tomtunguz.com · 2017-04-24 · 3328d

A Tale of Two Go To Market Strategies

Fleetmatics and Geotab achieved similar scale (~$100M+ ARR) in the fleet management SaaS market using radically different go-to-market approaches: Fleetmatics deployed an inside sales model with high-velocity sales cycles and multi-year contracts to improve unit economics at low ACV ($6,788), while Geotab bootstrapped by building an open platform sold through channel partners, achieving greater capital efficiency with significantly fewer employees. The article demonstrates that successful SaaS companies must align their product, pricing, and go-to-market strategy to match their target market segment.

8 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

Average Contract Value

6788USD

average

Fleetmatics at IPO, fleet management SaaS

Contract Length

3years

typical

Fleetmatics customer contracts

Headcount Ratio

5times

actual

Fleetmatics (1,150 employees) vs. Geotab (300 employees) for similar ARR

Net Income Margin

6.5percent

actual

Fleetmatics 2015

Net Income Margin

14percent

actual

Fleetmatics 2016

Revenue

320millions USD

actual

Fleetmatics 2016

Revenue

110millions USD

actual

Geotab 2016

Total Capital Raised

93millions USD

actual

Fleetmatics total fundraising