The world of B2B SaaS and tech companies is a fast-paced and ever-evolving space. As a seasoned consultant working with many companies in the industry over the past three years, I have seen the same issues come up time and time again. In this article, I'll be outlining the three key challenges that these companies face and providing actionable solutions for overcoming them.
1. Setting the Wrong Marketing Goals
One of the biggest issues that I see in B2B SaaS and tech companies is that they often set the wrong goals for their marketing or demand generation teams. Companies often focus on metrics such as "leads," MQLs, MQAs, and SQLs, which do not align with actual business results or sales outcomes. This misalignment between marketing and sales is a problem that starts at the executive level and requires a change in mindset to fix.
The solution to this issue is simple: change the goal. Rather than focusing on leads, companies should focus on the HIRO Pipeline (pipeline that Sales wins at > 25%) and revenue. This shift in focus will immediately change the mindset of the marketing team and lead to better results.
2. Not Recognizing the Difference Between Creating Demand and Capturing Demand
Another key issue in B2B SaaS and tech companies is a lack of understanding of the difference between creating demand and capturing demand. Companies often focus their entire strategy and attribution system on capturing demand, leading to a commercial (marketing + sales) budget that is heavily skewed towards capturing demand activities.
Smart companies, however, recognize the importance of measuring both creating and capturing demand separately. This allows them to see the full picture of their demand generation efforts and make informed decisions about where to allocate resources.
3. No Attribution Strategy for Measuring Creating Demand
Finally, many B2B SaaS and tech companies struggle to effectively measure the impact of their demand creation efforts. Programs such as podcasts, content on LinkedIn, and engagement within communities can all help to create demand, but without a proper attribution strategy, these programs often appear to be failing.
To overcome this issue, companies must enhance their attribution system to effectively measure demand creation. This will enable them to put their marketing team in a position to succeed and deliver results. After all, you get what you measure, and your entire revenue strategy will be built around how you measure success.
Change your mindset → Change your metrics → Get better results.
B2B SaaS and tech companies face many challenges, but by overcoming the three key issues outlined in this article, they can unlock their full potential. By changing their goals, recognizing the difference between creating and capturing demand, and enhancing their attribution strategy, these companies can set themselves up for success and drive real business results.
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