Are we in recovery?
As some companies are starting to see an uptick in business, they are at a crucial decision point: double down on spending to bring in more revenue? Or play it more cautiously? Either way, RevOps leaders are bound to be at the center of this decision.
In a recent Fireside Chat, host Tyler Simons, head of customer success at Fullcast, talked with Jeff Ignacio, Head of GTM Operations and Growth at Regrow Ag, to learn more about his insights on what it takes to approach this critical decision.
Jeff Ignacio works at Regrow AG, a climate-focused agricultural technology company. His role is leader of go-to-market operations and growth, focusing on enablement, process improvement, advisory, and reporting. Before that, he spent 10 years in revenue operations at VC-backed growth startups.
Here are some key takeaways from that interview.
Tyler Simons: Today, we’ll discuss the economic recovery and planning for 2024. What trends have you noticed in the economy and the industry?
Jeff Ignacio: In 2020, COVID impacted supply chains, and inflation has been on the rise with the Fed increasing interest rates. Businesses started cutting costs, leading to increased workloads for those who remained. Customers reduced spending, and companies faced burnout and unpreparedness.
Trends include longer sales cycles, lower win rates, and more losses due to no decision or no budget. Businesses are realizing that the problems they need to solve have magnified.
TS: What questions should companies ask during their planning for 2024, especially in this uncertain environment?
JI: Companies should start by looking at their Total Addressable Market (TAM) and Ideal Customer Profile (ICP). Consider which industries are showing growth potential, even if they had previously declined.
Internally, focus on rewarding the team members who stuck it out, whether through territory changes, promotions, or skill development.
Resource allocation should align with your Go-to-Market strategy and personas. Expansion should be a central theme, considering cross-selling and upselling opportunities, and it’s essential to align your unit economics for growth.
TS: How should companies react to the current economic environment when planning for the future?
JI: Start by reflecting on the previous year’s performance across the customer lifecycle. Identify areas of strength and weakness and develop hypotheses for improvement. Consider third-party benchmarks to assess your performance. For companies with multiple products, analyze which products are complementary and strategize accordingly. Tighten operations, but don’t expect a massive increase in headcount.
TS: Is it a good idea to plan quarter by quarter, given the uncertainty?
JI: While some large companies may plan quarter by quarter, it’s challenging for most due to the time required for official approvals. Instead, consider replanning when needed, driven by data and financial goals. You can make internal adjustments more easily to adapt to changing circumstances.
TS: What should companies consider when looking at upselling, expansion, and renewals?
JI: The strength of your product or service is paramount for successful upselling and expansion. Ensure you have a product that customers want. Develop a cross-sell strategy if you have multiple products and set targets based on attach rates. Consider splitting compensation plans to incentivize cross-selling efforts.
TS: Should companies triple their headcount for the next year?
JI: It’s unlikely that companies will triple headcount, especially in the current fundraising environment. Hiring should align with growth categories and market opportunities. Some sectors may see growth, but massive headcount increases are rare.
TS: What’s the one thing companies should focus on to feel prepared for the next year?
JI: Achieve alignment between your internal go-to-market team and external board members. If both parties agree on the plan, you’ll have confidence in your strategy for the next year.
For the full interview, click here.
Want to learn more about ways Fullcast can streamline your GTM? Book a demo here.
