There’s also usually when you look out over an annual contract entitlement, even if they didn’t hit their growth numbers in a given year, they still expect to grow into the next year. And we want to make sure that they’re set up with predictable costs across whatever the term period is. There’s also the unlocking of new use cases and the engagement with new teams. And so in many cases, when we land with a customer, even if they move over a specific channel, they often — or they sometimes don’t even move like all of the e-mail happening in their organization over to us. or they might not move all of their SMS or what have you, maybe they started with a specific use case, but they’ve proven out the value of those other ones. And so we find ourselves consolidating other vendors quite a bit when we go into that conversation.
And so they’re looking to decrease their spend overall across their basket of marketing technologies, but brave because of the gravity that our platform has to pull in new use cases and new channels over time. Often, we can consolidate out other vendors as they’re working to find spend efficiency. Another area that we see people finding spend efficiencies as they lean into their usage with Braze more is through the Audience ink products that I mentioned during the prepared remarks, where we help them optimize the digital advertising and acquisition spend and our customers have seen tremendous results there. I think there’s a lot of low-hanging fruit just because a lot of low-hanging fruit in that entire category because first-party data has historically not been activated to the that it can or should be for a lot of digital advertising and acquisition strategies.
And so Well, in addition to the kind of internal to Braze contract levers that I mentioned before, there’s also an entire category of just taking a step back, looking at their entire marketing spend and helping them optimize that in order for them to be able to maintain or, in many cases, in those situations still increase their Braze investment.
Operator: Our next question comes from Brent Bracelin from Piper Sandler. Please go ahead.
Brent Bracelin: I’ll keep it one as well for the sake of time. I wanted to follow up and double click into the upsell momentum this quarter. Given increasing macro pressure on marketing budgets, what is driving the upsell momentum? How sustainable is it? Is it a function of how the product is priced by an MAU basis? Is it vendor consolidation? Is it this first-party data category just being less sensitive to budget cuts? Just trying to double-click into what is actually driving that up so momentum? Any color there would be helpful.
Bill Magnuson: Yes. So I think first of all, your list of options are all accurate. I will endeavor to kind of organize them by the magnitude of the impact. I think, first and foremost, the — when you — if you were to stack rank the ROI of the investments made in any given marketing organization, that those that are operating on top of first-party data and first-party relationships are always going to be head and shoulders above the investments being made on top of third-party audiences. And I talked through some of the reasons for that before, but the high level is that those first-party relationships are a giant asset. And the only thing that they really need to pay for is the ability to activate that asset. The investment in many cases, has already been made.
