The document summarizes Wain Kellum's presentation about Vocalocity, a cloud communications company that provides voice, unified communications, and contact center solutions. Some key points:
- Vocalocity has experienced strong growth and was named the fastest growing tech company in Georgia in 2011 and 2012.
- Kellum outlines Vocalocity's approach to building a successful company, including identifying a large market, developing a distinct offering, building the right team, and having reliable financial projections.
- Vocalocity provides cloud-based phone systems, contact center solutions, and other communications tools to over 20,000 SMB customers through a proprietary cloud platform.
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2. Agenda
Wain Kellum CEO, Vocalocity - CEO Resource, Canal Partners
Vocalocity was named as the fastest growing tech company in Georgia in 2011 by Deloitte and #2 in
2012 (being displaced by a Vocalocity Customer)
I want to share the process we are using to build a great company (well over 100M in revenues
in 2015)……
Correctly identifying a large TAM
Developing an offering with a distinct value proposition
Getting the right team in place
Building a business model that scales
Having reasonably reliable financial projections along the way
Confidential 2
4. The Vocalocity At a Glance
• Founded in 2006
• 20,000+ SMB customers; adding
~800 new customers a month
• 150,000+ extensions
• 60%+ annual revenue growth
over the last 4 years
• Industry-leading low levels of
account churn, ~1.50% per
month
• Highly visible recurring revenue
at a $50M + run rate
• EBITDA positive
• Headquartered in Atlanta, GA
• ~250 employees
• Purpose-built, proprietary cloud platform
• Highly innovative, feature-rich solution set
• World class service and support
• Exceptional platform reliability
• Superior offering at market pricing
Leading provider of mission
critical, easy-to-use, cloud-based
communications solutions for
SMBs
How We Do It
• Industry-leading hosted communications offering
optimized for the needs of the SMB
• Features help SMBs sell more, service clients better
• Easy to deploy, easy to manage, easy to use
• Extremely compelling financial ROI
Customer Value
Proposition
1
5. Voice Joins the Application Cloud
Proliferation of Cloud – A Mega Trend
Highly-scalable, cloud architectures are increasingly being used beyond application
software to generate significant end-user value
Global Public Cloud Market
SMBs are Migrating to the Cloud
$6 $9 $15
$26
$41
$59
$78
$97
$114
$129
$141
$152
$159
2008 2010 2012 2014 2016 2018 2020
Total IaaS
PaaS SaaS
• 39% of SMBs will be paying for 1 or more
services in the next 3 years; up from 29%
• SMBs with cloud services will pay for 3.3
services annually in three years from less
than 2 services today
• 43% of workloads will become paid cloud
services within three years
($ in billions)
Source: Microsoft SMB Cloud Adoption Study 2011, March 2010.
Source: Forrester Research , “Sizing The Cloud”, April 21, 2011.
2
6. SMB Hosted Communications and UC Services Market Forecast (1)
SMBs – The Sweet Spot of Hosted Communications
Significant Market Opportunity
• Business Hosted VoIP penetration in the U.S. still in
early innings at ~8%
• SMBs are among the fastest adopters of hosted
communications services
– Account for ~40% of the total hosted communications
opportunity
– Represent ~$4B+ opportunity
$1.6 $1.7
$2.3
$2.8
$3.3 $3.6 $4.0 $4.2
2009A 2010A 2011A 2012P 2013P 2014P 2015P 2016P
SMBs represent the fastest growing segment within the hosted communications
market
$12+ Billion
Hosted VoIP
Annual
Market
Opportunity
$30 Billion UCC Market
$23 Billion UC
Market
($ in billions)
(1) Sources: Infonetics and William Blair & Company as of March 2012.
4
7. • For [target customer segment]
• Who wants/needs [problem facing the target customer]
• The [product name] is a [product category]
• That provides [key benefit, compelling reason to buy].
• Unlike [main competitor]
• The [product name] [key differentiator].
Tests:
•Can the competitor’s product name be substituted?
•Is there a relationship between compelling reason to buy and key differentiator?
•Is the compelling reason to buy significant enough to warrant purchase?
•How demonstrable is the Value Proposition?
Developing a Compelling Value Proposition
8. Streamlining Communications for SMBs
Without Vocalocity With Vocalocity
Desk Phones Soft Phones Vocalocity Mobile
Personal Portal
3rd Party ApplicationsDesktop App
• Cumbersome operations and maintenance
• No viable self-service options
• Expensive upfront costs
• Flexible plans and features
• Ease of implementation and operations
• 50 - 80% of cost savings with minimal
upfront costs
• Increased professional presence
• Provides relevant data during calls to drive
more effective sales / service
3
9. Scale of Traction (My Canal Partners Lens)
• Product/service is ready to sell.
• 1. Company’s product/service is just a concept.
• 2. Customer feedback has shaped product/service specifications.
• 3. Concept has been reduced to a prototype.
• 4. Customers are using/testing pre-commercial versions of Company’s product/service.
• 5. Product/service is ready to sell.
• Value proposition is quantifiable in customer’s terms
• 1. No target customers.
• 2. Target customers know, pain is unknown.
• 3. Company has identified target customers with significant pain.
• 4. Value proposition is compelling but only in qualitative terms.
• 5. Value proposition is compelling and quantifiable.
• Customers have validated Company’s value proposition.
• 1. Many leads, few qualified prospects.
• 2. Significant pipeline of qualified prospects.
• 3. Customers are sampling but not yet buying.
• 4. Customers have verbally communicated intent to purchase.
• 5. Company is generating revenues through the delivery of its value proposition.
Confidential 9
10. Convenient Configurability and Maintenance
• Highly configurable, self service phone
system administration
• Administrator Web Portal Interface
accessible to all account administrators
• Update extension types; add and remove
features
• Personal User Interface for every
employee/extension
• Employees control voicemail, call
forwarding, and view call logs
Web Portal Interface
Powerful web-based interface to control account features
6
11. Vocalocity Desktop
• Allows SMBs to impress customers and
prospects
• Instant access to information about customer
business needs and activities
• Facilitates a greater level of selling and customer
service
Instantly collect and display important client info in one convenient application
Extension SettingsCompany Directory Call Logs
7
12. Vocalocity Mobile
• Convenience – Manage
communications on-the-go
• Voicemail – Listen to and delete
voicemails, return missed calls, view
voicemail transcriptions
• Dial a Number – Call from app and
appear as though calling from desk
• Directory – Check phone activity at
office or make one-click calls to colleagues
while outside office
• Call Log – Review employees’ call
logs, return missed calls and messages
• Never Miss a Call – Configure away
settings and always stay connected
• Settings – Update profile, call routing
preferences, and change active devices
iPhone®
Android®
Play Voicemail & View
Voicemail Transcription
Directory Contacts
& Line Presence
Adjust Call
Forwarding Settings
9
13. Call Monitoring
• Improve Customer Experience –
Maintain the quality of customer
relationships by:
– Optimizing call resolution times
– Minimizing errors
– Maintaining customer satisfaction
– Maximizing the benefits of every interaction
• Optimize Sales Effectiveness –
Use call monitoring as a coaching and
training tool to:
– Streamline processes
– Increase revenue
– Improve productivity and effectiveness of
employees
• Monitor – Listen in on any call between
an internal extension (employee) and an
external call (the customer)
• Whisper – Listen to the conversation but
only interact with the internal extension
(employee)
• Barge – Join an established call and
interact with both the employee and the
customer
• Remote Access – Monitor a team from
any phone, any time
Whisper
If an employee needs assistance, this
allows you to “whisper” into his or her ear.
Only your agent will hear you.
Monitor
Listen in on calls to hear customer
interactions first-hand.
Barge
Join the call and assist both the
customer and employee.
10
14. Company Call Recording
• Optimize Sales Performance –
Monitor sales team performance for valuable
coaching and training opportunities
• Protect Employees & Business –
Minimize risk and liability by retaining
recordings for diplomatic and timely issue
resolution
• Simple to Use – Configuration can be
done easily from the Admin Portal. Record
only what is wanted. Decide which
extensions, groups, queues, virtual
receptionists and conference bridges to
record. Once configured, they are recorded
automatically
• Recordings Never Expire –
Download and store recordings for easy
archiving and organization
• Low Flat Rate – Company Call
Recording Service only $49.99/month
(including 500 hours of recording time)
11
15. Integrated Analytics Provide Critical Feedback
• Business Intelligence – Gain insights
and streamline business processes with new
advanced reporting capabilities
• Company Summary – Review
graphical summaries and full details of
company call activities. Reduce talk
times, optimize call resolution and pull
information dynamically for optimum
management and visibility
• Full Report Views – Review trends or
graphical charts for both in-depth or at-a-
glance analyses
• Custom Reports – Design and save
custom reports with advanced filters and the
information to make critical business
decisions
• Cost – FREE!
Sophisticated, homegrown analytics help executives moderate and manage
productivity
13
16. Very Experienced Leadership
Wain Kellum, CEO
Serial CEO of 5 venture backed companies. Equity deals with Microsoft and HP.
Patrick Clark, CFO
Previously at The Weather Channel, , Barton Protective Services, Inmed Corporation , Deloitte.
Teri McEvily, VP Finance
Previously at Sage, Peachtree Software.
Kyle Johnson, VP, Sales
Previously at Capital Access Network, ChoicePoint.
Jonathan Alexander, VP, Engineering
Previously at Liquidware Labs, Trusted Networks, Epiphany, Lotus.
Aaron Charlesworth, VP, Marketing
Previously at Omnilink Systems, CDC Software, Siebel.
Chris Rabbu, VP, Lead Generation
Previously at Capital Access Network, ChoicePoint.
Cindy Tierney, VP, Operations
Previously at Beazer Homes, NSI, Comdisco, Office Depot
Liam McElhone, GM Wholesale
Previously at XO, Mindshift