Home Resources Newsletters The SiriusDecisions 2018 Client Study: Growth and Profitability Analysis

The SiriusDecisions 2018 Client Study: Growth and Profitability Analysis

March 01, 2018

  • SiriusDecisions clients generate $3.5 trillion in annual revenue around the world
  • SiriusDecisions clients grew 12 times faster than non-clients over a three-year period
  • SiriusDecisions highly engaged clients grew 15 times faster than non-clients

Intelligent growth is the goal. Companies need to survive, thrive and continuously re-invent themselves in order to keep up with or jump ahead of the competition within rapidly changing markets. Intelligent growth is also the fundamental tenet of SiriusDecisions’ research strategy and the advice we provide to our clients. We believe that functional alignment and operational effectiveness within a b-to-b company’s revenue engine – primarily the marketing, sales and product (P&Ls and business units) functions – will maximize growth.

SiriusDecisions recently conducted a study to evaluate how the performance of our clients compares to their peers that don’t leverage SiriusDecisions insights. The study sought to confirm that investment in a relationship with SiriusDecisions provides tangible business impact to companies that tap into our insights. It also tested whether SiriusDecisions insights have a sustained effect on a company’s ability to grow. We believe that the unique research methodologies and taxonomy that SiriusDecisions employs, as well as our privileged insider access to what’s contributing to the performance of the fastest-growing companies in the world, helps fuel our clients’ growth and profitability. In this brief, we review key findings from the 2018 SiriusDecisions Client Study, including growth and profitability comparisons for SiriusDecisions clients and non-clients.

About the Study

The SiriusDecisions 2018 Client Study analyzed financial data on 45,000 companies that regularly report their financial results. We focused the analysis on 22,000 companies that operate in the same industries in which most of SiriusDecisions’ clients operate (e.g. high-tech and telecom, business services, financial services, healthcare and advanced manufacturing). Revenue and EBITDA data for SiriusDecisions clients was extracted from the large group, and data was also compiled for a subset of clients that were identified as being “highly engaged” based on their interactions with SiriusDecisions research analysts, consultants, account managers and executives as well as their consumption of research content and other resources on the SiriusDecisions client portal. We calculated compound annual revenue growth (CAGR) for all three groups – SiriusDecisions clients, SiriusDecisions highly engaged clients, and non-clients – for a three-year period (2013 to 2016). Three-year CAGRs smooth out volatility in annual growth rates. Each group included b-to-b companies based in multiple global regions.

Key Findings

The analysis of financial data for SiriusDecisions clients and non-clients yielded the following results:

  • Faster growth for clients vs. non-clients. SiriusDecisions clients grew 12 times faster than the non-client group over the three-year period. Highly engaged SiriusDecisions clients grew 15 times faster than the non-client group over the same period.
  • Higher earnings for clients vs. non-clients. SiriusDecisions clients’ EBITDA margin was 34 percent higher than the non-client group. Highly engaged clients’ EBITDA margin was 53 percent higher than the non-client group.
  • Performance uptick for highly engaged clients. The analysis discovered that clients that engage with SiriusDecisions to a higher degree tend to use a mix of SiriusDecisions resources and interactions on a continuous basis to adopt, operationalize and optimize the best practices we recommend. But it’s not just that they use more – it’s that the insights are fueling all three major cylinders of the revenue engine – product, marketing and sales. The cross-functional alignment enabled by this level of engagement also drives higher performance. There was a 25 percent uptick in revenue growth and a 56 percent uptick in profitability between the clients that engage at standard rates and the clients that hyper-engage and consume our insights more intensively.

The Sirius Decision

SiriusDecisions research is precisely focused on the business priorities, processes and decision support systems within b-to-b companies. Our research findings and recommendations are iterated on through a rigorous multi-level peer review and client validation process before they are stamped and approved “SiriusDecisions.” It’s these insights that we believe are a key ingredient that fuels growth and profitability for our clients. It’s not the only reason for their success, but these objective, fact-based insights also contribute and help our clients shepherd faster growth and greater profitability in their organizations. This higher performance correlates to the fact that our clients are aspirational, learning organizations on aggressive growth trajectories. But the evidence is clear that these companies rely on SiriusDecisions insights and absorb the research on a continuous basis to improve their decisionmaking agility and help them implement and change processes faster in order to drive the type of growth they need.