Concur CEO Steve Singh (Part 10)
Check other articles in the series...A crucial advantage of any on-demand software model is the ability to reach into new customer bases. I press hard here to understand the demographics of the company further.
SM: Help me understand your customer base a bit. Are you focused on Fortune 500, Global 2000 or are you focused on smaller companies? SS: Early on we were focused on global accounts. However, one of the great things about an on-demand business model is you can drive your cost structure down to the point that it is very compelling for companies of any size. We have customers as small as the Los Angeles Philharmonic with their 20 users. On the other end of the spectrum we have customers like AT&T which have thousands of users.
SM: You must have a strategy of how you approach the market. How do you segment the market? SS: True, we do segment the markets, but our strategy is we would like to focus on a vertical set of services for travel and expense management, procure to pay. That is our segmentation. From a customer size point of view we do not segment.
We have 5,000 customers. Once we complete the acquisition of Gelco we will have another 1,200 customers. We will have 6,200 customers which will range from some of the smallest companies in the world to some of the largest companies in the world.
SM: How does that break down, what are the percentages? SS: You will find the breakout is very comparable to the distribution of corporations across those sizes. There are a lot more companies in the 100 to 1000 employees segment, than there are in the 1,000 to 10,000 segment, and in the above 10,000 segment. The distribution of our customers matches that distribution.
SM: Let me rephrase the question – what does the revenue split look like? SS: It is pretty even. About a third comes from the small market, about a third from the middle market, and about a third from the global accounts.
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