Long-term Vision And Medium-term Management Plan 2024/9/12 UPDATE
Smaregi aims to be the top in Japan
Dynamic stores bring about dynamic towns
Dynamic towns bring about dynamic societies
By supporting stores, we aim to revitalize society as a whole
Smaregi aims to be the market leader in Japan. Based on our management philosophy of “OPEN DATA, OPEN SCIENCE!,”
we aim to carve out an “era of data access and utilization for everyone.”
Revised
Aiming for¥30 BillionARR!
To align all efforts toward increasing ARR, we have revised the long-term vision goal from 300,000 stores to ¥30 billion ARR.
Roadmap to Achieving the Long-term Vision
ARR：Annual Recurring Revenue
Second
Medium-term Management Plan
FY4/24 - FY4/26
Edition 3Sep. 12, 2024
Goal
ARR
9.46
billion yen
Aim to achieve growth exceeding
CAGR 30% over the three-year period from FY4/24
Plan for ARR Growth
ARR：Annual Recurring Revenue , CAGR：Compound Annual Growth Rate
Basic Strategy for the Second Medium-term Management Plan
Increase the number of contracts
Marketing, Sales strategy
- Strengthen targets through market segmentation strategy Continue
- Focus on Mid- to Large-scale Projects NEW
- Continue with S&M investment Continue
Increase customer unit price
Customer success, Upselling/cross-selling measures
existing customers
- Enhance payment services Continue
- Strengthen App Market Continue
- Strengthen Smaregi TimeCard Continue
Increase the number of contracts Market segmentation strategy
Strengthen targets through market segmentation and enhance marketing efficiency
Break down the broad target segments of “retail stores” and “restaurants” by “type of industry/business” and “scale,” and strengthen the approach to specific industries.
Strive to enhance sales and market efficiency through the detailed segmentation of targets.
Through the App Market, provide niche functions that the target industries/businesses demand.
Increase the number of contracts Focus on Mid- to Large-scale Projects
Expanding the main target in line with market conditions and sales strategy. Actively approaching mid- to large-scale businesses.
The domestic cloud POS register market has crossed the chasm and entered the mainstream market, where full-scale competition takes place. As security, reliability, and a proven track record become essential for mid-to-large-scale customers, Smaregi aims to capture replacement demand by leveraging its strong track record, scalability, and multifunctionality.
- [ Key Strategies ]
-
- Establishing a sales system specialized for enterprise clients
- Strengthening integration development with core systems
Increase the number of contracts Continue with S&M Investment
Contribute to service usage through marketing activities that engage with the leads from the awareness acquisition phase.
Awareness acquisition
- Advertising and publicity (Programs and commercials on mass media, social media advertising, specialized magazines, food fair sponsorship, etc.)
Lead nurturing
- Online marketing (Listing, affiliates, owned media, etc.)
- Holding events such as exhibitions, seminars, etc.
Inside sales, field sales
- Lead acquisition and advertising from POS register comparison sites, contents for various industries with cash register demand, SaaS comparison sites, etc. (F&B, retail, medical care industry, etc.)
- Showroom expansion/extension
- Increasing the number of online business meeting points
Increase customer unit price App Market
Improve customer
satisfaction customer
- Aim to increase customer unit price and improve customer experience (CX) by providing industry-specific niche functions.
- Aim to strengthen collaboration with development partners and increase the number of apps.
- Strengthen EC cart and social media tie-up for retailers. Enhance the OMO/omni-channel domains.
Increase customer unit price Payment services
Expand revenue model
- Build a revenue model with GMV as its source.
- Continue to improve the business (PMI and rebuilding) of ROYAL GATE INC. which Smaregi absorbed through a merger.
- Expand cross-selling with Smaregi, centred on sales as a package with POS services.
- Take up the challenge of the online payment domain. (advance booking, advance orders, table orders, etc.)
Increase customer unit price Smaregi TimeCard
Strengthen functionality for stores and strengthen HR
- Develop functionality for retail, apparel, and F&B businesses, which is Smaregiʼs strength.
- Strengthen employee management and overall work attendance and salary management as a means of acquiring CV regardless of industry and preventing cancellations resulting from scaling up.
- Air commercials, participate in exhibitions, and reinforce upselling efforts to existing customers.
Update History / Past Materials 2024/9/12 UPDATE
ARR plan revised upward.
| (billion yen) | FY4/24 | FY4/25 | FY4/26 |
|---|---|---|---|
| Previous | 5.35 | 7.0 | 9.1 |
| Current | 5.59 | 7.27 | 9.46 |
Second Medium-term Management Plan released.
Reviewed 4 specific measures and added "enhancement of payment services”.
| Before | After |
|---|---|
|
|
ARR plan revised upward.
| (billion yen) | FY4/22 | FY4/23 | FY4/24 |
|---|---|---|---|
| Previous Plan | 2.30 | 3.32 | 4.82 |
| Current Plan | 2.70 | 3.67 | 5.00 |
