Unified Go-To-Market Live Episode 9: Signal Based Selling Continued

Summary

The transcript discusses the importance of signal-based selling in B2B marketing, emphasizing the need for companies to track and analyze customer signals to optimize marketing investments. It highlights the challenges of using traditional methods like multi-touch attribution and proposes a new dimension of data tracking with a 'signal object' in CRM systems. The conversation explores the early stages of the signal-based category lifecycle, the potential of AI in sales, and the necessity to move beyond perfectionism in business decision-making.

Takeaways

• 📊 Multi-touch attribution is not effectively utilized by companies to measure actual signals from accounts due to overwhelming data points and lack of focus on data-driven decision making.
• 🚀 There is a surge in interest around signal-based selling, with a rapid increase in vendors pivoting to focus on this approach, indicating a significant market momentum.
• 📈 The concept of signal-based selling is still in its early stages, with the market in the 'Define and Develop' phase of the category life cycle, suggesting that it will take time for subcategories and definitions to emerge.
• 🔍 B2B companies typically do not track signals, which are a different dimension of data from leads, contacts, accounts, and opportunities, and this oversight is a significant gap in current data tracking practices.
• 💡 The need for a 'signal object' in CRM systems is highlighted to properly track and associate signals with leads, opportunities, and account data, much like existing objects for leads and accounts.
• 🛑 Companies often rely on 'fit' data alone, without tracking 'intent' signals, leading to inefficiencies in sales velocity, performance, and marketing ROI.
• 🔑 Understanding the difference between signals that work for different segments, geographies, and account profiles is crucial for optimizing marketing strategies and sales approaches.
• 🚨 The importance of recognizing and tracking signals independently from 'fit' data is emphasized, as this can significantly impact sales and marketing effectiveness.
• 💰 A significant portion of marketing budgets, 80 to 90%, is spent on creating signals, yet the success of these signals is not adequately measured, indicating a need for better tracking and optimization.
• 🤖 The future of sales and marketing will likely involve AI and self-service models, necessitating a strong foundation in signal data to effectively utilize these tools.

Q & A

What is the primary purpose of allocating 80 to 90% of the marketing budget?

The primary purpose of allocating such a large portion of the marketing budget is to create signals that can be measured to determine the success of marketing efforts and to identify areas where marketing dollars are spent but sales are rarely won.

Why do companies using multi-touch attribution sometimes miss out on understanding the actual signals from accounts?

Companies using multi-touch attribution may miss out on understanding actual signals because there are too many data points, and they are not forced to make choices around these data points, which can obscure the signals that the accounts are sending.

What was the main discussion topic at the recent GTM fund event with Scott Barker and Max Aluer?

The main discussion topic at the event was signal-based selling, which has gained significant momentum and interest among market leaders and investors.

What is the significance of the category life cycle theory in the context of the current market?

The category life cycle theory helps to understand the stages of development in a market. It suggests that in the first five years, there is a lot of vendor activity with unclear subcategories, between years five and ten, subcategories start to form, and after ten years, the category matures, leading to commoditization and price pressure.

How does the concept of signals relate to the early stage of a category's life cycle?

In the early stage of a category's life cycle, which is the 'Define and Develop' stage, signals are crucial as they help companies understand buyer intent and behavior, even though the market is still finding its definition and subcategories.

Why do B2B companies need to track signals as a separate dimension of data?

B2B companies need to track signals as a separate dimension of data because most do not currently track them, and signals provide a different perspective on customer intent and behavior that is not captured by traditional CRM data like leads, contacts, and opportunities.

What is the issue with using lead or contact objects to track signals in the current CRM systems?

The issue with using lead or contact objects to track signals is that it assumes a linear buying journey and can overwrite data when multiple signals occur, leading to the loss of valuable information about customer interactions.

How can companies better utilize signals in their marketing and sales strategies?

Companies can better utilize signals by recognizing them as a critical dimension of data, setting up the necessary infrastructure to track signals within their CRM, and making data-driven decisions based on the performance of these signals.

What is the potential impact of AI on the future of customer experience and sales actions in B2B companies?

The potential impact of AI on the future of customer experience and sales actions in B2B companies is significant. It can help in processing and analyzing large amounts of data, including signals, to improve customer interactions, optimize sales strategies, and reduce the reliance on human capital for sales actions.

Why is it important for companies to track signals independently and then marry them up with fit and other opportunity data?

Tracking signals independently and then marrying them up with fit and other opportunity data allows companies to gain a more comprehensive view of customer behavior and intent. This can lead to more accurate optimization of marketing strategies and better measurement of ROI.

How does the concept of signals apply to account expansion and renewal opportunities?

The concept of signals applies to account expansion and renewal opportunities by providing indicators of when an account is ready for expansion or renewal. Tracking these signals can help companies identify the right time to engage with the account and potentially increase sales.

What is the challenge with using campaign records to track signals in the current system?

The challenge with using campaign records to track signals is that it can become complex and messy, especially when trying to associate discrete signals with opportunities and cross-object reporting. It often leads to an incomplete picture of the customer journey.

What is the role of an Outbound Campaign Specialist in the context of signal tracking?

An Outbound Campaign Specialist plays a crucial role in implementing tactics that fit the CRM system, working cross-functionally with marketing, sales development, and revops to ensure that signal data is effectively tracked and utilized to optimize outreach strategies.

How can companies differentiate between signal providers and signal analytics providers?

Companies can differentiate between signal providers and signal analytics providers by recognizing that signal providers may be inherently biased towards the signals they offer, while signal analytics providers offer an unbiased view of the success of various signals, allowing for better decision-making.

What mindset shift is necessary for marketing leaders to effectively implement signal-based strategies?

Marketing leaders need to shift from a linear view of the customer journey to a more dynamic understanding of customers moving in and out of the market. This mindset shift allows for a more accurate interpretation of signals and better optimization of marketing efforts.

How does the concept of perfection in business decisions impact the willingness to take risks and make decisions?

The concept of perfection in business decisions can hold people back from taking risks and making decisions due to the fear of being judged or being wrong. Embracing the reality that not all decisions will be correct and using those experiences as learning opportunities is a strength in business.