Based on the provided Tegus transcripts, enterprise clients are adopting Pigment, despite it being a newer startup compared to larger players like Anaplan, for several key reasons:

Firstly, many clients expressed dissatisfaction with legacy tools like Anaplan, Adaptive Insights, Planful, SAP, and NetSuite. Common pain points included a lack of flexibility, clunky or outdated interfaces, and difficulty scaling with changing business models. Some solutions were perceived as too rigid, forcing the customer to fit into the tool’s structure rather than adapting to their needs. Others required paying for external services or additional implementations for new features, which was undesirable for companies wanting to be primary stakeholders. Long implementation timelines and negative experiences with third-party implementation partners from competitors were also deterrents.

In contrast, clients chose Pigment due to:

  • Flexibility and Adaptability: Pigment is described as a “blank slate” tool that allows companies, particularly those with mature processes, to build exactly what they need. It is highlighted as highly flexible, especially for companies undergoing constant change or needing to adapt their models quickly. The ability to pick and choose when to use certain dimensions and levels of hierarchy is seen as a significant advantage over tools like Planful. This flexibility is crucial for rapidly growing companies or those with evolving business units and structures, making tasks like reshuffling budgets much easier than with Excel.

  • User Experience and Interface: Pigment’s user-friendly interface and visual design were frequently praised. It strikes a good balance for both technical and nontechnical users, making it easy to “sell the tool internally”. For users accustomed to spreadsheets, Pigment’s interface, while different, is perceived as having a low barrier to entry and a smaller learning curve than some competitors like Anaplan. This ease of use significantly influences adoption. especially by non-finance teams.

  • Strong Modeling Capabilities and Features: Pigment offers robust database modeling, which is valuable for handling large amounts of data and creating dynamic reports like filtered P&Ls. Features like easily creating new dimensions and adding complexity or granularity to models are seen as core values. Scenario analysis and version control are also highlighted as valuable features. For some, the cohort analysis and forecasting function is a standout feature, automating previously manual tasks.

  • Integrations: Pigment offers a range of integrations with other critical systems such as ERPs (NetSuite, QuickBooks), HRIS systems, CRM (Salesforce), and data warehouses (Snowflake). These integrations help centralise data and act as a single source of truth. The ability for FP&A analysts to set up new integrations themselves without needing the Pigment team is also a plus. Pigment’s willingness and speed in building specific connectors requested by clients were particularly impressive.

  • Implementation and Support: Pigment’s approach of doing implementations in-house was highly valued, especially compared to competitors who use third-party partners. This in-house team was seen as more motivated and aligned with ensuring customer success. Although implementation can be a significant upfront investment in time and resources. potentially taking longer than some competitors, the co-building process teaches customers to be self-sufficient for future maintenance and improvements. The support team is described as incredible, active, helpful, and responsive.

  • Value Proposition and ROI: Clients perceive a strong ROI from using Pigment, primarily through significant time savings by automating manual tasks, allowing teams to focus on more strategic work. This efficiency gain can effectively save the cost of hiring additional team members. Pigment also provides greater transparency and visibility to executives, helping them understand the financial impact of decisions. While not always the cheapest option, some noted its competitive pricing relative to key competitors like Anaplan, with one client citing a 30% price difference.

  • Sticky Solution: Pigment is described as being “quite sticky”. Once implemented and integrated into core processes, switching to another platform would require significant effort, time, and resources to rebuild models and migrate data. This stickiness reinforces the long-term value proposition for companies that have invested in the platform.

Regarding the concern of Pigment being a startup, some clients acknowledged this but felt reassured by the founders’ experience, the company’s ambition, responsiveness, and willingness to quickly build features. While some potential customers might hesitate due to Pigment’s startup status, the positive experiences of early enterprise adopters helped build confidence. Being an early large US customer, for instance, resulted in dedicated support and a willingness from Pigment to “bend over backwards”.

Clients who chose Pigment often did so because they felt it was the “next-gen” solution that better met their evolving needs than the more established, sometimes slower-moving, legacy players.

[This is a NotebookLLM summary of Tegus Transcripts]