Being Your Own ICP

Most technology VC’s are allergic to 4-wall businesses. Physical space just doesn’t scale like software.

So, if you pitch most VC’s the idea of spending four years and millions of dollars building a tech-enabled 4-wall business as the basis for building a vertical software business they are likely to politely say no thank you. But that is exactly the path PodPlay Technologies took to product market fit.

PodPlay Technologies’ founding story may confound pattern matchers, but we think it is core to our competitive differentiation. It is unlikely that another company will replicate PodPlay Technologies unique path to product market fit.

If you are building digital tools to manage physical spaces there is no better way to learn what to build than to manage physical spaces with technology. Creating insanely great vertical software for sports venues requires deeply felt empathy for the problems venue operators face each day. We empathize with PodPlay clients because we are one.

There is another, less obvious, strategic advantage: highly efficient distribution.

For a vertical software business, an ideal customer profile (ICP) is a “template” of companies that are likely to benefit the most from the product and, in turn, be the most valuable customers for the business.

The ICP for PodPlay is a tech-savvy venue operator that:

• Wants to provide an elevated tech-enabled IRL experience

• Sees hardware-enabled features like replays and scoreboards as a source of competitive differentiation

• Cares deeply about a mobile first user experience

• And is looking to operate labor-light

This ICP will intuitively understand the return on investment in PodPlay’s more expensive hardware-enabled tiers, which translates into higher Average Contract Value (ACV) for PodPlay.

Within that profile, the most profitable customers will be multi-unit operators with large and growing end markets. A multi-unit operator / franchisor is a highly efficient customer to serve because they are:

• Low / No Acquisition Cost. In general, there will be little sales or marketing expense associated with acquiring the incremental unit as a customer. The cost is thus a fraction of the cost of acquiring a new logo.

• Operationally Simple. If the new unit replicates the business of the previous units, there will be no custom requirements or development work.

PingPod is an ideal PodPlay client (operates >20 units) that got even better when it launched franchising in August 2024. It is, at once, a lab, a showroom, and a highly efficient distribution channel for PodPlay.

PingPod franchises create significant competitive advantages for PodPlay that benefit the entire PodPlay ecosystem by allowing us to continuously reinvest in our engineering and product team.

PingPod Franchises provide PodPlay:

• 0 CAC PodPlay Sales Pipeline. Every franchise sold is required to become a PodPlay client.

• High ACV Clients. Each franchise is on the premium PodPlay Autonomous Tier.

• Operational Simplicity. All franchises have the same business logic and standardized PodPlay configurations.

• High Certainty Pipeline. Knowing demand ahead of time decreases revenue variability and improves our ability to strategically allocate resources.

• Proliferation of PodPlay Showrooms. Every new PingPod is a place where PodPlay technology can be experienced IRL.

This hyper-efficient distribution channel allows us to invest more in research and development than our competitors and drive continuous improvement of the product. Great product improves sales efficiency which allows us to reinvest gains from sales efficiency into extending our product lead. It's a powerful flywheel effect that benefits the entire PodPlay ecosystem.

PodPlay gives venue operators all the tools they need to digitally manage a physical space - integrating video replays, automated scoreboards, and autonomous functionality with a reservation engine, event management, coach connect, membership module, and payments.

Originally built to power PingPod, the network of futuristic autonomous ping pong clubs, PodPlay is now being used to manage venues across pickleball, padel, ping pong, golf simulators, racing simulators, soccer and pool, with more experience verticals to come in the future.

If you’re interested in learning more, request a demo.

*Originally published by Ben Borton, Nov 11th, 2024. The article is on PodPlay's blog.