In a post-GDPR world, compliance with data regulation is now the cost of doing business, especially in the EU.
I have mixed feelings about data regulation. On one hand, the right to one’s data and online image seems fairly reasonable. On the other hand, companies have been compiling databases on the masses since before the internet era. I predict they will continue to do so regardless of regulation.
But it’s not too much of a surprise that new startups are emerging to tackle the issue of how to comply with data regulation.
One such company is called Transcend and they raised a seed round of $4 million a few days ago to launch their service out of beta and into production.
Let’s unpack a few options for how they can spend their fresh capital on growth.
*disclaimer – I have no affiliation with Transcend whatsoever
From a product marketing perspective, integrations in SaaS are everything. What good is a data compliance service if they can’t easily manage the data you keep?
Building new integrations will unlock new segments of the tech market that previously would not close.
Further, promising custom or accelerated development on key integrations for enterprise customers will almost certainly win big deals in the early stages of the company.
We saw this at Staffing Referrals, a company I helped start 2 years ago. Integrations were a key to unlocking enterprise deals.
Integrations can also lead to all kinds of ancillary benefits like joint marketing ventures that leverage partner customer bases. Zapier used this as a key to their early growth strategy.
This could be a service, or this could be a free tool like Hubspot’s website grader. Anyone dealing with data who is worried about compliance is an excellent fit for data compliance SaaS.
This bucket of people is also very bottom of the funnel. Meaning, a lead interested in a compliance audit is aware of the problem, thinks it is an issue, and is actively looking for ways to comply.
Thus, it’s easier to convince them to purchase a tool to help them out than someone who isn’t worried they might be at risk of getting fined.
This could be a strong promotional offer in itself. I’m sure there are entire businesses that are built solely for compliance services & consulting.
I’d like to see this offer promoted via channels like Google Ads, LinkedIn, and perhaps even via partnership channels with compliance consultancies.
Because data regulation is a relatively new global issue, most content on it has been put out recently.
This is an opportunity to use the classic Skyscraper content strategy to take over Google results for top keywords with an educational focus.
People are looking for info on regulations.
Info on what they are, on how to comply, on examples of penalties and successful compliance, etc.
Give the people what they want.
The product also fits very well into an educational content play.
Anyone in a business who is looking to learn about GDPR or right-to-be-forgotten is a good fit for buying SaaS to help comply.
It’s content marketing 101. Attract the right audience with killer educational content, capture them as a lead somehow (email/Messenger/etc.) and then keep sending them content that converts them to a buyer over time.
This is a cool product and I hope it works out for these guys.
Their launch out of beta will be interesting and likely forecast what their immediate next growth plays are as they realize what sales/marketing tactics are actually closing deals.
Luckily for them, the market is only growing as more countries consider data regulation. It’s a smart space to be in right now.