Vantage Analytics: Finding 25% Growth

Consulting
easy45 min0 submissions
Morgan Stanley
Scenario

Vantage Analytics (B2B SaaS, India) has grown at 4% a year for three years. The new CEO has committed the board to 25% growth — a gap of roughly ₹297 Cr of incremental revenue in year one.

What we know.

  • Current revenue: ₹1416 Cr
  • 1254 active customers
  • Annual customer churn: 14%
  • Estimated share of existing customers' relevant spend: 21%
  • The core market is growing at 4% — so the company is roughly holding share

The CEO's instinct is to enter a new geography. The CFO thinks the answer is in the existing base. Nobody has yet sized either.

Supporting data

market

core market growth pct
4

customers

active customers
1254
annual churn pct
14
share of wallet pct
21
average revenue per customer
1129187

current state

growth pct
4
revenue cr
1416
revenue gap cr
297
target growth pct
25
Your task

Build the growth case. Provide:

  1. Analysis — where growth could come from, sized.
  2. Risks — of the options you recommend and reject.
  3. Recommendation — a prioritised growth portfolio for the next 24 months.
Ready to move forward? Up next: Vantage Analytics: Trial-to-paid conversion Dropped 23%Next question
How you'll be graded

100 points, 60% to pass.

  • evaluation25
  • recommendation25
  • option generation25
  • problem structuring25
Hint
Reveal suggested structure

Decompose growth into five sources and size each:

  1. Retention — reducing 14% churn
  2. Penetration — raising 21% share of wallet
  3. New customers in existing segments
  4. New products to existing customers
  5. New geographies or segments

Score on size, speed, cost and risk. The first two are usually cheapest and fastest; the last is usually slowest.