VAROS - Software to Benchmark Efficiently
Varos.com styles itself as the world’s largest ecommerce and SaaS data co-operative, enabling secure, anonymous collaboration between companies to benchmark their key performance indicators (KPIs), in areas such as marketing, advertising, and revenue.
More than 2,000 companies benchmark by using Varos their tools, with a total of more than $2bn of monthly advertising spend.
The service operates on a freemium model, with basic features available for free, with upgrades for brands and agencies at $19 to $99 per month, plus an enterprise tier with enhanced features and support.
What does Varos do?
Varos aims to assist clients to understand how their key metrics compare to close peers in their industry. These metrics could include retention, conversion, and customer acquisition cost (CAC). To achieve this, Varos integrates data from various sources, including advertising platforms (Facebook Ads and Google Ads), ecommerce sites (Shopify), social media (Tiktok), and payments infrastructure providers (Stripe).
Why is Varos Useful?
Varos’ unique selling point to its customers lies in its ability to provide current, relevant numbers in an area characterised by anecdotal, irrelevant or outdated comparables.
The company ensures that their KPI comparisons are useful by allowing their users to access anonymised data for very similar companies, as measured by yardsticks such as industry, advertising spend, average order value, and target market. The information is delivered as regular reports (e.g. weekly), as well as dashboards, containing analytics and insights. As well as simply benchmarking performance, this allows users to understand if the patterns and trends they are seeing in their own data are replicated industry-wide, perhaps due to seasonal effect or changes in technology.
Understanding quickly whether an anomaly is company specific can be invaluable for small and mid-scale digital businesses, where marketing spend can be a very large share of revenue and factors such as cost of acquisition are critical elements in business success.
Who is Varos for?
Varos’s target customer base falls into two camps.
The first being brands operating in the ecommerce and SaaS space, who are looking to understand their performance relative to the industry. The service would be especially appropriate for brands with a less mature online presence, without the historical data to understand seasonal trends and anomalies.
The second are marketing and advertising agencies who want to use the insights provided by Varos to add value for their clients.
How does Varos work?
Curious? Click the link and check it out!
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