Previous Hub:Raum (Deutsche Telekom)
Wideo (500)
We supported Wideo to reduce their churn rate by 50% and to maximize value creation via CRO through advanced customer segmentation techniques.
Company & Background
Wideo is a tech company providing simple online DIY multimedia software tools for non-professionals to create their own explainer and marketing support videos and presentations in the cloud. Their core team is in Buenos Aires (Argentina), but due to investments and strategic location, they moved their HQ to San Francisco (USA).
Challenges & Needs
Wideo was trying to raise a Series A round after raising 2 Seed rounds from including NXTP Labs, 500 Startups and Angels from the 500 network. But they felt that they were not ready in terms of Market Validation and Segmentation which was putting pressure on the growth KPIs (market growth rates, churn rates, ecc).
Solutions & Impact
FFA worked with Wideo on their investment readiness, and implemented a growth re-engineering process focused on creating
These messages keep our motivation high and our team going strong
” FFA provided us with a lot of insights into problems and issues in our Series A pitch deck in terms of content and market/growth validation. From those problems, we embarked on a growth re-engineering process which helped us to identify our main value drivers and to focus on our strongest customer segments. “
Agu De Marco
” FFA provided us with a lot of insights into problems and issues in our Series A pitch deck in terms of content and market/growth validation. From those problems, we embarked on a growth re-engineering process which helped us to identify our main value drivers and to focus on our strongest customer segments. “
Agu De Marco
Founder & CEO | Wideo
Company & Background
Wideo is a tech company providing simple online DIY multimedia software tools for non-professionals to create their own explainer and marketing support videos and presentations in the cloud. Their core team is in Buenos Aires (Argentina), but due to investments and strategic location, they moved their HQ to San Francisco (USA).
Wideo first engaged FFA to help them raise an international venture capital series a funding round (by researching and introducing European investors to potentially syndicate a deal with US ones to open both geographical markets), but after analyzing the investment readiness we found out that Wideo needed to undergo a major growth re-engineering to have a more solid support for their investment case.
In 2014 Wideo raised some relevant 7-figure seed funding rounds from NXTP Labs and 500 Startups, with an interesting board of seasoned professionals from the multimedia and creativity software industry.
Challenges & Needs
Wideo was trying to raise a Series A round after raising 2 Seed rounds from including NXTP Labs, 500 Startups and Angels from the 500 network. They on-boarded advisory board from some Fortune 500 corporations in the creative software industry and were ready to embark on the VC fundraising journey.
The idea was to raise a funding round in both the US and Europe to support market entry with the investors’ networks and expertise/experience in the market, but Wideo felt that they were not ready:
- Lack of Market Validation: Wideo was not sure about its market validation and how to scale the company internationally. It had 1M MAU and reached profitability, but didn’t have critical mass in any local market (due to a lot of global organic traffic), which given the nature of this mass product, is understandable. This made it difficult to build a strong investment case and clear resource allocation, since controlled growth, replicability, and defensibility were not really given.
- Unclear Segmentation and Business Model: Wideo positioned its product for a B2C or Soft B2B audience, and therefore set lower pricing and expected to see lower conversion rates across the funnel and lower customer retention and recurrence rates. This put pressure on showing a strong CLTV vs CAC ratio and therefore made it difficult to build a solid growth case. Still, the product was selling but didn’t have a clear customer segmentation in place, which could provide insights into the situation.
Solutions & Impact
To start with FFA worked with Wideo on the investment readiness. We went through their KPI dashboard and operational details and assessed the VC investment readiness, which as explained above was shaky. We provided an idea on how we could solve the issues on growth strategy and operations, in order to build a more solid business and investment case.
We suggested working with our Growth as a Service (GaaS) framework, but not to use it for experimenting and validating growth for the existing product and market, but to use it for “re-engineering” of the existing growth setup and processes. We set to work and reiterate on market experiments, internal improvements and growth setups with an agile process organized in Growth Sprints of 2 weeks each.
In a 12 Growth Sprints (24 weeks) project with remote work, FFA supported Wideo in this “re-engineering” effort, by focusing on these main activities:
- Customer Segmentation: We created a more precise customer segmentation (all most relevant customer personas with their industries, product usage and value, buying motivations, pricing and relative price discrimination) in order to understand, which segments were creating the highest value contribution and results. We identified that there were some customer segments that were related to professionals of large organizations using Wideo products for their internal tasks and activities. This puts Wideo’s product into the B2B / Enterprise IT & SaaS space, which has completely different rules, product requirements, value propositions, pricing, etc. and reducing Churn, but also increasing sales lead times.
- New B2B Business Model: We adapted products/features/pricing to the selected segments and analyze impact in terms of increased average CLTV and CAC and in decreasing Churn and fixed costs (HR, marketing/sales, development resources allocated, etc.)
- Revamped Growth Case: We changed the growth stack, KPI dashboards and processes around the B2B case, in order to build a new venture-worthy business and investment case.
