Monthly Archives: November 2020

Vista acquires Gainsight for $1.1B, adding to its growing enterprise arsenal

Posted by on 30 November, 2020

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Vista Equity Partners hasn’t been shy about scooping up enterprise companies over the years, and today it added to a growing portfolio with its purchase of Gainsight.  The company’s software helps clients with customer success, meaning it helps create a positive customer experience when they interact with your brand, making them more likely to come back and recommend you to others. Sources pegged the price tag at $1.1 billion.

As you might expect, both parties are putting a happy face on the deal, talking about how they can work together to grow Gainsight further. Certainly, other companies like Ping Identity seem to have benefited from joining forces with Vista. Being part of a well capitalized firm allowed them to make some strategic investments along the way to eventually going public last year.

Gainsight and Vista are certainly hoping for a similar outcome in this case. Monti Saroya, co-head of the Vista Flagship Fund and senior managing director at the firm sees a company with a lot of potential that could expand and grow with help from Vista’s consulting arm, which helps portfolio companies with different aspects of their business like sales, marketing and operations.

“We are excited to partner with the Gainsight team in its next phase of growth, helping the company to expand the category it has created and deliver even more solutions that drive retention and growth to businesses across the globe,” Saroya said in a statement.

Gainsight CEO Nick Mehta likes the idea of being part of Vista’s portfolio of enterprise companies, many of whom are using his company’s products.

“We’ve known Vista for years, since 24 of their portfolio companies use Gainsight. We’ve seen Gainsight clients like JAMF and Ping Identity partner with Vista and then go public. We believe we are just getting started with customer success, so we wanted the right partner for the long term and we’re excited to work with Vista on the next phase of our journey,” Mehta told TechCrunch.

Brent Leary, principle analyst at CRM Essentials, who covers the sales and marketing space says that it appears that Vista is piecing together a sales and marketing platform that it could flip or go public in a few years.

“It’s not only the power that’s in the platform, it’s also the money. And Vista seems to be piecing together an engagement platform based on the acquisitions of Gainsight, Pipedrive and even last year’s Acquia purchase. Vista isn’t afraid to spend big money, if they can make even bigger money in a couple years if they can make these pieces fit together,” Leary told me.

While Gainsight exits as a unicorn, the deal might not have been the outcome it was looking for. The company raised over $187 million, according to Pitchbook data, though its fundraising had slowed in recent years. Gainsight raised $50 million in April of 2017 at a post-money valuation of $515 million, again per Pitchbook. In July of 2018 it added $25 million to its coffers, and the final entry was a small debt investment raised in 2019.

It could be that the startup saw its growth slow down, leaving it somewhere between ready for new venture investment and profitability. That’s a gap that PE shops like Vista look for, write a check, shake up a company and hopefully exit at an elevated price.

Gainsight hired a new chief revenue officer last month, notably. Per Forbes, the company was on track to reach “about” $100 million ARR by the end of 2020, giving it a revenue multiple of around 11x in the deal. That’s under current market norms, which could imply that Gainsight had either lower gross margins than comparable companies, or as previously noted, that its growth had slowed.

A $1.1 billion exit is never something to bemoan — and every startup wants to become a unicorn — but Gainsight and Mehta are well known, and we were hoping for the details only an S-1 could deliver. Perhaps one day with Vista’s help that could happen.

Posted Under: Tech News
C3.ai’s initial IPO pricing guidance spotlights the public market’s tech appetite

Posted by on 30 November, 2020

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On the heels of news that DoorDash is targeting an initial IPO valuation up to $27 billion, C3.ai also dropped a new S-1 filing detailing a first-draft guess of what the richly valued company might be worth after its debut.

C3.ai posted an initial IPO price range of $31 to $34 per share, with the company anticipating a sale of 15.5 million shares at that price. The enterprise-focused artificial intelligence company is also selling $100 million of stock at its IPO price to Spring Creek Capital, and another $50 million to Microsoft at the same terms. And there are 2.325 million shares reserved for its underwriters as well.

The total tally of shares that C3.ai will have outstanding after its IPO bloc is sold, Spring Creek and Microsoft buy in, and its underwriters take up their option, is 99,216,958. At the extremes of its initial IPO price range, the company would be worth between $3.08 billion and $3.37 billion using that share count.

Those numbers decline by around $70 and $80 million, respectively, if the underwriters do not purchase their option.

So is the IPO a win for the company at those prices? And is it a win for all C3.ai investors? Amazingly enough, it feels like the answers are yes and no. Let’s explore why.

Slowing growth, rising valuation

If we just look at C3.ai’s revenue history in chunks, you can argue a growth story for the company; that it grew from $73.8 million in the the two quarters of 2019 ending July 31, to $81.8 million in revenue during the same portion of 2020. That’s growth of just under 11% on a year-over-year basis. Not great, but positive.

Posted Under: Tech News
As Slack acquisition rumors swirl, a look at Salesforce’s six biggest deals

Posted by on 30 November, 2020

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The rumors ignited last Thursday that Salesforce had interest in Slack. This morning, CNBC is reporting the deal is all but done and will be announced tomorrow. Chances are, this is going to a big number, but this won’t be Salesforce’s first big acquisition. We thought it would be useful in light of these rumors to look back at the company’s biggest deals.

Salesforce has already surpassed $20 billion in annual revenue, and the company has a history of making a lot of deals to fill in the road map and give it more market lift as it searches for ever more revenue.

The biggest deal by far so far was the $15.7 billion Tableau acquisition last year. The deal gave Salesforce a missing data visualization component and a company with a huge existing market to feed the revenue beast. In an interview in August with TechCrunch, Salesforce president and chief operating officer Bret Taylor (who came to the company in the $750 million Quip deal in 2016), sees Tableau as a key part of the company’s growing success:

“Tableau is so strategic, both from a revenue and also from a technology strategy perspective,” he said. That’s because as companies make the shift to digital, it becomes more important than ever to help them visualize and understand that data in order to understand their customers’ requirements better.”

Next on the Salesforce acquisition hit parade was the $6.5 billion Mulesoft acquisition in 2018. Mulesoft gave Salesforce access to something it didn’t have as an enterprise SaaS company — data locked in silos across the company, even in on-prem applications. The CRM giant could leverage Mulesoft to access data wherever it lived, and when you put the two mega deals together, you could see how you could visualize that data and also give more fuel to its Einstein intelligence layer.

In 2016, the company spent $2.8 billion on Demandware to make a big splash in e-Commerce, a component of the platform that has grown in importance during the pandemic when companies large and small have been forced to move their businesses online. The company was incorporated into the Salesforce behemoth and became known as Commerce Cloud.

In 2013, the company made its first billion dollar acquisition when it bought ExactTarget for $2.5 billion. This represented the first foray into what would become the Marketing Cloud. The purchase gave the company entree into the targeted email marketing business, which again would grow increasingly in importance in 2020 when communicating with customers became crucial during the pandemic.

Last year, just days after closing the Mulesoft acquisition, Salesforce opened its wallet one more time and paid $1.35 billion for ClickSoftware. This one was a nod to the company’s Service cloud, which encompasses both customer service and field service. This acquisition was about the latter, and giving the company access to a bigger body of field service customers.

The final billion deal (until we hear about Slack perhaps) is the $1.33 billion Vlocity acquisition earlier this year. This one was a gift for the core CRM product. Vlocity gave Salesforce several vertical businesses built on the Salesforce platform and was a natural fit for the company. Using Vlocity’s platform, Salesforce could (and did) continue to build on these vertical markets giving it more ammo to sell into specialized markets.

While we can’t know for sure if the Slack deal will happen, it sure feels like it will, and chances are this deal will be even larger than Tableau as the Salesforce acquisition machine keeps chugging along.

Posted Under: Tech News
Materialize scores $40 million investment for SQL streaming database

Posted by on 30 November, 2020

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Materialize, the SQL streaming database startup built on top of the open source Timely Dataflow project, announced a $32 million Series B investment today led by Kleiner Perkins with participation from Lightspeed Ventures.

While it was at it, the company also announced a previously unannounced $8 million Series A from last year that had been led by Lightspeed, bringing the total raised to $40 million.

These firms see a solid founding team that includes CEO Arjun Narayan, formerly of Cockroach Labs, and chief scientist Frank McSherry, who created the Timely Flow project on which the company is based.

Narayan says that the company believes fundamentally that every company needs to be a real-time company and it will take a streaming database to make that happen. Further, he says the company is built using SQL because of its ubiquity, and the founders wanted to make sure that customers could access and make use of that data quickly without learning a new query language.

“Our goal is really to help any business to understand streaming data and build intelligent applications without using or needing any specialized skills. Fundamentally what that means is that you’re going to have to go to businesses using the technologies and tools that they understand, which is standard SQL,” Narayan explained.

Bucky Moore, the partner at Kleiner Perkins leading the B round sees this standard querying ability as a key part of the technology. “As more businesses integrate streaming data into their decision making pipelines, the inability to ask questions of this data with ease is becoming a non-starter. Materialize’s unique ability to provide SQL over streaming data solves this problem, laying the foundation for them to build the industry’s next great data platform,” he said.

They would naturally get compared to Confluent, a streaming database built on top of the Apache Kafka open source streaming database project, but Narayan says his company uses straight SQL for querying, while Confluent uses its own flavor.

The company still is working out the commercial side of the house and currently provides a typical service offering for paying customers with support and a service agreement (SLA). The startup is working on a SaaS version of the product, which it expects to release some time next year.

They currently have 20 employees with plans to double that number by the end of next year as they continue to build out the product. As they grow, Narayan says the company is definitely thinking about how to build a diverse organization.

He says he’s found that hiring in general has been challenging during the pandemic, and he hopes that changes in 2021, but he says that he and his co-founders are looking at the top of the hiring funnel because otherwise, as he points out, it’s easy to get complacent and rely on the same network of people you have been working with before, which tends to be less diverse.

“The KPIs and the metrics we really want to use to ensure that we really are putting in the extra effort to ensure a diverse sourcing in your hiring pipeline and then following that through all the way through the funnel. That’s I think the most important way to ensure that you have a diverse [employee base], and I think this is true for every company,” he said.

While he is working remotely now, he sees having multiple offices with a headquarters in NYC when the pandemic finally ends. Some employees will continue to work remotely, but the majority coming into one of the offices.

Posted Under: Tech News
ServiceNow is acquiring Element AI, the Canadian startup building AI services for enterprises

Posted by on 30 November, 2020

This post was originally published on this site

ServiceNow, the cloud-based IT services company, is making a significant acquisition today to fill out its longer-term strategy to be a big player in the worlds of automation and artificial intelligence for enterprises. It is acquiring Element AI, a startup out of Canada.

Founded by AI pioneers and backed by some of the world’s biggest AI companies — it raised hundreds of millions of dollars from the likes of Microsoft, Intel, Nvidia and Tencent, among others — Element AI’s aim was to build and provision AI-based IT services for enterprises, in many cases organizations that are not technology companies by nature.

Terms of the deal are not being disclosed, a spokesperson told TechCrunch, but we now have multiple sources telling us the price was around $500 million. For some context, Element AI was valued at between $600 million and $700 million when it last raised money, $151 million (or C$200 million at the time) in September 2019.

Even at $500 million, this deal would be ServiceNow’s biggest acquisition, although it would be a sizeable devaluation compared to the startup’s last price at fundraising.

A spokesperson confirmed that ServiceNow is making a full acquisition and will retain most of Element AI’s technical talent, including AI scientists and practitioners, but that it will be winding down its existing business after integrating what it wants and needs.

“Our focus with this acquisition is to gain technical talent and AI capabilities,” the spokesperson said. That will also include Element AI co-founder and CEO, JF Gagné, joining ServiceNow, and co-founder Dr. Yoshua Bengio taking on a role as technical advisor.

Those who are not part of those teams will be supported with severance or assistance in looking for other jobs within ServiceNow. A source estimated to us that this could affect around half of the organization.

The startup is headquartered in Montreal, and ServiceNow’s plan is to create an AI Innovation Hub based around that “to accelerate customer-focused AI innovation in the Now Platform.” (That is the brand name of its automation services.)

Last but not least, ServiceNow will start re-platforming some of Element AI’s capabilities, she said. “We expect to wind down most of Element AI’s customers after the deal is closed.”

The deal is the latest move for a company aiming to build a modern platform fit for our times.

ServiceNow, under CEO Bill McDermott (who joined in October 2019 from SAP), has been on a big investment spree in the name of bringing more AI and automation chops to the SaaS company. That has included a number of acquisitions this year, including Sweagle, Passage AI and Loom (respectively for $25 million, $33 million and $58 million), plus regular updates to its larger workflow automation platform.

ServiceNow has been around since 2004, so it’s not strictly a legacy business, but all the same, the publicly traded company, with a current market cap of nearly $103 billion, is vying to position itself as the go-to company for “digital transformation” — the buzz term for enterprise IT services this year, as everyone scrambles to do more online, in the cloud and remotely to continue operating through a global health pandemic and whatever comes in its wake.

“Technology is no longer supporting the business, technology is the business,” McDermott said earlier this year. In a tight market where it is completely plausible that Salesforce might scoop up Slack, ServiceNow is making a play for more tools to cover its own patch of the field.

“AI technology is evolving rapidly as companies race to digitally transform 20th century processes and business models,” said ServiceNow Chief AI Officer Vijay Narayanan, in a statement today. “ServiceNow is leading this once-in-a-generation opportunity to make work, work better for people. With Element AI’s powerful capabilities and world class talent, ServiceNow will empower employees and customers to focus on areas where only humans excel – creative thinking, customer interactions, and unpredictable work. That’s a smarter way to workflow.”

Element AI was always a very ambitious concept for a startup. Dr. Yoshua Bengio, winner of the 2018 Turing Award, who co-founded the company with AI expert Nicolas Chapados and Jean-François Gagné (Element AI’s CEO) alongside Anne Martel, Jean-Sebastien Cournoyer and Philippe Beaudoin, saw a gap in the market.

Their idea was to build AI services for businesses that were not tech companies in their DNA, but would still very much need to tap into the innovations of the tech world in order to continue growing and remaining competitive with said tech companies as the latter moved deeper into a wider range of industries and the companies themselves required increasing sophistication to operate and grow. They needed, in essence, to disrupt themselves before getting unceremoniously disrupted by someone else.

And on top of that, Element AI could work for and with the tech companies taking strategic investments in Element AI, as those investors wanted to tap some of that expertise themselves, as well as work with the startup to bring more services and win more deals in the enterprise. In addition to its four (sometimes fiercely competitive) investors, other backers included the likes of McKinsey.

Yet what form all of that would take was never completely clear.

When I covered the startup’s most recent tranche of funding last year, I noted that it wasn’t very forthcoming on who its customers actually were. Looking at its website, it still isn’t, although it does lay out several verticals where it aims to work. They include insurance, pharma, logistics, retail, supply chain, manufacturing, government and capital markets.

There were some other positive points. Element AI also played a strong ethics card with its AI For Good efforts, starting with work with Amnesty in 2018 and most recently Mozilla. Indeed, 2018 — a year after Element AI was founded — was also the year AI seemed to hit the mainstream consciousness — and also started to appear somewhat more creepy, with algorithmic misfires, pervasive facial recognition and more “automated” applications that didn’t work that well and so on — so launching an ethical aim definitely made sense.

But for all of that, it seems that there perhaps were not enough threads there to need a bigger cloth as a standalone business. Glassdoor reviews also speak of an endemic disorganization at the startup, which might not have helped, or was perhaps a sign of bigger issues.

“Element AI’s vision has always been to redefine how companies use AI to help people work smarter,” said Element AI founder and CEO, Jean-Francois Gagné in a statement. “ServiceNow is leading the workflow revolution and we are inspired by its purpose to make the world of work, work better for people. ServiceNow is the clear partner for us to apply our talent and technology to the most significant challenges facing the enterprise today.”

The acquisition is expected to be completed by early 2021.

Posted Under: Tech News
Wall Street needs to relax, as startups show remote work is here to stay

Posted by on 27 November, 2020

This post was originally published on this site

We are hearing that a COVID-19 vaccine could be on the way sooner than later, and that means we could be returning to normal life some time in 2021. That’s the good news. The perplexing news, however, is that each time some positive news emerges about a vaccine — and believe me I’m not complaining — Wall Street punishes stocks it thinks benefits from us being stuck at home. That would be companies like Zoom and Peloton.

While I’m not here to give investment advice, I’m confident that these companies are going to be fine even after we return to the office. While we surely pine for human contact, office brainstorming, going out to lunch with colleagues and just meeting and collaborating in the same space, it doesn’t mean we will simply return to life as it was before the pandemic and spend five days a week in the office.

One thing is clear in my discussions with startups born or growing up during the pandemic: They have learned to operate, hire and sell remotely, and many say they will continue to be remote-first when the pandemic is over. Established larger public companies like Dropbox, Facebook, Twitter, Shopify and others have announced they will continue to offer a remote-work option going forward. There are many other such examples.

It’s fair to say that we learned many lessons about working from home over this year, and we will carry them with us whenever we return to school and the office — and some percentage of us will continue to work from home at least some of the time, while a fair number of businesses could become remote-first.

Wall Street reactions

On November 9, news that the Pfizer vaccine was at least 90% effective threw the markets for a loop. The summer trade, in which investors moved capital from traditional, non-tech industries and pushed it into software shares, flipped; suddenly the stocks that had been riding a pandemic wave were losing ground while old-fashioned, even stodgy, companies shot higher.

Posted Under: Tech News
As IBM shifts to hybrid cloud, reports have them laying off 10,000 in EU

Posted by on 25 November, 2020

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As IBM makes a broad shift in strategy, Bloomberg reported this morning that the company would be cutting around 10,000 jobs in Europe. This comes on the heels of last month’s announcement that the organization will be spinning out its infrastructure services business next year. While IBM wouldn’t confirm the layoffs, a spokesperson suggested there were broad structural changes ahead for the company as it concentrates fully on a hybrid cloud approach.

IBM had this to say in response to a request for comment on the Bloomberg report: “Our staffing decisions are made to provide the best support to our customers in adopting an open hybrid cloud platform and AI capabilities. We also continue to make significant investments in training and skills development for IBMers to best meet the needs of our customers.”

Unfortunately, that means basically if you don’t have the currently required skill set, chances are you might not fit with the new version of IBM. IBM CEO Arvind Krishna alluded to the changing environment in an interview with Jon Fortt at the CNBC Evolve Summit earlier this month when he said:

The Red Hat acquisition gave us the technology base on which to build a hybrid cloud technology platform based on open-source, and based on giving choice to our clients as they embark on this journey. With the success of that acquisition now giving us the fuel, we can then take the next step, and the larger step, of taking the managed infrastructure services out. So the rest of the company can be absolutely focused on hybrid cloud and artificial intelligence.

The story has always been the same around IBM layoffs, that as they make the transition to a new model, it requires eliminating positions that don’t fit into the new vision, and today’s report is apparently no different, says Holger Mueller, an analyst at Constellation Research.

“IBM is in the biggest transformation of the company’s history as it moves from services to software and specialized hardware with Quantum. That requires a different mix of skills in its employee base and the repercussions of that manifest itself in the layoffs that IBM has been doing, mostly quietly, for the last 5+ years,” he said.

None of this is easy for the people involved. It’s never a good time to lose your job, but the timing of this one feels worse. In the middle of a recession brought on by COVID, and as a second wave of the virus sweeps over Europe, it’s particularly difficult.

We have reported on a number of IBM layoffs over the last five years. In May, it confirmed layoffs, but wouldn’t confirm numbers. In 2015, we reported on a 12,000 employee layoff.

Posted Under: Tech News
Cast.ai nabs $7.7M seed to remove barriers between public clouds

Posted by on 25 November, 2020

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When you launch an application in the public cloud, you usually put everything on one provider, but what if you could choose the components based on cost and technology and have your database one place and your storage another?

That’s what Cast.ai says that it can provide, and today it announced a healthy $7.7 million seed round from TA Ventures, DFX, Florida Funders and other unnamed angels to keep building on that idea. The round closed in June.

Company CEO and co-founder Yuri Frayman says that they started the company with the idea that developers should be able to get the best of each of the public clouds without being locked in. They do this by creating Kubernetes clusters that are able to span multiple clouds.

“Cast does not require you to do anything except for launching your application. You don’t need to know  […] what cloud you are using [at any given time]. You don’t need to know anything except to identify the application, identify which [public] cloud providers you would like to use, the percentage of each [cloud provider’s] use and launch the application,” Frayman explained.

This means that you could use Amazon’s RDS database and Google’s ML engine, and the solution decides how to make that work based on your requirements and price. You set the policies when you are ready to launch and Cast will take care of distributing it for you in the location and providers that you desire, or that makes most sense for your application.

The company takes advantage of cloud native technologies, containerization and Kubernetes to break the proprietary barriers that exist between clouds, says company co-founder Laurent Gil. “We break these barriers of cloud providers so that an application does not need to sit in one place anymore. It can sit in several [providers] at the same time. And this is great for the Kubernetes application because they’re kind of designed with this [flexibility] in mind,” Gil said.

Developers use the policy engine to decide how much they want to control this process. They can simply set location and let Cast optimize the application across clouds automatically, or they can select at a granular level exactly the resources they want to use on which cloud. Regardless of how they do it, Cast will continually monitor the installation and optimize based on cost to give them the cheapest options available for their configuration.

The company currently has 25 employees with four new hires in the pipeline, and plans to double to 50 by the end of 2021. As they grow, the company is trying keep diversity and inclusion front and center in its hiring approach and they currently have women in charge of HR, marketing and sales at the company.

“We have very robust processes on the continuous education inside of our organization on diversity training. And a lot of us came from organizations where this was very visible and we took a lot of those processes [and lessons] and brought them here,” Frayman said.

Frayman has been involved with multiple startups including Cujo.ai, a consumer firewall startup that participated in TechCrunch Disrupt Battlefield in New York in 2016.

Posted Under: Tech News
Proxyclick visitor management system adapts to COVID as employee check-in platform

Posted by on 24 November, 2020

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Proxyclick began life by providing an easy way to manage visitors in your building with an iPad-based check-in system. As the pandemic has taken hold, however, customer requirements have changed, and Proxyclick is changing with them. Today the company announced Proxyclick Flow, a new system designed to check in employees during the time of COVID.

“Basically when COVID hit our customers told us that actually our employees are the new visitors. So what you used to ask your visitors, you are now asking your employees — the usual probing question, but also when are you coming and so forth. So we evolved the offering into a wider platform,” Proxyclick co-founder and CEO Gregory Blondeau explained.

That means instead of managing a steady flow of visitors — although it can still do that — the company is focusing on the needs of customers who want to open their offices on a limited basis during the pandemic, based on local regulations. To help adapt the platform for this purpose, the company developed the Provr smartphone app, which employees can use to check in prior to going to the office, complete a health checklist, see who else will be in the office and make sure the building isn’t over capacity.

When the employee arrives at the office, they get a temperature check, and then can use the QR code issued by the Provr app to enter the building via Proxyclick’s check-in system or whatever system they have in place. Beyond the mobile app, the company has designed the system to work with a number of adjacent building management and security systems so that customers can use it in conjunction with existing tooling.

They also beefed up the workflow engine that companies can adapt based on their own unique entrance and exit requirements. The COVID workflow is simply one of those workflows, but Blondeau recognizes not everyone will want to use the exact one they have provided out of the box, so they designed a flexible system.

“So the challenge was technical on one side to integrate all the systems, and afterwards to group workflows on the employee’s smartphone, so that each organization can define its own workflow and present it on the smartphone,” Blondeau said.

Once in the building, the systems registers your presence and the information remains on the system for two weeks for contact tracing purposes should there be an exposure to COVID. You check out when you leave the building, but if you forget, it automatically checks you out at midnight.

The company was founded in 2010 and has raised $19.6 million. The most recent raise was a $15 million Series B in January.

Posted Under: Tech News
Adobe expands customer data platform to include B2B sales

Posted by on 24 November, 2020

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The concept of the customer data platform (CDP) is a relatively new one. Up until now, it has focused primarily on pulling data about an individual consumer from a variety of channels into a super record, where in theory you can serve more meaningful content and deliver more customized experiences based on all this detailed knowledge. Adobe announced its intention today to create such a product for business to business (B2B) customers, a key market where this kind of data consolidation had been missing.

Indeed Brian Glover, Adobe’s director of product marketing for Marketo Engage, who has been put in charge of this product, says that these kinds of sales are much more complex and B2B sales and marketing teams are clamoring for a CDP.

“We have spent the last couple of years integrating Marketo Engage across Adobe Experience Cloud, and now what we’re doing is building out the next generation of new and complimentary B2B offerings on the Experience platform, the first of which is the B2B CDP offering,” Glover told me.

He says that they face unique challenges adapting CDP for B2B sales because they typically involve buying groups, meaning you need to customize your messages for different people depending on their role in the process.

An individual consumer usually knows what they want and you can prod them to make a decision and complete the purchase, but a B2B sale is usually longer and more complex involving different levels of procurement. For example, in a technology sale, it may involve the CIO, a group, division or department who will be using the tech, the finance department, legal and others. There may be an RFP and the sales cycle may span months or even years.

Adobe believes this kind of sale should still be able to use the same customized messaging approach you use in an individual sale, perhaps even more so because of the inherent complexity in the process. Yet B2B marketers face the same issues as their B2C counterparts when it comes to having data spread across an organization.

“In B2B that complexity of buying groups and accounts just adds another level to the data management problem because ultimately you need to be able to connect to your customer people data, but you also need to be able to connect the account data too and be able to [bring] the two together,” Glover explained.

By building a more complete picture of each individual in the buying cycle, you can, as Glover puts it, begin to put the bread crumbs together for the entire account. He believes that a CRM isn’t built for this kind of complexity and it requires a specialty tool like a CDP built to support B2B sales and marketing.

Adobe is working with early customers on the product and expects to go into beta before the end of next month with GA some time in the first half of next year.

Posted Under: Tech News
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