Businessmodel of Tableau Software

Customer Segments

Tableau has a mass market business model, with no significant differentiation between customer segments. The company targets its offering at any organization that wants data visualized, and its clients range from sole proprietors to global corporations. Its customers operate in a wide range of industries, including retail, media/entertainment, business services, financial services, manufacturing, energy and telecommunications, life sciences and healthcare, and education.

Value Proposition

Tableau offers two primary value propositions: performance and brand/status.

The company has demonstrated strong performance, as indicated by customer testimonials. The company HotelQuickly, with a mobile app of the same name, used Tableau’s software to reduce analytics timelines, identify new ways of viewing data, and carry out faster business responses. The company Marchex used the software to increase productivity and improve data communication.

The company has established a powerful brand as a result of its performance. As of December 2015 it had over 39,000 customer accounts of all industries and sizes in more than 150 countries. High-profile clients include Cisco, Capital One, Wells Fargo, and Deloitte. Between 2013 and 2015, its revenues grew by a compound annual growth rate (CAGR) of 67.7%. Lastly, Tableau has won many honors, including recognition as “Best of 2005 for Data Analysis” (PC Magazine), “Best Overall in Data Visualization” (DM Review), “Best Business Intelligence Solution“ (Software & Information Industry Association), and a leader position in the 2015 Gartner Magic Quadrant for Business Intelligence and Analytics Platforms.

Channels

Tableau’s main channel is its direct sales force, which it uses to acquire most of its customers. The group includes the inside sales team, which is based in regional sales hubs and manages smaller accounts, and field sales teams, which are spread throughout various continents and are primarily responsible for targeting large enterprises. The company also sells its products through indirect channels such as resellers, original equipment manufacturers (OEMs), technology vendors, and independent software vendors (ISVs). Indirect channels account for less than 10% of its focus.

The company promotes its offering through its website, social media pages, e-mail and search engine marketing, hosting of webinars and seminars, publishing of analyst reports, white papers, and case studies, and attendance of trade shows and conferences. Tableau also hosts its own annual Tableau Customer Conference which educates and encourages networking among its users.

Customer Relationships

Tableau’s customer relationship is primarily of a personal assistance nature. The company offers the following programs:

Training – Specific offerings include live online training, classroom training, training videos, and product demos.

Support Services – The company provides general phone, e-mail, and social media support. It also provides the following services for customers with Support Service contracts:

• Technical Support Program – Provides access to Knowledge Base (a collection of resources), live web training, on demand training, Customer Community, and Customer Center (enables case creation and retrieval of product downloads).
• Elite Technical Account Management – Includes all features of the Technical Support Program, as well as direct access to a dedicated Technical Account Manager and 24/7/365 support.

• OEM Technical Support Program – Includes all features of the Technical Support Program, as well as direct access to a dedicated Partner Support Engineer who will assist customer with integration and 24/7/365 support. Only available to clients who integrate Tableau into their software suites. Consulting Services – Include the following:

• Enterprise Services – Consultants provide workshops and guidance on enterprise deployments
• Quick Start Services – Consultants provide guidance on rapid deployments for clients of all sizes
• Experts on Demand - Consultants provide server reviews, health checks, load testing and capacity planning Beyond personal assistance, there is also a community component in the form of a forum where customers can interact with fellow Tableau users.

Key Activities

Tableau’s business model entails designing and developing its software products for customers.

Key Partners

Tableau maintains the following key partnerships:

Resellers – Providers of business intelligence technology services that also resell Tableau. Specific partners include Alliance Enterprises, Claraview, Interworks, Teradata Corporation, and USEReady.

Technology Partners – Organizations that create software solutions that enhance the Tableau experience. Specific partners include Alteryx, Bi Connector, Cdata Software, and Datawatch.

Alliance Partners – Consultants with a business intelligence background that assist Tableau customers with finding the best solution. Specific partners include Accenture and BlueGranite.

OEM Partners – Organizations that integrate Tableau software into their applications. Specific partners include Abbott Informatics Corporation, Bally Technologies, ChannelIQ and DataSelf.

Key Resources

Tableau’s main resource is its research and development team, which engages in the development, testing, and certification of the company’s software. The company also depends heavily on its training and consulting staff to provide a wide range of services. Lastly, it places a high priority on its intellectual property, with 16 issued and 35 pending patents in the United States.

Cost Structure

Tableau has a value-driven structure, aiming to provide a premium proposition through significant personal service. Its biggest cost driver is sales/marketing, a fixed expense. Other major drivers are in the areas of research and development and administration, also fixed costs.

Revenue Streams

Tableau has two revenue streams:

License Fees – Revenues generated from the sale of licenses to new customers and additional licenses to existing accounts. Include term, subscription, and perpetual fees. Perpetual license fees accounted for over 90% of the total in 2015.

Maintenance and Service Fees – Revenues generated from fees paid for maintenance services (upgrades, enhancements, and general support) and to a lesser extent, professional and training services.