Playing the ACE: Uniting Strengths Through Cross-Selling
At Volaris Group, collaboration is key to enhancing growth and creating synergy among our portfolio companies. While most companies acquired by Volaris continue to operate as standalone entities, some opt for deeper integration via a tuck-in into other business units within the network, drawing on shared strengths for greater collective success.
This tuck-in process offers benefits for both entities involved. For the newly integrated company, it can boost sales while enriching operational capabilities with a full spectrum of added functions like account services, HR, and legal support. For the parent company, strategic integration can extend additional value to its customer base and solidify its market position.
A standout example is the partnership between AssetWorks Facilities (AssetWorks) and SoftChalk. Acquired in 2008, AssetWorks serves as the parent company, while SoftChalk was strategically integrated following its acquisition in 2021. Both companies have maintained their unique brands and market focuses, while additionally thriving through collaboration.
Together, they developed ACE - a cross-selling program that leverages their combined strengths to great effect. The result has been a mutual enhancement of market reach and service offerings, with SoftChalk benefiting from broader exposure and AssetWorks expanding its service capabilities.
Tasheka Steverson, SoftChalk Director of Sales, commented on the benefits of being a tuck-in, "The big advantage is that we can work together and lean on one another’s strengths. We’ve been able to build this co-selling program that really supports both entities." Expanding further, she explained,
“From the SoftChalk perspective, ACE allows us to efficiently serve an existing, familiar base, reducing the time typically needed to source and nurture new opportunities. Ultimately, it has enabled a more streamlined and straightforward purchasing process.”
-- Tasheka Steverson, Director of Sales, SoftChalk
Demonstrating the impact that strategic tuck-in can have on business capabilities and market presence, we caught up with Randall Walsh, General Manager of AssetWorks Facilities, to hear more about the successful implementation of this cross-selling program.
"The nice thing is that while we’re providing added value, SoftChalk is simultaneously enjoying increased sales without the need to divert resources from their traditional base. SoftChalk can remain focused on their existing customers and avoid the substantial customer acquisition costs typically associated with expanding into new markets."
-- Randall Walsh, General Manager, AssetWorks Facilities
Q: Can you tell us about AssetWorks’ and SoftChalk’s offerings? How do they differ? Where do they align?
AssetWorks specializes in providing facilities management solutions aimed at higher education institutions. Our focus is on streamlining and enhancing their operational efficiencies. In contrast, SoftChalk offers content creation solutions that serve educators across all levels, from K-12 and up. While AssetWorks focuses more narrowly on higher education facilities, SoftChalk addresses a broader educational spectrum with its suite of products.
“The alignment between our companies is rooted in our shared target market— educational institutions. This commonality lays the groundwork for synergistic strategies, where AssetWorks' can leverage SoftChalk’s content software to enhance the value we deliver to higher-ed facilities.”
-- Randall Walsh, General Manager, AssetWorks Facilities
Simultaneously, while SoftChalk sells enterprise licenses, they were experiencing higher churn rates among individual educators. Recognizing our organizational overlap, we hypothesized that integrally embedding SoftChalk’s solutions within our broader enterprise offerings would help boost sales while subsequently reducing customer churn.
Q: How did you identify co-selling opportunities with SoftChalk? What was the process like through to the development of ACE?
We adhered to a very structured process starting with our initial hypothesis. To test this idea, we leveraged SoftChalk’s platform for the formal training portion of our user conference, which was virtual at the time as necessitated by the pandemic. This phase was crucial for confirming the viability and efficacy of a potential cross-selling program.
Following successful experimentation and validation, we gained the confidence to formalize our strategy by developing the AssetWorks Continuing Education (ACE) program.
“This initiative has not only enabled seamless cross-selling opportunities but has also significantly enhanced our joint offerings.”
-- Randall Walsh, General Manager, AssetWorks Facilities
Q: Tell us more about ACE – what is it?
ACE is fundamentally a training program tailored for our customers. It allows us to provide standardized training as part of our implementation process, as well as ongoing training to facilitate onboarding and adoption within their organizations. This is especially valuable for managing internal churn effectively.
In this revenue-sharing model, SoftChalk contributes by providing the educational platform, while AssetWorks supplies the content.
“This partnership allows us to deliver added value to AssetWorks customers by enhancing their experience with our services. As we continue to add content, we are seeing increased sales.”
-- Randall Walsh, General Manager, AssetWorks Facilities
The nice thing is that while we’re providing added value, SoftChalk is simultaneously enjoying increased sales without the need to divert resources from their traditional base. SoftChalk can remain focused on their existing customers and avoid the substantial customer acquisition costs typically associated with expanding into new markets.
Q: What advice would you give to someone trying to identify potential cross-selling strategies?
Identifying effective cross-selling strategies demands a thorough analysis of both the product lines and customer bases of the companies involved. The key is ensuring that any proposed strategy provides tangible benefits to the customers; This process starts by identifying synergies where services or products can complement each other.
The next steps involve hypothesizing possible integrations, experimenting with these ideas in real-world scenarios, and validating the outcomes. The aim is to develop solutions that not only meet customer expectations but exceed them, ensuring that the cross-selling strategy delivers genuine value.
“Ultimately, our efforts are always centered on maintaining a customer-focused approach, aiming to consistently deliver enhanced value through innovative solutions.”
-- Randall Walsh, General Manager, AssetWorks Facilities
Advancing Synergies and Expanding Horizons
The success of ACE has been met with overwhelmingly positive feedback from AssetWorks' customers. This program has not only streamlined training but also made it more accessible and cost-effective, effectively meeting evolving customer needs. Additionally, ACE has boosted SoftChalk’s market presence, enabling them to expand their customer base while conserving time and resources.
Building on this success, FacilityForce, a sister company of AssetWorks, is poised to embark on a similar cross-selling journey in the realm of facilities management for government sectors. This move exemplifies our proactive strategy to replicate successful models across different segments of our ecosystem, thereby enhancing our collective capabilities and market reach.
As we move forward, the potential for cross-selling within our network continues to grow. Our portfolio of companies is actively exploring and identifying synergies, laying the groundwork for symbiotic sales opportunities that drive further innovation and enhanced service delivery.
