B2B 22 | Go To Market Strategies

B2B 22 | Go To Market Strategies

 

We are approaching a cloud-based world where everything is turning digital. How does the go-to-market strategy change? How do companies like Cisco adapt to new and different business strategies? Learn more about the process of GTM with the Head of GTM Strategies at Cisco, Sree Chadalavada. Before working with Cisco, Sree has worked with Gartner, a global research and advisory firm, in various roles for over 14 years. Now with Cisco, Sree is leading the GTM for their DNS Center. Catch Sree in this interview with your host, Vijay Damojipurapu, about how to market a subscription-based model and other business strategies. Discover why customer experience should come first when it comes to product strategy. Learn everything you need to know about GTM today!

Listen to the podcast here:

A Closer Look Into Cisco’s GTM Strategies With Sree Chadalavada

I have with me, Sree, from Cisco and I’ll let him introduce himself. Sree, welcome to the show.

Thank you for inviting me. A little bit of introduction about myself. I have around twenty-plus years of experience in the industry. A lot of my experience comes from B2B space and mostly in high tech. I had roles anywhere from engineering to product management to GTM. Because of my several years of experience, I am now leading the GTM for DNA Center, which is one of the marquee software products that Cisco is selling to its customers. I’m looking forward to talking to you.

You are based in the Bay Area. We have almost subcontinental tropical weather. We are hitting 90 degrees here but both you and I grew up in India so we are very familiar. It’s not too much to complain about but we’re used to this weather.

I need to fix my cooling. I came from India in a tropical climate. The variation, how quickly we can go from cold to hot is something to get used to and I definitely need some home improvement going.

How would you define go-to-market?

In my mind, the go-to-market is a loaded term. In a simplistic view, I think about go-to-market as we have a business strategy. Oftentimes, I am taking more of a B2B large organizations viewpoint. If you have a large organization with a portfolio of products and services that you’re selling in the market, you start with a business strategy and then there is a product strategy. Those are two ends of the spectrum. GTM is what binds those two together and the whole purpose of GTM is to drive monetization and profitability within a particular organization.

Whenever you look at a business strategy of a long-term, sustainable company versus a product that generates revenue, you have a number of elements that need to work together. In addition to linking product strategy to business strategy, you need to look at sales, partner and customer success. All of those strategies need to come together and they all need to be driven with one beat. That’s what the GTM brings to the table. In my mind, the way I think about GTM is it’s a loaded term but the way I conduct it is it’s all about focus on revenues and profitability. It’s all about bringing disparate sets of functions together to work together to drive these revenue and profitability goals.

I would agree with almost all of what you mentioned. It does include working fruitfully and collaboratively across these functions such as product, marketing and sales, customer success and support teams as well. There is an end goal of driving revenue and profitability goals but there is one element, which I didn’t hear a lot from you and I want to push you on that. What is in it for the customer? Why should customers care? That’s a key point. A lot of the go-to-market teams are missing that. They’re internal-focused. This is something that I’ve seen often and to the detriment of the go-to-market execution capability. It is internal-driven but the emphasis should be on the market and the customers.

Whenever we think about a product strategy, the sustainability of a customer is driving value to the world and to the community at large. Maybe the reason why the customer was not included in my narrative is that I always believe in the fundamental nature of how you decompose a business strategy into a product strategy. Product strategy is all about the customer. We talk about product-market fit a lot. If you are developing a product that generates revenue then everything about that product should be about a customer. To your point, product, customer success, sales, partners, all of the people need to be talking to multiple sets of stakeholders but it all starts with customers. Definitely, that’s an omission that I’m glad that you corrected because it was built into the narrative.

A go-to-market has to link product strategy with business strategy. Click To Tweet

All of the GTM functions are more like skin in my opinion. For every organization, everything happens. Business strategy is the brain that drives everything and all of these GTM functions drive everything but all the sensors need to be externally motivated to a particular customer. If you do not then there is so much of either productivity loss or you will not be sustainable. In the next five years, you will not have a place. Customer is always front and center. My boss always talks about customer excellence and customer-centricity. The way we share that across all of this is it starts with a product, the way we define a product and we continually iterate on the product-market fit. Everything in the GTM follows the product and the end product leads the way. All the GTM continually amplifies that particular aspect of it.

On a lighter note, how would your kids describe what you do at work?

I’m sure that many of us in the GTM has some identity crisis but I have a nonlinear career path. I’ll give a little bit of background and then I’ll explain what my kids talk about. I am a computer scientist. I was an engineer. I did graduate with a Computer Science major. I was a product manager and then moved to GTM consulting and then now I’m an operator of a product company. You’re going to look at my kids and it’s always interesting the way they think about it. When you ask those questions, it comes out.

My son feels like I am a consultant, an engineer or both. He’s confused. On one hand, I talk about the rigor, the hypothesis-driven problem solving and how you look at systems and decompose the problems is the consultant that I talk about. From an engineer’s standpoint, it’s all about the operation. What is the new value that we’re creating for the community and the world at large? There are both aspects. He’s confused, “Are you a consultant or engineer? You keep saying all those things. I don’t know.”

My daughter has this interesting way. I come from a consulting background. In a company like Cisco and I’m sure that any large company and even small companies, that happens. She talks about me having meetings about meetings because when you go to the executives, you first talk about, “Let’s develop a point of view,” and then you go to another person. It’s one of those things wherein a blue-collar to white-collar, everything that we do is communicating with people and driving change.

That’s what she thinks. She’s like, “You’re an advisor. I get it. From the nuts and bolts of it, everything that you do is meetings about meetings.” Hopefully, she will appreciate it one day. What she is looking at is anything that we do in consulting or GTM is about driving change, accountabilities and responsibilities. When you’re working with a lot of organizations, you’re working with a lot of people. It’s funny when you look at the kid’s views. One day, I go from a consultant to an engineer to developing slides. All those things go together.

That’s funny you say that. I can relate to a lot of those. I’ve also had several guests mentioned either the parents or the kids. Some of them correctly articulate what that guest was doing. It’s all about how do you articulate and tell about, “What do you do?” Whether you’re in a marketing role or a sales role or a product role, that’s a fun thing. It always brings out the lighter, the humor, the more personal and the humane side of things when it comes to a job.

At the end of the day, the core of it is we are all humans connecting to other humans. We miss that. We don’t think about it that way. When you talk to kids, that’s how they can think about it. The interactions that they are exposed to defines how they think about it.

B2B 22 | Go To Market Strategies
Go To Market Strategies: Make your product strategy all about the customer. The sustainability of a customer drives value to the world at large.

 

Let’s switch gears. You talked about being in the consulting world and now you’re more in an organization like Cisco where you’re more responsible for the execution of the strategy, which you would typically build and then pass it over to your clients. Talk to us about your career evolution starting from your time at Gartner and then what you’re doing at Cisco now.

I did my MBA at Emory University. In around 2007, I graduated and then I joined Gartner as a senior consultant. The practice that I was part of was the GTM practice. A lot of people know that in Gartner, we have a lot of data. The reason Gartner exists is it senses the life of the customer. They track customer and market movements. We have all this data. Our GTM practice is all about taking the data and helping customers develop GTM strategies. It can be a GM who’s saying, “I need a product strategy. Can you help me build the next billion-dollar product on a market that I need to go after?” There are those problems.

There are engagements where, “We are going through this DevOps evolution. Can you help us? As a large $5 billion company, can you migrate to this?” Those are the things that I tried. I started with a senior consultant all the way to a managing partner. I also worked in a lot of the companies in the technology space and a lot of my clients are in the Bay Area. These are the people who created markets and it’s difficult to tell them what to do. They always feel like, “I know what I’m doing. I created the market so don’t tell me what you’re going to tell me.”

We went through this evolution as a managing partner. I ran a lot of these engagements, product strategies, market strategies and sales strategies for that matter. I got this rich experience of working with a lot of leaders that I’m sure are part of your show and you see them on a lot of these big stages. I had the privilege to be looking at them, working with them and helping them at Gartner. At some point, I said, “I have been giving a lot of advice. That’s great,” but then I said, “I need to do something. I need to execute what I’m telling.” It’s like eating your own dog food.

In consulting world, what you do is you give them good recommendations. Hopefully, those are the ones that you can bet on but you do not own the execution part of it. For fourteen years, I said, “I need to use a lot of what I did and need to be an operator,” as they call it in the industry. One of my clients said, “Sree, it looks like you have a lot of what I am looking for. I need somebody strong to drive GTM strategy for my organization.” That’s how I got into Cisco. In Cisco, what I do is taking all of that experience. I helped Cisco in developing a GTM strategy for this particular product and drive objectives.

One of the things that’s fascinating with Cisco is we’re phenomenal in terms of everything that we do in sales, marketing and partners from a hardware-centric standpoint. There’s nobody else who can do better than Cisco because we’re partner-centric and customer-centric. When we get to the subscription world, the rules of the game are different. This is a significant intent for every one of us to move forward. The privilege is good and bad. Everybody says it takes a village to move but in my role, I work with a lot of people like me in developing what the future view looks like.

I’m sure that you have all this news coming from Cisco saying that we’re at a $14 billion run rate from the software revenue standpoint. That is the promotion we’re doing. I’m helping with that transformation for the product DNA Center, which is within the wired and wireless networks on the campus. That is the product that I lead. I have been there for eight months. I built a lot of great relationships. There are a lot of things that I can learn and a lot of things that I can execute because, for several years, I’ve been talking a lot but now I know the things that make sense and don’t make sense.

That’s a fascinating career you had at Gartner joining as a senior consultant and growing up the ranks to a managing partner. Kudos and congratulations to you. That’s a fascinating rise in itself. It’s interesting that you switched and you intentionally wanted to go and move more into an operator role. Cisco itself is in a transformational phase because they’re switching or at least making the effort to move from a hardware-centric to more of a SaaS, revenue and subscription-based business.

Cisco has been doing this for a long time. If you look at the best in class SaaS companies, we want to be the best in class. When we look at a company that has been successful in the hardware-centric model, we have made a lot of progress but the progress continues to be there because we want to drive revenues and expand the scope of what we do. This role gives me a scope to help in that journey.

Go-to-market is more like the skin, while business strategies are the brains that drive everything. Click To Tweet

I’ve not had so many guests on my podcast where we had to dive in and talk about the shift from a one-time hardware sale to a software subscription model. Enlighten us and talk to us about the challenges. I can put myself in the shoe of an account executive selling routers and switches. It’s a long sales cycle. As an account executive, I hit my quota. Most often, I move on to other deals or other customers versus for subscription, it’s an entirely different mindset. How are you working with account teams and go-to-market teams at Cisco to make this transition happen?

It’s changing the way we do stuff. You need to have different kinds of relationships as you approach your customer. Let me take a step back. It is even a transformation from a customer standpoint. If you think about infrastructure, they have always bought appliances with a perpetual license. They would say, “Don’t come to me until five years is over.” Even the way they budget, it is for five-year subscription. That is how they budget CapEx dollars. Now, we’re looking at transformation at multiple stages. We’re saying, “How do we help the customer tell them that they cannot wait for five years?” That is the starting point for us.

We are going into a multi-cloud world. The pace of innovation is changing. We are educating our customers to say, “If you want to take on this multi-cloud world that the velocity of innovation is changing, you need to get the value incrementally quickly.” That is the reason we’re working with customers to enable them with the transformation. That is number one. We work with the salespeople and the way the salespeople do it is we have always said that selling an appliance is where our journey stops. Usually in a hardware mindset, you sell and you move on to the next deal.

We tell them they need to work with the customer success. If you think about the deal is over, the next step is, “Don’t go away because you have these long relationships. Please work with customer success to enable them.” We make a lot of promises during the sale cycle and oftentimes in a hardware-centric mindset, the partners will execute to get to some of those outcomes. Cisco is owning some of those outcomes. That is a big change for us.

If you go to a typical salesperson and if you say, “Did you sell?” “Yes. Amazing. I have done my job.” Now what we’re telling them is, “You’re not done. Please help us. Don’t go anywhere. We want you to work with the customers, your partners, customer success and drive outcomes.” There is a big difference between selling goods and services to selling outcomes. That’s what we’re working with account teams to slowly migrate to this mindset. A lot of account executives get it because they want customers to be successful. They have always relied on partners before and now they have to rely on partners but also Cisco to take that leap. That is the biggest change that we see. We made a lot of progress and we’re going to continue to make progress.

Change is hard, even though mentally I would like to create a new habit and sustain that new habit. I’m putting myself in the shoes of an account executive. There is an intent and a want versus making it happen over the course of days, months and years. It’s entirely two different things. There’s a combination of executive sponsorship and executive enforcement if you will but enforcement only gets you to so much. Is there a combination of that plus enablement piece, there is also the incentive-driven piece?

I come from the strategy world. I always think that there’s a mandate. The mandate is these greenfield initiatives cannot succeed. You need to have a mandate on a problem but the mandate needs to translate to what can be done in the next quarter. Oftentimes, you can think about it and say, “We want to be a subscription company.” For a large organization, it takes time. We need to take the mandate and chunk it down on what can you do in a quarter. When you think of quarter, there are three things that we’re always looking at. As an organization, is our operating model set up for success? That is number one. Are we having those relationships built between sales, customer success and partners? Can we continually iterate on the operating model?

The second is incentives. Are we making incentives and KPIs that integrate on a collective customer outcomes mindset? The third is we take feedback oftentimes and the mandate only goes so far because there is reality, the ground. The last thing that you want is to disenfranchise anybody who was significantly successful and lose them in this transformation. We are taking enormous amounts of feedback from the field and continually iterating this particular model. We have three different processes. One is a mandate. The second is the operating model. Three is the incentive structure.

B2B 22 | Go To Market Strategies
Go To Market Strategies: Technology is always changing and innovating. You need to help and enable your customer in the transformation.

 

Finally, it’s feedback. Always focus on the feedback. Always build the change because if you have the influencers, you need to be looking at the influences who are working with you and enabling transformation. I come from a lot of change management and that enables me to talk about it. I always look at the culture as a complex entity. We talk about culture as a nebulous term. For me, it’s the incentives, rituals and those kinds of things. I look at it systematically and say, “What can we do without breaking ourselves?” We are disciplined in the way we execute the techniques.

You mentioned how you measure and there’s also the feedback aspect. Let’s talk about if you can to the extent that you can share in a public forum, can you talk about the KPIs and how you set goals into ensuring that the change is happening?

I don’t think some of the frameworks are any different from a strategy standpoint. The viewers need to think, “What does the future state look like?” You always need to have a clear view of where we want to be from a metric standpoint. Almost always, we know this. We want better revenues, a better renewal rate and a customer experience. Those are the three. At the end of the day, any business will know about those three for me.

We look at what the future state is. We cannot get there unless we cut it down to every quarter. This is what we need to achieve and then cross those three terms. We talk about revenue goals, renewal rates and customer experience. Every quarter, we’re iterating through those goals and building new initiatives. We have a governing model that says, “We’re all going to work together for this transformation. We have partnerships.” I’m part of the product organization. There is a product, relationships, there’s sales, customer success and partners as well as marketing, product and technical marketing.

All of us work together to say, “Can we achieve that target and continually grow?” It’s like a flywheel analogy in Good to Great. There is this notion that coming from consulting it is this one big wave that carries everything. It’s never that. It’s like in every small incremental thing that you do and continually build the momentum and kill the initiatives that are not working. Amplify and double down what is working and keep moving. This operator role is interesting but the most important place where the operator role falls apart is when you don’t have a clear future state. If you do not have a clear future state of what I want to be when I grow up, that is when the operator role can be nebulous. I am going to do all kinds of things that don’t matter but if I have a clear view of where we are headed, it’s about execution. You’re continually working at it, spreading it and making progress at the business.

Let’s get even more detailed and specific here. When it comes to the second half a year and you’re managing the go-to-market evolution and the change for Cisco DNA products, services, software modules and subscription services as well. What are your focus areas for the second half for Cisco DNA?

For us, there are three things. Engagement from the field is the most important thing for us. I’m part of a central organization and Cisco is massive. What we’re trying to do for us is execution happens in a decentralized fashion in large organizations because you can only develop strategy and you can only have the central organizations that can enable the strategy. There are three waves of work that we’re looking at for the next job. We feel like we have a decent strategy. The next wave is working with the field to get feedback and improve the strategy. That is what we are focused on. These three are concentric circles. They keep moving. We have a strategy and now we are working in the middle field to make sure that they know the strategy that is help coming and we are seeking their help on how to transform.

The third element of it is at the end of the day, it’s accounts. It is this filed down list. You need to look at what is happening with this account versus with that account. There are three concentric circles that are happening for us. The second half is all about getting the field and getting to the part of the marquee accounts where we can ring-fence and do cohort analysis. Can we take small set customers and continually build these practices? That’s where we’re going to be.

Do you own a budget for your role specifically?

You need to find humane things when it comes to your job. At the end of the day, we are all just humans connecting to other humans. Click To Tweet

My boss owns a budget but he’s pretty flexible with the budget because it’s one of the key parts of the business.

If you or your boss were to get an additional 5-figure, 6-figure or maybe in the case of Cisco it’s an additional seven-figure number for the year going or even going into the following year. What are the key areas that you would invest in?

Data is everything for us. The way we are operating and every company is becoming a digital company for us. There are a number of initiatives going on but I can always ask more to accelerate these initiatives. That’s the way I think of it. You should not take it as we’re not doing it. Maybe others feel like, “If I want to go faster, I want something that gets me there. It’s about having the tools that can help us.” There are two aspects of the way I think about it. In GTM, everything is as good as your data, the systems and the GTM processes that you have.

For me, data is the most important thing. How do I build it on the fingertips? For me and the people who are executing these strategies, do they have the dashboards? Not a single dashboard but it should be where they are looking at data. For example, if you are on Salesforce, do I have the right metrics and the right data for a sales executive to take action? Those are the places where I would be spending a lot of time. For me, I need to have the data and the dashboards to be able to say, “Are we going in the right direction? Can I course-correct very quickly?” In the same vein, there are so many people like me who are trying to write and improve their business performance. Can I help them with those kinds of systems so they can make those decisions? We are blessed in this way.

I come from a strategy background. I don’t need somebody else telling me what the strategy should be because, at the end of the day, many people have those ideas. For me, the biggest thing is if I’m operating faster, I do not want systems to be a bottleneck. I need to move away from systems being a bottleneck to the change management and getting to the customer outcomes. That’s where I would be focusing if I have more budget.

You mentioned data and tech stack. One element of the tech stack, which is CRM, in this case, Salesforce. Is it more of how do you refine and fine-tune your Salesforce to create the right dashboards or is it more of an additional market or sales tech stack and making those work? Is it something like a BI, a Tableau?

We start with BI Tableau. That’s where I think about it. These systems have been there for a long time. You know how a lot of these organizations are. You start with a Tableau. You figure out if it’s helping you to make the decisions and I’m sure that data is not always perfect so you learn a lot and you shift to continually improving the data. That’s how I always think about it. If you have all of these dashboards and they don’t mean anything and the data is not complete, I cannot make decisions. The way I want to do it is, it’s always that there is this Deming’s quality improvement cycle. You need to know what you’re measuring. I have the visibility to what I’m measuring and can I take the data to continually improve the process but also improve my data hygiene across the board and the processes that build the data. In my mind, if we’re on a journey but I want to start with the dashboards but then I go back to how to improve the data consistency and reliability.

What are the top couple of topics or areas that are top of mind for you? How do you learn or keep up to date on those topics? You mentioned go-to-market and strategy. Are there topics underneath or something else?

B2B 22 | Go To Market Strategies
Go To Market Strategies: In business, you want better revenues, better renewal rates, and a good customer experience.

 

I read this only a couple of years back the way Amazon does it right. I’m looking at that. Usually, there is a view that I have seen and a lot of that is real with many of the companies. There is a product strategy and there is a GTM strategy. Those are two separate strategies and usually they are decoupled because we have the legacy and heritage of how we have done. What I’m seeing is a convergence of GTM and not convergence. It’s tighter alignment and convergence. What I mean by that is let us take a scenario where your video is in your own dashboard using the product. Can I manage my licenses in it? Can I make my purchases? It’s those things there are significant ways that we can improve the customer experience and integrate the GTM motions into the product motions. That is fascinating for me and that is where I’m spending a lot of time trying to understand how do I continually build digital assets to try with GTM.

Second, how do we continually push GTM and convert GTM with the product? If I can let the customer do all the purchases here, let the customer do the free trials on the product and push it to this. There are so many ways you can get to simplify the customer experience and not having to go through this, “Go to this system to do the sales.” “Go to this system to do the partner.” “Go to this system to do all of those things.” Rather than that, if you are going to keep the customer in view, then telling the customer to say, “I am simplifying everything.” That is where I’m spending a lot of time. We are all going to do our own research. There are some companies that are doing a better job than we are and it’s always a fascinating aspect for me to learn from those companies.

Something that I want to highlight and this is what I advise my clients. A bit about me, my company, Stratyve. We advise B2B SaaS companies small, medium and large, around go-to-market clarity and execution. One of the pieces that I’m enforcing into whenever I meet either a marketing leader, a product leader or even a revenue leader. I always enforce and emphasize this aspect of content being the currency. You mentioned digital assets on how I see it and what I refer to it as content. Think of it this way. When you talk about a software product, your code is your currency for a software product. Similarly, for go-to-market, I would say its content. Content is the key.

From there, you go into, “What does it mean when I’m educating or enabling my salespeople? What does it mean when I’m talking about the customer moving him or her along this journey or the path, the transformation?” That’s what I keep coming back to is content. I’m also enforcing and building what I call the Content To Revenue Manifesto. It is because similar to software code as a software engineer, I can write code but that may or may not create an impact. Similarly, I can create the digital assets and the content but that may or may not tie very well to driving revenue, renewals, a better experience and a subscription model. I’m enforcing and talking about this Content To Revenue Manifesto. I want to get your thoughts. You mentioned digital assets but I’d be happy to sit down with you or your team around how you can create, invest and get better returns when it comes to creating these digital assets.

I’d be happy to do that. We are all about video and digital assets to your client. You started with, “Why did you not talk about the customer?” For me, it’s about a 360-degree view of the customer, anywhere from awareness to loyalty and the whole thing. We had this framework when I was in Gartner called Content and Context. Look at the customer and say, “At what context, does the customer look for what?” “If he’s looking at what, are we going to the right water coolers?” “Where are they going? Where do we need to present our content so customers do not have to look for the content?” With all the SEOs and everything, we can do it. You’re absolutely right. I will be happy to have a conversation and see how we can collaborate.

If you were to look at your peers or your bosses from either your current role or even previous roles, who would you call out, give a shout out to when it comes to them having an influence and how they shape your thinking as well your career growth path?

There are two classes. You have two specific questions. One is who is the biggest influence on how I live and how I conducted my professional life? Who are the co-workers that you want to emulate? This changes every year. You’re always learning and you’re always looking at what it is. A lot of my influences come from the counterculture. They are the people that really helped me. The three people I can say and I’m sure that many of your audience knows them. Nassim Taleb is one of the guys.

The quote he had and maybe the reason I moved from consulting to the operating role is a lot of what we learned from either consulting, theory or even in education. All that we do is tell the birds how to fly. He has this piece that says, “The real knowledge that you learn doesn’t come from books. The real knowledge comes from tinkering, experimenting, learning and getting feedback loop.” That was phenomenal. Nassim Taleb had a significant impact. Antifragile and Skin in the Game is another book. These are thought-provoking books that ask you to change and say, “As a person, what impact can you create?”

The second person, this is a cop-out as everybody would say it but Steve Jobs is another influence. I read and study a lot about strategy and what companies are. If you look at Peter Drucker as being the Father of Modern Philosophy, I would consider Steve Jobs as the Father of Technology Management Philosophy. Also, customer experience and he talks about how to say no. When you’re developing a strategy, do not ask for everything.

If anybody says that they know better than what you know, they don't know. Click To Tweet

After many years, we are starting to get that into the mainstream. He has been far ahead and I always go back to his videos and say, “What am I doing right or wrong?” The third one is Phil Knight. I was fortunate I read the book. It was not something that I would read from the get-go. For a lot of people who don’t know, Phil Knight is the Founder of Nike. One of the one thing that I realized and oftentimes I come from India and there has always been this quintessential view of the leader. This is charismatic, they go and they can rile up all the audience.

These are the kinds of people and you always look at them and say, “I can never be that way.” You always have this perspective. When you read Phil Knight and the way they build the company, it is about a lot of people who had so many problems and he says, “We would never be successful if we all went our own way but if we will focus on a mission and with a level of conviction, you can create a company that is long sustainable.” I can go out and say these are the people that change everything.

At least in my career, Charles Chun who lives in Japan, in Gartner Consulting. He always told me that with critical thinking, you always need to wear your customers’ shoes. You need to really solve the problem. He never gave up until the last minute of an executive conversation. He’s like, “I’m getting the slide of it.” The more you think about the problem, the more you live there, that rigor, I got it from Charles. My manager is similar in that way because these are the people who never give up. These are the people who call themselves academic operatives. They have a mission to continually improve and create a framework on it but they are rigorous in the execution. Those are the people that have had a lot of influence. We live in a world that’s continually changing. Come back in a few years and I will say it’s Elon Musk. We get better.

You would add Elon Musk maybe at some point in time once you know his sticking philosophy. Going back to your point, I agree with Steve Jobs and others. I also want to call out specifically, Phil Knight. I’m reading his book, Shoe Dog. I’m in the early section where he talks about where he tells father, “I want to go on a world trip. I don’t know what I’m going to do with my career after graduating from Stanford with an MBA degree. I don’t know what I want to do.” Somehow, he wants to do something around bringing better shoes and selling better shows in America.

He goes to Japan and even then, he doesn’t know what he’s going to do but he’s clear on the mission. Going back to your point, it’s very mission-centric and there’s almost a fake it until you make it but in a good way. It’s not in a false ego-sense. It’s about, “I’m mission-centric. I need to partner with these Japanese shoemakers and manufacturers. It’s all about telling how I bring those shoes and help them increase their sales. At the end of the day, how am I getting better shoes for the American consumer?”

That is the counterculture. That’s what I keep talking about. We say the counterculture is the attitude that they take is, everybody who says that they know better than what you know, they don’t know. That is the fundamental way that a lot of these people think. It’s like, “If somebody keeps telling me that I’m on the wrong path or I’m not doing the right things,” but very quickly, you’ll realize that if you’re going steadfast, all the people and everything that people tell you that you don’t know and don’t do it, they don’t know. It’s interesting the way they came to solve the problems.

It comes back to the mission-centric and that’s what keeps them going. Along the way, they figure out the path and the solution it comes. It’s not that they don’t from the get-go.

They gravitate towards building the team that is around them and that is complementing. That’s the fascinating part of this.

One final question to you, Sree. If you were to turn back time and go back to day one of your go-to-market careers, maybe it’s that time when you joined Gartner as a senior consultant or something else. If you were to turn back time, what advice would you give to your younger self?

B2B 22 | Go To Market Strategies
Go To Market Strategies: Data is the most important thing in go-to-market strategy. Everything is turning digital, so you need the right tools or data for GTM.

 

Let me start with the first and foremost, while you are uncomfortable, always try to surround yourself with the best people, the people that you can learn from. The people who are motivating you to do your best and you can learn from it even if it’s painful. That is the first thing that I would say. The second thing that I would say is any endeavor that you are doing, you need to be humble to take the feedback and learn from the circumstances.

Any belief system that you develop, you need to work with people and how to change people. Those are the two things that I would say. One, always surround yourself with smart people. Whenever you’re trying to impact a change, be patient, understand why people don’t agree with you or don’t believe you and see what you can change in their belief system. It is not because they don’t like you. It is not because they hate you. It is because their belief system is completely different than your belief system. Be patient to start with what their belief system is and work backward to your belief system. If you don’t do that, you will not be successful. Those are the two things that I would like to say. Be patient with people who are impatient and learn but be patient with people who do not want to change and be patient to bring them along. Those are the two things that I would say to myself.

To your second point, talking about understanding people, learning and helping them see or change their belief system. It comes down to this one line, which really stuck with me, “Don’t try to change the other person but try to change your perspective of the other person.”

That’s what I keep telling myself. Oftentimes that goes back to your mission and where they come. When you think about what your mission is, you will find a way and that is where if you want to be a change agent, to that point. The perspectives, you need to be a lot more human-centric than say, “Everybody else did it. I’m going to do it and you need to follow it.” Nobody follows at this point. You need to convince them to follow. You need to be around the people who can follow.

Where can people learn more about you? If you want to share any final words with the readers, what would that be?

I’m always on LinkedIn. If you want to learn and collaborate, I’m always learning so I can tell you what I know but I’m sure that in the conversation, I’m going to learn from you. You can always find me on LinkedIn. If you want to reach out, please reach out. A lot of what I do at my work, you’ll see on my LinkedIn page. I’m definitely looking forward to hearing from you and working with you, Vijay, as well as hearing from your audience.

Thank you so much. To all the readers, do drop me a note on LinkedIn and mention that one takeaway that you got from our conversation. Post it on LinkedIn and let me and Sree know what that is. Thank you for your time, Sree. It’s been a wonderful conversation and I’ll be always cheering for you and your team.

Thanks a lot, Vijay. I’m looking forward to working with you again. Bye.

Important Links:

About Sree Chadalavada

B2B 22 | Go To Market StrategiesProduct strategy & marketing technology executive with over 20+ years of technology experience in infrastructure software and hardware technology markets. Cross-cultural experience in the United States, Europe, Japan, South Korea and India. Thought leadership endeavors include published Gartner Research.
-Execute product strategy, product management lifecycle, engagements for GMs, VP of Strategy and CMO
-Extensive experience working with global ISV market leaders and GMs with $1B+ product portfolios and driving top-line revenue growth by executing product strategy, product management lifecycle support and marketing strategy development and execution.
-Deep understanding of enterprise customer buyer/persona mission-critical priorities, buying behaviors and digital investment strategies; Deep specialization in AI, DevSecOps, AIOps & Edge Computing domains
-Worked extensively with clients and managed delivery teams across multiple geos – United States, Europe, Japan, South Korea and India
-Office lead for San Francisco Bay Area office with ~80 associates reporting to this office

Prior to Gartner, Sree worked in various leadership roles in telecom, technology consulting and start-up-related companies. At DXC and MCI, Sree held various leadership roles focused on Product Management, Corporate Strategy and Innovation and Solutions Marketing.

Sree is currently working with 3 – 5 startups in advisory capacity in fine-tuning the product strategy to achieve product/market fit. In addition, he is an advisor and co-chair for TiE Young Entrepreneurs program focused on fostering future generations of entrepreneurs by teaching high school students and mentoring college students the rewards and challenges of becoming an entrepreneur.

Sree earned his MBA with Outstanding Academic Achievement Award in Decision Information Analysis from the Goizeuta Business School, Emory University.

Functional specialties include: Product management, Product Strategy & Execution, Business Strategy & Execution, Enterprise Customer adoption, Sales Operations

Market focus include: AI, DevSecOps, AIOps & Edge Computing domains

B2B 6 | Lead Scoring

B2B 6 | Lead Scoring

 

Lead scoring is a vital element that sits in the intersection between marketing and sales. It’s something that companies need to think about from an early stage. It is a simple idea but it is often so poorly implemented that it doesn’t produce a lot of the results it is designed to produce. Breadcrumbs attempts to address the fundamental flaws of this process through a simple interface where people can design their own lead scoring model within a matter of minutes. The company is the latest among several startups founded by Armando Biondi, the former COO of the digital marketing platform, AdEspresso. An active member of the startup ecosystem since 2009, Armando has a depth of knowledge and experience when it comes to go-to-market challenges and strategies. He articulates some of these in this conversation with Vijay Damojipurapu, where he also shares the story of AdEspresso and the recent work he and his team are doing at Breadcrumbs.

Listen to the podcast here

Breadcrumbs: Scoring Leads The Way It Should Be Done With Armando Biondi

I have with me, Armando Biondi. I’m super excited. I’ll run through the background of you and all the great startup journey that you had. Welcome to the show.

Thank you for having me.

I looked at your bio. The reason I was excited and looking forward to having you on the show is a couple of reasons. One is around the breadth and depth of experience, having done either the C-Suite roles, the founder roles or even a board member role in six or even more startups. You have the depth that is needed for the go-to-market and the breadth. The second reason is you have been, and you continue to be, an active member in the whole startup community and startup ecosystem. You are an Angel investor, so that’s a big deal. You are also a mentor and a board member. You’re not seeing the go-to-market challenges from the companies that you’re working at, but you’re seeing it across the entire startup ecosystem, maybe tens or even hundreds of startups. I’m excited about that. Let’s start off with the most obvious and the signature question for the show, which is, what is your definition of go-to-market?

The way I think about go-to-market is the all-encompassing definition. Meaning, everything that has to deal with how you bring to market a product or service or the combination of the two. There are marketing, price, and packaging element around it. There is a service or a support element around it to some degree as well like how you fulfill the promise of it, how you commit to that promise and the mechanics behind it, so there is an element to it. Those are the main categories that come to mind when I think about the go-to-market.

Double-clicking or diving in from a go-to-market perspective for an early-stage company or a product will be different from the go-to-market for a more mature product. The flavor of go-to-market for a product line versus go-to-market for a company, it’s entirely different. I’m curious about your thoughts on those.

This is already a potentially big topic meaning that if you want to summarize it relatively quickly and up to you how much time you want to spend.

We have plenty of time. No worries about that.

If I think about the go-to-market from a startup perspective or at least stage company, the reality is that the vast majority of people tend to overthink things. If you think about successful companies out there at an early stage or successful exits up to $5 million to $10 million ARR or revenue if you’re thinking about the SaaS world, the idea is that most of those companies need to nail one go-to-market strategy/back. They don’t need too many on top of that. If you accept that thought, one of the things that you see over and over again is founders being constantly in search mode.

Not realizing per se that they stumbled upon something that is working so continuing to look for other things without doubling down on the stuff that’s working now and that can continue to work up to a certain point. These can come in flavors. It can come through an inbound, content, outbound or paid even for the B2C company that we’re talking about. The reality is that most of the budget and funding that any B2C company would raise through pay. You have to nail one go-to-market strategy to be successful or even lead to many more.

Being your first customer helps a lot because you gain a lot of insights into what's working, what's not, and what people like you need. Click To Tweet

That will progressively change as the company matures and grows because at some point if there is one thing, which is always true about go-to-market strategies, is that there is a ceiling. They start to work less effectively or not as well as they were before. You exhaust that potential and you need to look for additional sources of growth. That is when you start expanding into multiple go-to-market strategies that you keep executing on in parallel and you have working in concert with each other and to drive growth.

Usually, what happens as well is that companies tend to move from high-performing, highly measurable type of tactics/strategies. If we’re talking about advertising DR, direct response-type of motion and as they evolve and they start topping out that channel, they start migrating towards the less performing and less DR type of channels. It’s more brand-related and intangible and then layer all the different strategies on top of each other. That’s very common when you’re thinking about these types of companies in motion.

That’s a good summary. That’s the last topic. We can pick and do an entire episode on that one question, but we have a lot of ground to cover over here. Switching gears a bit, I did a quick research and looked at your profile in how you grew up the ranks. You started out as an employee first and then went up to the VP of the C-Suite level and then somewhere along the way, the whole startup bug caught you. You’re done Pick1 and then the Batch 5 & 7 then, of course, AdEspresso, but now we’re talking about big names. AdEspresso got acquired by Hootsuite and then now you’re at MailUp. I’ll also let you share the new thing that you have on your mind. Walk me and the audience on how you grew from the ranks of “employee” to switching on going into the inside.

That realization is that I generally have always been a very bad employee. I’m not an employable person. The reason for that is I tend to get excited about hard stuff or hard things. I constantly challenge myself. As a consequence, I tend to ask a lot of the people around me as well. I am the most excited when I can participate in the upside of the value that I’m contributing and creating. The reality is that the employee world is not built for that. What you’re trading off when being an employee or when you’re making the decision, consciously or unconsciously, is creating security for the upside.

When you’re an employee, you have a series of guarantees, stability, paycheck, benefits and all that good stuff. To some degree, that takes away a little bit of the upside that you can get. You’re accepting that the upside is going to be captured by your employer. When I started realizing those things inside my head, I said, “It’s time to try this entrepreneurial thing.” I started my first company which was Pick1. I started my second one, which was social market research for enterprise companies based on Facebook. Based on that experience, they don’t go super far. We ended up selling that. It was a good outcome. It’s not a lot of money, but it’s great learning. As a consequence of that, I started AdEspresso realizing that Facebook cared more about the advertising side as opposed to the research side and was willing to produce data, but not keep data away.

AdEspresso is essentially Facebook advertising and split testing for medium businesses as medium enterprises. At the time, Facebook split testing wasn’t the thing. They ended up taking “inspiration” from many of the ideas that we had implemented in the product. As a company, we ended up growing very aggressively in three years from 0 to 50 people for about $6 million in ARR and about $300 million in Facebook advertising budget process through the platform on a yearly basis.

AdEspresso is one of the top five ad tech partners for Facebook globally and the number one by a number of advertisers because every ad partner was focusing on a small number of big advertisers while we were doing the opposite number of small ones. That led us to the relationship with Hootsuite and we ended up selling it to Hootsuite, which was an acquisition that made a lot of sense back in the days because social media management solutions out there on one side were the biggest mid-market, Facebook advertising partner on the other side. Through that experience and then stayed on with Hootsuite as a global head of growth operations, overseeing ads products within the portfolio as well as the ads that we showed up growing about 3X since then.

There are a couple of realizations. One, the laws for speed and growth to the obsession of not only growth but also efficient growth. You can spend a lot of money to buy a lot of growth, but that only lasts up to a certain point. Only a number of companies can do that because it’s a functional market that you have available. One of the things that are very interesting about the times we live in is that we live in a world where we have the biggest markets available in terms of the number of customers and companies in those. We live in a world with the biggest markets ever and the most accessible ever because everyone has a smartphone in their pocket and a credit card attached to that. It’s a lot of new dynamics that are different compared to many years ago where getting in front of customers was a very expensive endeavor. Nowadays, not so much anymore. That unlocks a whole city’s off new dynamics and behaviors, which are very interesting to observe.

B2B 6 | Lead Scoring
Lead Scoring: Go-to-market strategies have a ceiling. Eventually, they start to work less effectively than they did before.

 

You mentioned about AdEspresso when you started it. There was a Facebook audience and Facebook usage taking off on a daily basis. On the other side of the Facebook platform, you have the advertisers and into the edge, Facebook was investing a whole lot because, at some point in time, they need to monetize. How did you run to the idea of creating this platform for advertisers and what were the steps you took to test and get traction with the initial set of advertisers? After you land 5, 10, 15, 20, you see a blueprint laying out but learning was 5 to 10 is a key.

It’s a combination of two things. On one side, AdEspresso was born out of a need that we have as a concept. We were the first customer of the product to some degree and we are very clear. My cofounder, Massimo, had an agency back in the days when he was building products for bigger organizations on one side, on the other managing small Facebook advertising budgets on it. That’s one insight. Being the first customer always helps a lot because you have a lot of expertise, knowledge, as well as insights into what’s working, what’s not working and what the need of other people like you. The other piece of insight is tied to the realization that because Facebook back in the days was this new and upcoming ad channel that was trying to compete with Google.

They had stolen Sheryl Sandberg from Google to go and replicate the Google Ad infrastructure inside Facebook. The special insight that we had was realizing that there was a mid-market study that other companies were not necessarily paying attention to. If you looked at the Google history, you could clearly see that they started from enterprise big brand type of spenders and then bought down-market to the mid-market, and then smaller guy type of them. You can imagine that Facebook would follow a similar path. If you cared more or were particularly intrigued and interested in that mid-market space if you squinted, you could see that these people or this new wave of advertisers would be having money to spend but not much knowledge in how to do it. There was the opportunity in enabling them to tell that story through content, which is what we did and how we ended up winning the market and being a big household name when it comes to Facebook advertising.

Having that key insight was very smart of you. You say your cofounder, Massimo, who had that insight into, “As our customers, we are running into the same challenge that other advertising partners and customers would have.” The takeaway for me from all of this is where the big company like Facebook and Google are going after the bigger brands and the bigger budgets but then there’s a runway of, which is exactly what you tapped into, “No one is addressing the mid-market or even the SMBs or how do you tap into that pocket.” It’s a great learning experience for me as firsthand from all the experiences or insights that you have there. Switching gears over here. You did touch upon this, Armando, which is if you have to say the 2 to 3 paradigms into your common thread across the startups that you have gravitated towards from an investor or even startup that you founded. What are the common threads, if you will?

In terms of things that are different/have changed.

If you give an example of what you mentioned about AdEspresso.

There are a bunch of things that are significantly different. In particular, when it comes to go-to-market, the most fascinating thing that I observed over and over again is that if you think about now versus 10 to 15 years ago, it’s interesting because we tend not to think about it, but the internet is more than 25 years old, which is nothing if you think about it. We are the last generation that is going to remember a time before the internet. You think about the new generation, it’s like, “They thought it was there already. It was already a thing.” There was no ICQ or like that weird stuff. If you think about that and years ago, there was a significantly smaller number of people online.

An order of magnitude. If not, almost two. It was significantly more expensive to reach those people and was inefficient in building a business relationship that would lead to the transaction. Those are all things that are fundamentally different days compared to then. There is an order of magnitude and more people online that it’s significantly more efficient and faster to be able to establish that relationship with them and to turn that into business or relationship to get to the point where you execute the transaction. It costs almost nothing. It’s not nothing but comparably, it’s cheaper, faster and efficient to be relevant. I thought whenever there is an order of magnitude more of simplicity, there is also another magnitude more of competition.

It’s easier but also more crowded. It’s easier to reach them out, but how it stands out. It’s a different game in that sense because it’s not about being efficient as possible in reaching those customers out. It’s how do you stand out compared to everyone else who’s trying to do the same thing and reaching them out with the same level of efficiency. It comes down to that content adamant that I was mentioning before like, “What’s your story? What’s your brand? What’s your unfair advantage in terms of better perception or telling the story that’s closer to the segment or the cohort or the vertical of customers you’re trying to attract?” In that sense, going back to the other element around markets being the biggest ever, one of the things that are very interesting to me is that years ago, you will have niches of verticals of needs and problems that would be very small because many people are having those problems.

Brand has power. It talks about the story and the story is everything to people. Click To Tweet

Now, those issues are tens, if not hundreds of millions of people or companies. You see these companies that are very super niche, very specific, and deep in how they define themselves and speak to an Ideal Customer Profile, an ICP. How they define that, they are specific in that as well. Because those niches are as big as ever, they end up being companies that are $10 million, $15 million, $20 million, $25 million, $30 million, $50 million companies a year. That is the single most fascinating thing that I can think of when it comes to go-to-market. The companies that end up winning now are better at this new game of standing out and how you do that in this new playground where everyone can be efficient as everyone else is a new compelling problem to address.

You have few thoughts and few comments over there but starting off on a lighter note, you mentioned something very relevant. By the way, we are disclosing our ages over here which I have no qualms around is we are the last generation and after our generation, everyone we’re born with the internet. On that, I took my kid to one of the safest local cities over here. He went and looked at one of the vending machines. By default, he was touching the screen and expecting that screen to be a touch screen. I thought that was funny and that’s something the audience would love. A couple of points, you mentioned about companies that are vertical and niche-focused and that itself is a very large space.

I’m sure there are several but one of the names that come to my mind is Veeva. The CRM for the healthcare industry. You’ve got big elephant or their Salesforce. When you talk about CRM, it’s Salesforce, but then you got the other players who are also making it big, which is Veeva and Surado. Your point is well-taken and well-noted which is you can pick a niche or niches depending on which part of the geography you’re from and you can create a big play for yourself because that’s a big market. Another example that comes to my mind and I was at the startup earlier in my career before I started my company. I was at Greenbits. Bits are essentially doing point of sale and compliance software for the legal cannabis industry.

It does a huge and growing market. You talked about point of sale, you’ve got Square and several others, but then you focus on the cannabis industry, you’ve got all these big players. Small players but aiming to be big. One other point that caught my attention in your narrative is the emphasis that you invest a lot in the story and the brand from the very early days of your startup. Not many founders do that. That’s a flaw in my mind.

We live in a world that’s extremely DR-oriented. You can measure anything and everything. It’s a very analytical and direct response. You put $1, you want to get $1.2 out. That’s good. The fact that you can do that is mind-blowing. If you think about it, it was never the case before. That as a consequence, thus take away a little bit of attention from this idea of a brand and brands have power. Brands talk about affinity and stories are everything to people. You use brands up there like Nike, Apple and Disney, there’s nothing more powerful than that.

This is where you are having that go-to-market DNA within yourself, that’s given you an unfair advantage compared to other founders who typically come from a very technical background. They don’t think about brand and storytelling from day one. Hats off to you and your team for investing in that from day one. That’s a good segue into what you’re doing with your latest startup. Do you want to share some story and background around that as well as how you’re investing in the brand? I looked at your website, it’s amazing. I can imagine those visuals and associate them with your company. I let you share those details with our audience.

The name of the company is Breadcrumbs. It’s a simple idea. We talked about this idea of efficiency and efficiency growth. The idea of marketing being a core of every company is a growth engine. The reality is that’s necessary but that’s not enough particularly in a world where you can attract a lot of attention. At some point, the vast majority of the companies that can do a good enough job will attract some attention. One of the elements that are always forgotten or thought about too late, or not truly understood. As a consequence, you dump a lot of resources and a lot of time to get an okay result if not crappy result is this idea of the scoring and fortification or how an MQL or Marketing Qualified Lead, becomes a high performing SQL or Sales Qualified Lead.

If you think about this element of the intersection between marketing and sales as functions within organizations, it speaks about lead scoring. The way this happens from a mechanical perspective is lead scoring. Lead scoring is an unsatisfying concept. It’s a simple idea but poorly implemented. You get a lead, you score this lead, you assign a body to this lead based on a series of criteria like how big is the company, how much revenue and funding, how many customers, geography and which industry. You then pass it over to your CRM and you put in the date. Every operator knows that following up on promising lead tomorrow versus three weeks from now is fundamentally different. The time element, there is a decay of that value. There is a shelf life that’s not yet accounted for in this system.

B2B 6 | Lead Scoring
Lead Scoring: In this environment where everyone can be as efficient as everyone else in reaching the market, the companies that end up winning are the ones who are better at standing out.

 

What we believe is that it should be a more sophisticated way of thinking, talking, measuring and acting on these leads more programmatically at scale, more dynamically including this time element. Not only the time element, but there is also conversation around lead scoring being most of the time a BlackBox. No one ever in the history of the human species ever trusted the BlackBox. It’s your company, you want to know what is going on. You want to see what’s inside. That’s another fundamental flaw of how lead scoring has been thought off so far. What we are doing with Breadcrumbs is we want to give people more freedom and a simple easy-to-use interface to create and design their own lead scoring model in minutes instead of weeks of work. It’s not only faster but it’s also better because it does take into account that timeliness element that no one has considered. That’s the idea around it. We’re building a product. Hopefully, it’s going to be useful for other people out there.

I personally have seen having run marketing teams in different companies earlier. I’ve seen initially early on, there’s no lead scoring. There’s this constant fight between marketing and sales. The quality of leads you pass, you are just meeting a quota, but I’m not meeting my sales quota. That constant tussle is there. If you go to the next level, which is, “Now we start assigning a score to each lead, it’s more of a personal opinion and bias versus taking the data out there.”

The relationship between marketing and sales is flawed all the way through from the very early stage to the very later stage. If you think about it at the core, that type of antagonism is due to the fact that marketing measures in a very quantitative way. How many leads are you getting on a monthly basis and sales measures leads in a very qualitative way? How many of them are closing and how fast? There’s a fundamental disconnect between those two things. There is a need for something that translates one language into the other from your marketing stack to your sales stack or from your marketing teams to your sales team.

There is more general awareness and acknowledgment that’s happening. At least, I’m seeing based on the marketing and sales leaders I’m speaking with which they do realize the friction and they’re consciously looking to address that now. If I hear or speak with any of the VP marketing or even the CMOs, back in the days, it was the top KPIs or MQL are traffic coming in. Now, there’s a lot of awareness and alignment on, “That’s good to have metric but the real metric is how many leads am I giving for the sales to close this quarter or this year or the next quarter?” There’s that element which is marketing celebrating that they hit their MQL quota versus marketing is celebrating their sales hits, their number for the quarter. That shift is happening now. I’m seeing that.

Everything is crazy if you think about it. We can talk about this however you want. Now, information is still very siloed. If someone visits the pricing page of your website five times, we don’t know about that. If someone starts and is very engaged with the product, someone else from the same company signs up for a trial, and someone else visited your pricing page, you want to know about that. There’s traffic around not only timeliness but also frequency, recency and the costing of that activity in time. There are activities happening very close to each other disproportionality amplifies value. That also is not captured or represented in any way.

People talk about intent to purchase and all of these are key attributes. Unfortunately, there’s not a lot of technology out there to build and incur with that intent. The aspect that you are mentioning, I’m eager to see how it takes off. I’m cheering for you guys. This is a core problem in the go-to-market space and I’m looking forward to the success story of that.

It’s mind-blowing to me thinking about this. One of the reasons why we started Breadcrumbs in the first place is that even the most sophisticated people, the ones that do it like it should be done, spend six months and several hundreds of thousands of dollars to implement iteration one. Because it’s so time-consuming and energy-intensive, they never touch it again. Meanwhile, their social organization or their marketing organization changes. Their strategic priorities as a company and pricing structure change. The idea of having something that’s significantly more flexible and not only you can implement it in minutes instead of weeks, but you can iterate on it as quickly.

It’s extremely powerful. The most sophisticated people not only have one lead scoring model, but they have multiple ones. They have one for acquisition, attention, upselling or sale. Not only they have one for each and every one of these things, but they test multiple models in parallel to see which one performs the best based on which assumption. The more you can enable that, the more you can enable companies to be successful in accelerating their growth trajectory because if you can identify programmatically higher-value opportunities for you as a company and boost them up to the sales team, everyone’s going to benefit from that.

Based on what you’re saying here, there’s some sense of a machine learning aspect that’s going on. The machine has to do the job which people are either not capable of doing or it’s time-consuming that they ignore to do that.

The most sophisticated operators think about growth as something that can be designed through a combination of strategy and tactics. Click To Tweet

I saw a counter-intuitive thought there. If you talk with a lot of people in the industry, they will speak about ML for a long time and they will use this in their pitch as well. We think that machine learning is valuable. We also think it shouldn’t be the whole story, meaning that what machine learning can do is essentially digest a whole lot of data and find others there and surface things that will be hard to see or hard to compute otherwise. That’s by and large. What that doesn’t include in the conversation is what about the strategic direction that the company wants to go after for the next 6 to 18 months. Even if you are an enterprise company or your customers have been $50,000 ACB but either shape wants to go downmarket. Optimizing for and prioritizing $25,000 to $15,000 ACB, machine learning is not going to know that. How do you balance those two things out?

Data model and data modeling is a vast topic in itself. At some point in time, I would love to get a data scientist to talk about the impact in the go-to-market but that’s a topic for a different conversation though. I’m sure you’re spending a lot of time there but in the next 6, 12, 18 months, what do you see are the key go-to-market challenges are broadly the challenges for Breadcrumbs.io?

For us specifically, but you can generalize this to every company. Going back to the two things that I mentioned. On one side, how do you stand out in a world where everyone can reach anyone very effectively and how do you do it better. It’s a very interesting question. We can talk about tactics there.

The story, brand, colors, and visuals that you have on the website is pretty cool. It’s one part you need to scale it out and see everything.

I appreciate that. I love it. The other thing is how do you tie things back to growth? You can do a great job at all levels and then struggle anyway to generate revenue and/or to grow. One of the fundamental ideas that I’ve been thinking about for a lot and partially led to this Breadcrumbs initiative or, in general, it’s a very powerful idea is engineering growth. Meaning when the word engineering usually refers to technology and product, how you build stuff and that’s usually coding. If I think back to AdEspresso experience or the companies I’ve been involved with, what I see is the most sophisticated operators. Thinking about growth in terms of some things that you can design and the way you do that is a combination of strategy and tactic. Tactic for the short-term and strategy for the long-term.

You always have these three timeframes in front and center, short-term stuff, mid-term stuff and long-term stuff. If you think back to the most successful companies out there like Facebook, Google, Uber or Slack, you look at their growth trajectories, you notice, most of the time, inflection points. It’s breaking points where they were going in one direction and at some point, they tipped up and afterward, they’re going in another direction. What happens there? That was sometimes happen by chance. Other times, it was intentional. It was researched and experimented on for a while and implemented the right way or they had been implementing this for six months and waited for the right moment to deploy that. If there was something that was interesting to you at some point, but I think the most sophisticated operators or go-to-market growth revenue people out there, they most of the time, think about growth in this sense.

They’re the usual set of tactics, milestones and goals that you need to hit when you are in a very early-stage company. That’s a playbook that you’ve done over and over. That’s the least of the challenges for you and the team and then there’s the market aspect. You can control the market only so much. There’s not much but you are investing in the story, the brand and your milestones that you want to hit over the next 6, 12, 18 months. It’s a good initiative there. If you were to look at and share some of your investment areas if you were to hire 2 or 3 hires in the next 6 to 12 months, who would they be and why?

We’ve been covering the bases. Strengthening the engineering team, marketing, sales and support. Now, we are looking at the sales function. That would be the structure for and at this point with the company, we are about fifteen people involved. With that specific addition, we are going to have our base covered. For the next 3 to 6 months, it’s going to be a function of growth and market validation. Engineering, product and design would be a topic. You can never get enough of those. One thing in operations, we didn’t strengthen too much operations just yet. It’s going to be a topic very soon.

If you are to extrapolate, you’re going to invest in the product side, engineering side, sales of course, and the revenue. In Breadcrumbs.io, who is your target market for the next 6 to 12 months? Is it the small, medium size, similar to what you did with AdEspresso? Is it the enterprises or a mix and why?

B2B 6 | Lead Scoring
Lead Scoring: There is a need of something that translates one language into the other from your marketing stack to your sales stack.

 

It’s mid-markets. One of the other thing behind Breadcrumbs is people or companies think about lead scoring too late in the game, they should start earlier. We want to start early with them and grow with them. We want to help them grow and we want something that’s easy to set up and implement at first. It grows in sophistication as the complexity and maturity of the company grow as well. It was more of that growth, but we do want to start simple, easy early. In that sense, the companies we are optimizing or focusing on for now are generating $1 million to $5 million or $2 million to $10 million types of annual revenue. They have a marketing engine that works that’s generating a few hundred leads per month or more. They have a system motion, so they have an initial sales spot off and a couple of people that they hire. It’s the initial adversarial relationship, marketing and sales and things that are not picking up yet.

At least, from a hypothesis point of view and even from a validation point of view, that’s a good sweet spot to start off. That’s where the most pain is felt initially. Coming back to my Greenbits days where I was the head of marketing there, I see that we were in the single-digit like the $4 million or $5 million range, and that’s where the whole marketing and sales friction as the CEO and the CROs say, “Get me the leads.”

That’s the sweet spot when this topic becomes when we get paid.

We are heading towards the closing. I know you need to get back to other more important things for Breadcrumbs.io. One final question for you is if you were to do a shout out to 2 to 3 professionals or peers in the industry who are doing go-to-market very well, who would you look up to for inspiration, advice or brainstorming?

The company that I very much admire, which is HubSpot. They’re doing an extremely good job at go-to-market. They have been for a long time now.

Can you speak names there?

No, but they are doing a great job. For younger companies, no specific name comes to mind. The golden standard for me is absolute when it comes to go-to-market both because they have a lot of the elements that do contribute to a healthy growth trajectory. You can see that in their revenue. They have an inbound first. Atlassian is another one. They have an inbound first type of go-to-market like a bottom-up. You should list up very cheap and they end up being very expensive. They have a cross-sell, upsell type of mechanics that they built in the product. They not only have self-service of great paths but also commercial enterprise ones. It’s the most sophisticated go-to-market that I can think of right now.

I can see where your inspiration for your go-to-market is coming from. It’s the bottom-up approach. It’s clearly there. It’s a wonderful conversation, Armando. Thank you for your time and good luck to the Breadcrumbs team and to you as well. I’m looking forward and I’ll be sharing from the side.

Thank you so much and best of luck to you too.

Thanks.

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About Armando Biondi

B2B 6 | Lead ScoringAs part of Hootsuite’s Senior Leadership, he oversees all things Ads from a GTM/strategy perspective. He also oversees all things Inbound on a series of properties generating more than 2M unique visits monthly, as well as other high-potential special projects.

-Co-founder @BreadcrumbsIO (previously Co-founder & COO @AdEspresso, acquired by @Hootsuite). Angel investor in 150+ startups. Board Member @MailUpGroup.

He also served as a Mentor/Advisor for more than 15 startups and currently serve as an Independent Board Member. He likes to pay forward and have fun doing some angel investing (75+ startups so far). He love to learn new things, he accepts to suck until he become good, and doesn’t stop until I’m awesome.