B2B Growth Strategy in Software - HireRight

Situation Overview

Financial meltdown of 2008-2009 stalled and depressed the U.S. pre-employment screening market. Up to that point in time, compliance-minded Fortune 1000 companies drove the growth of candidate screening, intensified by ATS (application tracking system) penetration within a highly competitive recruiting environment.

HireRight was at the forefront of pre-2008 category growth; deep in domestic transportation and technology sectors, both hit hard by the recession. Within the company, segmentation, globalization and portfolio diversification toward underserved and unserved customer cohorts were batted around, but few committed bets were made. Most opportunities seemed too small on a risk adjusted basis to offset the dramatic drop in top-line revenue. Deep cost cutting seemed the only way to ride-out the storm.

Process

The Dobie Team began working with 14 members of the HireRight leadership team through a series of strategy off-site sessions. Within the process, The Dobie team evaluated and quantified profitable growth opportunities. Working closely with the CEO, CMO and CFO, the strategy team created two frameworks: (1) an industry –level consolidation curve and (2) a data intensive segmentation model.

The consolidation curve mapped likely M&A activity among HireRight rivals. To flank against consolidation, the Dobie team and HireRight CMO developed a robust, data-driven segmentation framework for both B2B and B2C, expanding the TAM through SMB cohorts and leveraging both freelance and share economy trends.

HireRight Engagements

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3 Year CAGR

Return on Dobie Investment

Total Technology Engagements



Solution / Results

HireRight made tactical acquisitions during this period. However, it was segmentation, and importantly, profitability modeling, of serving unserved segments cost effectively. YE2010, Hireright generated less than $4m for non-enterprise revenue – mostly in the transportation sector. By year-end 2014, HireRight was generating nearly $55 million in SMB revenue and it was among their most profitable U.S. based segments. Marketing, technology and fearlessness were the key advantages leveraged. by HireRight. Today, it is still the leading brand and marketing player in the space.