Whether acknowledged or not, “Sales Eats First” has long been a guiding principle in many B2B organizations. But I’m here to make a case for a new slogan in B2B… “Revenue Eats First.”
Before you write this off, let’s dive into what I mean.
The Traditional View of “Sales Eats First”
“Sales Eats First” is based on the idea that sales are the most important piece of the revenue-generating puzzle and should, therefore, be the main priority. This results in leaders prioritizing resource allocation and decision-making for sales departments, especially in the short term.
While this approach aims to drive revenue, it often overlooks the benefits of a more collaborative, integrated approach. In fact, it almost always leads to long-term challenges such as friction between departments, decreased innovation, and unpredictable pipelines.
The Cons of a “Sales Eat First” Approach
Limited Impact of Sales on Buyers Before the Purchasing Stage
In the modern B2B landscape, buyers are more informed than ever, conducting extensive research before engaging with sales reps. According to a study by Forrester, 74% of B2B buyers conduct more than half of their research online before making a purchase decision. This means that the impact of sales on the initial stages of the buying journey is limited, and other departments, like marketing, may play a more crucial role in influencing buyers early on.
Friction Between Departments
Prioritizing sales over other departments often creates friction and a lack of cohesion within the organization. When sales are consistently given more resources and attention, it can lead to resentment and a feeling of undervaluation among marketing, customer service, and product development teams. This friction can hinder collaboration and reduce overall efficiency.
If the marketing team feels their efforts are undervalued and underfunded compared to sales, they may be less motivated to work collaboratively, leading to disjointed strategies and missed opportunities.
Decreased Innovation
A “Sales Eats First” mentality can stifle innovation by diverting resources from research and development (R&D) and product improvement. Innovation often requires significant investment in time and resources, and when these are predominantly funneled toward sales, the company’s ability to develop new products or improve existing ones may suffer.
As organizations shift upmarket, this de-prioritization in innovation can become a significant setback that many organizations may never recover from.
“Revenue Eat First” Approach to GTM
How we recognize revenue is shifting along with the market. So, it’s essential to ensure that those sitting at the table making revenue decisions represent the entire go-to-market motion.
According to SiriusDecisions, organizations that adopt this collaborative approach, especially from the top down, achieve 24% faster three-year revenue growth and 27% faster three-year profit growth than their counterparts.
Here’s why this revenue-first approach works.
The Benefits of a “Revenue Eats First” Collaborative Approach
Improved Communication and Alignment
When sales, marketing, and other departments work together, communication improves, leading to a better alignment of goals and strategies. This alignment ensures that all teams work towards the same revenue objectives, reducing redundancy and increasing ownership and efficiency.
Enhanced Customer Experience
Collaboration between departments goes beyond the impact on net new revenue and ensures a seamless customer journey from initial contact through post-sale support. When all teams are on the same page, customers receive consistent messaging and a more cohesive experience.
That’s why B2B organizations with an aligned go-to-market team reported a 36% increase in customer retention (SiriusDecisions). For SaaS companies, that’s a stat you cannot ignore in this current climate.
Increased Innovation
Encouraging collaboration fosters a culture of innovation, as diverse teams bring different perspectives and ideas to the table. This cross-pollination of ideas can lead to the development of new products, services, and processes that drive growth. And ensure you have the resources to support the development of the product along with the pipeline.
Practical Tips for Fostering Collaboration
Create Cross-Functional Teams
Establishing cross-functional teams for specific projects or initiatives can break down silos and promote collaboration. These teams should include members from sales, marketing, customer service, and product development to ensure diverse perspectives.
Implement Collaborative Tools
Utilize collaboration tools such as project management software, shared documents, and communication platforms to facilitate real-time collaboration and information sharing.
Encourage Regular Interdepartmental Meetings
Regular department meetings help maintain alignment, address issues promptly, and encourage ongoing collaboration. These meetings should share updates, discuss challenges, and brainstorm solutions.
Foster a Culture of Mutual Respect and Shared Goals
Building a culture that values mutual respect and shared goals is crucial for successful collaboration. Encourage team members to understand and appreciate the contributions of other departments.
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The Future of GTM Teams
While “Sales Eats First” might have driven revenue in the past, a more collaborative approach aligned to revenue is essential for sustainable growth in today’s B2B environment. Companies can improve communication, enhance customer experiences, and drive innovation by fostering collaboration across all departments. Emphasizing teamwork and shared goals leads to better results and creates a more resilient and adaptive organization.
These strategies will help your company transition from a sales-first mentality to a more balanced, revenue-first approach that drives long-term success.
If you’re ready to move forward with your go-to-market strategy, contact our team of GTM experts today.
