New Fleet Market Entry: A Case Study

The situation

A long-standing electronics legacy manufacturer took note that their hardware was powering the rapid growth of their customers in the telematics SaaS market. They also foresaw the convergence of technologies in connected vehicle offerings. Given their breadth of capabilities, they were interested in possibly entering this market to provide an end-to-end solution and capitalize on the rapid growth.

As part of the diligence, Valgen was engaged to assess their sales and marketing processes, customer and prospect databases, and technology stack to determine how to create robust sales and marketing operations to support this market entry.

Telematics Market Entry Case Study

What we did

Valgen held in-depth interviews with stakeholders in marketing, customer success, IT and sales leadership, and line of business/segment owners.

Valgen’s team went to work to:

  • Cleanse, validate, dedupe, and enrich the client’s databases
  • Look at customer data to compare customers to the overall fleet market
  • Review the Salesforce environment on multiple fronts such as data migration
  • Analyze the firehose of inbound leads coming through website visits, as well as intent software
A majority of the visitors and those classified as high intent were not actually potential buyers.

What we found

When it came to the sales process, we found that a recently-acquired division was well-established in the SaaS model of selling. However, other divisions that made up a majority of the business were not ready on multiple fronts: sales process, Salesforce set-up, and lack of data maturity and readiness.

Regarding data, 40% of the prospects were duplicated. Most were fairly outdated — 50% were 3+ years old. The contact data was not their target persona of decision-makers. They wanted to target companies with 100+ fleet vehicles. However, data for these fleets was missing, it was unable to be captured, and data that had been acquired turned out to be much smaller fleets than the desired target fleet market.

Regarding their customers, due to the legacy nature of the business, there were not many fleet customers buying direct from them. These buyers also were not indicative of the overall fleet market. Rather, they were intermediaries or third-party procurement organizations. Therefore, there was a need to source a completely new database of their target market.

To determine existing market traction, we analyzed data from website visits, inbound leads, and intent providers. A majority of the visitors and those classified as high intent were not actually potential buyers; they were research organizations on fleet and trucking technologies like telematics.

Further, only 13% exhibiting intent fell within an acceptable target market range of 50 or more fleet vehicles.

Unfortunately 87% of digital advertising, including paid search and retargeting, was wasted. At $50,000 per month run rate, this was not insignificant.

Unfortunately 87% of digital advertising, including paid search and retargeting, was wasted.

The decision

Thorough 360 evaluation of sales process, technology, and data revealed key challenges on multiple fronts. The risks and investments to enter a new market were far greater than expected. A successful outcome was estimated to be far from certain or might take far too long. As a result, they decided not to pursue this market further.

The organization had a great culture and history going for them. They doubled down on continuing to support their customers in their existing market that, in our collective opinion, is not only fast-growing but getting started with a decade or more of high growth ahead. It is best to maintain status quo and continue executing well on their existing model rather than pivot out of existence in this kind of market.

Telematics Fleet Market Strategy Case Study

There were several key takeaways:

  • What seemed like a natural extension of capabilities may in fact turn out to be a complete pivot
  • It was critical to look holistically at strategy, sales, data and technology to connect the dots
  • Separating market trends from company strengths can help assess if these are aligned
  • Be careful what software or technology says; understanding is key to right interpretation

Are you looking to enter any new markets? What strategic bets are you getting ready to make? Do you have all the data needed to make the right decisions?