GTM Breakdown: Dialpad

Welcome to the new segment of Category Surfers where we break down go-to-market strategies so you can build the best GTM engine for your company.

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Let’s talk GTM (go-to-market).

GTM Breakdown: Dialpad inside Video Conferencing category

Here is Dialpad’s whole strategy and what you can copy from them.

What is it?

Dialpad is a Zoom competitor where they bundle products related to video conferencing with some AI inside. They do the obvious stuff – conferencing without a download required, and free transcription and call summaries out of the box.

Dialpad is fighting against having to buy multiple tools just to talk to customers online. They have about 1000 employees and have raised over $450M since 2011.

How is the buyer?

Usually, it's a CEO of a small company (not tech-based, i.e. an agency) or a larger company that is looking to buy Microsoft Teams (because of price to value ratio).

61% of Dialpad buyers are in the SMB segment, 29% in the mid-market, and 10% in the enterprise.

How do they position the product?

The positioning focuses on doing all you need inside one tool. Bundling video conferencing, transcripts, call recordings, and call summaries to make a solid value proposition – especially for not tech-heavy companies.

I think the assumption is that these companies are willing to spend more on a video conferencing tool to have everything they need to run calls efficiently.

Sure, Zoom is cheaper. But if you buy Zoom, call recording, or meeting agenda tool — it adds up to more than $15/mo.

What market are they in?

They are in the video conferencing category which has grown 75% in the past 3 years, with an average of 21% year-over-year growth.

What is their pricing strategy?

Dialpad has 2 plans: free and business. The business plan ($15/u/mo) has all the features we talked about that make them a bundled product. The free plan includes limited video conferencing features.

The whole pricing strategy focuses on bringing users for free (like Zoom) to cross-sell more Dialpad products like communication suite (think Slack but with external calling) and some call center solutions.

How do they sell it?

They distribute the primary product (phone systems) with sales-assisted motion. The video conferencing product is a cross-sell product – first, they get their current users to use a video conferencing tool for free, then ask for an upgrade. An awesome way to maximize revenue from current users and increase stickiness.