Data | The X Factor in ScaleX

As the Founder and CEO, I’m often asked, why the name ScaleX?

The answer may surprise you.  I originally registered for www.scale.ai through two different hosting providers and was told both times – sorry, we shouldn’t have sold you this URL, it wasn’t available. After being accepted (before being declined), I started on the website, the logo, product literature, etc.  48 hours later when we were officially told we couldn’t get the URL, I thought a lot about it and ended up getting ScaleX.  What’s significant about the X in ScaleX is that I worked for FedEx right out of collect, I worked for WebEx in 2005 – 2007, and now ScaleX.

So naturally, when I scheduled this webinar with Jason Hubbard, VP of Growth from SalesIntel.io, and their team suggested the name of the webinar be – The X Factor – AI for Data Intelligence, I had to think about it for a minute. One could argue the X is for Acceleration, or the X is for Target Market, or exponential growth (I must admit, that’s why the x is actually a little x, scale to the power of…).

As I got to thinking more deeply about sales and top-of-funnel prospecting, I did realize that indeed data really is the X-Factor. With good data, outbound can work brilliantly, with bad data, a sales or marketing leader could incorrectly say “outbound didn’t work for us”.

As the leader in “done-for-you” prospecting, there are three core traits of data for us and our clients:

  1. Direct-dial phone numbers matter – until recently, there was only one show in town for this information. Now there are two – SalesIntel.io is one of them.
  2. The LinkedIn URL of the contact matters – “the other guys” used to offer this standard in their solution, not anymore. SalesIntel does.
  3. Emails that don’t bounce – When you invest in data, you expect that the data provider has done the data scrubbing and clean-up. SalesIntel.io has a team of researchers, and they use AI to ensure data is clean, and recent.

A brief history of B2B data, from my perspective:

  1. First, there was D&B, Hoovers, InfoUSA, and at WebEx, Riverbed, and other companies where I led the sales efforts, I used these tools.
  2. I remember when Jigsaw was the best data source for sales professionals. Then they were bought by SalesForce.com and morphed into Data.com, and now, well, that product was sunsetted.
  3. Then there was RainKing (AI algorithm that tells you who to call next, wow!) and DiscoverOrg, and ZoomInfo. And then they all merged into ZoomInfo (powered by DiscoverOrg).
  4. I would argue that ZoomInfo was (and in some cases, is) your best bet if you required the trifecta for data shown above (Direct-dial numbers, LinkedIn URL, and Emails that don’t bounce).
  5. However, as companies like ZoomInfo introduce a “platform fee” where basically you can search data, but you have to use a credit to download data, the cost per unit of data can go up dramatically.
    1. At ScaleX, the recent renewal quote was a 60% increase in cost/lead to keep the same platform
    2. I’m hearing that these types of customer increases (with the introduction of the platform fee in 2019), are across the board. One of our “competitors” was investing $40,000/year, and they were being asked to invest $65,000/year going forward for the same data set (which would have brought their cost per lead up to > $1 per lead).

The moral of the Data Story, The X-Factor, at this moment – There is a place for most of the flavors of data out there and ZoomInfo/DiscoverOrg is certainly a great choice if you have the money to afford a $1 per lead price point. For many ScaleX customers – Seed round to Series C companies, and public companies like Sodexo, Sykes, and RingCentral, they want the X-Factor, which is great data, at a rate < $1 per lead.

When choosing your data partner, our recommendation: first to determine what are the most important attributes when buying data.

    • If it’s a good email, and you don’t call them or reach out on social, Seamless.ai, or LeadIQ are great.
    • If you need to track triggers and alerts in the marketplace, and then reach out, Lead411 is amazing – we use this to track funding rounds.
    • If you need the trifecta, there are really two options – ZoomInfo and SalesIntel.io.  One is about 2X the cost of the other.

 

Good selling,

 

Chad Burmeister | CEO | ScaleX.ai