Performance Analytics Strategy
Technology companies are transforming how they use analytics to not only measure and assess their businesses’ performance, but also to calibrate their offerings and operations in real time.
Technology trends and advancements—the shift to cloud and subscription services, IoT, social media, digital, AI and machine learning, etc.—are generating an unprecedented amount of data and opening the door for this new wave of performance analytics.
Tech businesses are embedding extensive analytics in their business planning, products and operations to support and, in some cases, to drive real-time decisions. Analytics inform decisions relating to a multitude of business opportunities, including pricing subscription services, investing in acquiring and retaining customers, and allocating capital to maximize customer and financial value.
Harness the Full Power of Performance Analytics
We work with technology businesses to leverage business performance analytics to understand, enhance and grow their businesses:
Uncover Customer Insights
Data and analytics help companies develop a holistic view into the health of their customer relationships. For example, telemetry built into software products provides insight into how customers use product features across users and customer lifecycles. This visibility informs key drivers of customer behavior, value, retention and expansion.
Operational analyses can provide insight into the effectiveness of key levers—coverage models, workforce capacity plans, support efficiency, transactional customer satisfaction, etc.—to identify gaps and improvement opportunities.
Unlock Financial Value
Valuation metrics and approaches in the technology sector are evolving. Increasing importance is being placed not only on key indicators such as recurring revenue, revenue growth and a bevy of non-financial statement metrics (retention rates, customer acquisition cost, customer lifetime value, etc.), but also on the respective interrelationships of these metrics. Understanding and optimizing the balance between these metrics is critical to driving enterprise value.
Inform Strategic Decisions
Analytical insights can be leveraged to help identify and predict strategic opportunities across markets. Once these opportunities are defined, analytics supports the testing, refinement, and prioritization of hypotheses and informs strategies for value capture.
Our Analytics Engine Delivers Actionable Insights
Actionable analytical insights are core to all of Waterstone’s services. Our “analytics engine” is driven by (1) the analytical professional skills we recruit and develop; (2) the curation of analytical and economic frameworks tailored to tech segments and business use cases; and (3) the compilation of extensive data on key measures and best practices.
Waterstone practitioners understand how to work through complex data sets and triangulate multiple sources to operationalize data. They work systematically and logically to resolve problems and anticipate results. They are proficient with advanced analytical tools and concepts. But most importantly, they approach analytics in the context of the business challenges and opportunities the team is looking to address.
Technology Industry Benchmarks
We combine findings from our extensive client work with in-depth analysis of 60+ public technology companies’ earnings transcripts, 10Ks and investor presentations to offer relevant and timely insights. These benchmarks apply across various business functions, including Product Management, Cloud Operations, Customer Success, Customer Support, and Professional Services.
Technology Business Model Frameworks
We combine a variety of tech-centric business model frameworks—operational P&Ls, market sizing and segmentation models, recurring revenue models, perpetual to subscription pricing models, etc.—with our benchmarks and best practices to systematically help clients evaluate, predict and improve their performance. These frameworks can be applied across the various business functions.
Targeted, Standalone Analytics Services
While analytics underpins all of our traditional engagement work (growth strategy, go-to-market, Customer Success, services transformation, and private equity consulting), we also provide targeted, standalone analytics services, including:
Business Planning and Budgeting: Refine, complement and/or enhance your financial planning efforts with our perspectives on economic models, frameworks and benchmarks.
Product Management: Augment your product management function with market/competitive research, opportunity assessment and sizing, conjoint analysis and usage data analysis to inform portfolio rationalization and product roadmap.
Tech Insights: Our clients stay on top of industry best practices and evaluate their performance with ongoing access to our research, benchmarks and business model frameworks, along with introductions to other tech industry participants for best practices discussions.
Updating the Balanced Scorecard for the SaaS World
More and more businesses are embracing a subscription model, and many are struggling with how to accurately measure and predict performance. Managing Director Mark Hauser outlines the Subscription Scorecard, a re-imagining of the traditional balanced scorecard that is better aligned with the SaaS business model. This “rebalanced” scorecard is centered around Customer Success and includes operations quality, innovation velocity and financial value.
Grow Your Business with Actionable Analytical Insights
We are experts at using performance analytics to generate actionable insights—insights that form the bedrock of our recommendations. We can help you harness the power of your data through analytics to better understand and grow your business.