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Go-to-market (GTM) design and efficiency are sometimes overlooked, but they’re a critical driver of any SaaS business. Rajeev Dham and Karan Singh, Partners at Sapphire Ventures, and Jane Lee, Vice President at Sapphire walk us through how to double your “Magic Number,” a shorthand for your sales and marketing efficiency.
2023 saw the team grow from 6-10 reps, which is pretty modest, and they built an SDR function. At the end of ‘22, they started a small pilot and grew that function from one and two BDRs to a team of 10 and then 12. Take on less and go deeper with it to have more success. Every function gets a stack rank. They grew 2.5x
That’s why successful companies obsessively measure everything about their go-to-market model, sales strategy, and salespeople. Percentage of sales reps attaining 100% quota. Revenue by market. Imagine one of your reps isn’t hitting her quota. Let's take a look at what sales metrics are. Revenue by territory.
And the way you get it is whether it’s outbound, generally inbound events or whatever, solve a 10 X pain point, solve a unique pain point that a large enterprise has that other vendors don’t provide. Ash Bhoopathy (@ashbhoopathy): Probably more around go-to-market and sales. But potentially even technology.
This will lead to uneven results: some reps may find their own way to sell the new product; others will struggle and fail to meet quota. Sales motions are defined by your larger go-to-market strategy. Closing: Guides sellers on how to close deals, including working with intra-company functions like legal and deal desk.
Law number three, this is huge, particularly in COVID, so we’re going to talk about this a little bit differently. Everyone is trying to figure out the go-to-market learning curve. Here, what you really want to think about is testing out two or three reps, seeing how they work, see if their quotas are about right.
I’ll tell you, of all the founders I’m impressed with, I’m most impressed with founders that I meet and I’m like, “How you doing”, “Well, I’m at 2 million in revenue and I’m going to grow 2.5 X this year. I’m going to go from 2 to 5 or 2 to 6.”
The three stages are product-market fit, then go-to-market fit and lastly growth and moat. Awesome revenue growth on the X axis, awesome revenue retention on the Y. And then once you set it up, align the whole go to market around it. This is go to market fit. You have go to market fit.
It uses the formula PPVVC=S (Pain x Power x Vision x Value x Control = Sale) to help salespeople accurately gauge the probability of closing a deal. As its name suggests, expect to read compelling insights on why ethical values — not your quota — should drive the way you engage and sell to customers.
But that’s more the exception than the role of the go to market for many companies. Whatever your bar is, your bar is high but tripling, quadrupling going 2.5X X and it’s not [inaudible 00:20:29]. Do you just connect the dots and say, “I’m going long. So massive step function.
Every week we’re featuring some of the best and brightest minds in B2B sales and marketing. Really excited to have a good friend, long time sales and marketing and go to marketing executive, Samuel Sunderarajj. I think your customer base grows by two X it seems like every month these days. Absolutely.
But here’s the truth: calling someone when they aren’t expecting it is not easy (duh), and salespeople often rely on email and LinkedIn to hit their meeting quota. Matt Cameron is the Managing Partner at SaaSy Sales Management , Silicon Valley’s SaaS go to market leadership development community.
And then in the enterprise, some of them tie them to multi-year deals, but there’s actually no impact on conversion rate from the free trial to a paid customer as a function of the contract value. The first is do you retire quota at the same rate for renewal as you do for new business? Tom Tunguz: That’s really important.
And then in the enterprise, some of them tie them to multi-year deals, but there’s actually no impact on conversion rate from the free trial to a paid customer as a function of the contract value. The first is do you retire quota at the same rate for renewal as you do for new business? Tom Tunguz: That’s really important.
The GTM Podcast is available on any major directory, including: Apple Podcasts Spotify YouTube Joe DiMento is the Head of Go-To-Market & Industry Partnerships at Bain Capital Ventures. Previously, he was an operating partner at Fractal Software, helping launch vertical software companies and find product-market fit.
To claim this offer, go to www.superhuman.com/gtmnow The GTM Podcast The GTM Podcast is a weekly podcast hosted by Scott Barker, GTMfund Partner, featuring interviews with the top 1% GTM executives, VCs, and founders. And you could say they’re still going through hyper growth, um, but really excited to, to dive into your journey.
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