We’ve observed the shift in B2B GTM orgs, especially in a climate like right now when every dollar must count. The dust is settling from inflated VC rounds, and money being easy to acquire and burn over the last decade.
But why now all of a sudden is marketing being responsible for contributing to sales ROI instead of just hitting a lead volume quota like always?
Well, if you’re a B2B CMO or Marketing VP, and you’re being asked to contribute more and be more accountable to sales ROI, here’s 4 reasons why:
1. The Board, CEO, and CFO Want Direct ROI From Marketing Investments (Not Blind Trust)
Marketing department spend makes up a significant portion of company revenue. A 2017 Gartner report of CMO’s budgets reported that marketing budgets make up 12% of company revenue, and at that time, was on pace to surpass the IT department in spending. Being that marketing is taking up such a significant portion of revenue, it’s vital that they return that investment.
Now of course 12% marketing budget is for larger enterprises, but for scale-up/growth stage B2B companies, the impact of the marketing investment stings all the same. Marketing should have always been required to show short-term and long-term bets, investments, and impact, but with venture capital being free-flow companies laid back off of accountability for much of the firms major revenue generators.
2. CEOs Are Starting To Realize Marketing MUST Work in Order To Scale
B2B companies for too long have overly relied on sales performance to compensate for underperforming marketing initiatives.
The result…a bloated sales organization.
You as a B2B marketer don’t have the luxury of a natural transition back to balance, but must suffer the burden of an extreme overcorrection of the GTM engine.
3. Buying Behavior Has Caused Sales Processes To Shift
The sales process has shifted, and buyers are more prepared than ever hopping on a sales call. An IDC study reports that 93% of prospects have already educated themselves before requesting to speak with sales.
Marketing’s function now is to improve web copy and transparency so that the prospect has the info needed to make a buying decision, and so sales doesn’t have to double sell to a prospect who’s already familiar with your offering, but focus on better discovery.
4. Companies Are Prioritizing Efficient Growth Over Growth At All Cost Model
Capital is more expensive and challenging to acquire than the previous years. The Board and the CFO have known this style of growth at all cost is not sustainable, but have bent the knee and allowed unprofitable programs and processes to be run.
A 2024 report by Kyril Kotashev of Failory shows that less than 5% of startups grow and scale at a fast enough rate to correct major inefficiencies later in company maturity.
So the solution now is to abandon all programs that don’t show direct ROI, scale back on programs you’re overspending on versus the actual output, and implement programs that are profitable.
So now it makes more sense than ever to shift marketing targets to sales ROI, because the company cannot afford anything less.
If you’re a marketing leader, and you’re being asked to contribute more to revenue, it’s because you have the ability to do so through spending on tech that enables sales and empowers buyers. You have more visibility into how buying behavior is shifting, and how your specific market is evolving. Leverage your budget to drive revenue growth, and be the hero of the GTM Team.
Learn More About Evron
We position B2B marketers like you to source more revenue with less friction. With GTM roles shifting to the right, marketers are challenged with sparking up initiatives that drives sales ROI, and having data to back the results. Current GTM and Demand playbooks don’t help today’s B2B marketers optimize for revenue outcomes. That’s where we come in. We develop roadmaps and campaigns, execute demand and ABM tactics, and design creative assets to fuel revenue results.
Discover more about Evron at evron.io. Join the GTM and Demand convo on our socials: LinkedIn, YouTube, Tik Tok. Listen to The A2B Series Podcast on Spotify, Apple, and YouTube.