RV220 - Who Owns GTM? | Go To Market Live Episode 37
Nov 5, 2024
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Discover why the CEO, not the CMO, should take the reins on go-to-market strategies. The conversation likens GTM to a factory, emphasizing the need for systemic improvements. Explore how CMOs are evolving in SaaS, focusing on product marketing and customer renewals. The discussion highlights the importance of aligning financial metrics with marketing outcomes and advocates for a holistic approach to attribution that connects customer success and overall business efficiency. Tune in for insights on team dynamics and organizational accountability.
Ownership of go-to-market strategies should lie with high-level executives like the CEO, ensuring collaboration across departments for optimal impact.
Companies must shift from outdated attribution models to a focus on business-level KPIs to adapt to current market dynamics effectively.
Adopting streamlined, agile team structures allows organizations to respond quickly to market needs while driving better results and fostering innovation.
Deep dives
Understanding Revenue Challenges
Many organizations, particularly those at the executive level, often misunderstand the intricate problems surrounding revenue generation. The speaker emphasizes that the traditional approach of addressing marketing issues within the marketing department is ineffective. Instead, solutions must be reframed to involve high-level executives such as the Chief Revenue Officer and CEO, who have the authority to enact real change. Addressing these revenue challenges requires collaboration across departments rather than isolated efforts within marketing.
The Cost of Inaction
Failing to address revenue generation problems can lead to significant financial losses for companies, particularly in the SaaS sector. The speaker notes that the drop in return on investment from business development resources and marketing can result in annual losses ranging from $250 million to $500 million for mid-sized companies. This situation is analogous to the compounding effects of personal investment; delays in addressing these issues can cause long-term detrimental financial impacts that shareholders will feel. Hence, actionable strategies to resolve these problems are not merely beneficial but critical for sustainable growth.
The Role of Executive Leadership in Go-To-Market Strategies
The speaker highlights that ownership of go-to-market strategies often lies with the highest-ranking executive, typically the CEO, rather than with marketing or sales leaders. This insight requires a rethinking of organizational structures and accountability to ensure that those responsible for overall company health are involved in strategic decision-making. Often, companies rely on outdated attribution models and metrics that do not reflect the current market dynamics. Empowering executives to understand and address their roles in go-to-market strategies can lead to more coherent and effective operational plans.
Optimizing Organizational Structures
A clear distinction arises between organizations that maintain bloated structures and those that embrace streamlined efficiency. Companies recognizing the need for smaller, agile teams can leverage specialized talent without the traditional bureaucratic overlays. This operational shift inherently drives better results, as smaller teams can adapt quickly to market needs and focus on key performance indicators efficiently. Such structural assessments are crucial for maintaining competitive advantages and unlocking new growth avenues.
Shifting Mindsets Around Revenue Generation
A transformative mindset is essential for companies aiming to enhance their revenue generation capabilities. The distinction between addressing problems versus optimizing for missed opportunities plays a significant role in driving strategic decisions. Companies typically prioritize budgeting for pressing problems, while enhancements and potential growth opportunities often receive less attention. Emphasizing the need to treat optimization as a strategic initiative rather than a fallback can lead to a more proactive approach to revenue growth.
Welcome to Revenue Vitals, a weekly show where Chris Walker challenges the traditional status quo of B2B go-to-market strategies, including Digital Demand, RevOps, Sales Development, and GTM Strategy.
In this episode (from GTM Live #37), Chris talks about:
Who should own the GTM strategy (hint: it’s not the CMO)
Why GTM should function like a factory
Post-sale reporting lines
Attribution vs. business-level KPI’s
CMO & CEO alignment
LTV:CAC vs. GTM Efficiency
Larger vs. smaller team dynamics
And more…
Listen to this full episode to hear how these frameworks can transform your company’s GTM approach.
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If you want to have a conversation with Chris and present your current questions, roadblocks, or projects you’re working through, make sure to attend this weekly event every Tuesday at 12 central. Register here.
Can’t make the event but have a question for Chris? Submit it here.
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Thanks to our friends at Hatch for producing Revenue Vitals, and all of Chris’s short-form video and YouTube content. Hatch is a video-first content agency that creates short-form video content, video podcasts, original video series, and YouTube videos for B2B companies. Visit www.hatch.fm to learn more.
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