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​The New Software GTM Playbook​

The first version of the SaaS GTM playbook was written twenty years ago. Salesforce championed it. Mark Roberge published The Sales Acceleration Formula about Hubspot’s journey.

Over the next two decades, we analyzed, quantified, instrumented, & optimized many aspects of the SaaS GTM. Account executive to SDR ratios, sales cycle lengths, conversion rates, customer acquisition costs, customer lifetime values, net dollar retention.

The new software GTM playbook has yet to be written. But the companies who figure it out will become the next wave of massive businesses.

On Tuesday, Theory held an event with [Dave Morse] formerly at Hebbia & Scale AI, Flo Crivello from Lindy, Paul Yacoubian from Copy.AI, & Chris Chang from Gradient to discuss how AI changes these practices. These were my take aways :

• Selling AI is being discovered because the technology is new. Buyers don’t know how to use it or how to buy it.
• Because the sales motions are new, we can’t apply the previous playbook to the new sales process. The CEO/founder should hire a sales leader that they fully trust who focuses on ultimate success. The sales process is a part of the product : using both the customer’s language & the ultimate use of the product through success efforts
• Between PLG vs sales led, more companies were sales-led. If starting with PLG, the template sells the product. Fight the empty box problem with great concrete templates that demonstrate how to use AI. If selling top-down, most of the conversations today are at the C-suite rather than the mid-market predominantly because the buying process is new.
• Figuring out how to consistently produce wow moments with non-deterministic software is essential.
• The room was split on pricing model : seats, usage, or some hybrid. Ultimately, pricing captures 15-30% of the value the software/AI creates. Developing a strong case for this with buyers will be key because the ROI question from buyers is real especially as the broader software market feels pressure.
• Only VCs care about the word agents / agentic : for most enterprises, agents mean a customer support agent. Many teams don’t care about the underlying technology, they seek a solution to their problem.

Tomorrow, we’ll be publish the results of the 2024 GTM Survey which we’ll reveal at Saastr in which we dig into the use of AI on sales processes & the impact to efficiency. Thanks to the panelists & attendees for a great discussion.

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