Localogy 2022 – The Race to All-In-One

The area of technology we call SMB SaaS continues to expand. With more comprehensive bundles, SMB SaaS providers can hit many targets – greater ARPU, customer retention, and economies of scale, and product synergies/agency. What’s the latest in the art of expanding the bundle? A heavy-hitter panel broke it down today at Localogy 2022.

Key Takeaways

Here are a few key messages or insights that we gleaned from this session.

  • Total addressable market (TAM) is often a key highlight for market sizing and investing. But it’s different for everyone. The traditional TAM for worldwide SMBs is 230 million.
  • But everyone is targeting a different market that they service (service-addressable market or SAM). That can be defined by vertical segments, size of business, or other attributes.
  • In any case, that focus is important… though it segments and diminishes the TAM, it optimizes the addressable market (and no one was going to actually win 230 million SMBs anyway).
  • Another way to say SAM is ‘ideal client profile’ according to Gordon Henry. In Thrive’s case, that’s 2-50 employees, $5k-$500k in business, and mostly in service sectors (SMBs that work on your car, house or body). And there are about 4 million of those in the U.S.
  • Soci conversely looks at number of locations for multi-location brands as its SAM. The point is that “addressable market “is much more nuanced than typical offhand TAM references.
  • Back to the all-in-one theme of the panel, a broader bundle can increase the size of any business’s TAM and SAM.
  • It can also deepen relationships by being a greater part of a given SMB’s operational backbone (which can lessen churn).
  • All of that points to one-stop-shop positioning as a no-brainer, but it’s easier said than done. Like anything else, it’s all in the execution.
  • One of the biggest challenges is to maintain product focus and good service as the bundle broadens.
  • It also takes some deep strategic thinking about what services should be in the bundle. Where are there synergies between products, and where is the greatest overall impact?
  • And what’s the sweet spot for how many services? There’s a point of diminishing returns in adding new services given diluted/diverted organizational focus.
  • So the key is to find that sweet spot, and execute accordingly.

The Race to All-In-One

Local businesses want it all, and then some. They are on the hunt for the easiest, all-in-one solution for Marketing, Sales, Ops, Finance, you name it. SaaS platforms are hot on the trend. This is where they’re headed, but the challenges around fine-tuning their “go to market” approach and figuring out the best pricing models is what keeps SaaS leadership teams up at night. In this session we’ll hear from the SaaS players racing to be the best all-in-one tool and how they are winning and retaining market share.

Gordon Henry, CSO – Thryv
Jeff Tomlin, CMO – Vendasta
Monica Ho, CMO – SOCi
Randall Turner, EVP Strategy – GoSite

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