How to Double Your Contract Value
With the right information about your prospects, you could increase -- even double -- your contract rates. The biggest challenge is knowing which of your potential customers has the budget and capacity to sign these contracts.
Intricately’s Spend intelligence uncovers these opportunities, and helps you identify your positioning.
Combined with our Watch List feature, you can sit back until we notify you of prime opportunities through our alerts system.
Your Anchoring Strategy
The most important information in your Intricately account is Spend. This is your ‘anchor’ information, the data that will help you quickly determine if the company is one with the capacity for your pitch.
Spend is an estimated dollar figure used by Intricately that represents:
- How much traffic the company has
- The type of infrastructure
- The volume of the company’s infrastructure
- The size of the company.
For example, large companies like Nike and Oakley are defined by Intricately as ‘Tier A’ companies: they spend over $500,000 per month on infrastructure. This is a great comparison tool for you to use when evaluating budget capacity at similar companies.
Why Spend Beats “Company Revenue” Every Single Time
Many people we talk to want to know about revenues, but with private companies it’s near impossible to get this information. Plus, a company’s revenue doesn’t tell you anything about how much money they’re putting towards services like yours.
It’s a widely adopted metric for sales teams that constantly disappoints.
In Intricately, the actual spend of a company still varies (for example, Nike’s spend is over 3 million, Oakley’s is around 1.2 million), but knowing this information will help you determine if your prospect is likely to have the budget capacity for your services.
In addition to an overall spend figure, you can access information on where the company spends most of their money in Intricately. We call this wallet share. This involves looking at the product categories for a company, specifically your product category, and the distribution of spend.
Spend Distribution or Wallet Share
Intricately shows a spend estimate for each service category, which is a sum of all the money being spent within that category.
Here’s where you can find opportunities to consolidate a prospect’s vendors, or the opposite - diversify.
Example: How Much Does IKEA Spend on Hosting?
For example, a company like Ikea is considered ‘Tier A’ because it spends over $500,000/month. If we look specifically at the Hosting service category, we discover that roughly 20% of their total spend, $100,000, goes towards one type of infrastructure.
It’s also important to note the number of vendors being used. We list more than 20 vendors that provide hosting services for Ikea - just for hosting!
Clicking on the logos to learn about the depth of deployment. This information will help you decide how to position your opportunity; specifically how to angle your services in terms of cost and quality.
Setting Up a Watch List
Watch Lists allow you to track activity within a list of specific companies such as your Salesforce leads, or companies you follow in Intricately.
Once configured, you’ll get daily email notifications when your prospects makes changes.
You’ll know when contracts are up for renewal, when a company is growing or shrinking their infrastructure strategy or making changes to their strategy.
Companies can be added to your Intricately Watch List in a few different ways:
- Connect your Salesforce account to sync the companies attached to your Salesforce account.
- Click the ‘FOLLOW’ button when looking at a company in the Intricately platform.
- If you have a list of URLs for companies you’re watching, add them by clicking ‘Watch Lists’ under ‘Notifications’ in the app menu. Then click the blue ‘Add Companies’ button.
You can also add companies to your Watch List using Intricatey’s Chrome Extension.
The Key Takeaways
Increasing or doubling your contract value starts with knowing your target companies propensity to spend large amounts of money. With Intricately you can get this information by using the Spend and Watch List features.
- The Company Spend is where your anchor strategy starts. Use Spend to help you determine what a potential customer’s budget might be.
- The more a customer spends on a service, the more potential for a higher contract value.
- Spend distribution will help you understand the best way to approach the company, and start a conversation.
- By setting up Intricately Watch Lists, you can get pro-active alerts for prospects.