Consensus – A Startup Case Study: Revolutionizing B2B Product Demos

Consensus

Consensus is a B2B software company founded in 2013, and headquartered in Orem, Utah, United States. The company specializes in automating and personalizing product demos for enterprise revenue teams, streamlining the buying process with interactive presentations and buyer engagement analytics.

Founding Year: 2013

Headquarters: Utah, United States

Industry: Information

Business Model

B2B, One-sided, Product & Service

• Clients: Revenue teams within B2B organizations, particularly in the enterprise software sector. This includes presales, sales, marketing, customer success, and channel teams.

It’s Like: Gong.io but for Pre-Sales Product Demos

Consensus offers a platform for creating and delivering interactive product demos that track buyer engagement, similar to how Gong.io records and analyzes sales calls. Both platforms aim to improve sales effectiveness by providing insights into buyer behavior and interactions.

Key Differences:

• Focus: Gong.io focuses on analyzing sales conversations, while Consensus specializes in pre-sales product demonstrations.
• Content Type: Gong.io primarily deals with audio and video recordings of sales calls, while Consensus focuses on interactive video presentations, product tours, and simulations.
• Stage of Sales Cycle: Gong.io is often used throughout the sales cycle, while Consensus primarily targets the pre-sales and early evaluation stages.

Challenges Addressed

• Inefficient Product Demonstrations: Salespeople waste valuable time giving the same product demonstrations repeatedly to different stakeholders within a company.
• Lengthy B2B Sales Cycles: The traditional B2B sales process is often prolonged due to the need to involve multiple decision-makers within a company, with 83% of the process dedicated to internal communication.
• Lack of Buyer Engagement Insights: Traditional product demos offer limited visibility into how potential buyers interact with the presented information, making it difficult to tailor the sales pitch and address specific concerns.
• Difficulty Identifying Key Decision-Makers: Traditional sales processes often struggle to identify all stakeholders involved in the buying decision, leading to misdirected efforts and potential roadblocks.

Solutions Provided

• Interactive Product Demonstrations: Consensus enables the creation of engaging and personalized product demos that adapt to the specific needs of potential buyers.
• Buyer Engagement Analytics (Demolytics®): Provides detailed insights into how potential customers interact with product demos, allowing sales teams to identify key stakeholders, understand their interests, and tailor their approach accordingly.
• Streamlined Sales Process: By providing interactive and personalized demos, Consensus helps accelerate the B2B sales cycle, enabling faster decision-making and reducing the time it takes to close deals.
• Enhanced Buyer Education: Consensus equips potential buyers with the necessary information to make informed decisions, promoting a more collaborative and efficient sales process.

Founding Story

When and How Founded: Consensus Sales, LLC, formerly known as DemoChimp, was founded in 2013 by Garin Hess.

Founder’s Problem Experience: The idea originated in 2009 when Hess, as CEO of a startup, experienced the inefficiency of repeatedly delivering the same product demonstrations, calling himself a “demo chimp.”

Founder’s Background: Garin Hess, the founder, has prior experience as a CEO, which highlights his understanding of sales processes.

Problem-Solving Approach: They initially focused on automating product demonstrations, creating a prototype in 2013, and formally launching DemoChimp in 2014.

Early Challenges: One challenge was that many customers lacked the skills to create compelling demo content, leading Consensus to form a video creation team, which later faced review cycle bottlenecks.

First Successes: Significant traction was gained among midmarket and enterprise sales engineering teams, leading to a strategic shift in their target market.

Growth and Evolution: They rebranded to Consensus, emphasizing “buyer enablement,” and Hess authored a book on the topic. They secured funding rounds, with a notable Series C investment in 2023.

Innovation and Technology: Their intelligent demo automation platform, personalized demonstrations, and Demolytics® analytics tool showcase their use of technology for sales effectiveness. The acquisition of ReachSuite further expanded their platform’s capabilities.

Key Growth Milestones

• 2013: Development of the first demo automation prototype.
• 2014: Formal launch as DemoChimp.
• 2015: Rebranded to Consensus to better reflect the company’s mission.
• 2019: Recognized as a “Cool Vendor” for Sales Enablement by Gartner.
• 2020: Increased demand for demo automation solutions due to the need to scale presales teams.
• 2022: Secured $15 million in Series B funding.
• 2023: Raised $110 million in Series C funding led by Sumeru Equity Partners.
• 2024: Acquired ReachSuite, expanding into a comprehensive Product Experience Platform.

Market & Competition

Target Market

• Revenue Teams in B2B Organizations: Consensus specifically targets revenue teams within businesses, encompassing presales, sales, marketing, customer success, and channel teams.
• Enterprise Software Providers: Their solutions are particularly relevant for industries with complex sales processes, especially enterprise software providers.
• Large Enterprises: Consensus boasts a client base that includes 50% of the top 30 global software companies.
• Notable Clients: Their impressive client roster features industry giants like Salesforce, Sage, SAP, Oracle, Workday, Coupa, and Atlassian.

Market Size and Growth:

• Demo Automation Market: The market was valued at $1.5 billion in 2024 and is projected to grow at a CAGR of 16.3%, reaching $5.4 billion by 2033.
• Aragon Research projects that the market for Demo Automation will reach $2.1 billion by 2026.
• Digital Experience Platform (DXP) Market: Expected to grow significantly, with varying projections from different research firms:
  • SkyQuest: Projected growth from $14.77 billion in 2024 to $31.67 billion by 2032, at a CAGR of 10.0%.
  • Market Research Future: Forecasts an increase from $36.24 billion in 2025 to $127.24 billion by 2034, with a CAGR of 15.52%.
  • ResearchAndMarkets.com: Estimates the market will grow from $11.95 billion in 2024 to $24.44 billion by 2029, at a CAGR of 11.87%.

Potential New Markets: While Consensus primarily serves the enterprise software sector, the expanding DXP market indicates opportunities in other industries with complex B2B sales processes, such as manufacturing, healthcare, and financial services.

Growth Trends:

• Increasing demand for efficient and effective sales tools in the B2B landscape.
• Growing emphasis on customer-centric digital experiences across industries.
• Rising adoption of automation solutions to streamline sales processes and enhance buyer engagement.

Competitor Landscape

Consensus operates in a competitive market with numerous players in the demo automation and product experience platform sectors. The industry is witnessing increased competition as more solutions emerge.

Main Rivals:

• GetAccept: Offers a sales enablement platform with a focus on proposal and e-signature solutions.
• Storylane: Specializes in creating interactive product demos and virtual tours.
• Reprise: Provides a platform for building and sharing interactive product experiences.
• Walnut: Focuses on creating personalized and interactive sales demos.
• TestBox: Offers a platform for creating and managing interactive software demos.
• Demostack: Specializes in providing realistic and interactive software demos.
• Navattic: Offers a no-code platform for building interactive product tours.
• Saleo: Provides a platform for creating and tracking personalized sales presentations.
• ScreenSpace: Focuses on creating interactive video demos for software products.
• Omedym: Offers a platform for creating and sharing interactive product simulations.
• Demoboost: Specializes in providing automated product demo solutions.
• Lancey: Offers a platform for creating and managing interactive product demos.
• Tourial: Focuses on creating interactive product tours and onboarding experiences.

Marketing & Sales

Main Positioning Values: Time & Quality

Website & Socials

• The website (goconsensus.com) attracts over 166k monthly visits.
• Most traffic comes from direct sources, with significant organic and referral contributions. Paid search also plays a notable role, while social media and ads form smaller shares.
• The largest share of users comes from the United States, followed by Great Britain and Australia. Other noteworthy countries include the Netherlands and Canada.
• On social media, LinkedIn drives the majority of referrals, followed by YouTube and WhatsApp.

Media Coverage

• Funding Milestones: Consensus’s significant funding rounds have garnered media attention. Notably, the company raised $110 million in a Series C round led by Sumeru Equity Partners, as reported by Business Wire.
• Strategic Partnerships: The company’s collaboration with Highspot to enhance sales enablement was covered by MarTech360.
• Acquisitions: Consensus’s acquisition of ReachSuite to create a comprehensive Product Experience Platform was reported by Demand Gen Report.
• Product Enhancements: The launch of the Consensus Academy, aimed at providing demo automation and buyer enablement training, was announced via PR Newswire.
• Consensus has been featured in Gartner’s reviews, highlighting its role as a Product Experience Platform designed to shorten sales cycles through tailored interactive demonstrations.

Marketing Strategies

• Target Audience: Consensus primarily targets revenue teams within Business-to-Business (B2B) organizations, especially in the enterprise software sector. This includes presales, sales, marketing, customer success, and channel teams.
• Buyer Enablement Philosophy: At the core of Consensus’s strategy is “buyer enablement,” aiming to simplify the B2B buying process and empower buyers with the information they need to make informed decisions.
• Content Marketing: Consensus employs a robust content marketing strategy to educate prospects and demonstrate the value of their platform. Their efforts include:
  • Educational Blog Posts: Articles that provide insights into demo automation and buyer enablement. For example, “Revolutionizing Software Presentations: A Decade of Demo Automation and Buyer Enablement” discusses the evolution and impact of demo automation.
  • Webinars and Videos: Consensus offers webinars and videos to delve deeper into buyer enablement strategies. For instance, “Buyer Enablement: Helping B2B Sellers Make the Consensus Sale“ is a YouTube video that explores the challenges buyers face and how Consensus addresses them.
    

• Social Media Marketing: Consensus leverages social media platforms, such as LinkedIn, Twitter (X), Facebook, and YouTube, to share product demonstrations and engage with potential customers:
  • LinkedIn Post: Partnership Announcement with Highspot – Consensus announced a strategic partnership with Highspot, integrating their demo automation capabilities with Highspot’s sales enablement platform.
  • Twitter (X) Post: Case Study Highlight with Bazaarvoice – Consensus shares a success story from Bazaarvoice, demonstrating how their platform helped reduce SMB sales cycles by 33% and eliminated up to a week of lag time in the sales process.
• Strategic Partnerships: They form strategic partnerships, like their collaboration with 2Win! Global, to expand their reach and access new customer segments.
• Paid Advertising & Lead Generation: Consensus utilizes paid advertising campaigns and lead capture forms on its website to generate leads and gather prospect information.
• CRM & Marketing Automation Integration: They integrate with popular CRM and marketing automation tools, such as Salesforce, Marketo, and HubSpot, to streamline lead management and nurture prospects through the sales funnel.
• Product-Led Growth: Their interactive product tours and automated product simulations encourage potential customers to experience the platform’s value firsthand, driving product-led growth.

Product & Innovation

Buyer Enablement Focus

Unlike traditional sales enablement tools that prioritize the seller’s perspective, Consensus centers its platform around empowering the buyer, aligning with the understanding that “buying is harder than selling.”

Interactive Demo Formats

Consensus offers a variety of engaging demo formats beyond static presentations, including on-demand video demos, interactive product tours, and automated simulations, providing a more immersive and personalized experience for potential buyers.

Demolytics® for Actionable Insights

The platform’s analytics engine, Demolytics®, provides granular data on buyer interactions with demos, enabling sales teams to tailor their follow-up, identify key stakeholders, and optimize their sales strategies based on real-time engagement metrics.

Integration with Existing Sales Tech Stack

Consensus integrates with popular CRM and marketing automation tools, ensuring seamless workflows and data synchronization within a company’s existing sales and marketing technology infrastructure.

Financials & Metrics

Revenue Sources

Subscription Fees: Consensus Sales, LLC operates on a Business-to-Business (B2B) model, primarily generating revenue through subscriptions to its Product Experience Platform.

Metrics

• Annual Recurring Revenue (ARR): In 2021, Consensus reported a 137% year-over-year growth in ARR, reflecting significant traction in the market.
• Revenue Estimates: As of March 2023, Consensus experienced a 60% increase in revenue over the previous year; this substantial growth underscores the company’s expanding market presence.
• Funding and Investments: Consensus has raised a total of approximately $143 million over multiple funding rounds. Notable funding rounds include:
  • Seed Funding (2015): Secured $2.8 million to accelerate the development of its demo automation platform.
  • Series B (January 2022): Raised $15 million in a round led by Riverside Acceleration Capital and The Frazier Group, bringing total funding to over $33 million at that time.
  • Series C (March 2023): Obtained $110 million in funding from Sumeru Equity Partners to accelerate growth and solidify category leadership.
• Employee Count: 201 -500 employees

Structure & Culture

Structure

Leadership team:

• Chief Executive Officer: Doug Johnson
• Chief Financial Officer: Whitney Jones

Other Positions include:

• Chief Revenue Officer
• Chief Product & Technology Officer
• Senior VPs:
  • Engineering
  • Global Partnerships & Strategic Alliances 
  • Marketing
  • Buyer Enablement & Customer Success
• VPs:
  • Client Success
  • Sales
• Chief Technology Officer
• Chief Legal Officer
• Chief People Officer

Culture

Consensus emphasizes a set of unique, memorable phrases to encapsulate its core values, such as “Willing to Sweep Floors,” reflecting humility and a team-first mindset. These values were meticulously crafted to ensure they resonate deeply within the organization.

Additionally, their investment in Consensus Academy, an online training platform for buyer enablement and demo automation, demonstrates a commitment to educating their users and fostering a culture of continuous learning and development.

Impact & Success

Customer Feedback

Users consistently praise Consensus for its intuitive interface and the ability to deliver personalized demo experiences:

Success Stories

Consensus’s impact is further evidenced by several notable success stories:

• Salesforce: Henrik Aaheim, Demo Automation Strategy & Data Lead at Salesforce, remarked that “Tours has been a breath of fresh air for us,” indicating the positive reception of Consensus’s demo automation tools.
• Hexagon: By implementing automated demos, Hexagon was able to boost sales efficiency, demonstrating the tangible benefits of Consensus’s solutions.
• PandaDoc Integration: Consensus integrated PandaDoc with HubSpot to streamline their proposal process, resulting in a 50% reduction in proposal creation time and an 84% view rate for proposals sent to prospects. 

Growth & Future

Challenges and Risks

• Increasing Competition: The demo automation and product experience platform markets are becoming more competitive, requiring continuous innovation and differentiation.
• Brand Confusion: The similarity in name with Consensus Cloud Solutions, Inc. could lead to confusion among potential customers and investors.
• Market Adaptation: The company must remain agile in adapting its platform to evolving buyer behaviors and technological advancements.
• Integration of ReachSuite: Successfully integrating ReachSuite’s technology and team is crucial for maximizing the potential of their expanded platform.

Future Plans

• Lead the Evolution of Demo Automation: Consensus aims to be the leading provider in the evolving demo automation landscape.
• Establish a Preeminent Product Experience Platform: They plan to solidify their position as the top provider of product experience platforms.
• Simplify B2B Software Buying: Their strategy centers on making the process of purchasing B2B software simpler.
• Leverage Artificial Intelligence: The mention of “Consensus AI Vision” suggests plans to further integrate AI into their platform.
• Expand Training and Education: Consensus Academy will continue to be a focus for empowering users and the market with knowledge.

Key Takeaways for Entrepreneurs

• Flip the Script and Focus on Enabling Buyers: Stop obsessing over selling and start simplifying the buying process. Consensus’ success highlights the power of aligning with the buyer’s journey, recognizing that “buying is harder than selling” in B2B.
• Empower Your Internal Champion: Don’t just find your champion within the target company; equip them to navigate internal hurdles. Interactive demos, like those offered by Consensus, become tools for your advocate to champion your product effectively.
• Data as Your Compass: Track how buyers interact with your product or content. Consensus’ Demolytics® provides actionable insights. Understanding engagement patterns reveals pain points, interests, and key stakeholders, allowing for personalized follow-ups and a data-driven sales strategy.
• Don’t Be Afraid to Be “Unattractive”: Sometimes, the most significant opportunities lie in optimizing the less glamorous aspects of a process. Consensus found gold in tackling the often-overlooked internal buying process within B2B.
• Embrace the Power of “Good Enough”: Consensus’ advice to model demos after YouTube, not Hollywood, underscores the power of authenticity and practicality. In a world of polished presentations, sometimes a raw, relatable approach resonates more effectively with your audience.
• Turn Your Product into a Salesperson: Interactive product tours and simulations, as employed by Consensus, allow potential customers to experience value firsthand, driving product-led growth and reducing reliance on traditional sales pitches.