WaveLength Focuses Network Vendor on Fast-Growth Enterprise Networking Opportunities

Picture of Enterprise Switch for Case StudySummary:

WaveLength’s primary research identified high potential enterprise segments for a growing network hardware vendor.  Based primarily on corporate culture for a longer-life segmentation, the model delivered accelerated results. It also discovered important information about high potential segment buying habits and IT priorities. Results were used in public relations, to educate sales, and marketing/demand gen strategy, and public relations. Finally, WaveLength generated a prioritized and highly targeted lead list that produced 20% more sales, and a firm foothold into the enterprise networking market.

Accelerate Profitable Entrance into Enterprise Equipment Market

The vendor sold only to service providers and to diversify revenues, they bought market-leading enterprise security vendor. They needed to identify segments where they could prosper competing against and 800 pound dominant competitor.

Key Info that Could Change Business –- What are the Profiles & Buying Habits of Companies with Heterogeneous Enterprise Networks?

  • What’s the organization’s technology philosophy? What infrastructure changes drive investment?
  • What’s important to enterprise buyers: performance, security, capital or operations cost, etc?
  • What segments highly value IT, will continue to invest, and be open to new vendors?
  • How do we reach and sell into these segments? How do we prioritize prospects in segments?

Best Data Sources — Primary Research & 3rd Party Data

Three phases of primary research

  • Qualitative interviews in 3 countries
  • Survey in 11 countries with an N=700 organizations with $50 million or more in annual sales, augmented with several third-party data sources
  • Survey of high potential segments for greater understanding of decision-making and IT priorities.

High-Value Info—Technology Philosophy and Existing WAN Key Predictors of Willingness to Purchase from New Vendors

Regression analysis identified segmentation variables, which were technology philosophy and enterprise’s existing Wide Area Network (WAN).   Since the 800 pound gorilla dominated the market, smaller segments would likely yield greater value, so WaveLength created a 9-segment K-means clustering segmentation model. Two segments were considered high potential because the high likelihood of near-term success. Finally, a simple 4-question typing tool identified ideal prospects in high value segments. Of the 20,000 U.S. organizations with at least $50 million in sales, the prospect list was narrowed to about 4100, which was further focused by ranking attractiveness according to a series of financial ratios

Result: Improved  Targeting, PR, and Sales

Key finding was that companies with superior financial performance also placed importance on technology; hence were most likely to adopt new technologies from new vendors. This was true for companies of all sizes in all geographies and industry sectors. This type of company was named a Dynamic Leader”and some highlights of them are:

  • Technology is at the heart of their businesses; organizations that are highly dependent on real-time transactions and automated processes have extremely high performance requirements:
  • When purchasing IT, they are driven by productivity gains more than cost savings;
  • They have more concurrent IT projects than the rest, and adopted newer technologies far more quickly;
  • They take a strategic yet dynamic approach to planning and IT purchasing because of their pace of change.

Survey results were used for marketing, product development, and public relations. Demand generation efforts concentrated on this set of companies, and a year later, the result was 20% higher sales than the control group.

WaveLength’s in-depth knowledge of enterprise & secure networking, together with its data analytics expertise, made them the right partner to focus on fast-growth enterprise networking opportunities.