CEO @ Passetto | Chairman @ Refine Labs | GTM Strategy & Analytics for High-Growth B2B Companies
Converting an in-market account to a closed won net new customer is the most expensive process in an entire B2B company. -At least 80% of the Marketing dollars get spent here. -Basically 100% of SDR investments get spent here. -Basically 100% of the Sales resources focus here. -Then you have RevOps / Sales Ops / Marketing Ops / Admin / Management / Data / Technology. Basically all of those investments focused purely on converting an in-market account to a closed won customer. Not to “build brand”. Not to expand accounts. Just to acquire a net new customer. And the reality is that this part of the GTM process is terribly inefficient. Caused by a significant slowdown in growth rates. And a huge amount of Go-To-Market (GTM) Bloat where there are bloated GTM costs across people, processes, programs, and technology that do not result in anywhere close to an appropriate return on investment (ROI). __ Signal-based analytics is the fastest way to optimize GTM strategy and investments. By isolating the SIGNALS that are used to determine if an account is “in-market” and tracking those outcomes all the way to meeting, pipeline, and revenue, you can see CLEAR, EASY, OBVIOUS insights about how to optimize your entire GTM strategy and investments. Here’s an example. Results from a $200MM ARR SaaS company after 90 days of working with Passetto: 1. Qualified Pipeline Production Increased by $7MM per quarter up to $41MM (22% increase from baseline). Driven by significant improvements to website conversion rates and more AE-sourced opportunities. 2. Qualified Pipeline : Marketing Program Spend ratio improved by 46%. A major lift that will create significant improvements downstream to Marketing ROI and total CAC payback. 3. Total Sales Velocity increased by 15% to the highest level in 5 fiscal quarters, driven by more pipeline created and shorter sales cycle. 4. Paid search qualified pipeline : spend ratio increased by 65%. Cost per opportunity via paid search decreased by 40%. Driven by major cuts to non-branded search campaigns that have delivered untenable ROI for 2-4 fiscal quarters. __ We expect continuous improvements to these core metrics over the course of the year through continuous signal-based analytics and GTM optimization. __ B2B companies need to make major improvements to their EBITDA profiles. And fixing GTM efficiency is the #1 way to get there. #marketing #gotomarket #gtm #sales #b2b
With the most expensive process inside of an entire B to B company is the the process of getting an in market account to become a closed one net new customer. Because if you don't acquire a new customer there's no chance you're going to expand that customer. And when you look at overall B2B budgets that at least 80% of the marketing dollars get spent on that part of the process in market account to closed one, basically 100% of the SDR dollars get spent on that. Process that a majority of the sales resources then you have solutions consultants, you have Rev OPS, you have sales OPS, you have management, all of that stuff focused purely on how do we get an in market account to become a close one customer over time. I'll develop the estimates but my guess is that 80% of the sales and marketing costs go into that part of the process. Not to build brand, not to expand customers, not to make customers successful, but just to convert an in market account into a net new close one customer.
No alternative text description for this image