Be Long-Term Greedy When it Comes to GTM

Summary

The article ‘Be Long-Term Greedy When it Comes to GTM’ by Jason Mendel and Danel Dayan argues that software companies should focus on logo velocity, which is the speed and frequency of acquiring new customers, rather than deal size, especially in the current uncertain economy. The authors explain the benefits of logo velocity, such as predictability, consistency, customer insights, and long-term growth, and provide three key pointers to execute this strategy: aligning compensation, targeting the right customer profile, and investing in customer success.

Insights

• Logo velocity is a simple but effective strategy to weather the current economic storm and set up software companies for long-term success.
• Logo velocity fosters predictability and consistency in sales by avoiding reliance on one or two large deals each quarter that may face more scrutiny and complexity in procurement.
• Logo velocity helps software companies get more GTM repetition and better customer insights by having more users on the platform who can provide valuable feedback for product improvement.
• Logo velocity builds a strong foundation for long-term growth by seeding future expansion from a larger number of quality customers who fit the ideal customer profile (ICP).
• Logo velocity requires aligning compensation to incentivize sales reps to focus on new logo acquisition rather than deal size, targeting the right customer profile with smaller land ACVs that can drive contract expansion over time, and investing in customer success to ensure fast time-to-value and retention.

Implications

• Software companies that adopt logo velocity as their GTM strategy may have a competitive advantage over those that chase large deals that are harder to close and less predictable in this environment.
• Software companies that prioritize logo velocity may be able to achieve higher growth rates and lower churn rates than those that do not, as they can leverage their larger customer base for expansion and referrals.
• Software companies that implement logo velocity may need to adjust their sales team structure, compensation plan, pricing model, and customer success resources to align with this strategy and optimize its outcomes.