Xero, the New Zealand-based software company, has announced its plans to invest in customizing its cloud-accounting platform specifically for U.S. users. This strategic decision comes after identifying key growth opportunities in the world’s largest economy, according to CEO Sukhinder Singh Cassidy.
The focus will be on targeting small U.S. businesses with multiple needs, as well as accountants and bookkeepers who provide client advisory services. By honing in on these specific market segments, Xero aims to tap into the potential offered by the vast U.S. market, which is over 10 times larger than Xero’s home markets of New Zealand and Australia combined.
Singh Cassidy expressed optimism about the opportunities available in the U.S., saying, “The U.S. is a large enough market that any given segment is often the size of other people’s entire small-business market in a country.”
A recent review of Xero’s U.S. operations revealed that the company’s product resonates most strongly with users who require greater functionality. With this valuable insight, Xero plans to tailor its platform to better meet the needs of U.S. users and deliver enhanced value to its customers in that market.
Xero generated only 5.9% of its group revenue from North America in the six months leading up to September. However, by concentrating its efforts on specific market segments with tailored solutions, Xero aims to achieve stronger results and secure a larger share of the U.S. market.
This investment in customizing its cloud-accounting platform demonstrates Xero’s commitment to optimizing its offerings for different regions and capitalizing on growth opportunities around the world.
Xero Focuses on Tailoring its Product to Local Users
In the competitive market, Xero faces tough competition from established rivals like Nasdaq-listed Intuit, which commands a considerably higher market capitalization of $146 billion when compared to Xero’s $11 billion. However, Singh Cassidy is determined to focus on improving customer experience and catering to the specific needs of American users.
Having initially listed in New Zealand and later dual-listed in Australia, Xero consolidated its position on the Australia Securities Exchange in 2018. Despite potential opportunities, Singh Cassidy has no plans for a U.S. listing as the company’s long-term shareholders take great pride in Xero’s roots in the Southern Hemisphere.