Go-To-Market Fundamentals - Mark Walker
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Sales Impact Academy Coach, Mark Walker gives a preview of this foundational course. You will learn: 1. How to identify the real pain points in your target market. 2. Which go-to-market model is best suited to your businesses. 3. Learn about the key success metrics you need to track. Key Points: 1. Don’t be a solution in search of a problem - Consider the demand in the market first and then build a product for that pain. 2. Frame your key competitors as villain’s - it is a great way of identifying a problem and rallying people behind your product. 3. Be a pill not a vitamin - Is your product a ‘must have’ or a ‘nice to have’? 4. Your ICP should be narrow enough that you are able to streamline your entire operation and make your capital more efficient - you will have to say no to people. 5. A genuine go-to-market model considers every stage of the funnel.
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Go-To-Market Fundamentals - Mark Walker
- 1. In This Together Go-to-Market Fundamentals Mark Walker, Chief Revenue Officer, Student Beans Coach, Sales Impact Academy hello@salesimpactacademy.co.uk CEO and Founders Live 4pm UK Time A live broadcast series in partnership with:
- 2. Intro To Me ● Currently CRO @ Student Beans ● Coach @ SIA, Mentor @ Scalewise & TechStars, Advisor @ GTM Works ● Former CRO @ Attest, Growth @ Eventbrite, founder
- 4. SIA’s Go-To-Market Magic Hourglass Nail Your Niche ICP Development Stakeholder Identification
- 5. Market-Product Fit Nail Your Niche ICP Development Stakeholder Identification
- 6. 3 Types of Problems Nail Your Niche ICP Development Stakeholder Identification
- 7. Villains? Nail Your Niche ICP Development Stakeholder Identification
- 8. Over to you... Nail Your Niche ICP Development Stakeholder Identification External Problem? Internal Problem? Philosophical Problem? Villain?
- 9. Pills vs Vitamins Nail Your Niche ICP Development Stakeholder Identification £1.5 Trillion £4.5 Billion >30x in value
- 10. TAM, SAM, SOM, PAM
- 11. Calculating TAM Top-down Take an existing report, use that. e.g. Gartner, Juniper, Statista, industry bodies...all just a google away “size of ____ industry.” Bottom-up Number of accounts or users * price point e.g. 31.2m employees, average cost of payroll software is £50p/m p/e = £19bn market Value-Theory (Measurable pain/impact * number of accounts/users) / ROI E.g. 5.7m sales reps, carrying average quota of £1m, wasting 20% time on admin = $1.1tn opportunity
- 12. ICP Your ICP is now drilling down to the exact type of company you will be targeting with the highest deal value and quickest close rates - so crucially ones that will place the greatest value on your product or service - along with the best fit with your current offering at an acceptable CAC
- 13. Stakeholder Mapping Start by understanding the stakeholders in your deals There are around 7-8 in each deal! Important to understand exactly who they are Hubspot Documents can help
- 14. Typically Six Types of Stakeholder Budget holder / Decision maker / Economic buyer Champion / white knight User Influencer Rationalist Blocker or naysayer
- 15. Stakeholders Develop Into Personas Now you should have a clear picture of your stakeholders Now you’re ready for the last step in the GTM process Stakeholder > Personas Make sure the product and marketing are along for the ride!
- 16. Stakeholder maps help you Structure targeting marketing campaigns Create more personalised sales outreach Navigate deals and improve close rate Build a more complete product experience Find upsell opportunities
- 17. Let’s talk GTM Models 1. Proposition complexity & product time to value 2. CAC & virality 3. ACV & stickiness 4. Market size & # of buyers There is no right answer. Don’t aim for a model, it chooses you. Then it’s down to what you do with it.
- 18. ‘4 Fits’ GTM model
- 19. ‘4 Fits’ GTM model
- 20. 1. Sales led 1. More complicated product/problem 2. Multiple stakeholders / seniority of decision maker 3. Slower time to value 4. Higher price point 5. Higher CAC 6. Lower churn
- 21. 2. Marketing/Product led 1. More specific problem/product fit 2. Single buyer / bottom’s up decision 3. Faster time to value 4. Lower price point 5. Lower CAC 6. Higher churn
- 22. 3. Channel led 1. Market dominated by agencies, SI/VARs or other intermediaries (i.e. no direct route to client) 2. Otherwise, similar to Sales led: a. More complicated product/problem b. Multiple stakeholders / seniority of decision maker c. Slower time to value d. Higher price point e. Higher CAC f. Lower churn
- 23. Key Performance Indicators / Metrics Levers Individual performance Weekly/Daily Inputs e.g. Taking the stairs, salad v sarnie How many coals did you light? Lagging Business performance Quarterly/Annually Outputs e.g. your weight & wasteline, BPI etc. What does it taste like? Leading Team performance Monthly/Weekly Inputs & Outputs e.g. Calories eaten, calories burned etc. What’s the BBQ temperature?
- 24. Lagging Metrics
- 26. SDR Metrics & Levers Contacts worked - 10-20 per day * 4 days Calls/Connects, Emails/Replies, Social Connections/Accepted - 100-150 (30%/50%/20%) Meetings booked/happened - 20/15 SQLs - 10 SAOs - 8 QPV - SAOs * Average Contract Value Closed/Won = QVP * Win Rate Salary: £25k OTE: 100% (uncapped) 75/25 SQLs/QPV ACV = £25k & 25% Win Rate = £50k p/m, £600k p/a SPIFs
- 27. Course Overview
- 28. Any questions?
Editor's Notes
- So as a reminder, here’s SIA’s magic hourglass. The foundation I was talking about is obviously the bottom layer you can see here. We’ll be starting at the top, and using all of the input to then flip and work back out to the bottom...each step builds on the previous one
- Don’t be a solution in search of a problem!!!! Think: Juicero… Juicero, the $700 juice machine that raised $120 million in funding and claimed to have the pressing force to lift two Teslas, only to be publicly humiliated when people found out the juice could be pressed by simply squeezing the pack with their hands… Over 40% of startups fail due to lack of a market...by far the most common cause, much more so than lack of funding (CB Insights) Do you want to drag an entire industry kicking and screaming or have them embrace you? Would you prefer to sell your innovative cuisine to a room full of hungry folks or those who’ve just eaten a 3 course meal? Judo principles… Brian Balfour…’4 fits’ model...more on this in a later class
- External problems: I need to hang a picture Internal problems: I want a home that reflects my personality (and looks good to others) Philosophical problems: Everyone deserves a place to call home Functional - I want to achieve something faster, cheaper, better (logical) Personal - I want to be recognised, add value, feel more confident (emotional) Existential - I think things ought to be this why, it’s not right that they can get away with this (moral) AirBnB: I need a place to stay at a reasonable price I want to feel like I’m staying in a home from home that’s more personal Don’t be a tourist; belong anywhere
- The personification of the problem you’re trying to beat: No more installed software No more bad customer service No more high prices or lack of transparency Kill commission Stop waiting
- Pick any well known/successful company you like, and write down the external, internal and philosophical problems they solve & the villain they’re fighting against...
- Must have v nice to have What would they do if you didn’t exist? What will they cut from their budget first? Stickiness, habit forming - can be built, but usually more on consumer side, system of record/infrastructure Avoid pain than find gain / Loss avoidance: Loss aversion refers to people's tendency to prefer avoiding losses to acquiring equivalent gains: it is better to not lose $5 than to find $5. Some studies have suggested that losses are twice as powerful, psychologically, as gains - Amos Tversky and Daniel Kahneman Fear & greed Are they jerry rigging a solution? E.g. Google Docs as a wiki...Notion; Custom code...Stripe; Surveymonkey...Attest; Camera & duct tape...GoPro; Illegal downloads/bootlegs...Spotify & Netflix
- No, it’s not a trendy new Dim Sum restaurant… Example: TAM for self-service, AI optimised crypto payroll software = every HR/Finance dept running payroll through software SAM = those who won’t require account managers or sales, so likely 20% of TAM that are SMB SOM = you only have a English speaking, UK based team & product so it’s only those in UK PAM = everyone using paper and spreadsheets to complete their payroll ie expanding the market Uber...PAM was those who wouldn’t typically take a cab, TAM was everywhere with taxis, SAM was those cities they could get licenses, original SOM was SFO early adopters
- This is not just an academic exercise! Getting a reasonable view on your SOM will help you think about where to focus your limited resources; and ensuring you have a large enough TAM (or reasonable expectation to go after your PAM) will help shape your GTM model (more in a later class) and also the viability of your business to scale to >$100m
- Your ICP is now drilling down to the exact type of company you will be targeting with the highest deal value and quickest close rates - so ones that will place the greatest value on your product or service - along with the best fit with your current offering at an acceptable CAC. Which means cost of acquiring customers. The key part of this definition is - the ones who will place the greatest value on your product or service. You see thats where things like pricing starts to become so much easier, because you target the right companies who are literally falling over themselves to buy your product, as the problem you solve is so acute for them. Don’t be afraid to go uncomfortably narrow...you’ll probably know it’s about right if you feel a slight pang of pain from saying no early on to interested prospects that don’t fit your ICP
- Assuming you don’t have personas developed yet, you start with identifying the stakeholders in your deals through a process of stakeholder mapping. It’s the third layer in the Go To Market pyramid. Again start with a hypothesis and refine as you learn, which you’ll do pretty quickly as you execute your sales cycles. The same job titles will pop up over and over again. Now according to Brent Adamson, author of the Challenger Sale, the average number of customer stakeholders involved in a B2B purchasing decision in 2016 was 6.8. Hubspot has that as 8.2! Thats a lot of people who could support, or more worryingly, derail your deal. And actually building up a full picture of all those stakeholders is pretty tough. And if you cant do that, deals will certainly be at risk as you wont know who you have build consensus with to get a deal over the line. You essentially lose control. There are almost certainly other tools out there that do this, but Hubspot Documents helps you to track who opens your proposals and fact sheets that go over to a company. You can then start to build a really accurate picture of your stakeholders which is critical if we are to then develop them into personas.
- So typically you’ll have four types of stakeholders in any deal. They are: Budget holder / Decision maker – the stakeholder that usually has the final say on whether your solution gets purchased. Then we have the…. Champion or white knight – typically the stakeholders who found your solution or you connected with during your outreach efforts. They are incredibly valuable, even becoming an extension of your own team in some ways. They guide you through the org, can be a great source of information in terms of the stakeholder mapping, and will go to bat for you! They were a key part of the sales strategy at UNiDAYS. We were always trying to find our champion, and then give them a LOT of love. User - don’t forget the people who’ll actually be using the software day-to-day...absolutely critical if you’re building a PLG model! Influencer – there can be many influencers and they may not have the final say on the purchase, but as name suggests they have some kind of sway on whether the deal will close Rationalist - procurement, legal, finance, compliance, IT Blocker or naysayer – a stakeholder that has the power to potentially stop the deal from going through. You’ll want to make sure you identify these quickly and avoid them! The blockers can block for any number of reasons, maybe your product will increase their workload (an integrations group) or they may even feel their job or their teams job are threatened by your efficiency increasing solution….i would say they will end up in the deal conversation at some point, but the trick is to build solid consensus with the positive buying group so their input is rendered inconsequential
- As you use technology like Hubspot documents and run through multiple sales, picking up valuable information from your champion among others, you should land on your 6-8 stakeholders across the 4 stakeholder categories we looked at in the last slide. Now you are ready to climb up to the top of the pyramid! And move to the last phase of the Go To Market fundamentals and develop those stakeholders into personas. Remember, this should all be done with your Go To Market manager not isolated just in sales. And if you don’t go and create that role, you absolutely need to make sure this work is being done with the marketing and products teams.
- Remember, you’re targeting people, not companies...and in a very noisy world, the more you can speak to them, the easier it will be for you to cut through the noise
- Brian Balfour, former VP Growth at Hubspot who helped launch their freemium business
- Brian Balfour, former VP Growth at Hubspot who helped launch their freemium business
- Salesforce, Gong, Outreach almost every B2B business going after Enterprise or Mid-Market Pros: Can smooth over early product deficiencies, great for market feedback, can be highly repeatable, lower churn Cons: Less repeatable, costly to scale and human-capital intensive (inc. hiring), could mask product issues
- Also known as ‘Product Led Growth’ ‘Self Service’ ‘Freemium’ Slack, Box, almost every B2C business or B2B going after single users or micro businesses Pros: Highly predictable, faster growth at scale (Openview), less overheads (not necessarily cheaper tho) Cons: Higher churn, less qualitative insights, slower to get started (OpenView)
- Often seen in ERP or other high technical spaces such as IT systems Agencies for ad spend, some tech like Hubspot Or industries where other professional services own the main relationship (e.g. Financial Advisors, Mortgage Brokers, Accountants etc.) Pros: Can be very efficient, less need for large direct sales team Cons: Indirect access to buyers, less visibility and predictability
- Total ARR Growth rate (5.95% if monthly) to hit 100% annual Net Retention Margin CAC Payback (inc. margin) Magic number = previous period spend / following period new business * 4