Hoover’s CEO on Becoming a Sales Tool for Mid-Market Companies” (free registration required): An interview I did with Hoover’s CEO Jeffrey Tarr. The business information company has been moving towards small to mid-market enterprise subscriptions and the interview focuses on it. For the second quarter of 2002, Hoover’s subscription revenue increased 17 percent to $6.0 million, compared to the year-ago quarter. As a percentage of total revenues, subscriptions now contribute about 77 percent of its revenues.
“Over the last year, we looked at our customers and we found that most of our usage was coming from people using us as a sales tool, in advertising and marketing departments. Typically, most of these people were in small and medium-sized businesses. Once we learned that, we focused our company on finding more customers who fit that profile, and selling more services to the customers we had. That for us has resulted in double-digit percentage increase in subscription revenue, and helped us move towards profitability.”