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New GTM Benchmark: 56% of companies missed revenue goals
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This week’s research note includes:
GTM Research: the latest from our GTM Benchmark
GTM Problem of the Week: Getting Sales, Marketing and CS on the same page
GTM Research: Poor pipeline performance predicts a soft 2024 if nothing changes
A weekly deep-dive into new GTM research and insights
Twice a year, we survey GTM leaders about a host of topics for our GTM Benchmark Report.
The upshot: all of the metrics we track (marketing pipeline, sales velocity, and revenue attainment) are all related.
If marketing pipeline and sales velocity are down, it’s a good bet that revenue will be down 6 months later.
That means, you need to invest in marketing and sales NOW to achieve your revenue goals. This is NOT the time to take your foot off the gas. Our research indicates that companies that cut GTM funding in 2022 suffered from poor pipelines and reduced revenue in 2023, a trend that will continue into 2024 if not addressed.
Our findings suggest that as companies report on Q1 in the coming weeks, revenue will be flat to slightly below predictions.
Q2 should be soft but we might start to see some moderate increases.
Companies with longer sales cycles seem to be in trouble for Q3 and Q4 as well - if your pipeline and velocity is slow now, it will impact future revenue.
Overall: 56% Fell Short of Revenue Goals
Back in July 2023, 63% of companies felt that things were on track to hit revenue targets for the year, but the leading indicators of a weak pipeline and stalled deal cycles should have given them pause for confidence.
In reality, 56% of companies ended the year worse than expected.
Marketing Pipeline: 57% of companies missed hitting their pipeline targets
Enterprise companies struggled the most with predicting pipeline: 64% had lower-than-expected pipeline (compared to 54% of mid-market companies and 56% of SMB companies). Only 13% of enterprise companies hit their target compared to 38% the year before. The volatility in the market is making it harder for everyone to predict pipelines accurately.
Cuts in marketing mean a smaller pipeline: This should be obvious, but companies who made cuts to marketing budgets can’t expect the same pipeline and need to adjust accordingly. Marketers, bring this information to your CFOs! The data shows that if you cut marketing, your pipeline suffers.
Focus on Total Relevant Market (TRM): You’re better off building a pipeline that is two-to-three times your revenue goal but filled with high quality buyers that will close at a higher rate. Move away from the old way of having a 5x pipeline filled with junk. 2024 is all about efficient growth, requiring less marketing spend.
Sales Velocity: 72% of companies are still experiencing longer sales cycles
Focus on ROI: CFOs don’t have time to spend brain power on anything that doesn’t help achieve company goals. Articulating clear ROI and time to value in the sales cycle is critical to speeding up the deal and getting it approved.
Focus on relevant buyers: Some larger companies achieved a shorter sales cycle (and more capital efficiency) by increasing focus on their most relevant buyers.
Revenue Attainment: On average, 57% of companies missed their 2023 revenue target
54% of SMBs missed targets: Believe it or not, that’s a bit better than the year before, when 61% missed, but it’s not great. If you missed 2023 revenue goals, you’re not alone!
61% of Mid-Market companies missed revenue goals: They were the group that was hit the hardest this year. Last year only 43% of MM companies missed revenue goals.
59% of Enterprise companies missed revenue: Last year, only 26% of enterprises missed revenue. The enterprise companies were perhaps slightly better insulated from volatility in 2022, but it’s hitting them now.
Our Winter 2024 Benchmark has other topics we’ll be exploring in future weeks:
Layoffs and cutbacks are slowing down
60% of companies expect to expand their partner team in 2024
Unlocking customer expansion and growth can blunt the impact of a decrease in new-logo revenue
Read the full report for all the latest research, and feel free to use our data and slides in presentations to your board to show industry trends.
GTM Problem of the Week
Send us your most pressing GTM problem, and you’ll get a short session with an analyst to answer it!
Dear GTM Partners,
I attended your roadshow, and I saw the 15 GTM problems. I believe our biggest problem is that sales, marketing, and customer success are not aligned.
What is your advice for getting everyone on the same page when it comes to priorities?
CRO in Minneapolis
Dear CRO in Minneapolis,
We have a few thoughts that might help.
Have a clear GTM leader: This is usually the CEO, but could be someone else. We talked a bit about the various roles needed on a GTM team in this research note. A team cannot be aligned without strong leadership.
Read MOVE together and take the MOVE assessment: The Assessment is really helpful for identifying where the core team agrees and disagrees, which can lead to valuable discussion. The discussions around this exercise will go a long way towards making sure everyone is on the same page and figuring out where they aren’t.
Use a common dashboard and incentivize leaders on GTM metrics: The very best way to get everyone rowing in the same direction is to have common metrics. The process of establishing the metrics will help align priorities at the highest level. We have two templates that should help: the GTM Scorecard and the CRO-CMO Scorecard.
Hope that helps, but we are always here to pitch in if you need us! Lack of alignment is one of the most common GTM problems, and we have an established framework for getting everyone on the same page.
Send in your GTM Problem of the Week.
We solve GTM problems like this every single day!
Book a call to learn more about how we can help.
GTM News
GTM news, nuggets, announcements, and what we’re reading
G2 released its list of the best software companies of 2024
HBR article on how AI-driven management and work allocation can undermine creativity
Pavilion’s March Pulse is in line with our benchmark above, reporting February revenue attainment dropped to 49%, down 17% from January. This was mainly due to tough market conditions, longer sales cycles, and increased churn.
GTM Events
A list of upcoming events of interest to GTM professionals
April 11, Salt Lake City, UT: GTM Made Simple Roadshow
April 18, NYC, Pavilion CMO Summit
April 25, 1 p.m. Virtual: Rev Ops Leadership Summit (details coming soon)
May 17: Seattle, GTM Made Simple Roadshow
June 7: Atlanta, GTM Made Simple Roadshow
We’re still riding high from our Austin show and looking forward to seeing our Salt Lake City friends next week!
Hope you are all having a wonderful spring!
Love,
The GTM Partners Team
