In regions where data are less complete, like Latin America, a descriptive approach offers a very cost-effective way to reveal what the size of the prospective market might be. In fact, such an approach may be the only feasible approach depending on fill rates in the database.

Once identified, this population of prospective sites or look-alikes can then be pulled from the database, matched with a contact database or passed to a call center for verification of firmagraphics, contact details and technology usage.

TUDLA’s Latin America database

As we discussed in a previous post, TUDLA maintains a database of over 1 million business sites in Latin America and the Caribbean. The data include basic firmagraphics (company name, address, URL) and expanded firmagraphics where available (employee counts, industry and revenue). Also, indicators of what technology may be used at these business site are available.

TUDLA also offers free access to the data through interactive Tableau dashboards. This allows users to explore the data at an aggregate level and get a sense of TUDLA’s coverage. It also allows users to perform their own descriptive look-alike analysis.

Descriptive look-alike analysis

As a simple example, suppose I am SAP and I want to know how many prospective customers there might be for an SAP branded ERP offering in Brazil. (Alternatively, I could be an SAP ERP competitor and I am looking for possible SAP customer sites for a competitive kill campaign). Consider the following screenshot from TUDLA’s interactive Tableau dashboard.

TUDLA’s database shows (lower left-hand corner) that there are 2,828 sites in Brazil that are known to have SAP ERP. And the charts show the characteristics of these sites (i.e. the employee, revenue and industry distributions).

Also in the left-hand corner is shown that there are 424,693 sites in Brazil that share the same characteristics (employee count, revenue size and industry) as these 2,828 sites known to have SAP ERP (i.e. these are SAP’s look-alikes). So, this is the size of the prospective market for SAP in Brazil.

Further refinement to a specific firmagraphic, say, revenue size, will more narrowly focus the prospective market. For example, suppose SAP is only interested in sites with enterprise revenue greater than $50m. In this case, the prospective market size is reduced to 19,144 sites, nearly 50% of which are in the manufacturing industry (see below).

Interactive visualization

Interactive visualization is an excellent way to get a comprehensive view of exactly what is in your database. Lack of coverage in firmagraphics, geographies and other business attributes, such as technology presence, can quickly become apparent.

Moreover, it can be used, as in the case of TUDLA, to examine your look-alike market. You can quickly and cost-effectively (don’t need to pay to have a predictive model built) see the size of your prospective market based on the characteristics of your current customers.

Are your sales territories aligned as they should be?  With just a few clicks, an interactive visualization can provide the answer.

For more information on providing an interactive visualization for your data, give us a shout.

KDD Analytics is providing analytical services to TUDLA.

The post Finding B2B “Look-Alikes” in Latin America appeared first on KDD Analytics.

TUDLA

Since 1999, TUDLA (Technology User Database Latin America) has maintained a 70,000+ phone verified panel of business locations across LATAM and the Caribbean. The data from this panel include firmagraphics, contacts with direct phone numbers and opt-in email addresses and full technology profiles with hardware, software, and telecom information. Using an in-region call center, TUDLA regularly interviews IT Decision-Makers across the region to collect, update, and validate the information in the database.

But as is often the case in B2B marketing, numbers matter.  So TUDLA has partnered with other data providers to expand its database beyond the 70,000 phone-verified panel.  Today, the full database covers over 1 million business sites across the LATAM region.  These expanded data include basic firmagraphics (company name, address, URL) and expanded firmagraphics where available (employee counts, industry and revenue).  Also, indicators of what technology may be used at these business sites are available.

Tableau dashboard access to data

TUDLA is offering free “access” to their data so users can see what’s available. This access is through interactive Tableau dashboards embedded in TUDLA’s website.  Users can view and interact with data aggregations (but are not able to download any data) to get a sense of TUDLA’s coverage.

So, check it out and let TUDLA know what you think.

KDD Analytics is providing analytical services to TUDLA.

The post B2B Marketing in Latin America with TUDLA appeared first on KDD Analytics.

ZIP Pointe Market Sizer offers a quick and comprehensive way for B2B marketers to estimate the relative potential size of US private sector markets.  Offered as Tableau dashboards, ZIP Pointe Market Sizer is based on the most current US Census data from over 7 million private sector employers.  Users can determine the potential size of B2B markets starting at the state level and then drill down into metropolitan areas and their constituent 5-digit ZIP Codes.

Current measures of market potential are payroll, revenue and revenue from e-commerce.  Industry detail is available at both the 2 and 3-digit NAICS level.  Nine employee size ranges further refine market potential estimates.  Trend data on employees, sites and $ metrics cover the most recent 3 years.

Assess Relative Market Potential

The best use case for ZIP Pointe Market Sizer is directional and relational guidance as to which markets may hold the highest potential for B2B offerings.  Rank sorting markets can provide insight into whether, for example, sales territories are aligned with where potential opportunity resides.

ZIP Pointe Market Sizer allows users to filter their analysis by employee size, industry and $ metric (revenue, payroll and e-commerce revenue) as well as by geography.  Trends can be filtered to show CAGR over the last 1 to 2 years.

The free version of ZIP Pointe Market Sizer is fully functional and allows users to fully interact with data spanning the entire US Census business ZIP Code file.

KDD Analytics also offers an enhanced version of ZIP Pointe Market Sizer which includes additional measures of market potential (e.g. spending on information technology), additional years of data and access to the underlying, ZIP Code level data.  We can also customize ZIP Pointe Market Sizer to include measures based on user-supplied sales as well as user-requested functionality.  Please contact us for further information.

Ready to try?  Give it spin and let us know what you think.  Access ZIP Pointe Market Sizer here.

The post Free Access to ZIP Pointe Market Sizer appeared first on KDD Analytics.

Interactive investment dashboard

The interactive dashboard below shows IT investment for a group (1 or more) of user-selected, 3-digit NAICS industries (blue).  The rest of the US market is shown in gray.  The default selections are the 3 healthcare sub-industries of Hospitals, Ambulatory Care and Nursing Facilities (see “Select industry” in the dashboard).  The top chart shows investment over time in 2009 $; the bottom chart shows CAGR over time.

As you read our analysis below, we invite you to follow along by making changes to the dashboard to show the trends we are discussing.  Changes are made in the “filters” “Select industry”, “Select years” and “Select investment type” found at the top of the dashboard.

Healthcare information technology investment

In 2015 (the last year for which BEA data are available), the Healthcare industry invested $10.6 billion (2009 $) in computers, software and communications equipment (e.g. phone systems, internet and networking equipment).  62% of this was invested by Hospitals, 32% by Ambulatory Care providers and 6% by Nursing Facilities.

Note that Healthcare industry spending on information technology consists of more than equipment and software.  A sizable share is spent on IT services (such as system integration and consulting) and IT outsourcing.  Forrester estimates that the Healthcare industry spent over 3.5 times what it did on equipment on IT services and outsourcing in 2016.  Over 70% of this additional spending is on outsourcing alone.  The BEA data only cover “fixed asset gross investment”.

Of the three “equipment” components of Healthcare information technology investment, software has exhibited the strongest growth (see “Select investment type” in the dashboard).  Since 2000, software investment has grown by a compound annual rate of 7.6%, mirroring the growth seen by rest of the US market (7.9%).

Pop quiz: Using the dashboard above, of the three healthcare sub-industries, which one had the highest rate of growth in software investment over the 2000 to 2015 period? It may not be what you first suspect.

As of 2015, Healthcare investment in communications equipment has grown by 4.0% per year while computer (hardware) investment has grown by 3.6% per year.  Nursing Facilities exhibited the strongest growth in hardware investment at 5.7% per year.

Note that this is total investment which can rise due to higher demand at each facility and/or an increase in the number of facilities over time.

Computer hardware investment

Digging deeper into computer (hardware) equipment investment reveals some startling trends.

Both PC and server investment have been growing at 6.7% and 4.3% per year since 2000.  However, the annual rate of change in PC investment has been negative since about 2007.

Also, the annual rate of change in physical server investment has been essentially flat since about 2005.  This latter trend is consistent with movement towards virtual and cloud-based servers.

The real standout is investment in physical storage equipment.

Physical storage investment by the Healthcare industry has actually declined by 1.6% per year since 2000.  The most likely reason for this trend is again the movement towards “cloud” storage solutions.  Physical storage investment peaked in 2007 in the Healthcare industry.  Selecting “Select years” in the dashboard to show “1980 to 2015” and the “Select industry” to display to “All” reveals that the peak in physical storage equipment investment in the total, private US market occurred 7 years earlier in 2000.

Printers have also apparently lost their luster.  Healthcare investment in printers has declined by an annual rate of 1.7% since 2000.  Again, looking over the entire 1980 to 2015 time frame, printer investment peaked in 2002 and has been in a downward trend every since.

Healthcare investment in displays increased by 3.0% per year since 2000.  However, since 2004, the trend in annual investment has been flat.  Nursing Facilities exhibited the strongest growth in display investment at 5.3% per year over the 2000 to 2015 period.

What have been the IT investment trends in other industries?

We invite you to play with this dashboard to conduct a similar analysis for any one (or multiples) of 60+ industries.  The limitation, as alluded to above, is that the investment shown is total or aggregate investment.  On a per business or employee basis, trends may be quite different.  We will pick this up in a future article.

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