@ttunguz Another factor post '08 was the impact of ZIRP on S&M costs. Top line revenue growth was heavily valued and software companies were incentivized to push S&M costs to 50%+. I think AI can reduce S&M as a % of revenue in the next 5 years as FCF is valued more than top line alone.
Further thoughts on the similarities between parenting and GTM... when the chicken is in the wrong part of the plate and your skills are put the test.
https://t.co/IF2kI6ajGr
Since I just started a new company, I've purchased a lot of software in a short period of time. It's amazing that there is no way to fast track the purchase even when you know you will buy. What's the "money in hand at the bar" version of SaaS buying?
For so many companies, the buying experience is directly dictated by buyer ACV. Generally, enterprise buyers get a good experience, SMBs don't. I think AI creates an opportunity to decouple buyer experience level from buyer ACV level.
AI will transform software sales. Most of the discourse so far has focused on how AI upends the sellers’ worldview. But the buyers’ process will also evolve. When researching software, operational buyers & procurement teams alike will use AI to research different offerings.
Typing “Compare Salesforce & Hubspot for a 10 person sales team. which is better?” into Gemini produces this result & most importantly, a recommendation : [image below]
For a Hubspot or a Salesforce seller, a few ramifications resound from the new reality that most buyers will consult AI before speaking to a rep.
First, marketers must ensure the information surfaced in these queries is accurate. SEO is no longer sufficient. AIO, (AI-optimization), will become necessary to ensure the results are accurate. The workflow to achieve this outcome isn’t yet built but will undoubtedly influence inbound-marketing efforts.
Second, procurement teams may automate some or all of the RFP/RFQ. My second query was to compare pricing between the two products & ask which would be less expensive.
HubSpot generally offers a lower price point at equivalent feature tiers, especially for small to medium-sized sales teams.
How about SOC2 & ISO-27001 or FedRamp compliance? It’s just a query away. AI becomes a low-budget Gartner in box.
Third, agents acting on behalf of buyers may execute transactional sales differently “swiping” a virtual credit card to buy project management seats in the same way a Nike-neaker-bot snipes a pair of Jordans. A buyer types “buy 5 seats of the best Gantt charting software for software teams.” into their chatbox & off the robot goes.
All of these vignettes into the future of software buyer behavior are guesses. What’s certain is that prospects will use AI to research & potentially automate software purchases.
Over the past 12 years as a CEO/GTM leader I've done tons of sales training, created sales training courses, and taught plenty of sales training myself. Trying to convince my 2 year old to eat his dinner is probably the most effective sales training I’ve ever had.
It's going to be interesting to see how big organizations think about vendor vetting with GenAI companies. If you want to use cutting edge GenAI tools, they're probably less than 2 years old. I bet the bar shifts.
I'm working on something new. We're still in stealth, but broadly we're exploring how to create the ideal buying experience. As a GTM leader, it's felt like the past 10 years of sales SaaS has made the experience worse for buyers. It's time for that to change.
I couldn't be more excited to be joining @DormRoomFund as the new COO with @themollette at the helm as CEO. The last few months working with the DRF community has been nothing short of amazing, excited to see where the next chapter takes us: https://t.co/27ntQHjkGR
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