The Group has a clear and proven growth strategy to penetrate its large addressable market in the key sectors of banking, insurance and BPO. The strategy has five pillars:
Exploit expansion potential in existing customer base
The Group has historically been successful in delivering growth through driving additional revenue from its existing customer base. This strategy comprises up-selling additional products to existing users within an existing customer and also cross-selling the Group’s products to adjacent departments, functions and geographies within the same organisation.
The Group’s combination of rapid, quantifiable, sustainable ROIs, low disruption during implementation and success in embedding its expertise with customers are the key drivers of enterprise wide adoption following an initial sale. The addressable market potential of the Group’s existing target expansion customers represents a potential ARR opportunity of £70 million.
Cross-sales opportunities are generated from a desire to reproduce the benefits of prior deployments in new functions and the appreciation of the importance of a consistent management approach and software platform. As a result, initial deployments can quickly lead to top-down support. The average sales cycle of an expansion sale is typically two months shorter than for a new customer sale.
The addition of the WorkiQ product to the Workware+ platform creates significant new cross-sell opportunities. WorkiQ and ControliQ provide complimentary insight meaning that implementing both applications to the same user base creates incremental value to that of a single product. Currently there is only a modest overlap in the user bases of the two applications, thus generating significant opportunity for cross-selling.
Continue to land new customers
The Group’s new customer acquisition activity is focused on a tightly defined set of banks, insurers and BPOs in its key geographies. The Directors believe these new customers as well as existing customers represent an ARR opportunity of £750 million and is accessible as a result of the Group’s strong track record and referenceable customers in the target sectors. In the calendar year to 31 December 2020, the Group added 13 new logo customers, and the Directors believe that the Group’s enhanced profile as a listed business will assist in targeting these potential customers.
Dedicated employee productivity monitoring go-to-market programme
The rapid switch to home working caused by the Covid-19 pandemic has driven greater interest in the EPM market. The Group has a highly differentiated offering as a result of its enterprise grade solution and human centric design principles. The Directors also believe that the Group’s solution in this market provides an ideal entry point from which to upsell its more comprehensive back-office workforce optimisation solutions. The Group’s new dedicated EPM sales team seeks to take advantage of the emergence of the EPM market within which the Directors believe many organisations have decided they wish to purchase a solution and are actively seeking the vendor with the most appropriate product.
Develop the partner eco-system
The Group intends to continue the development of its partner eco-system, leveraging partner relationships to accelerate the sales cycle, increase lead generation and gain access to influential senior stakeholders in target organisations. The Group also plans to leverage its partner network to make its solutions easier for organisations to buy, for example by enabling its software to be purchased via Microsoft’s Azure Marketplace and other similar frameworks.
Historically, the Group has undertaken acquisitions to support its organic growth strategy. Most recently, the acquisition of OpenConnect in the USA added the WorkiQ application to the Workware+ platform, accelerated the Group’s product roadmap through its expertise in automated data capture and also significantly enhanced the Group’s penetration of the US healthcare insurance vertical. The Group is principally focused on organic growth but will consider further such bolt-on acquisitions that add clear technological capability or market penetration.