Flair insights Helped Germany Based Software Company To Identify and Expand Thie Total Addressable Market

Client Background

Our client is a mid-sized software company specializing in project management software primarily used in the construction industry. While they have been successful in their niche market, they recognize the need to expand their TAM to drive further growth.

 

Problem Statement

The company was facing the challenge of limited market penetration due to their niche focus. They needed to find new markets and customer segments to expand their business.

 

Strategy and Implementation Advised

1.       Market Research and Analysis

·         For the company we conducted extensive market research to identify potential markets and customer segments outside the construction industry that could benefit from their software.

·         With extensive expert interviews and man + machine approaches, we analyzed market size, growth potential, and competition in these new markets for our client

2. Product Diversification:

·         We advised company to diversify their product offerings to appeal to a broader audience.

·         In line with this, they developed new versions of their software tailored for industries such as manufacturing, healthcare, and finance, ensuring it addressed specific needs in each sector.

 

3.        Marketing and Sales Expansion:

·         To drive the efforts and expand the customer reach, we advised company to revamp their marketing strategy to target the new industries.

·         They hired industry-specific sales teams with expertise in manufacturing, healthcare, and finance to effectively reach potential customers

 

4.       Strategic Partnerships:

·         With the aim to expand tam and define as well as tap into new segments we helped company to adopt inorganic strategies.  

·         This mainly focused on forming external partnerships with industry associations, trade shows, and influential players in the target markets to enhance their credibility and reach

 

Value Delivered

1. Increased Total Addressable Market:

·         The company's revenue increased by over 22% within the first year of targeting new industries, and this growth continued to accelerate in subsequent years

2. Revenue Growth:

·         The loyalty program garnered a strong following, with 40% of customers participating. This translated into repeat business and higher average order values.

3. New Customer Acquisition:

·         By the end of the tenure the company successfully acquired new customers in manufacturing, healthcare, and finance sectors, reducing their dependency on the construction industry.

4. Enhanced Brand Reputation:

·         The strategic partnerships and industry-specific sales teams helped enhance the company's reputation and credibility in the new markets.

Note – The duration of above stated advisory project is of one year.

 

Impact triggered by Flair Insights Work:

Our client successfully expanded their Total Addressable Market by conducting thorough market research, diversifying its product offerings, and implementing targeted marketing and sales strategies. This expansion allowed the company to tap into new industries, drive substantial revenue growth, and reduce its reliance on its original niche market. By staying adaptable and responsive to market opportunities, the company positioned itself for continued success in a competitive software industry.