If we want to grow fast, funnelism must end. In SaaS and AI. That was my opening at the Impact Summit in San Francisco this week.
My talk track:
- We are dependent on Email, SEO and Social, technology from the 90s, in a funnel approach that stems from the late 1800s.
- Meanwhile, autonomous cars are zooming around us, and rockets land backward.
- It's time to see the problems in GTM for what it is: Funnelism.
- Funnelism is the belief that growth is all about acquisition. It is the practice of optimizing for winning new deals at the expense of retention, expansion, and most of all, customer impact.
- It is a system that produces metrics that look like growth while it hollows out the business.
If that sentence stings, it's supposed to.
- Funnels are a linear GTM approach, and they worked for Perpetual Software; its leaders applied the same principles when they took on leadership roles in SaaS.
- We are still using a 25+ year old linear GTM approach and apply it to a growth engine that is powered by compound growth.
- AI applies first-principle thinking.
- When its users achieve impact, they come back, expand, and advocate. And when you deliver more impact, your customers spend more.
- That is growth that creates growth, and at a lower cost. Also known as growth loops.
- Growth loops require you to model the complete customer journey.
- 20 years ago, we evolved the funnel to the waterfall. It gave us MQL and SQL.
- AI introduces us to growth loops with new metrics: k-factor (viral), c-factor (Community), and a-factor (Advocacy).
It depicts customers/users as the engine.
- SaaS historically seen T2D3 as its top-of-class. It's as fast as human-led GTM can go, powered by a generation of SDRs, AEs, and CSMs.
- AI grows much faster. Cursor & Lovable are often quoted, but are out of spec. Cursor has a tight developer community. Lovable has a consumer-like TAM. But Harvey? Harvey is exactly what B2B SaaS is all about.
- Harvey doesn't sell seats. It sells impact. That impact generates advocacy that goes back into the product and the GTM motion in real time. The loop starts to compound using real-time data. It is based on systems, not people. Loops, not funnels.
- Think of this as a shift from Uber to Waymo. From a fleet of drivers to an autonomous system. Same job, different infrastructure. One scales linearly with more drivers. The other scales with the system itself.
In closing: We must treat growth as a system. A system based on compound growth requires a GTM motion built around compound growth (loops). It can be modeled mathematically with inputs, outputs, and constraints.
It enables scenario analysis with a probabilistic outcome (not just forecasting)
Thank all of you, the 180 best-in-class CxOs, who joined the experience called the Impact Summit, a big THANK YOU, on behalf of all of us at WbD.
We appreciate you.
Let's Grow.
My talk track:
- We are dependent on Email, SEO and Social, technology from the 90s, in a funnel approach that stems from the late 1800s.
- Meanwhile, autonomous cars are zooming around us, and rockets land backward.
- It's time to see the problems in GTM for what it is: Funnelism.
- Funnelism is the belief that growth is all about acquisition. It is the practice of optimizing for winning new deals at the expense of retention, expansion, and most of all, customer impact.
- It is a system that produces metrics that look like growth while it hollows out the business.
If that sentence stings, it's supposed to.
- Funnels are a linear GTM approach, and they worked for Perpetual Software; its leaders applied the same principles when they took on leadership roles in SaaS.
- We are still using a 25+ year old linear GTM approach and apply it to a growth engine that is powered by compound growth.
- AI applies first-principle thinking.
- When its users achieve impact, they come back, expand, and advocate. And when you deliver more impact, your customers spend more.
- That is growth that creates growth, and at a lower cost. Also known as growth loops.
- Growth loops require you to model the complete customer journey.
- 20 years ago, we evolved the funnel to the waterfall. It gave us MQL and SQL.
- AI introduces us to growth loops with new metrics: k-factor (viral), c-factor (Community), and a-factor (Advocacy).
It depicts customers/users as the engine.
- SaaS historically seen T2D3 as its top-of-class. It's as fast as human-led GTM can go, powered by a generation of SDRs, AEs, and CSMs.
- AI grows much faster. Cursor & Lovable are often quoted, but are out of spec. Cursor has a tight developer community. Lovable has a consumer-like TAM. But Harvey? Harvey is exactly what B2B SaaS is all about.
- Harvey doesn't sell seats. It sells impact. That impact generates advocacy that goes back into the product and the GTM motion in real time. The loop starts to compound using real-time data. It is based on systems, not people. Loops, not funnels.
- Think of this as a shift from Uber to Waymo. From a fleet of drivers to an autonomous system. Same job, different infrastructure. One scales linearly with more drivers. The other scales with the system itself.
In closing: We must treat growth as a system. A system based on compound growth requires a GTM motion built around compound growth (loops). It can be modeled mathematically with inputs, outputs, and constraints.
It enables scenario analysis with a probabilistic outcome (not just forecasting)
Thank all of you, the 180 best-in-class CxOs, who joined the experience called the Impact Summit, a big THANK YOU, on behalf of all of us at WbD.
We appreciate you.
Let's Grow.