ZoomInfo's Already Massive Database Just Got Bigger
A few words flash across the screen – Go-To-Market Intelligence – when watching ZoomInfo's hype video announcing the Chorus acquisition. The company wants to build a new category that's different from Clari, Gainsight, and People.ai. Though quite intelligent and robust, those platforms focus on internal revenue operations from marketing to sales to customer success.
ZoomInfo's strategy is to build an entire platform – an ever-growing database – that taps into all the external forces that go into revenue generation.
This strategy started well before last week's acquisition. Looking at ZoomInfo's explicit labels on the product suite, new additions send a clear message they intend to compete with most sales tech heavyweights and high-flying startups:
- Website Chat (to compete with Intercom and Drift)
- Buyer Intent (6sense and Bombora)
- Engage (Outreach and SalesLoft)
- Recruiter (LinkedIn)
- Conversational Intelligence (Gong)
Chorus recorded 35 million calls last year. The tool will record even more this year. ZoomInfo thinks those transcribed calls are gold for sales leaders as data insights quickly become the planet's most valuable commodity. Paired with a supercharged and highly accurate leads database, Chorus envisions a win-win for both sides.
From ZoomInfo's CEO:
Combined with ZoomInfo’s intelligence data and go-to-market motions, Chorus will change how go-to-market teams search for target accounts, monitor account activity, trigger automated workflows, and expand buying committees. In short, it will allow salespeople to enter meetings with complete intelligence about each participant and company. Together, ZoomInfo and Chorus will open doors where no doors existed before.
That last sentence got us thinking.
"Open Doors Where No Doors Existed Before"
Could a rep one day log into ZoomInfo to see the last call a prospect joined, even if it was outside her sales team? Would she have access not to the call recording itself but pertinent information like sentiment analysis, what time the call occurred, how long the prospect talked, how long the call lasted, and how many colleagues joined in from the company?
Could a rep one day already know the prospect's pain points and objections, which competitors are in the mix, who is the incumbent? All of this intelligence, right inside ZoomInfo.
Given the constant scrutiny over privacy laws, it isn't easy to imagine this type of future. Still, the current state of advertisers' ability to tap into vital demographic information makes us wonder if ZoomInfo could one day offer this type of insight.
What Will Change Tomorrow?
Virtual selling accelerated the growth for both Gong and Chorus, so we think more reps will get exposed to the value of "conversational intelligence" as closing deals over Zoom isn't going away anytime soon.
For those reps not using a call recording tool, we think Chorus – now backed by ZoomInfo's brand and marketing power – will make its way in front of your manager. This deal's headline is excellent exposure for the nascent space.
We imagine a few sales teams will switch from Gong to Chorus by the start of 2022. Tool and platform fatigue is real, so the idea of contracting the tech stack is attractive.
Is Gong Nervous? Probably.
Despite Gong's valuation and recent Series E funding, this certainly isn't good news to hear about your main competitor. ZoomInfo's near-monopoly and stronghold in the leads database category makes it one of the stickiest tools in the sales leader's tech stack.
That alone gives Chorus reps a puncher's chance to compete in Gong deals. Chorus will inevitably have more pricing power and leverage in negotiations too.
Is Gong Nervous? Probably Not.
Gong's the market leader and has a nine-figure lead in annual recurring revenue (ARR). Triangulating valuations and employee headcount with bookings, Gong is most likely near $150,000,000 in ARR. An estimate for Chorus would be $35,000,000 (ZoomInfo expects $700MM in ARR for FY '21 with the Chorus acquisition included).
Gong's product gets the slight nod over Chorus with better dashboarding and analytics, a more modern user interface, and the ability to identify multi-threading in deals. Their branding and marketing horsepower might even exceed ZoomInfo's. In case you missed it, here's their Super Bowl commercial.
Will We See More Market Consolidation? Absolutely.
This chart, courtesy of Nancy Nardin of Smart Selling Tools, shows how the sales tech landscape has exploded recently. From CRM systems at the bottom of the chart to "data intelligence" tools right above (where ZoomInfo lives) to "skills development" (where Chorus and Gong align), there are close to a thousand tools a sales leader could include in her tech stack.
We believe future deals are on the horizon where a big fish joins forces with a smaller fish, and everyone else in the ocean fights to survive. Market consolidation is healthy and promotes efficiencies, but we hope it won't stunt the product innovations we've seen over the last few years. Tools like ZoomInfo and Chorus certainly play a part in making us better sellers.
