already spending with GIF.

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customers are already spending with GIF.

� Since GIF customer records have been loaded into the segmentation tool, it is easy to see where the opportunity lies.

Opportunity Market for GIF Software

After accounting for current customers, there is still $14b “left on the table” among roughly

20k non-customer (“opportunity”) sites.

After accounting for current customers, there is still $14b “left on the table” among roughly

20k non-customer (“opportunity”) sites.Top opportunity

verticals are consistent.

Segments in which GIF is highly penetrated.

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Segments in which GIF is not highly penetrated, if at all…note the high

opportunity spend for some.

Focusing on Top Vertical

Focusing again on Information, there are two high-opportunity Focusing again on Information, there are two high-opportunity

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Focusing again on Information, there are two high-opportunity spend segments (500-999 & 999+ emps) that GIF has not penetrated. Average opportunity spend per site in these

segments is $13.2m.

Focusing again on Information, there are two high-opportunity spend segments (500-999 & 999+ emps) that GIF has not penetrated. Average opportunity spend per site in these

segments is $13.2m. Across the CBSAs in the South Atlantic region, there are 139 non-customer (opportunity) sites

with 500+ employees, with a combined opportunity spend of $1.8b.

Across the CBSAs in the South Atlantic region, there are 139 non-customer (opportunity) sites

with 500+ employees, with a combined opportunity spend of $1.8b.Atlanta CBSA:

$17,000k per site (average); 31 sites

Jacksonville CBSA: $22,000k per site (average); 1 site

Getting down to brass tactics….State CBSA County City

ZIP

Code NAICS2 NAICS3 NAICS4 Emp Size

Opportunity

Sites

Opportunity

Spend Total

Avg. ZIP

Emp Growth

2yr

WV Bluefield, WV-VA Mercer Bluefield 24701 Information TelecommunicationsWired Telecommunications Carriers500 to 999 1 $6,046K -2.7%

Arlington Arlington22202 Information Publishing Industries (except Internet)Newspaper, Periodical, Book, and Directory Publishers500 to 999 1 $6,563K 7.1%

Chantilly 20151 Information Publishing Industries (except Internet)Software Publishers500 to 999 1 $5,884K 0.2%

Data Processing, Hosting, and Related ServicesData Processing, Hosting, and Related Services999+ 1 $62,849K 12.3%

Publishing Industries (except Internet)Software Publishers500 to 999 1 $6,492K 12.3%

TelecommunicationsWired Telecommunications Carriers500 to 999 1 $6,261K 12.3%

McLean 22108 Information Publishing Industries (except Internet)Newspaper, Periodical, Book, and Directory Publishers500 to 999 1 $6,583K -48.8%

20190 Information Publishing Industries (except Internet)Software Publishers999+ 1 $23,556K 4.3%

20191 Information TelecommunicationsWired Telecommunications Carriers500 to 999 1 $6,456K 12.8%

Springfield22153 Information Broadcasting (except Internet)Radio and Television Broadcasting500 to 999 1 $6,007K -1.8%


VA

Vienna

Fairfax

Washington-Arlington-

Alexandria, DC-VA-

MD-WVInformation20171Herndon

Reston

With a push of a button, an Excel cross-tab is generated showing the number of opportunity

sites and opportunity spend by ZIP Code in the selected CBSAs.

With a push of a button, an Excel cross-tab is generated showing the number of opportunity

sites and opportunity spend by ZIP Code in the selected CBSAs.

This list can be rank sorted by opportunity spend This list can be rank sorted by opportunity spend

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22182 Information Publishing Industries (except Internet)Software Publishers500 to 999 2 $12,517K -7.2%

Fairfax city Fairfax 22030 Information Publishing Industries (except Internet)Software Publishers500 to 999 1 $6,249K 2.4%

Ashburn 20147 Information TelecommunicationsWired Telecommunications Carriers* 3 $35,806K 13.9%

Sterling 20166 Information TelecommunicationsOther Telecommunications500 to 999 1 $5,987K 8.1%

Chesapeake city Chesapeake23320 Information TelecommunicationsWired Telecommunications Carriers500 to 999 1 $6,358K 1.6%

Hampton city Hampton23666 Information TelecommunicationsWireless Telecommunications Carriers (except Satellite)500 to 999 1 $6,368K -0.8%

Virginia Beach city Virginia Beach23463 Information Broadcasting (except Internet)Radio and Television Broadcasting999+ 1 $24,417K -0.4%

Chesterfield Chester 23836 Information Data Processing, Hosting, and Related ServicesData Processing, Hosting, and Related Services500 to 999 1 $7,879K 1.6%

23233 Information TelecommunicationsWireless Telecommunications Carriers (except Satellite)500 to 999 1 $6,182K 7.5%

23228 Information TelecommunicationsWired Telecommunications Carriers500 to 999 1 $5,577K -4.4%

Kingsport-Bristol-

Bristol, TN-VA

Washington Bristol 24202 Information TelecommunicationsWireless Telecommunications Carriers (except Satellite)500 to 9991 $6,622K 9.3%

Blacksburg-

Christiansburg-

Radford, VA

Montgomery Christiansburg24073 Information TelecommunicationsWired Telecommunications Carriers500 to 9991 $6,593K -1.0%

Virginia Beach-

Norfolk-Newport

News, VA-NC

HenricoHenrico

Richmond, VA

Vienna

Loudoun

This list can be rank sorted by opportunity spend then appended with company and contact data to

support a marketing/sales campaign.

This list can be rank sorted by opportunity spend then appended with company and contact data to

support a marketing/sales campaign.

In this manner, the sales support engineer was able to show the GIF South Atlantic region sales

team how to drill down and identify pockets of high opportunity for GIF software.

In this manner, the sales support engineer was able to show the GIF South Atlantic region sales

team how to drill down and identify pockets of high opportunity for GIF software.

BTW – it took the sales support engineer, once the data were loaded, about 30

minutes to walk the sales team through how to do this analysis.

Epilogue

� As a result of the sales (and marketing) team’s use of this market data visualization tool, sales in the South Atlantic region increased by 30% year-over-year.

� The sales support engineer was asked to train all other regional sales teams in the use of the tool:

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other regional sales teams in the use of the tool:� Sales growth in other regions showed similar

improvement.

� And the sales engineer was promoted to VP of sales and marketing support.

What did the GIF sales support engineer use?

� Tableau driven, interactive dashboards for:� Analyzing and segmenting markets across the US; � Profiling existing (and potential) customers;� Determining pockets of market opportunity;� Generating rank ordered lists of high potential/opportunity ZIP Codes.

� Foundational data:� Based on US Census, ZIP Code level business data at the 6-digit NAICS;

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� Based on US Census, ZIP Code level business data at the 6-digit NAICS;� Enhanced with estimates of revenue (total, e-commerce), payroll and

various measures of potential spend (e.g. IT $ on computers, software);� Custom potential spend estimates are possible using actual customer sales data.

� Integrated with customer level data.

� ZIP Pointe©:� Fully interactive;� Customizable;� Accessed online on a cost effective, per user subscription basis.

ZIP Pointe©“Easy to use, ZIP Pointe allowed

my sales and marketing teams to

quickly zero in on pockets of

opportunity.”---VP, Sales and Marketing Support, GIF Software

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For more information:

Contact: [email protected]

For more information:

Contact: [email protected]

Sizing and targeting regional markets for B2B software

Marketing

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