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Nurturev - Business Case
Why now?
In any B2B business cost of new customer acquisition has sky-rocketed in the last couple of years because of a number of fundamental changes in the market.
Thus there is an evident and necessary shift in focus towards acquiring new revenue from existing customers. This includes upsells and cross-sells
In the past 2 years, this shift is corroborated by the fact that there are specialised “farming” sales teams propping up in a majority of mature organisations. In fact a typical land and expand motion in a upper mid-market or enterprise account sees 10x more revenue from expansions as compared to the landing ACV.
In the status quo, however, the expansion motion is still driven by organic information collected by account managers and thus there is limited visibility and predictability for leadership. Although there are expansion targets, the expansion plans and roadmaps are not data-backed and relies on a spray-and-pray practice.
Nurturev helps B2B companies predictably increase their expansion pipeline and help in converting these opportunities by equipping the farming sales teams with the information about the needs and priorities of their customers at any point in time. As farming revenue becomes absolutely critical in the B2B space, it not only contributes to the increase in top-line directly, but to the most efficient and sizeable source to growth.
[In this image each row represents an account of our customer. The columns to the right represent the different offerings of a customer and the green cells are where there are signals for cross-sell and upsell]
Pricing Discovery
Saas pricing is in most cases based on the dollar value benefitted by the customer. Since Nurturev creates expansion pipeline for organisations, it is easy to measure the outcome. Additionally drawing parallel from the marketing tech vertical that create new logo pipeline for organisations, companies like 6sense and Demandbase typically price themselves based on a 100:1 of the dollar value of pipeline created. That is if they can create upto $100M marketing pipeline, the cost they charge to their customers is $100k (benefit to the customer being $1M). The logic being 1% conversion from the marketing leads is standard and charging 1:10 for ROI from a Saas is also standard.
In the case of Nurturev, the pipeline created can be estimated conservatively with a proxy of expansion targets of organisations. A company at around 50M in ARR will have targets to grow by 50% YoY and more than 50% of the growth at this stage will be targeted from expansions (companies like Salesforce and Snowflake have more than 85% of their growth contributed by upsells and cross-sells). Thus $12.5M will be the target from expansions and thus Nurturev can be priced at $125k for a customer at $50M ARR.
Currently we are at early stages of pricing discovery, however for a customer like Capillary the potential ACV is ~$30k.
Success Metrics for our Customers
The revenue acquired from the opportunities created by Nurturev is the ultimate success metric for our customers.
ICP and the Buying Persona
Any B2B organizations that have a considerable sales pipeline in the mid-market/enterprise segment and have 10M+ ARR falls in our ICP.
The economic buyer for Nurturev is the CRO, the admin who configures the tool is Revops and the users are account managers (in some cases CSMs as well)
Revenue Funnel
Currently we have 5 paying customers contributing to 33k in revenue (sales started in January with the first contract closing on 20th of Jan)
There are 18 accounts in the POC and evaluation phase.
Since there are few accounts that we have been able to mark as “closed lost”, the exact loss rates (or conversion rates) from the POC stage is difficult to measure. However, we estimate that there is a 30-50% conversion rate from the POC stage.
The sales cycle currently ranges from around 30 to 45 days for a ~10k contract. In larger accounts, however we expect both the sales cycle as well as the contract sizes will be more (expected 45-60 days for a ~30k contract). Since we are currently building out the product while serving our customers, currently the implementation cycle is as long as 1.5-2 months, however the goal is to drive this down to 2 weeks.
Team Size and Founder profiles
We currently have a 13 member team.
Founder profiles
Apart from the 3 founders there are 2 in Sales + Demand Generation, 4 Engineers, 2 Data Science, 2 Product + Design, 1 QA
Competitive Landscape
Tapping expansion opportunities in existing accounts has a number of dimensions in terms of problems that need to be solved to effective plan out an expansion roadmap. The competitive landscape is thus segmented in these dimensions. The following table highlights the different dimensions and the existing players.
Dimensions
Competition
What they do?
How are they different?
Whitespace Analysis
This category of tools uses only data from CRMs to identify all possible geographies, business units, product lines, etc., where whitespaces are present.
They also track if there are any relevant opportunities being created for the whitespaces and provide a leadership level view of how the whitespace landscape is progressing for different key accounts.
key account management expansion
Such tools help in visualising farming opportunities and tracking them, but not in generating any.
[This is already built on Nurturev]
3rd-party Signals
This segment of tools collects 3rd party information about prospects like what they are searching for, news and announcements about companies, technographic information etc.
New-age tools are more targeted towards sales and scaling up prospecting activities by personalised campaigns based on account insights.
presales focus campaign automation
The focus of such tools are more on pre-sales end and hence the offerings centre around auto-personalised campaigns for a large pipeline.
[This is already built on Nurturev]
People Intelligence
This category of tools especially focus on firmographic insights about accounts. This is a category where org-charts and key buying persona identification becomes very important.
Connect the dots focuses on getting warm introductions to relevant stakeholders
org chart key stakeholder mapping
This is an essential part of our roadmap. In complex B2B farming processes, where multi-threading becomes important, key stakeholder identification and relationship strength tracking becomes essential.
In the post-GPT era, however, this has become a lot easier to tap and there are even specific vendors that supply org-charts out-of-the-box.
Account Planning
Account planning is primarily used in enterprise sales and involves collaboration with different stakeholders to document and plan the actions for an account. Primarily used for expansion planning, noting which departments, business units or stakeholders are to be involved for expansions.
Quip, one of the old school players enabled collaboration within Salesforce.
New age tools like prolifiq or Nextquarter bring in some 3rd party information into the account planning like stakeholder mapping or sales collaterals that are relevant.
These are collaborative tools embedded within CRMs. It is an essential part of our roadmap.
👉 The key problem with account planning tools is the adoption and retention of sales reps. Nurturev will be able to add continuous 3rd party insights that point out key signals in accounts at the right time. This would allow leadership and on-field teams to make the most by collaborating and planning the expansion roadmap of an account.
There are no rows in this table
DeepDive on 2 close competitors
Our closest competitors in terms of value propositions are DemandFarm and NextQuarter. A deepdive on the 2 competitors are the following:
Key pointers about DemandFarm:
Key Pointers about Orbitshift:
Customer Stories
MindTickle
Customer
$10,000
View Details
Ann Neir - VP of Revops
Pranav Indi - Revops Manager
Spotdraft
Customer
$6,000
View Details
Mohammed Moiz - VP of Customer Success
Debasish Pattanaik - Dir. of Revops
Capillary
In Negotiations
$20,000 - $30,000
View Details
Siddhant Jain - VP of Customer Success
Suraj S - Dir. of Revops
Near Future Roadmap
Today 3rd party insights are a wedge for Nurturev to enter the market by identifying opportunities and whitespaces for customers to leverage and tap expansion opportunities. However in the near future our goal would be to able to not just create new opportunities but also help in methodically driving and closing those opportunities. The following are conceptually the areas in which we will invest to get to this point.
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