Problem statement | Deep-dive

1. Problem Statement

• Grow the ARR of VWO from $20mn to @$40mn in 1 year
• Limitation/ key condition: 80% of the growth to come from non-enterprise and long tail customers
• This is super ambitious 💹 since this is essentially going against the current enterprise approach:
  • Currently, VWO is an enterprise focused tool with amazing sales led growth trajectory
  • Bootstrapped - took over 10 years to get to ~ @$20mn ARR. If valuation is to be pegged at 50 times revenue (pretty standard for SaaS enterprises), it’s a Unicorn 🦄.

  • 60% of its revenue comes from US

<aside> 🎯 Focus on non-enterprise and long tail segment - whether this is even possible?

• Ideal scenario: From a number perspective, YES. In an ideal world, if execution is not a challenge, change management is frictionless and stakeholder alignment is deemed - then YES!
• Reality check: Reversing the product strategy which has been built over years with new segment focus takes a lot of time:
  • Unlike a young startup, VWO is ~250 member org.
  • Transition from enterprise focus to non-enterprise focus would mean:
    • Change in sales strategy from sales led growth to product led growth (at-least partially)
    • Re-alignment of teams and functions
    • New product approach from feature, support perspective
    • Entirely new acquisition, onboarding, E&R and Monetization strategies will be needed </aside>

<aside> ☝️ Recommendation:

• Get a new team to work on PLG with specific focus on non-enterprise and long tail segment. Do not disturb what is already working well!.
• It may take 6 months to set things up but results will be relatively better and achieved faster!

In our submission, we have developed a parallel strategy to be executed with existing resources/ team + some incremental resources. Why hasn’t our assignment considered new PLG team?

• Problem statement needed only 20% growth from enterprise segment. That could be achieved if nothing is incrementally done and the existing practices are just maintained. The existing team would be essentially underutilised.

• We had 2 options:

  1. Either Revamp the growth goals (have a reasonable goal for enterprise as well and ambitious one for non-enterprise) or
  2. Go for change management and realignment for parallel strategy.

  We didnt know option 1 was possible 😛. So we went ahead with Option 2.

</aside>

2. Let’s dive deeper now 🌊

Understand (1)

3. Growth Levers are here 👇

Levers