B2B buying signals are generating a lot of buzz right now—and for good reason.
In today's challenging selling environment, conversion rates are dipping, and identifying active buyers has become more critical than ever. Signal vendors offer a promising solution, but the questions remain: Are these signals truly transformative? How can they enhance your go-to-market strategy? And what the heck is a "signal" anyhow?
In this episode, Chris Walker joins me to demystify the concept of buying signals. With his characteristic clarity and candor, Chris sheds light on why he's emphasizing signals as a key driver for efficient growth.
Regular listeners will know Chris as a significant influence on my thinking. I’ve learned a lot from him over the years, making it a true pleasure to finally have him on the show.
Tune in as we cut through the noise and delve into the real impact of B2B buying signals.
Many thanks to the sponsor of this episode - Knak.
If you don't know them (you should), Knak is an amazing email and landing page builder that integrates directly with your marketing automation platform.
You set the brand guidelines and then give your users a building experience that’s slick, modern and beautiful. When they’re done, everything goes to your MAP at the push of a button.
What's more, it supports global teams, approval workflows, and it’s got your integrations. Click the link below to get a special offer just for my listeners.
Chris Walker is a serial entrepreneur and go-to-market thought leader. In 2019 he founded Refine Labs, the leading B2B Digital Marketing and Demand Generation agency, growing it to an 8-figure revenue business with a dominating digital presence in less than 3 years. In 2024 he launched Passetto, a tech-enabled GTM Strategy Consultancy that helps B2B executives identify and execute against their highest priority growth levers with confidence and clarity. Chris is host of B2B Revenue Vitals (formerly State of Demand Gen), one of the top marketing and GTM podcasts.
https://www.linkedin.com/in/chriswalker171/
This November, MOps-Apalooza is back in sunny, Anaheim, California, and it's going to be the marketing ops event of the year, packed with hands-on learning from real practitioners.
This is the only truly community-led tech-agnostic MOPS conference out there. It's got the best speakers, the best networking, the best social events, and maybe even a trip to Disneyland. This isn't your 50,000 person tech company conference. It's an intimate gathering of folks who are in the trenches every day.
Registration is capped at 700 attendees, and tickets are going fast.
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Welcome to RevOps FM, everyone.
2
:It's a special day on the show as we
welcome a go to market thought leader.
3
:That's been a really important
influence on me, Chris Walker.
4
:And for those that aren't familiar,
just over five years ago, Chris
5
:founded an agency called Refine Labs,
which has had just a massive impact
6
:on the B2B marketing landscape.
7
:If you're on LinkedIn, you've definitely
been exposed to Chris's ideas.
8
:Things like dark social, demand
creation, distributing ungated
9
:content, self reported attribution,
are all things that he's either
10
:developed or he's helped to popularize.
11
:And what I really like about Chris's
approach is he doesn't stay boxed
12
:in by, you know, this is the way
we've always done it or You know,
13
:these are the best practices.
14
:He really takes a first principles
approach to whatever subject he's
15
:looking at and challenges the status
quo where things aren't working.
16
:So in 2024, Chris announced a new
venture that he's leading called
17
:Passetto which is a tech enabled GTM
strategy consultancy and a CEO there.
18
:He is continuing to innovate, continuing
to drive that conversation forward.
19
:And we're going to have part of that
conversation here today right now.
20
:So Chris, thank you so
much for being here.
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:Chris Walker: Justin,
appreciate the intro.
22
:Have really enjoyed seeing all
the things that you're doing to
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:pioneer in the space as well.
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:So thank you for that.
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:It's awesome to bounce ideas and share.
26
:So I think this is going to
be an awesome conversation.
27
:I'm looking forward to it.
28
:Justin Norris: I am super excited.
29
:And maybe we can start off just
with where you are right now.
30
:Those that have been watching you,
especially closely, like I have
31
:for the past five years, will know
that, you know, a main focus in your
32
:message has been demand creation,
the importance of getting away from,
33
:you know, this traditional legion or
what you call the MQL hamster wheel.
34
:And then recently, you've really
started to shift your focus.
35
:And you've been talking about signals.
36
:And I'm curious, like,
take us inside your mind.
37
:What's been driving this, this shift?
38
:Yeah.
39
:Chris Walker: Yeah, you know, it's
really interesting because the
40
:first five years of my career, I
spent working at a publicly traded
41
:British holdings company called Hama.
42
:It's one of the only companies
on the London stock exchange.
43
:That's been able to deliver 10 percent
profit growth for more than 20 years, very
44
:disciplined, financial holdings company
that owned 50 different technology and
45
:engineering companies around the globe.
46
:And so I developed a very interesting
sort of mindset around how you
47
:run a business and also like how
a business should operate in terms
48
:of profitability and growth and
managing costs and things like that.
49
:And I've always believed in that.
50
:In 2017, and when I started my
company in:
51
:and all the way through the, that
growth era during the COVID boom.
52
:A lot of my ideas that I were
communicating were around how
53
:do we optimize our go to market?
54
:How do we become more efficient?
55
:How do we get more
customers for less money?
56
:How do we stop wasting a lot of
money on things that don't work?
57
:And during that time, a lot
of my ideas fell on deaf ears.
58
:Because of the funding environment and
B2B tech and sass because of the revenue
59
:multiples happened in companies because of
how investors were valuing and investing
60
:in companies that a lot of the ideas
around profitable, efficient growth
61
:that I've been sharing for more than a
half decade were not received exactly
62
:how I was sharing them to the market.
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:And then given the adjustments that's
happened in the financial markets over
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:the middle of 2022, 2023 and into now.
65
:The timing was really right to be able
to start this new venture, which is
66
:focused on go to market optimization.
67
:How do we deliver a
profitable, efficient growth?
68
:How do we acquire customers and pay
back the cost of acquiring customers
69
:in a reasonable amount of time?
70
:And when we do that, how does that
impact our EBITDA profile and how
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:does that impact our growth profile
and how does it dramatically change
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:the valuation of our company?
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:How does it change the value of
every individual stock options
74
:that work in that company?
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:How does it?
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:Improve how we're able to take care
of customers because of how profitable
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:our company is and how and all of these
different things that stem from running
78
:a business on pure business fundamentals.
79
:And so the timing was really right
for me to move on to this new
80
:venture signals is a big concept
that I've been talking about a lot.
81
:Why?
82
:Because I believe it's the
fastest, most clear way to create.
83
:Immediate fast optimizations
inside of your go to market
84
:by tracking the signal data.
85
:And the reason being is that the
process between having an in market
86
:account that's sending you signals
to closing that net new customer,
87
:that process is the most expensive,
important process inside of a company.
88
:Most B2B companies will spend
35, 40, maybe up to 50 percent of
89
:revenue on that part of the process.
90
:Most of the marketing budget is
spent there, greater than 80%.
91
:Basically all of the SDR budget
is spent there, SDR headcount.
92
:And a majority of the sales
budget, solutions, consultants,
93
:and other, you know, parts of the
net new business process are all
94
:tied up in that one core process.
95
:And when B2B companies choose to use
tools like multi touch attribution
96
:for marketing and they use forecasting
software like Clary and they use some
97
:type of like SDR like data like outreach
data or what sales law provides you
98
:create siloed analytics that give you
a very unclear picture around what's
99
:happening across the entire process
and where the biggest opportunities
100
:are and I think what this is making
way for Is making way for a new role,
101
:a new profession, a new way of thinking
that I call go to market strategy.
102
:Um, I think that some RevOps professionals
will have the capability to get there.
103
:But I think that this skill set is very
different than the traditional RevOps
104
:profile of implementing technology.
105
:And collecting data and building reports.
106
:This is about what
should our core KPIs be?
107
:How do we look back over the past
six quarters, look at our financial
108
:data and decide how we're going
to allocate budget in the future.
109
:How do we look at that budget and say,
wow, we're spending way too much on sales.
110
:We need to reallocate or, Hey,
we're spending way too much on
111
:trying to close customers and we
should spend more on post sale.
112
:And there needs to be someone in the
business that's looking across the
113
:entire go to market and trying to figure
out where are the best ways from a
114
:strategy perspective that I think that
in many cases the RevOps role is falling
115
:short of doing that in B2B companies.
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:Justin Norris: It's almost a bit like
a management consultant profile that
117
:you're describing to me, or at least
I've seen those skill sets, uh, embodied
118
:Chris Walker: in folks I know
that have that background.
119
:For sure, and I think that there's
a major flaw in B2B executive teams,
120
:the main one being that Why do we
have to have a team of 50 people
121
:in order to be a C level executive?
122
:Why aren't there more individual
contributors on the executive team?
123
:It boxes in the type of
person that you can have.
124
:And to be very clear, the people that
are usually the best at developing
125
:strategy are usually not the best to be
managing 50 people or a team of 50 people.
126
:And so I think as companies, we're
doing ourselves a major disservice
127
:by requiring every single C level
executive to manage a large team.
128
:And so the way that I, we've sat at
Passetto is that if companies don't have
129
:that role right now, that we can serve
in that role as a management consultant,
130
:as an external resource and what we
bring to the table are benchmarks across
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:currently 52 very high profile mid
market companies, benchmarks that with
132
:the data, we get their financial data.
133
:We get their CRM data.
134
:We actually analyze it.
135
:We categorize it.
136
:It is the most accurate benchmark database
out there compared to what you would get
137
:at Pavilion where people log in and answer
a survey and don't even validate the data.
138
:So we have the benchmarks, we
have proprietary technology
139
:that's able to isolate signals.
140
:And then we have, uh, key people that
are able, that have the domain expertise
141
:across marketing, sales, outbound sales,
and SDRs to be able to look at the entire
142
:go to market process holistically and
advise companies on how to make the best
143
:decisions across the entire business.
144
:And to me, in some ways, it seems
like having that resource be external
145
:might actually be an advantage to
companies because every single other
146
:department leader is tied up in the
politics of their own department.
147
:And having somebody that's external that
looks at the whole thing, I could, I
148
:believe, could provide a lot of value.
149
:Justin Norris: And just to help us get
everyone on the same page, I want to
150
:get into a little bit of term definition
and at the risk of seeming pedantic,
151
:but I just think it's important.
152
:And I've, I've noticed in listening
to some of the sessions that you have
153
:the sorts of questions that people
have seem to like come back to this.
154
:So maybe we can just come back
to this notion of signal, which
155
:is like everywhere these days.
156
:I don't know if people are riffing
off of you or what, but like
157
:everyone's talking about signals.
158
:What do you mean when you, when you say
159
:Chris Walker: that word?
160
:Yeah.
161
:And so signals are a data point that's
trackable that either a person inside of
162
:an account sends us or an account level
data point that the account sends us.
163
:And there are tons of different signals.
164
:And most of the vendors out there right
now are interested in providing the data
165
:Like here, this person did this, or hey,
this account was on your website, or hey,
166
:this person looked at the pricing page on
this review site, or any type of providing
167
:the data around what people are doing,
which allows people to take action, and
168
:then when you're able to isolate, this
signal happened, and then the sales team,
169
:or our SDR team, or some level of human
capital took action against that signal,
170
:There's a second thing that we need to
do, which is able to track the outcomes
171
:of those signals across the conversion to
a meeting book, conversion to qualified
172
:pipeline, conversion to revenue, and
the current state of how B2B companies
173
:measure it, create a fractured data
layer where they have data strewn across
174
:leads and contacts and opportunities
and accounts and campaign members, And
175
:maybe some other type of custom objects.
176
:And it's very difficult to get a
clear picture of what's happening
177
:across the entire pipeline.
178
:One of the things that I'm, uh, advocating
people think about is to change your
179
:mindset around what pipeline means.
180
:Most companies think that pipeline
starts when an opportunity is created.
181
:And what I'm suggesting people consider
is that pipeline actually starts when
182
:your account sends a signal and your
sales team does something about it.
183
:And so you have this entire part of the
early stage of the process where right now
184
:it's largely not tracked or not tracked
comprehensively, definitely not when
185
:sales is doing independent prospecting.
186
:And the data points around the signals
have massive predictors and massive impact
187
:on sales velocity, conversion rates,
productivity, volume, quota attainment.
188
:And right now, companies aren't able
to connect that data together, so they
189
:don't see these clear, obvious insights
about how to optimize their go to market.
190
:Um, and so you have all these
different signals out there.
191
:A lot of them, sales is not
going to do anything with.
192
:And then, at some point,
sales will take action.
193
:We're considering calling
that the buying signal.
194
:Where then that initial signal, sales
is taking action, and that is tracked
195
:all the way through the journey.
196
:And then if that lead was recycled,
then all of a sudden, if they came back,
197
:the entire process would happen again.
198
:Mm hmm.
199
:And the key insight here is that when
B2B companies currently track this,
200
:the data has incredible survivorship
bias, where if you reach out to the
201
:same account a hundred times and you
lose the first 99 times and you win the
202
:hundredth time, B2B companies only see
the data around the one time that they
203
:won, not the 99 times that they lost.
204
:And the quickest way to optimize your
go to market, your SDR resources,
205
:your marketing investments, your sales
resources is to look at all the times
206
:that you lose and stop doing them.
207
:And that data is not very clear
to B2B companies right now.
208
:And I believe that signals creates
that data layer to be able to
209
:make what should be fast, easy,
obvious decisions for executives,
210
:which right now are hard, unclear.
211
:It's difficult to get people aligned
because that data layer doesn't exist.
212
:And it gets very, very cloudy.
213
:When we try and attach multi touch
attribution and marketing mixed
214
:modeling and different things, those
tools have a purpose and they can
215
:be used for something, but in order
to optimize the entire go to market
216
:and optimize your pipeline as that
flows through between departments, it
217
:is not an adequate tool to do that.
218
:And so I think we need to recognize
when we're trying to use a hammer
219
:when we should be using a screwdriver,
and this is a good example of that.
220
:Where we need a different layer, multi
touch attribution will not replace
221
:pipeline architecture and signal tracking.
222
:Justin Norris: So digging a little
bit deeper into that layer and
223
:what it would look like, almost,
you know, on a CRM entity level.
224
:You have all these signals
that are out in the universe,
225
:not all of them exist in CRM.
226
:Some of them we choose to act
on, some of them we don't.
227
:The ones that we are going to act on.
228
:I like that term buying signal.
229
:It's the first time I've heard
you use that, but I think that
230
:is intuitively clear that, you
know, it's this trigger for sales
231
:Chris Walker: to take action.
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:Yeah.
233
:Just to clarify, it can be a trigger.
234
:People have said, there's a nuance here
that I want to clarify because it could
235
:be that triggers sales to go do something,
or it could be that sales did something.
236
:And then we were able to backtrack
and recognize that that's the signal.
237
:People confuse this with an MQL,
but it's not only like many signals
238
:are not being sent to sales.
239
:Sales is doing it on their own.
240
:And that is the black hole that exists
in go to market right now because a
241
:majority of the actions your sales teams
takes, at least in most B2B companies
242
:are not driven through marketing.
243
:It's driven through independent
prospecting, third party data,
244
:target account lists, random
other data sets that you can get.
245
:And so it's not just about what
marketing is sending to sales.
246
:It's about looking at
the entire go to market.
247
:And I think a better.
248
:Definition that's a little bit nuanced
is the signal that happens before sales
249
:takes action, which is a little bit,
it's inclusive of we send it to sales,
250
:but it also could include other things.
251
:Justin Norris: Yeah, you know, I was
going to ask this question later, but
252
:since you brought it up, because this
is something I was really thinking about
253
:listening to you talk about this before,
and I've seen this helping to run an
254
:outbound motion at my current company.
255
:It can get really murky where, yes,
there are, let's say, intense signals
256
:from a tool like Sixth Sense or from
G2, and then we act on them, and
257
:sometimes we get a, you know, a directly
attributable conversation started as a
258
:result of that, but sometimes you don't.
259
:But then you might see that account
or someone from that account come
260
:in, you know, and submit a demo
request form or do something else.
261
:And you're like, well, did the
outreach influence that there's
262
:a feedback loop where you have a
signal and then you do a thing.
263
:And then, like you said, that thing can
then become, I don't know if you call
264
:it a signal, but it becomes a driving
force for something else to happen.
265
:Chris Walker: So I think a lot of
people make the mistake in getting
266
:caught up in edge cases and not
looking at the broader picture.
267
:Because the reality is that if you track
this at a mature company, let's say
268
:you're 6 cents, you're going to have 5
million signal records every single year.
269
:And so the 5 or 10 or 20 times where
this exact instance happens actually
270
:doesn't influence the data on a large
scale and doesn't create those nuances.
271
:Pick a lane around it, have a rule set.
272
:We'll develop a rule set eventually
and recognize that those little
273
:edge cases do not have a major
influence on the overall data set.
274
:And so
275
:Justin Norris: coming back to like the,
how we track the signal, are you thinking
276
:about it as like, this is a record, like
a signal record that exists in isolation
277
:or is the signal record also the place
where we track the funnel progression?
278
:Of the sales activity against that
279
:Chris Walker: signal.
280
:Yeah.
281
:I've been thinking about this a lot.
282
:I think what companies are missing
is a unified pipeline architecture.
283
:That's able to connect all the different
data points from leads, contacts,
284
:campaign members, opportunities, all
the way through, you see the, you
285
:know, about the bow tie framework
from winning by design that looks at
286
:that all the way through post sale.
287
:We need an architecture that's able
to collect all that data on one record
288
:so that for reporting and analytics
and different cross functional teams
289
:looking at it and for use it in B.
290
:I.
291
:And to push it into other analytics
tools that we have one consistent
292
:data source that everyone in the go to
market team and everyone in the company
293
:for that matter, including finance
can be able to use and that a part of
294
:that unified pipeline architecture.
295
:It starts with the signal.
296
:So there's all the signal
data is included there.
297
:And the records are generated on a
per signal or a per buying signal
298
:level when sales is taking an action.
299
:All of the other data, the account
data, what vertical they're in,
300
:what customer segment, what tier
they belong in, all the opportunity
301
:data, ARR, and things like that.
302
:And the conversion, when the meeting
happened, did the SDR hit the SLA, how
303
:long was it to follow up, what sequence
did we use, did we get the meeting, did
304
:we hold the meeting, did it progress,
what was the time between those things.
305
:Thank you very much.
306
:And then when you have all those different
data points, it creates an incredible
307
:layer to be able to look at the entire
process and optimize the process.
308
:You have all the filters that you
can use and you can say, okay, what's
309
:happening with our demo requests?
310
:Okay, what's happening with our
intent data from Sixth Sense?
311
:Okay, what's happening
with this type of stuff?
312
:Are there bottlenecks across the
entire process in this geography?
313
:It doesn't matter what signal
the account is sending us.
314
:And without that data layer,
it makes it really hard.
315
:And in my, uh, early career, I spent
the first, you know, two or three
316
:years of my career doing manufacturing
process optimization, Lean Six Sigma,
317
:how do we optimize our supply chain?
318
:We have all these different parts
of a process where we need to
319
:manufacture 10 million parts.
320
:in a year, we have to
deliver them on time.
321
:We can't have too much inventory.
322
:If this part of the process takes
a day long, how do we shorten that
323
:so we can increase our throughput?
324
:And that level of thinking is
necessary because the go to market
325
:process specifically from signal
to closed one is just a machine.
326
:That's all it is.
327
:It's just a, it's like a manufacturing
facility with different parts of the
328
:process and different stakeholders
and different data points.
329
:And the things that happen
upstream can impact things that
330
:happen very far downstream.
331
:And we need to be able to collect
all of that information and be
332
:able to look at it in that way.
333
:And I just don't think that go to
market leaders have been trained or,
334
:or think about it in that way yet.
335
:So I think it'll be a new wave.
336
:And what's driving it is
the economic environment.
337
:How investors are valuing companies.
338
:It's not like over here, like,
Oh, this is such a good idea.
339
:It's necessary.
340
:There's no other way around it right now.
341
:We cannot be spending 50
percent of revenue on sales and
342
:marketing and growing at 10%.
343
:And there's a lot of companies
in that bucket that are growing
344
:10 to 20 percent and spending 50
percent of revenue on sales and
345
:marketing and do zero or negative
EBIT account or cat free cashflow.
346
:And it's just not a viable
business model at this, in the
347
:current economic environment.
348
:Maybe that changes in a couple
of years, but right now I think
349
:we need to adjust to the reality.
350
:Do you
351
:Justin Norris: feel that the
sufficiency focus, the way I heard
352
:you say it at the beginning, it's
always been part of your message.
353
:It just, it didn't matter to people in
a era of near zero interest rates where
354
:people were just kind of spending like
drunken sailors for lack of a better term.
355
:And now you're just bringing it more to
the fore cause like the conditions are
356
:right or do you view it as an extension
of the previous part of your work?
357
:How do you see like that connection
between your demand creation,
358
:that, that piece of the pie and.
359
:What you're talking about now,
360
:Chris Walker: I think that both
concepts remain incredibly relevant.
361
:I think that what I'm doing now
is really a professional expansion
362
:of how I'm looking at things.
363
:The message is the same, right?
364
:Like back in the day, it was like I
would interact with companies that
365
:spend a million dollars a month on
Google ads and didn't even track CRM.
366
:That was in 2020, 2021.
367
:And I would say, and they were
like looking to hire, like go and
368
:hire someone to be able to do that.
369
:And I said, the first thing you need to
do is figure out how to track this data.
370
:Cause most likely you're wasting 975,
000 out of your million dollars a month.
371
:And you don't even know it
right now, but they didn't care.
372
:And their investors didn't care.
373
:And their marketing manager didn't care.
374
:And their agency didn't care.
375
:And everyone, so it just
kind of fell on deaf ears.
376
:The expansion now is thinking, and
the message was always, if we're able
377
:to optimize marketing, Then it fix it
creates optimization across the entire go
378
:to market when we don't send 50, 000 of
the shittiest leads ever to our SDRs and
379
:our SDRs follow up with 50, 000 shitty
leads and waste a whole year and don't
380
:don't convert meetings don't convert
business and then we have too many sales
381
:resources and too many sales headcount
because we're not creating enough pipeline
382
:because we spend bad money on marketing
and then our SDRs aren't effective.
383
:That it impacts the entire go to market.
384
:So the message initially was if you fix
marketing and it creates optimization
385
:across the entire go to market, and now
with the signals concept and the expansion
386
:of rev ops and the available amount of
data that we can do so much more than
387
:we could even three or four years ago.
388
:And so I think it was just a really
good time in terms of the expansion.
389
:And it's something that I'm proud
of at the moment at Posetto, because
390
:as the message has evolved, the
people that resonate most with this
391
:message are CEOs, CFOs and CROs.
392
:And so while we still work with
marketing leaders, like there is a
393
:real expansion happening and where
the message is resonating and how
394
:important this problem is to businesses.
395
:That CEOs and CFOs are getting involved
in how do we fix our go to market, which
396
:wasn't the case a couple of years ago, but
now CEOs really need to understand this.
397
:They need to understand how do we go from
spending 45 percent of revenue on sales
398
:and marketing to 25 percent because if
not, then our PE firm isn't going to have
399
:like, I'm getting pressure from the board
because we need to exit in three years.
400
:And the, the current trajectory
is not going to get us there.
401
:And so I do believe that my message has
always been a CEO CFO level problem,
402
:although it's been directed toward
marketing leaders and marketing, you
403
:know, functional leaders historically,
but now a real expansion across
404
:like what it means to a business.
405
:I think it's, as you
mentioned, sort of leveling up.
406
:I believe what we're doing is akin to.
407
:Forrester and McKinsey
and Bain at this point.
408
:Justin Norris: So you talked about
the explosion of data and maybe we can
409
:just dig in a bit to like collecting
and aggregating these signals
410
:and then choosing them to act on.
411
:How do you think about the
current landscape of tools?
412
:Like there's so many to choose from.
413
:There's so many people
claiming they have signals.
414
:What would this mature state look like?
415
:I know it's hypothetical probably
at this stage for collecting signals
416
:in a future where this is well
417
:Chris Walker: implemented.
418
:Yeah, so the way I see the signal
category, like most people just see
419
:signals and at the early stages of
a category, it kind of feels like
420
:everyone's talking about the same thing
and everybody's doing the same thing
421
:and there hasn't been enough time and
definition to have subcategories like
422
:in some more mature categories that you
see a CRM As different than marketing
423
:automation as different than an account
based marketing platform is different
424
:than in a sales engagement platform,
but if they all were coming up at the
425
:same time, sometimes it would be hard to
tease out those functional differences.
426
:And so that's where we are in
the signal category right now.
427
:One, maybe, you know, if we're lucky two
years into where this category, the way
428
:I see it breaking down into subcategories
right now is you have signal providers,
429
:signal providers that have actually
been around for the longest time.
430
:Those would be trust radius.
431
:That would be Bambora.
432
:It would be G2.
433
:There's many of them.
434
:And what they do is they have
a third party platform and they
435
:provide third party data From that
platform, they provide the data.
436
:The next category is that you have
signal aggregators, a platform
437
:that pulls in a lot of different
signals, both first and third party,
438
:and then gives you those signals.
439
:And sometimes they also include the,
the way to take action around that
440
:with either AI or message automation
or just an out, like a sales
441
:engagement platform attached to it.
442
:Maybe they also bring in data so they
can automatically source you and and
443
:enrich you contact data account-based
marketing platforms are doing that.
444
:And there's also a lot of upstarts like.
445
:The common rooms and the warm leaves
and the reggie AI's that are all
446
:falling into this like signal aggregator
category that a lot of people are using.
447
:It's, it's like interesting because
those platforms are rather early,
448
:but it's also a consolidation play
that type of platform in theory.
449
:Could replace 6 cents sales loft,
maybe even zoom info at the same time.
450
:So I think that's a really
interesting sort of play with
451
:those earlier stage companies.
452
:And we're seeing companies
that are picking up on those,
453
:but are not consolidating.
454
:So they'll add Reggie AI, but they
won't take out 6 cents and zoom
455
:info and all those other things.
456
:So we'll see how that plays out
over a longer period of time.
457
:And then the last part that I see is
in signal analytics and so companies
458
:that are able to be able to attach
the signal, create a unified pipeline
459
:architecture and track signal all the way
to close one or even further signal all
460
:the way through the customer lifecycle,
even through post sale and expansion.
461
:And that's where Passetto is focused.
462
:Currently, we have a technology that's
able to reverse engineer that data
463
:and then be able to track that data.
464
:We're partnering with companies
that are able to be able to get
465
:that stuff done inside of the CRM.
466
:And then we layer on expert go to market
consulting because what we're finding
467
:is that part of it is we need to be able
to look at the data in the right way.
468
:But even if we get the data in the
right way, many companies are not able
469
:to be able to take that and say, this
is what we're going to do about it.
470
:And so many of our customers that
find the most value is actually I
471
:need to know what to do about it.
472
:And that's why we layer the consulting
layer on top of it, that our customers
473
:find very valuable, which is also
incredibly differentiated from what
474
:you would see from an analytics
vendor or a sales forecasting
475
:platform or something like that.
476
:Justin Norris: So in terms of what you're
seeing from a signals point of view and
477
:the signals that are valuable to look
on, you know, the, the, you've long
478
:advocated the split, the funnel exercise
where you kind of look at what offers
479
:people are responding to and inevitably.
480
:What I've seen and what most
people see is that hand raisers
481
:are like the gold standard.
482
:So somebody that comes to you,
it says, I'm ready to buy those.
483
:That's a very powerful signal.
484
:They convert at a very high rate and a
lot of other signals are not so great.
485
:Are you seeing other things emerge or
do you have hypotheses about signals
486
:that maybe not necessarily on the same
level as hand raisers, but are that
487
:converting better than like the half
a percent ebook type leads that a lot
488
:of companies are still dealing with.
489
:Chris Walker: Yeah, so just a little
bit of context, the early split the
490
:funnel process that I put together
in:
491
:exercise to divide what we would consider
hand raisers from all of the other
492
:low intent leads that you would get.
493
:And then you'd have to make
subjective calls around whether
494
:it was low intent or high intent.
495
:Like was a webinar attendee low intent?
496
:I guess they're not
technically a hand raiser.
497
:So that was like the first thing
that we did four years ago.
498
:And the data was very clear, like Most
B2B companies were investing all of
499
:their marketing dollars to create low
intent leads that they would close at 0.
500
:1%.
501
:And meanwhile, when they got a hand
raiser, they would win it at 8 or 10%, 80
502
:or 100 times more productive for SDRs and
sales, and even the marketing investments.
503
:But none of the marketing investments
were deployed specifically to create more
504
:of them, which I found to be very odd.
505
:And then what we've done now is
basically like that part of the process
506
:on steroids, where it's not just
categorizing and divided into two buckets.
507
:It's looking at thousands of signals
that companies have every year and
508
:looking at them at each individual signal
and then being able to evaluate that.
509
:And we've done this process
52 times with companies.
510
:Most B2B companies are only able to
reverse engineer somewhere between
511
:20 and 40 percent of signal data
with their historical data because
512
:they don't track it properly.
513
:But even with that 20 to 40 percent
initially, There's so much that you
514
:can learn about what are we doing
that's definitely not working and then
515
:what are we doing that's driving high
sales velocity and sales productivity
516
:that we don't even know about.
517
:And so specifically to your question,
I think one of the most interesting
518
:findings is that B2B companies
spend a ton of money on events.
519
:And then they'll spend on national trade
shows and regional conferences and in
520
:like small micro dinners and type of
events like that and then webinars and
521
:they have all these different expenses.
522
:Um, and inside of that category,
almost 100 percent of the time, the
523
:highest effectiveness is in webinars.
524
:And the lowest cost is in webinars.
525
:So the ROI in the events category,
all the investment gets skewed to
526
:national trade shows and all the
outcomes get skewed to webinars.
527
:And so where you spend the least,
you also get the most outcomes.
528
:Um, and that's been almost
consistent across all 52
529
:companies that we've analyzed.
530
:And so webinar attendee and even like
you can get a hand raiser off of a
531
:webinar if you're thoughtful around
how to do that, that those are a
532
:very, very strong signal relative to
other things that B2B companies use.
533
:And then if you knew that data.
534
:Maybe you would say, okay, instead
of going to 15 national trade shows
535
:next year, why don't we go to five?
536
:Why don't we go to the best five?
537
:So it's not like don't do trade
shows, it's be a lot more select
538
:or national trade shows would be
a lot more selective around it.
539
:And then how do we take the 10 trade
shows 250 grand all in free trade show 2.
540
:5 million a year And how do
we take 500k of that and get
541
:influencers on our webinars?
542
:And instead of doing one a
quarter, we start doing one a week.
543
:And then because of that, we have podcasts
and then we can hire someone to help
544
:us get use that for LinkedIn content.
545
:And we spend way less money and we get
way more scale, way more impact, way
546
:more effectiveness, way better ROI,
not just on our marketing investments,
547
:but also downstream for sales and SDRs.
548
:Um, and so that's one like core finding
that we see a lot of the time in the data.
549
:Justin Norris: That's fascinating.
550
:And so knowing that, let's
say I'm a company and I hear
551
:that insight to act on it.
552
:Does it mean, all right, actually,
it's a good use of SDR time to follow
553
:up on webinar attendees, or I craft
some other sort of follow up, quote
554
:unquote, nurture process around them,
or how do you guide them from that?
555
:Insight to a strategy
to follow up on that.
556
:Chris Walker: I think there's like
a way to optimize the follow up.
557
:Like, sure, there's that, but if
the follow up sucked already, then
558
:you wouldn't, the data wouldn't
show that it was working well.
559
:So the follow up is quote
unquote good enough right now.
560
:So there's, maybe there's
a way to get it from 0.
561
:8 percent to 1.
562
:2 percent or.
563
:To have incremental gains around that.
564
:But the real thing is we need to
do more fucking webinars and we
565
:need to make our webinars better.
566
:And so that ends up actually being
the core focus because the signal
567
:is already working when it comes
to sales, taking action around it.
568
:So what we need to figure out how to do is
how do we create more high of these high
569
:quality signals and what people fall into
the trap to, and people have done this for
570
:a very long time regarding demo requests.
571
:Is that all the demo requests they
get, they're not trying to get, they
572
:just get them and they're like, Oh,
well, we got 100 demo requests last
573
:month and they're converting at 8%.
574
:We got eight customers.
575
:Let's just try to ramp that up to 1000
demo requests and they take linkedin
576
:ads and they do a lead gen form and
they try and get demo requests that way.
577
:And it's not the same signal
and they degrade the quality.
578
:They don't get the same result.
579
:And so a lot of people fall into the trap
of thinking that they're creating more
580
:of the signal, but what they're doing
is a shortcut that fakes the signal.
581
:Justin Norris: So, yeah, it's not, it
wasn't the same caliber of person at
582
:the same level of intent and entering
into that pipeline at that time.
583
:And so.
584
:Flipping it around, I guess, let's say
it's like, all right, I've got, you
585
:know, X, Y, Z signals that are working
for me today, and I come to you and
586
:I'm like, Chris, like, we want to open
up some more signals because we, you
587
:know, we want to expand, but we want
to pick the highest quality ones.
588
:Do you envision like sort of a, a
benchmark library of signals that are
589
:likely to perform well for certain
types of companies and certain types of
590
:verticals, like create that guidance, or
is it just a matter of experimentation
591
:within every company's context?
592
:Chris Walker: I think at this point
and for the foreseeable future,
593
:companies should think about this
as an experimentation process
594
:inside of their own company.
595
:I think that at some point there might
be a evaluator, an auditor of signals
596
:that's able to look across an entire PE
firm portfolio, or a bunch of companies
597
:that all sell to HR professionals,
or all the companies between 100
598
:and 200 million in North America.
599
:I think there might be a, an auditor of
signals that's being able to look at the
600
:large scale data and say, actually out
of all of these potential vendors and
601
:all the signals inside of the vendors,
here are the best ones for the market
602
:and here are the best ones for you.
603
:So I do see that as, and it's
a huge value to the, the signal
604
:providers and the signal aggregators.
605
:To clearly communicate
ROI to their customers.
606
:Right now, Sixth Sense is able to claim
that they deliver ROI to customers,
607
:but they don't measure it properly.
608
:And so, it's not a knock on Sixth Sense.
609
:Every vendor falls into the same thing
that, Oh, we think what we're doing is
610
:better than what you were doing before.
611
:But, after they're able to get
over that step, it's hard to figure
612
:out, Okay, so what do we do next?
613
:Out of all these things that we're
doing, what are the things that
614
:we shouldn't be doing anymore?
615
:Out of the hundreds of data points
that you send us, what are the
616
:4, 5, or 10 that actually matter,
and the other 90 that don't?
617
:And none of those questions can
really be answered right now.
618
:Justin Norris: So far, the signals
we've talked about, they've been
619
:what we might call first party,
you know, the demo requests, the
620
:webinar, the ebook, et cetera.
621
:So that's like kind of one category
often associated with marketing, doing
622
:things to generate those signals.
623
:And then we have that whole other universe
of like the third party signals that
624
:sales will act on independently that you
referred to as like your G2 or your trust
625
:radius, or like job change data from
user gems, or just sixth sense kind of.
626
:Black box intent, you know, they just
say that this account has intent.
627
:You should follow up with them.
628
:What's your point of view on this world
and like what works, what doesn't.
629
:And also you've talked a lot about how
no one is tracking this effectively.
630
:I can vouch for that and how difficult
it is to track, um, thoughts there.
631
:Chris Walker: That a majority of third
party signals are mostly garbage, and
632
:because companies don't track it, they
don't know, and because platforms like
633
:Sixth Sense deliver it in a black box,
they're not able to figure it out,
634
:and that the real value in a lot of
the intent data is first party data.
635
:In addition, I think the most valuable
form of, uh, first party data that is not
636
:like a marketing oriented typically is
de anonymizing your website traffic and
637
:being able to figure out what accounts
are on our website or even more valuable,
638
:what people inside of what accounts
are on our website and then layering on
639
:account filters and then saying, okay,
these are the accounts, they were on
640
:our website, they were in our ICP, here
are the people that we're going to reach
641
:out to and then take action around that.
642
:And to be honest, that's the most
valuable part of six cents platform.
643
:Yeah, they box it up with a bunch of
other things, but really like that's
644
:the value that that the platform
is providing and companies spend
645
:way too much money to get that.
646
:Like you can get that for
almost free from other vendors.
647
:And so by mixing it with Bambora and
all these other third party sources
648
:that and then putting it in a black
box, I think that they're a lot cheaper.
649
:Masking what's actually happening,
which is the first party website
650
:data is the most valuable part.
651
:And then on the third party side,
like maybe the G2 data is relevant.
652
:Maybe it is.
653
:I remember running
experiments with it back then.
654
:This is like 2021 and using that and
pushing G2 data into LinkedIn and
655
:running advertisements off of it and
then measuring on custom conversions
656
:and different things like that.
657
:And that the G two intent data had
similar or lower performance than
658
:just running against a cold audience.
659
:Obviously, retargeting is the highest
performing, which is effectively
660
:first party website visit data.
661
:And so I think that there's a lot
of noise in the signal category.
662
:I think that there's a lot of
poor third party data that's
663
:being pushed as very high quality.
664
:Like who cares if somebody at Oracle
read a blog on blah, blah, blah, news.
665
:com.
666
:And that news article happened to say your
company, like financial business software.
667
:And then all of a sudden you think
that because maybe an intern at Oracle
668
:was reading that article that you
should go on this wild goose chase
669
:to try and close our Oracle for your
financial business software product.
670
:I think there's just a lot of, a lot
of stuff that just doesn't, doesn't
671
:fit into the category of common sense.
672
:Justin Norris: And this, so yes, like
one visit from somebody at Oracle
673
:doesn't, but the reason I think we end
up with some of these black box scoring
674
:models is that people want to say like,
well, one visit, no, but all right,
675
:there's three or four visits and they're
opening some emails and they, Like you
676
:start to aggregate different signs of
potential intent or potential interest.
677
:And, and that's where
you get these scores.
678
:And I understand why people do that.
679
:And then another part of me
thinks it's kind of obscuring,
680
:you know, what's going on.
681
:It's making it harder to tell.
682
:Is this really valuable?
683
:Is this not?
684
:What do you think of these sort of
like compound signals or like scoring
685
:aggregating different activities together?
686
:Chris Walker: I think that because
technology vendors have the data that they
687
:push that message that all these signals
combined like have a big difference.
688
:But what we found the data is just
isolating the primary buying signal has.
689
:Massive impacts, and I haven't seen
the data that combining seven of those
690
:data points together gives you such an
incremental benefit that it's worthwhile.
691
:We'll see over time, but right now
companies are like, yeah, we'll use
692
:AI to figure out your best signals.
693
:They can't.
694
:There's no data layer to track it.
695
:AI is not going to know
what to do around it.
696
:And so until there's that data layer,
I think that the promise of AI in terms
697
:of like optimizing around signals,
I think will be less than stellar.
698
:Justin Norris: You've talked a bit
about like how the inbound outbound
699
:distinction isn't really that relevant
before, and I think this is a really
700
:valuable insight that isn't intuitive
the way that a lot of go to market
701
:professionals have been brought up to
think like, yeah, people come to me.
702
:That's inbound.
703
:I go to them.
704
:That's outbound.
705
:Can you talk us through why this
distinction isn't actually the right
706
:Chris Walker: way to be thinking about it?
707
:The inbound outbound distinctions
happened in the late:
708
:2010s in hopes of having marketing be
able to prove the ROI of some of those
709
:things by taking credit on first touch
attribution that was developed by like
710
:HubSpot and other platforms like that.
711
:And what it's done, and it was
also built in the lead gen era,
712
:where all that mattered was,
where did the lead come from?
713
:Did it come from our website?
714
:Did it, or did it come from sales?
715
:So if it came from our website or some
other form of marketing activity, then
716
:marketing could attribute it and say,
we spent this much money and we did
717
:this when we got this much out of it.
718
:And what it's done is create a massive
divide in the go to market team.
719
:And it's create tons of unnecessary.
720
:Complexity.
721
:And when you silo out the analytics,
you lose sight of the bigger picture.
722
:Marketing only cares
about what they source.
723
:Sales only cares about
what's happening over there.
724
:The budgeting process is
looking at it that way.
725
:Instead of looking at how do we need to
allocate budget across the entire go to
726
:market journey and our customer journey
to get the biggest impact, where are
727
:the places where we're not investing
enough or where we're investing too
728
:much and not getting the appropriate
return across the customer life cycle.
729
:And companies don't look at it that way.
730
:And so the distinction of inbound
and outbound is entirely outdated,
731
:and it's hurting B2B companies to
continue to think about it this way.
732
:And the key insight is that no
matter what signal your customer or
733
:prospective buyer sends you, your
sales team is still going to have to
734
:reach out and try to get the meeting.
735
:They're still going to
have to work the deal.
736
:They're still going to have to close it.
737
:It doesn't matter if it was a demo
request, you got some data from
738
:some third party platform or pulled
it out of a contact database.
739
:The process from SDR to closed
one is exactly the same.
740
:And so all that matters is we have
all of these available signals
741
:across our entire go to market.
742
:Some come from first party sources and
others come from third party sources.
743
:And how do we use that data as a go
to market team to say, these are the
744
:signals that matter, that give us
the best marketing ROI, that give
745
:us the best SDR productivity, and
give us the best sales velocity.
746
:And if we look at it that way, we'd have
a much more holistic way of looking at it.
747
:And frankly, we'd spend a fuckload less
money on, on sales and marketing and
748
:the go to market investment overall.
749
:And what happens today is that through
the influence revenue reporting marketing
750
:and the siloed analytics of SDRs, And
the sale, how sales data and that is
751
:working that B2B companies spend two
or three times more than they need
752
:to because every single deal, every
department's trying to take credit for.
753
:And I just think that when we
move into this new era and we're
754
:not moving into it, we're there.
755
:It takes, it takes companies
years to adjust to these changes.
756
:So companies are still in the
process to it, but we're in it.
757
:That we have to think about in this
new world, what's different and then
758
:adjust or challenge a lot of the things
that we've done previously based on
759
:the new reality that we're facing.
760
:And I think some of the things that were
created specifically from:
761
:2022, some are already being challenged.
762
:The SDR models being challenged, the
demand waterfall and the MQL model have
763
:been challenged for a very long time.
764
:I don't think the how companies get
benchmarks and how they make decisions
765
:around how to allocate investments
is being challenged enough right now.
766
:I don't think that.
767
:Multi touch attribution is being
challenged enough right now and some of
768
:those things are going to start to come
to fruition because the pressure on the
769
:financials will cause companies to have to
change and so that you can either be early
770
:to it and you can say, I see this coming.
771
:I see that we need to figure out how
to spend 15 percent less of revenue on
772
:sales and marketing in the coming years.
773
:What do we need to change?
774
:Or you can wait till it hits you like a
train and runs you over in:
775
:I think the companies just need
to be looking a little bit further
776
:ahead about where this is going.
777
:Justin Norris: So bouncing off that point,
and probably the last question we'll
778
:have time for today, but you know, a lot
of folks in rev ops listening to this
779
:podcast and you alluded at the beginning
about, you know, how that function can
780
:evolve ways that rev ops professionals
can become more strategic, have a bigger
781
:impact, and Someone listening to this
right now and you know, maybe they're
782
:implementing tools, managing territory
and compensation, you know, doing
783
:some analytics support type work, but
they want to get to that next level of
784
:impact, what should they start doing?
785
:Chris Walker: So in this new evolving
role and where I see this playing
786
:out, you're going to basically have a
distinguishing between revenue operations
787
:or what some people are now viewing.
788
:Like you might actually have go
to market operations, which is
789
:looking at all the things across.
790
:And then you're going to have
marketing operations, which is focused
791
:on marketing revenue operations
and customer success operations.
792
:And I, you might actually see
that sort of develop over time.
793
:Um, and then separately, you're
going to have go to market strategy.
794
:And when you think about the two different
things, revenue operations is a short term
795
:and process and control based function.
796
:They're implementing technology, managing
data, building reports, delivering
797
:analytics, you know, the territories, the
comp plans, a lot of this tactical work.
798
:And go to market strategy is looking at
how are we going to allocate investments
799
:across the entire go to market?
800
:What should we be using for our analytics
engine that RevOps is going to implement?
801
:Maybe we do need a pipeline architecture
and go to market strategy is going
802
:to drive how to, like, what that
is and how do we get that done.
803
:How should we be allocating
our investments in marketing?
804
:We spend 20 50 percent
programs and headcount.
805
:And then inside of the programs,
here's how it's divided.
806
:How should that be changing based
on our entire go to market strategy?
807
:Should we take, do we need
SDRs and solutions consultants
808
:and sales professionals?
809
:Or should we rethink how we run our, you
know, net new customer sales process?
810
:Do we need an onboarding manager
and a CSM and an account manager
811
:and all these people, or should
we rethink how we run post sale?
812
:And I think that there's like a, there's
a role there and the skill set around
813
:that role and the experience required
to do that role is fundamentally
814
:different than the skill set of a
revenue operations professional.
815
:It's not a good or a bad thing,
and I'm not here to knock
816
:revenue operations professionals.
817
:At all, they do incredible work
and a lot of the skills that
818
:they have, I don't have, right?
819
:When you think about go to market
strategy and the skills required to
820
:run that function, you should have run
a marketing department or at least led
821
:a functional part of marketing before.
822
:You should have carried a bag, closed
deals, executed against a quota.
823
:Maybe you led an actual sales team.
824
:Maybe you ran outbound processes
and you did those things.
825
:And you have to understand data and
you must understand finance, top level
826
:business analytics and things like that.
827
:And it's a, it's a unique role that
not everyone is going to be suited for.
828
:It's an executive level role from my
perspective, um, and it's actually a
829
:role that should be connecting CEO,
CFO, CRO, CMO together and almost
830
:acting as an advisor across that entire
function, which some people see Rev Ops
831
:as doing, but I think that they fall
short for some of the reasons that I've
832
:mentioned, and I think over time we'll
see that that distinction play out.
833
:So if you're a Rev Ops professional
and you're trying to figure out Where
834
:do I want my career to be in three to
five years that figuring out how to
835
:get involved in what your marketing
team is doing and maybe try to run ads
836
:or build content or, you know, lead,
do you work on a messaging project
837
:or do customer research and how to
figure out how do I get involved?
838
:How do I like, how do I play, can I
go and ride along for five of these
839
:deals and try to be like the solutions
consultant or try to be the SDR for my AE?
840
:How do you get involved in the actual
execution of go to market because it's
841
:very difficult to take the title of go
to market strategy when you've never
842
:done any of the go to market functions.
843
:Justin Norris: I'm excited
to see where this goes.
844
:Super insightful, super interesting.
845
:As always, Chris, I know we're out
of time, but just want to thank
846
:you again for being here today.
847
:Super valuable.
848
:Chris Walker: Justin, thanks
for the great conversation.
849
:Looking forward to hearing
what you learned as well, man.
850
:You're really, uh, making a difference.
851
:Paving the way on some of these new
concepts and doing it in real life.
852
:So I'm excited to see what
you find and what you learn.
853
:Justin Norris: Thank you so much.