Diversifying Customer Footprint Beyond the Tech Startup Ecosystem for FinTechs

The Challenge

The macro backdrop is challenging for FinTech: the SVB collapse has forced FinTech companies to strategize on how to diversify their deposit base to avoid concentration risk. Furthermore, every company is consolidating/reducing SaaS vendor spend. Finally, typical prospecting strategies like LinkedIn prospecting only work if decision-makers are actually on LinkedIn. So, the question is - how to set up a sustainable channel to outbound to well-performing industries behind the curve on digital transformation like construction, manufacturing, transportation, and digital media that are relatively unimpacted by the slowdown in VC funding and rising interest rates?

Rho's Business Overview

Rho is a Series B neo-bank offering a single-pane-of-glass banking platform offering AP integrations, accounting automation, spend management, corporate card services, checking, and treasury management services. Their GTM includes a heavy outbound motion involving email sequencing and calling into prospects in industries typically unreachable on typical SDR channels like Linkedin and Twitter. Typically, decision makers in industries like construction and manufacturing are open to evaluating solutions that offer integrations for their AP/accounting to save time and costs on manual reconciliation and reporting, but are simply not aware that such solutions exist.

Strategy

A courteous, professional phone call is the single most effective marketing channel to connect with a prospect and deliver a pitch that convinces them to evaluate a solution/service, but this approach is also the most challenging to scalably utilize. Typically this involves hiring full-time SDRs, which incurs recruiting, training, tool spend, and management time and costs. Ken Hoppe, the CEO of Modigie (a mobile number enrichment database) and former EMC/Google Sales Exec, says “we used to run numbers and after accounting for overhead, training, tools, recruiting/churn, we arrived at ~$4,000” as the cost per qualified meeting!

Where Glencoco Comes In

Glencoco is not a SaaS tool in the traditional sense with licensing fees, onboarding costs where you need to justify cost per user. Glencoco was designed by and for Growth teams to set up, monitor, manage, and pause an outbound cold calling campaign as easily as they could set up a Linkedin or Instagram ad campaign.

With Glencoco, Rho and other companies can self-onboard and publish a campaign that:

Specifies a price per qualified meeting
The qualification criteria
Upload a calling script and training modules
Sync their CRM bi-directionally or upload a CSV
Connect their AEs’ calendar availability to the platform
Set up multiple segmented campaigns
Pay only per qualified meeting
Monitor and view results through a dashboard
Be able to real-time field questions from callers

Rho utilized Glencoco to set up cold calling campaigns to outbound and call into CFOs and Controllers in the construction and manufacturing space to drive new customer acquisition in diversified industries beyond the typical startup/tech crowd.

Rho Results

The following are the results that Rho was able to generate, without paying SaaS subscription fees, hiring additional Sales Development Reps, and paying only per qualified outcome.

Snapshot as of June 20, 2023

Duration: 5 months
Campaign Industry Focus: Construction, Manufacturing, Digital Media
Opportunities: 41
Pipeline (Monthly Card Spend): $6.5M
Pipeline (Annual Card Spend): $78M
Application/Activation (Monthly Card Spend): $1.6M
Application/Activation (Annual Card Spend): $19.2M
Total Spend: $32,800
Application/Activation ACV/CAC: $8.7:1 (assumes 1.5% card spend fees.)

It's been really pleasant to work with the Glencoco team and we appreciate the work that they've done for Rho.

Drew Goldfarb, SDR Manager at Rho

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