Consolidation

Maturity Level:
Advanced
Goal:
Disparate usage is aggregated under a single agreement
Triggered by:
Multiple organizations created within a single company
KPIs:
Committed revenue
Typically owned by:
Sales
Pitfalls:
Need to offer tangible price or feature incentives to prompt reorganization. May unnecessarily reduce margins.
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Our job as sellers isn’t to introduce  “shadow IT” into an organization. That happens naturally if there’s a good product market fit. Where we are providing the most value is socializing the ways people are using Miro across the organization. Generally, when we show larger customers how much usage has organically grown without oversight of IT or vendor management, they’re usually pretty blown away.

The initial reaction is often ‘I need to figure out a way to get my arms around this to ensure that we’re complying with all of our security standards and we have some way to predict the tool's future growth.’

Where we come in is helping decisions makers understand which lines of business and functional groups are leveraging Miro. We can show the most frequently used templates, workflows, and use cases. That illustrates how Miro is being used and starts the conversation about how they can get even more value out of the features they already adopted.

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Taylor Sayig, Strategic Inside Sales Leader
Taylor Sayig, Strategic Inside Sales Leader

Consolidation: What is it?

For products that can be adopted easily by end-users within an organization, it is quite common for disconnected pockets of usage to organically emerge across large companies.

In parallel, many B2B software companies will provide discounts or additional features to incentivize larger contracts. This means there is often a threshold of usage where a customer can reduce costs by consolidating under a single contract. In exchange, the vendor can secure larger, longer-term commitments that improve revenue predictability.

To be effective, the consolidation motion needs to be backed up by legitimate product incentives while also making financial sense for the larger business.

How does it work?

To evaluate whether the consolidation motion is a good option, revenue teams should consider the following:

  • What tangible benefits do users gain from unifying usage into a single workspace and under an umbrella agreement? These may include product benefits (like higher usage limits or access to more premium features) or commercial benefits (like discounts, flexible payment options, or access to dedicated account management resources).
  • Are there technical limitations to migrating users and data from one workspace into another?
  • What additional support or resources do larger enterprise agreements require? For example, in exchange for larger upfront commitments, customers may want on-site consulting services, trainings, shorter support SLAs, or more influence over product roadmaps.

Like many other elements of a PLG Transformation initiative, the decision to prioritize a consolidation motion requires coordination across business functions. This ensures the go-to-market activities are backed up by legitimate product incentives while also making financial sense for the larger business.

Things to look out for

Unless tangible product or commercial incentives are driving the consolidation motion, it’s likely that users will remain satisfied with the status quo. Similarly, unless consolidation of usage results in a measurable financial benefit for the vendor, sellers’ time may be better spent driving other sales motions.

Additionally, identifying when a single company has multiple instances of your product can be a technical challenge for traditional tools like Salesforce. Oftentimes, this exercise requires data or operations teams to manually inspect lists of product accounts and match them back to accounts in the CRM using imperfect data.

Read about other product-led sales motions
Maturity Level:
Advanced
Triggered by:
Multiple organizations created within a single company
Goal:
Disparate usage is aggregated under a single agreement
Typically owned by:
Sales
KPIs:
Committed revenue
Pitfalls:
Need to offer tangible price or feature incentives to prompt reorganization. May unnecessarily reduce margins.