Insights

Case Study: A High-Tech Company Redefines Potential and Recharges Sales

Ashish Vazirani

Video Transcript – Ashish Vazirani, Principal


The company was experiencing growth but had started to see that growth slow. They thought there was something wrong with their sales structure but weren't sure where to start.

A common mistake we see in technology companies is the way they define potential, trying to understand who their most important customers are.

When they engaged us and as we diagnosed the problem, what we found is they hadn't segmented their market based on potential. Many of their growth markets were underserved. And many of their low potential markets where over-served. They were treating each segment the same way—the same level of sales resources, the same marketing messages, the same set of solutions. As a result, they weren't achieving their true growth opportunity.

Often times, companies will use the most easily observable identifiable attributes to define potential: company revenue, number of employees, prior year sales. This leads to downstream issues with resource allocation, compensation models, goal setting. Often many of these attributes don't have anything to do with true potential.

The first thing we did was take a segmentation approach that started from the outside in—really taking a different perspective. So while we considered the typical variables of industry and customer size, we also helped the client segment their market based on the likelihood to buy as well as the perceived value of the client solutions.

[For] strategic accounts that valued innovation, we aligned business developers and named account managers to grow those accounts. For regional buyers that were more focused on product value or features, they were aligned to partner channels that provided reach—cost-effective reach.

As a result of this shift in the go-to-market strategy and the routes to market, the client was able to increase their overall pipeline value and volume and increase the size and number of deals with their major accounts.