20 min
Are revenue teams the new fad? - Kharisma Moraski, Head of Sales at ServiceRocket _ Ampliz B2B Binge Ampliz Podcast
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- Marketing
• Evolution of sales
If you look back 18 or 20 years back, there's always been this fundamental disconnect between marketing and sales and other parts of the organizations. Everything was much siloed. Everything was gold, very differently. Marketing was gold on brand, PR notices, and pipeline generation. When you look at sales and sales is gold on closed business, not necessarily conversion of leads but not in the way the marketing team was.
• The dichotomy in the organization
This dichotomy has been continuing for decades and no questions were asked on this. This is because of the long journey of the customers or the life cycle of the customers. For example, a customer would buy software for a lifetime. Once they made the software purchase, they own those licenses, then every three, five, seven years, they would purchase maintenance renewals. They never had to repurchase the software unless it got an end of life or something of that nature. So by default, what you had was this lifetime customer value of five-plus years. So marketing was only focused on new logos. Now no one focused on this long term service because they were going to be around for five-plus years. So, it was way more expensive to try to switch any time after that first initial purchase than it ever was. Just to wait for the maintenance renewals to come and just renew the maintenance. So you think five, five-year lifetime customer value, at a minimum, you have this very sustainable business and very low term.
• Alignment in the organization
These days, customers have lots of options. They are now paying monthly or annually. So switching the vendor is pretty easy. If customers are not satisfied with the service, the move to another vendor. That is when you see marketing and sales have to react to this. They no longer are fractured as last time. So these teams suddenly had to work much more closely together. But the reality is we now need customers to adopt the solution. We had to take really good care of them. And not only did we now need to be focused on new logo acquisition, but we needed to also understand how we could maximize the existing revenue and every single account that we encountered.
• Evolution of sales
If you look back 18 or 20 years back, there's always been this fundamental disconnect between marketing and sales and other parts of the organizations. Everything was much siloed. Everything was gold, very differently. Marketing was gold on brand, PR notices, and pipeline generation. When you look at sales and sales is gold on closed business, not necessarily conversion of leads but not in the way the marketing team was.
• The dichotomy in the organization
This dichotomy has been continuing for decades and no questions were asked on this. This is because of the long journey of the customers or the life cycle of the customers. For example, a customer would buy software for a lifetime. Once they made the software purchase, they own those licenses, then every three, five, seven years, they would purchase maintenance renewals. They never had to repurchase the software unless it got an end of life or something of that nature. So by default, what you had was this lifetime customer value of five-plus years. So marketing was only focused on new logos. Now no one focused on this long term service because they were going to be around for five-plus years. So, it was way more expensive to try to switch any time after that first initial purchase than it ever was. Just to wait for the maintenance renewals to come and just renew the maintenance. So you think five, five-year lifetime customer value, at a minimum, you have this very sustainable business and very low term.
• Alignment in the organization
These days, customers have lots of options. They are now paying monthly or annually. So switching the vendor is pretty easy. If customers are not satisfied with the service, the move to another vendor. That is when you see marketing and sales have to react to this. They no longer are fractured as last time. So these teams suddenly had to work much more closely together. But the reality is we now need customers to adopt the solution. We had to take really good care of them. And not only did we now need to be focused on new logo acquisition, but we needed to also understand how we could maximize the existing revenue and every single account that we encountered.
20 min