Businessmodel of Qualtrics

Customer Segments

Qualtrics provides a range of software solutions to commercial customers operating across a range of industries. The Company’s principal target industries are:

• Aviation and Automotive, including a range of domestic and international airlines, as well as auto manufacturer brands;
• Financial Services, including banks, credit unions, insurance providers, and other financial service providers;
• Government, including local, state, and federal government bodies and agencies in the US, as well as public organisations;
• Education, including schools, school district bodies, and higher education institutions;
• Media, including broadcasting companies, television networks, and publishing houses;
• Travel and Hospitality, including travel agencies, hotel chains, cruise companies, and travel businesses;
• Retail, including a range of online and physical retailers, such as supermarkets, pharmacies, clothing stores, and cafes; and
• Business to Business, including a number of business-to-business service providers, such as delivery and distribution companies, and software and technology companies. Qualtrics serves a number of high-profile clients, including American Airlines, MasterCard, JetBlue, Allianz, Ferrari, FedEx, Oracle, Toyota, Disney, Wikipedia, Tesco, Airbnb, and Expedia. Qualtrics is headquartered in the US, but provides services to an international client base.

Value Propositions

Qualtrics provides value to its clients in the following ways:

• Its reputation and industry standing, with the Company established as a reliable provider or software solutions and services, serving a client base of high-profile commercial entities;
• Its portfolio of innovative and unique products, with the Company offering a broad range of solutions, including market research and customer insight solutions, utilising proprietary technologies and properties;
• Its international and industry reach, with the Company serving a range of clients across multiple industries and business sectors, as well as geographic regions, including the Americas, Europe, Asia Pacific, and the Middle East; and
• Its technical expertise and experience, with the Company employing a team of highly-trained, specialist technical personnel, as well as a team of experienced industry executives. ### Channels

Qualtrics operates a website at www.qualtrics.com, through which it provides information on its products, solutions, and services. The Company allows customers to request demos of its solutions directly through its website. It also operates an online customer portal through which customers are able to manage their accounts, access the Company’s cloud-based solutions, and manage payments. The Company’s solutions are principally cloud-based but can also be delivered through on-premises offerings.

Qualtrics operates an in-house sales force, which can be contacted over the phone and serves clients directly, arranging demos and subscriptions. The Company organises its sales force geographically, operating separate teams for sales across North America; Europe, Middle East, and Africa; and Asia Pacific.

Customer Relationships

Qualtrics provides a range of solutions to customers on a partly self-service basis. The Company enables customers to browse solutions and request demos through its website, and operates entirely self-service software platforms that enable customers to utilise the full suite of Qualtrics tools and functionality independently, without interacting with the Company’s personnel.

Qualtrics’s sales, however, appear to require direct consultation with members of the Company’s sales teams. The Company’s specialist sales professionals are able to work directly with customers to ensure that they receive a solution that is tailored to their needs and requirements, ensuring that they are provided the most appropriate service. The Company works closely with its clients in order to establish long-standing relationships.

Qualtrics continues to provide personal care to customers after sales have been made, through its technical support services. The Company provides a range of online support resources, in the form of user guides, troubleshooting guides, and technical information Customers are also able to contact members of the Company’s support staff over the phone or via an online contact form in order to receive personalised responses to queries and complaints.

Additionally, customers are able to interact directly with Qualtrics through its social media accounts, including with Facebook, Twitter, LinkedIn, and Google+.

Key Activities

Qualtrics is a Software-as-a-Service company. It provides a range of software solutions that are designed to collect, analyse, and implement customer experience data.

The Company offers a broad portfolio of software solutions, including Qualtrics Vocalise, an insight platform for flexible dashboards and dynamic case management; Qualtrics Research Suite, a software solution for online customer and employee surveys; Qualtrics Mobile, an on-the-go software solution; Qualtrics Target Audience; and Qualtrics Site Intercept, a solution for Web intercepts.

The Company is based in the US but serves a global customer base, comprising commercial and institutional bodies across multiple industries, including the retail, travel, media, education, government, financial services, and automotive sectors.

Key Partners

Qualtrics works in conjunction with a range of partners companies and organisations, with which the Company works to provide effective solutions. These partnerships include:

• Technology and Development Partners, comprising a range of technology companies, systems integrators, and software developers, that assist the Company in developing, delivering, and implementing effective solutions to customers;
• Marketing and Affiliate Partners, comprising a range of companies, websites, and vendors that assist in extending the Company’s own marketing reach in return for commissions and benefits;
• Supplier and Vendor Partners, comprising suppliers of services, tools, and resources that support the Company’s internal operations, as well as companies to which certain on-technical functions can be outsourced;
• Strategic and Alliance Partners, comprising a range of companies and organisations with which the Company shares resources and collaborates on joint projects. Qualtrics has recently launched a number of partnerships. This includes a partnership with Slack, which allows the Company’s users to conduct surveys and receive notifications within Slack; a deal with Tableau under which they provide joint data solutions; a tie-up with iMotions that seeks to enable customers to obtain greater insights from human behavior; and a partnership with Danske Bank to provide customer surveys.

Key Resources

Qualtrics’s key resources are its technologies and intellectual properties, its portfolio of software solutions and digital platforms, its IT and communications infrastructure, its sales and distribution channels, its partnerships, and its personnel. The Company also owns and leases a number of properties – principally office space – across North America, Asia Pacific, and Europe, Middle East, and Africa.

Qualtrics unique solutions are key to its effective operations. The Company utilises proprietary technology to develop these solutions. Searches of records published by the US Patent and Trademark Office identified one patent application under which the Company is named as applicant and assignee. This application is entitled ‘Mobile device and system for multi-step activities’ and relates to the development of a guided system for mobile devices.

Cost Structure

Qualtrics incurs costs in relation to the development of its technologies and solutions, the maintenance of its IT and communications infrastructure, the implementation of marketing and advertising campaigns, the operation of its sales and distribution channels, the management of its partnerships, and the retention of its personnel.

Qualtrics incurs substantial costs in relation to the payment of salaries and benefits to its workforce of more than 1000 employees. A significant portion of the Company’s expenses relate to occupancy costs.

Revenue Streams

Qualtrics generates revenue through the development and provision of various enterprise software solutions. The Company operates a software-as-a-service model, offering customer experience, market research, and employee insight solutions to its clients on a subscription basis.

The Company does not provide a pricing structure on its website, however, reports suggest that the Company’s basic packages cost around $5,000 per year, with the option of adding additional products and add-ons that can increase the cost. Clients are also able to pay fees to have add additional users to the subscription plan.

Qualtrics is a privately-owned company and is not obliged to disclose its financial results on its website. In 2015 Qualtrics was reported, however, to have generated approximately $125 million, up considerably on the $100 million in revenue recorded by the Company in 2014.