As you click through various company reports, you will notice a trend: the companies with the largest digital footprint spend the most. (and vice versa)
So how can you put this data into action?
First, let’s get to know how the number is calculated. Spend is combination of:
- Applications used
- Use Case
- Cloud Services
Spend provides the clearest estimate of a company’s online presence.
Most companies have processed built around a company’s size or revenue. The problem with these archaic data points is major opportunities get missed such as a big company with no spending power, or a small company with incredible spending power. You won’t see this through an Employee or Revenue number.
Now to start leveraging Spend, let’s look at one company: Shopify
According to Intricately, Shopify spends roughly $1M per month on infrastructure.
This tells us that Shopify operates a very large digital presence. If you’ve been following Shopify, you will know they offer a SaaS ecommerce platform, and they have been growing at an incredible rate. Both traits support this large spend amount.
The next set of spend data that we want to look at is the category spend. Category spend unveils the products that any company spends the most on.
If we take a look at Shopify again, we see that they spend roughly $20K per month on CDN and it’s split amongst 5 providers with Akamai owning most of the spend.
If you’re looking to sell into Shopify, it’s likely more effective to target an incumbent that isn’t Akamai. You could look at Varnish, Cloudflare, or AWS.
Digging deeper, we can see exactly how one of these CDN providers is used by clicking on the logo:
This tells us that Shopify uses Varnish to power their apps domains. This is an incredible insight you can pull into any sales conversations.
Spend as a Relative Indicator of Fit
It’s important to look at spend as a relative indicator. The quickest way for you to establish your spend basis is to look at the last few customers you signed, and their spend numbers. This will provide a baseline to look for when prospecting.
If you have more questions about Spend, don’t hesitate to reach out to schedule a one on one call.