Customer Revenue Optimization Software

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What is it?

If you ever watched The Office (scene link) then you know it’s easier to sell to current customers that to go out and find new ones. Customer revenue optimization tools help revenue teams do just that. It helps figure out who has the potential to buy more from you. Feature-set includes:

• relationship maps and organizational charts, 

• sales activity analytics, 

• customer account planning, 

• automated deal renewal

• analytics based on CRM data for insights about sales team effectiveness, forecast accuracy, and revenue attainment

This is a subcategory of customer success tools. Usually, it’s a product that customer success tools offer. 

Who’s the buyer?

Job titles of the buyers include sales ops, revenue ops, and leadership of account managers. But also can include customer success and customer marketing leadership.

20% of buyers are in the SMB segment, 53% in the mid-market, and 27% in the enterprise market.

What is the problem?

Companies that buy customer revenue optimization tools have a large base of customers and a lot of products that they can sell. Understanding who is ready to buy more or other products is hard. Usually, data sits in multiple places and it’s hard to analyze it.

The alternative is to create custom reports in the CRM or analyze data in spreadsheets. Finding this data is important because selling more products to existing customers is cheaper and has a higher chance of closing (aka “free revenue”).

How big is the market?

The top 10 players bring about $362M in ARR. The combined annual revenue of all players in the market is north of $2B.

How fast is it growing?

In the past 3 years, the market has grown 675% with an average of 100% YoY growth.

Who are the top 10 players?

Revenue numbers are estimated. We usually are able to find one of the top players mentioning numbers of customers in a recent funding event. This way we can estimate other players' revenue.

How much are people paying?

Companies pay between $50 to $200 a month per user for customer revenue optimization. However, most players don’t have pricing disclosed publicly.

How are they buying?

Almost all players in that market require you to schedule a demo to see the product in action or learn about the pricing. No signs of product-led growth.

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