Building a Revenue Factory - Jacco van der Kooij, Founder, Winning By Design

Kimberly Conklin

In 2022, the era of "growth at all costs" ended, ushering in a new phase: the era of the Revenue Factory. Jacco Van Der Kooij, founder of Winning By Design, highlighted this shift in his keynote, emphasizing the need for cost-efficient growth. Van Der Kooij explained how SaaS GTM teams can transform into revenue factories, achieving sustainable and durable growth. 

The Factory Model 

Van Der Kooij drew parallels between factories and recurring revenue businesses. Factories aim to increase output, minimize costs, and deliver high-quality products. Similarly, SaaS GTM teams strive to boost revenue, reduce selling costs, and provide excellent customer experience. Just as factories use different production lines to create a variety of products, SaaS businesses deploy various GTM motions to diversify their revenue streams. 

Growth at All Costs is Over 

Historically, growth was driven by a "growth at all costs" approach. However, this is no longer feasible. Today's GTM teams need to focus on sustainable and durable growth. Over the past 12 quarters, growth rates have shrunk from 35% to 18%, while acquisition costs have skyrocketed. Returning to normalcy will take time, indicating a fundamental shift in the business landscape. 

Cloud Performance 

Post-COVID, cloud performance has been stellar in terms of server and software functionality. However, SaaS companies have seen a decline in value. The issue isn't the cloud itself, but rather the GTM strategies that emphasise growth at any cost. 

The Impact Economy 

In today's economy, customers are buying experiences rather than just products. This shift is driven by rational impact (measurable benefits like cost reduction or increased revenue) and emotional impact (intangible benefits like ease of use or satisfaction). Recurring impact leads to recurring revenue. For instance, while for one household Disney+ might be dropped once the kids leave home, Netflix provides ongoing impact and retains its subscribers. 

From Funnel to Bowtie 

Traditional funnels stop at revenue generation, but recurring revenue requires extending the funnel into a bowtie model, emphasising onboarding, retention, and expansion. This model ensures that impact is delivered consistently across the customer lifecycle, requiring a unified effort from the entire team. 

The GTM Approach 

A GTM strategy matching the bowtie model incorporates volume metrics and conversion rates, spanning from prospect to MQA to opportunity to ARR and LTV. The left side of the bowtie focuses on speed (acquiring customers quickly), while the right side focuses on duration (retaining customers). Different selling activities are needed on each side, highlighting the importance of specialised sales roles. 

Production Lines and GTM Motions 

GTM motions vary by touch level and cost, ranging from no touch (self-serve, community moderation) to dedicated touch (network, named accounts, account plans). The cost increases with each touch level. Outbound and high-end SaaS companies are struggling, while inbound methods are becoming more prevalent, even for high-value deals. 

Adapting to Trends 

Traditional outbound strategies are becoming less effective. Self-service can now cover transactions up to $15,000, and ABM is relevant for multi-million-dollar deals. The focus has shifted to targeting named accounts and using AI to deliver personalised experiences, reducing waste and maximising investment. 

Conclusion 

Transforming a GTM team into a revenue factory is essential for achieving sustainable and durable growth in the modern business landscape. By adopting a comprehensive GTM approach that covers both sides of the bowtie, businesses can ensure they are delivering recurring impact and maximising customer retention.  

The key lies in targeting the right customers, leveraging AI and predictive analytics, and deploying the appropriate GTM motions to create personalised, impactful experiences. This strategy not only aligns with the goals of cost-efficient growth but also fosters a high-quality customer experience, setting the stage for long-term success. 

By focusing on the customers where the most significant impact can be made, businesses can navigate the new era of the Revenue Factory with confidence and precision.