Totango, founded in 2010, is a customer monitoring platform that incorporates data from CRMs, and other systems, to glean information on customer engagement to drive customer retention and increase customer success. Totango is combining traditional customer service and account management practices to produce customer success by providing enterprise-level solutions to predict revenue, improve efficiency, and enhance ROI.
Business & Marketing Strategy: Totango’s business strategy seems to be charging clients a subscription fee to access and use the Customer Success platform. The prices are likely to vary depending on the level of service and support as well as the size of the clients company. 27 of the company’s employees work in Business Development and Sales, with only three people making up the marketing team. From these numbers, we can glean that the company may not be placing priority on marketing, and probably rely on word of mouth from their clients and strong efforts from the BD team to market themselves in a very competitive space.
Competitive Position: There are many companies, that are similar in size and stage as well as bigger more established companies, vying for position in the Customer Success Management market. We identified 22 companies that are currently populating the market. The most direct competitors we found are Amity, Azuqua, ClientSuccess, Everage, Natero, Skill Jar, Wise, Woopra, and Gainsight. Other competitors include AnswerDash, Bluenose Analytics, InsideView, Iridize, Jell Networks, MindTouch, and WalkMe. It is difficult to tell where exactly Totango ranks with all these companies, as they all have millions in funding, skilled workforces, and major clients. Totango may have to display a strong differentiating factor to stand out among the rest.
Market Forecast & Exit Indicators: According to Forbes, “…customer success is where 90% of the revenue is,Ԡand with a market that has been steadily growing over the last five years, there is ample opportunity for Totango to grow and strategically position themselves for the best chance at success. We identify Totango as being part of the BI and Analytics market, which some Gartner analysts believe will reach $17 billion by the end of 2016, a 5% bump from the end of 2015. There are some avenues for exit in the market as three similar companies, Frontleaf, VerticalResponse, and ExactTarget have all been acquired since 2013. If Totango were looking for exit, there is precedent for customer success platforms to be acquired. Currently, there is no indication that Totango is planning an IPO anytime in the near future.
Professional & Customer Reviews: Customers of Totango are sold on the company’s product with some really glowing reviews. Brian Merritt, VP Customer Success at Trustpilot, says, “Without Totango, we wouldn’t be able to scale our programs and deliver value to thousands of customers.” Chad Sears, VP Customer Success at QUMU says, “Totango integration was not only very straightforward, it worked very quickly with our systems and products.” Some user reviews online say, “If you have trouble with unexpected churn and your forecast are still based on account managers’ analysis, you should definitely get to know Totango.” However there are still some concerns with the product with negative feedback coming in the form of customers saying, “When you have a big company and you don’t want to share your revenue information or key contacts data with sales/CS managers who don’t own the specific account, you have a certain gap with Totango,” and, “[There is a] lack of flexibility for business models outside of core (subscription-model SaaS).”
HR Situation & Reviews: Totango has experienced a net increase of three employees from Nov. 2014 to Nov. 2016. From Dec. 2014 to Jan. 2015, Totango went from 57 employees to 68 employees, but by Feb. 2015 that number had slipped to 63 employees. The same trend occurred at the end of 2015. From Dec. 2015 to Jan. 2016, Totango went from 60 employees to 66 employees, then dipped to 61 by Feb. 2016. It will be interesting to see if the same trend continues, as we are approaching the end of 2016 and the employee numbers for Totango have been steadily declining since Apr. 2016 (66 employees vs. 57 employees, presently). Reviews from Glassdoor suggest the company takes care of its employees as 9 out of 13 reviews are generally positive. The positive reviews cite an “Amazing product,” and “A Brilliant team of people.” The negative reviews focus on a, “Lack of motivation,” and “good people are leaving and no one is taking time to really evaluate why.”