This article is based on Sangram’s brilliant talk at #GTM23 in San Diego. Watch the session in its full glory here!
Be honest – are you struggling to figure out how to show the ROI of your product to your customers? If you are, you’re not alone – 60% of the companies we speak to at GTM Partners struggle to articulate and prove ROI.
Back in 2019, before Go-to-Market (GTM) was cool, Bryan Brown and I wrote a book called MOVE: The 4-question Go-to-Market Framework. As part of our research, we had over 3,000 GTM leaders complete a survey, thanks to which we identified 15 Go-to-Market problems.
More people do that survey almost every month, and not a single one of them has given us a 16th Go-to-Market problem. If you can, let me know and I’ll buy you lunch sometime!
It would be near-impossible to address all 15 problems in one article, so today I'm going to focus on the problem that comes up the most often when we talk to GTM leaders: Your customers love you, but can’t quantify their ROI at renewal time.
So, why is this a problem? Well, if you can’t show the ROI of your product, you’re going to see some pretty serious knock-on effects:
- Low win rates
- Stalled pipeline
- CFOs blocking deals
- Poor customer retention
But that’s not all – a recent study by G2 found that receiving ROI within the first six months is one of the top three considerations for software buyers at companies of all sizes. I’d go a step further than that. I believe your customers want to see ROI in less than three months. In some cases, they want to see ROI as soon as they start using your product.
So, if you can show prospects that they’re going to get a return on their investment quickly, you’re going to close more deals. In short, it’s super important to figure out how to demonstrate ROI for your customers – and fast.