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What world-class GTM looks like in 2026 | Jeanne DeWitt Grosser (Vercel, Stripe, Google)

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FULL TRANSCRIPT

0:00

I've been getting so many asks for go to

0:02

market help.

0:03

>> With AI, it's just intensified because

0:05

[music]

0:05

you have 10 players pursuing the same

0:08

market opportunity and so your ability

0:10

to actually bring the product to market

0:12

to differentiate yourself from the

0:14

competition has become more

0:16

strategically important than it was

0:17

previously.

0:18

>> I had Jenna Ael on the podcast recently.

0:20

One of her tips is you don't want to be

0:22

focusing on here's the pain and problem

0:23

we're solving and instead focus on

0:25

here's how you will be better than your

0:26

competitors. 80% of customers buy to

0:30

avoid pain or reduce risk [music] as

0:33

opposed to increase upside, which is a

0:35

good thing for startup founders to

0:36

understand. We all love to talk about

0:38

the art of the possible, everything

0:40

we're going to enable in the future, but

0:42

that's often really a sale that's going

0:45

to resonate with another founder.

0:46

Everybody else, particularly

0:47

enterprises, you're avoiding the risk of

0:50

not making your revenue target next

0:52

quarter.

0:52

>> I've heard a lot about how you think

0:54

about go to market as a product. We buy

0:56

a lot of things because of how we feel

0:58

about them. The experience that you have

0:59

of being [music] sold to will

1:01

increasingly actually differentiate a

1:03

company and [music] drive buying

1:06

decisions if products are only different

1:08

at the merger. [music] And so then you

1:10

really want to create a customer buying

1:13

journey that feels like very unique

1:16

experiences. [music]

1:17

>> Something I've heard from so many people

1:18

you've worked with is that your

1:19

superpower is building a sales or that

1:21

doesn't feel like a sales or to

1:22

engineers. The litmus test I have always

1:24

given my sales team is if you are an

1:27

account executive in my org and I put

1:29

you in front [music] of 10 engineers at

1:32

our company, it should take them 10

1:34

minutes to figure out you aren't a

1:35

product manager.

1:38

Today my guest is Gan Grosser. Gan was

1:40

chief product officer at Stripe where

1:42

she built their very early sales team

1:44

from the ground up. She's currently COO

1:47

at Versell where she oversees marketing,

1:49

sales, customer success, revenue ops,

1:51

and field engineering. Gene has built

1:54

world-class go to market teams at

1:55

multiple unicorns and has advised dozens

1:58

of companies on doing the same. In our

2:00

conversation, we go deep on what a

2:01

world-class go to market team looks

2:03

like, including what the heck is go to

2:06

market, the rise of the goto market

2:08

engineer and how this role is already

2:10

enabling her team to operate 10 [music]

2:11

times faster, a bunch of very specific

2:14

tactics to level up your go to market

2:15

skills, [music] a primer on

2:17

segmentation, how to think about your

2:19

goto market process like a product, her

2:21

favorite go to market tools, her hot

2:23

takes on PLG and sales comp and sales

2:26

hiring, [music]

2:27

and so much more. If you are looking to

2:29

get smart on the latest and greatest in

2:31

go to market thinking, this episode is

2:33

for you. A huge thank you to Claire

2:35

Hughes Johnson, Kate Jensen, and James

2:38

Deiet for suggesting topics for this

2:39

conversation and Kelly Schaefer for the

2:41

connection. If you enjoy this podcast,

2:43

don't forget to subscribe and follow it

2:44

in your favorite podcasting app or

2:46

YouTube. It helps tremendously. And if

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you become an annual subscriber of my

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newsletter, you get an entire year free

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of a ton of incredible products

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over to lennisnewsletter.com and click

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product pass. With that, I bring you

3:10

Jean Grosser after a short word from our

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5:29

>> Jean, thank you so much for being here

5:31

and welcome to the podcast.

5:32

>> Thanks for having me, Lenny. What I want

5:34

to get out of this conversation by the

5:36

end of this to basically have this

5:38

conversation be the thing that we send

5:39

people when they're like I want to get

5:40

better at go to market. I'm trying to

5:42

figure out what to do in market. We send

5:43

them this versus having to hire someone

5:45

for a lot of money and and usually they

5:47

can't find amazing people because

5:48

they're all snatched up.

5:50

>> Yeah.

5:50

>> So let me start with just the basics.

5:52

When people hear the term go to market,

5:55

what does that mean? What does that

5:56

encompass?

5:57

>> I think there are two answers to this.

5:59

Often what people think of is sort of

6:01

the t tip of the spear of what drives

6:03

revenue, which is marketing and sales.

6:06

For me, I think of it as any function

6:10

that is going to touch a customer or

6:12

make a dollar. Um, and actually my

6:14

remmit at Verscell is that. So that

6:17

includes marketing, sales, uh, all of

6:20

your technical sales roles like sales

6:23

engineers or, uh, post sales platform

6:25

architects is what we call them at

6:27

Verscell. It's customer success, it's

6:29

support, it's partnerships. And the

6:32

reason I say that is uh my experience

6:34

throughout my career has been that those

6:37

functions often have this vend diagram

6:40

strategy where marketing is pursuing one

6:43

thing. It overlaps with what sales is

6:45

pursuing but not perfectly, which also

6:47

overlaps with what support is pursuing

6:49

but not perfectly. Examples of this

6:51

would be slightly different uh uh

6:54

slightly differing segmentation

6:56

frameworks etc. And so one of the things

6:58

I think you're going to want to see more

7:01

in this particular moment is that that

7:03

become a really integrated life cycle in

7:06

particular because I think we're going

7:07

to see a lot of the functions of go to

7:10

market get redefined. So we've gone

7:12

through a period of like hyper

7:14

specialization in go to market. Uh you

7:17

know depending on how you count them

7:18

there are you know I think somebody

7:20

quoted like 17 different uh roles within

7:23

go to market these days. And I

7:25

hypothesize that a lot of those are

7:27

going to start to collapse. And so if

7:29

you think of go to market more

7:31

holistically, I think you can kind of go

7:34

back to what are the jobs to be done

7:36

from making a customer prospect aware of

7:40

of your product all the way through to

7:43

you know high LTV five years on the

7:46

platform fully wallto-wall and you're

7:48

going to want to map that out and

7:50

orchestrate it the way you would think

7:52

about that within your own product.

7:54

>> Awesome. We're going to go through that

7:55

whole cycle of go to market, but so is

7:58

it safe to say just for most companies

8:00

that may that are especially starting

8:01

out when they say go to market that

8:03

mostly is sales and then there's

8:05

marketing as a maybe a smaller fraction

8:07

of that and then as you become more

8:09

advanced and grow customer success plays

8:11

into a tech sales things like that.

8:12

Yeah, that's probably where most start

8:14

um you know is getting sales or frankly

8:16

just because a lot of companies also

8:17

start PLG you might actually start with

8:20

marketing and then you're layering in

8:21

sales when it's time to do the sales

8:23

assisted and ultimately salesled

8:25

portions. So I think it can depending on

8:28

your product and your initial target

8:29

market it can either mean marketing or

8:31

sales or a combination of those two.

8:33

>> Awesome. So essentially it's like how

8:34

the term go to market tells you what

8:36

we're talking about. It's how do you

8:37

take your product to market, get people

8:39

aware of it, using it, sticking with it?

8:42

>> Yep, absolutely.

8:44

>> What is most changed in the world of go

8:46

to market over the last few years?

8:48

You've done this for a long time at

8:49

Google at Stripe. You built the first

8:50

sales team. Now you're doing that over

8:51

cell. What's changed most in the skill

8:53

and art of go to market?

8:55

>> There are a number of things. So when

8:57

consumption-based business models

8:59

started, I think you saw go to market

9:03

shift into being meaningfully more

9:04

consultative because often that first

9:07

land was the very beginning of the

9:09

journey and represented a very small

9:11

percent of what you were ultimately

9:13

going to do with that customer. And so

9:15

you had to go from being transactional

9:17

to a lot more relationship based. You

9:18

had to more deeply understand what that

9:21

customer was trying to do so you could

9:23

align that ultimately to your product. I

9:25

think that has uh played out that much

9:28

more with an AI because right now

9:30

everyone knows they need to change but

9:32

they don't necessarily know exactly what

9:34

they need to change to whether that's

9:36

their customerfacing product or their

9:39

internal productivity and workflows. And

9:41

so I think you're seeing a lot more of

9:44

go to market orgs leaning into the art

9:46

of the possible best practices helping

9:49

you actually think things through as if

9:51

they were a consultant. And so one of

9:53

the things you see uh you know more of

9:56

right now is for deployed engineering

9:58

which on some level is kind of a rebrand

10:00

of professional services

10:03

um but kind of not and a big part of

10:05

that is hey how do I actually get into

10:08

your environment ride alongside you

10:10

better understand what you're trying to

10:12

do and then help you actually bring the

10:14

technology to life and and learn a lot

10:17

along the way. Um, often you're not only

10:20

making that customer successful, but

10:21

you're then taking all of that back to

10:23

your product and engineering uh,

10:24

organization to figure out, okay, what

10:26

was generalizable that we ought to build

10:27

into our offering versus what is

10:29

something that ultimately is going to be

10:31

more of a a professional service in the

10:33

fullness of time. So, I think that has

10:35

been a a a biggie is is actually just

10:37

like really getting embedded with your

10:39

customer. And then unsurprisingly, um, I

10:43

think bringing AI to bear on the sales

10:46

process is another big one. And so

10:48

you've seen the rise in probably the

10:50

last like 18 to 24 months um of the go

10:53

to market engineer

10:55

um which uh you know different different

10:58

folks define slightly differently but it

11:00

it's kind of bringing one technical

11:02

prowess to bear on go to market in

11:05

general so you can have a lot better

11:07

tooling data use etc and then two

11:10

increasingly bringing AI um to bear as

11:13

well to rearchitect um your workflows um

11:16

and also So uh make it so it's easier to

11:19

have a personalized experience with

11:22

customers but do so at scale.

11:23

>> Amazing. Okay, let's follow the thread

11:25

on this uh go to market engineer.

11:27

>> Yeah.

11:28

>> So what was it like before and what are

11:30

what are these engineers doing at

11:32

companies?

11:33

>> So I think uh maybe like an interesting

11:37

story to tell. Uh when I when I was at

11:40

Stripe

11:41

uh we went to launch an outbound um SDR

11:45

function. uh so outbound prospecting and

11:48

Stripe always ran lean. Uh the company

11:51

at that time had an operating principle

11:52

which was efficiency is leverage and so

11:55

if you looked at the sales organization

11:56

I was running most companies out there

11:59

probably would have had 30 SDRs and I

12:01

was going to get four.

12:03

So you know there's no way I was going

12:05

to do the typical SDR um you know

12:08

approach and be successful. And so we

12:10

thought to ourselves okay what can we

12:12

do? We'll be super data driven. And so

12:14

we went and we started building project

12:17

Rosland. Rosland is the scientist who

12:20

originally mapped uh DNA. And what this

12:23

was was effectively a company universe.

12:25

So you can think of this as like a

12:27

massive database. Every row uh was a

12:30

different company on the planet. And

12:32

every column was an attribute about that

12:34

company that would help you sell to them

12:37

uh in a more targeted fashion. So at

12:40

Stripe, an example would be like knowing

12:41

that their um their business model was a

12:44

marketplace was super helpful because

12:45

that would mean you wanted to sell

12:47

Stripe Connect versus Vanilla Payments.

12:49

And so the goal was basically, hey, can

12:52

we create a Mad Libs, you know, where I

12:54

will come up with uh sort of a a

12:57

predefined email template, but 80% of it

13:01

will be fill-in- thelank based on the

13:04

different attributes um of that that

13:06

customer, right? So if they're this

13:08

industry or this business model, then

13:10

pull this customer reference, this value

13:12

prop, you know, send it to this um uh

13:15

persona, not that. And we were trying to

13:17

do this in 2017. And uh it was very hard

13:21

and didn't actually totally work.

13:23

[laughter]

13:24

Um our ability to like the false

13:26

positive rate when and we worked deeply

13:28

with data science like just it just

13:30

never really got there. And now that

13:33

we're literally redoing here at Verscell

13:35

as we speak and it actually works. Um,

13:38

and that's because you can bring AI to

13:40

bear on it. Um, and so what's different

13:43

is we now I have a data scientist just

13:46

like I did back in 2017, but I have a go

13:49

to market engineer. Um, whereas before I

13:51

just had someone in systems that was

13:53

helping me configure Outreach or

13:55

Salesoft and my go to market engineer is

13:57

helping me build an agent. um where

14:00

we're coming up with okay well what's

14:02

the human workflow that you would have

14:03

done and then how do you encode that um

14:06

using burcell workflows as an example

14:09

you know in actual code that's both

14:11

deterministic and and less so um where

14:14

an agent's going out and and trying to

14:16

replicate what a human might have done

14:18

um to produce that fill-in- thelank mad

14:21

lips

14:21

>> I love the ambition of that project what

14:23

is this like eight years ago

14:25

>> yes it's such a I love the big thinking

14:27

there we're going to map the entire

14:29

universe of companies and then here's

14:30

how we sell to them and then just I'm

14:32

trying to picture doing that without AI.

14:34

It's like crazy to imagine trying that

14:35

without AI and now it's like so much

14:37

simpler.

14:38

>> Well, the thing that's amazing about

14:40

that just to geek out on it a second. So

14:42

um I I was working on that with a bunch

14:45

of folks at Stripe um on my team

14:47

obviously and a gentleman named Ben

14:48

Salman um who went on to go to Zoom Info

14:51

and then actually recently just founded

14:53

a goto market startup that is basically

14:56

sort of productizing that concept of a

14:58

company universe and then layering AI on

15:01

it on top of it and ultimately his view

15:04

is actually you'll AI will get to the

15:06

point that you won't have to do outbound

15:07

prospecting because it will just sort of

15:10

company and product match

15:12

Um, so it's it's fun to sort of see back

15:15

in 2017 some of the folks doing that now

15:17

work at OpenAI, they work at Anthropic,

15:19

they also are doing GTM. You've got him

15:22

starting, you know, a totally AI native

15:24

GTM um company. And then, you know, here

15:26

I am at Rousell trying to do the same.

15:29

>> Okay. So, what's cool is this is an

15:30

emerging role and emerging skill that I

15:33

don't think a lot of people have

15:34

recognized as something that is

15:36

happening.

15:37

>> Yep. So, one example I'm hearing of what

15:39

this role does is they automate outbound

15:42

emails essentially and outbound

15:43

outreach. They figure out they write

15:45

workflows and agents that figure out

15:46

here's the company to go after. Here's

15:48

how we message them. Does that end up

15:50

being kind of like an email that's

15:51

customdesigned and written for this

15:53

prospect?

15:54

>> That's one version. So, so it's it's

15:57

broader than that really. Um, basically

16:00

the the full remit of GTMEN will be to

16:04

go through each of the different

16:05

functions within go to market and break

16:09

down all the different workflows that

16:11

they do and then turn those into agents

16:14

um where you know AI is better placed

16:17

than the human um to do that task. So

16:21

right now we started with uh actually

16:24

inbound and are now moving to outbound

16:26

because um that workflow is most legible

16:31

and by legible I mean you can basically

16:34

write it down. It's relatively

16:35

replicable, mostly deterministic, so

16:38

it's more likely that AI will do it

16:41

well. And we actually built the agent

16:43

and then we keep a human in the loop.

16:45

But from there, we're starting to look

16:46

at outbound. And with an outbound, we're

16:48

starting more at the lower end of the

16:49

market where you tend to, you know, have

16:52

slightly less customization because

16:53

there's a single decision maker at the

16:55

company. But I think it will take a

16:56

while before we're able to really do

16:58

that in a very large enterprise there.

17:01

or we might use an agent for research

17:03

but maybe not all the way to actually

17:05

send a message and that's just within

17:07

the prospecting function. So other

17:09

places that we're looking at this would

17:11

be um for install based sales. So again

17:14

there it's a little bit more

17:15

deterministic because you've got awesome

17:17

internal data on what a customer is and

17:19

isn't using. What's the next best

17:21

action? What's the thing they should get

17:23

most value from? So that's where we're

17:25

starting to map, hey, what does that

17:27

ideal workflow look like? But basically,

17:30

you want to get to a state where as long

17:32

as I've been in sales, they, you know,

17:34

release these annual reports that help

17:35

us all benchmark ourselves relative to

17:37

one another. And one of the stats is

17:39

what percent of time do your sellers

17:41

actually spend in front of customers?

17:44

And you know, for the 20 years I've been

17:46

in sales, it's always been somewhere

17:47

around 30 to 40%. So the minority of

17:50

time is actually talking to other

17:52

humans. And I think we're getting to a

17:55

point where with layering in agents,

17:58

ideally we finally get salespeople to a

18:00

point where they're actually spending

18:01

70% of their time interacting with

18:03

humans and we can get the research, the

18:06

followup, the things that are a little

18:07

bit more, you know, wrote and don't use

18:10

the entirety of your human capacity uh

18:13

done by an agent and then sort of

18:14

unleash you to uh go deeper with your

18:17

customers. I love that this is such a

18:19

great example of where AI is

18:21

contributing in a very meaningful high

18:23

ROI way taking on all this work that

18:26

people that you had to hire say 50 SDRs

18:28

as you described to do and now you could

18:30

do with a lot more. So it's a really

18:31

cool example of leverage that AI uh

18:34

gives you. One thing that I know a lot

18:37

of people think about when they hear

18:39

this is okay I'm going to get more of

18:40

these really bad emails trying to pitch

18:42

me on stuff and just like this isn't

18:44

going to work. I can tell this is AI.

18:46

What have you learned about how to do

18:48

this where people actually receive

18:49

emails that actually convert and do

18:51

well?

18:51

>> Our processes all always have human in

18:55

the loop and uh so basically where we'll

18:59

start is we take a go to market engineer

19:02

and we have them shadow the highest

19:05

performing individual in that function.

19:08

And so you can go and you shadow an SDR

19:10

and you can see oh wow they've got seven

19:12

tabs open. they're looking up the you

19:15

know person on LinkedIn they're reading

19:16

about the company they're doing chatbt

19:19

on this they're you know looking in this

19:21

database to get these sets of attributes

19:23

um and so that's how you sort of inform

19:25

the initial work uh workflow and then

19:28

what we do is we let the agent make a

19:30

call so and the specific example with um

19:33

with inbound right you have to determine

19:35

whether or not you think the lead is

19:37

likely to be qualified and then you have

19:39

to determine what to say to it and so

19:41

we'll let the agent make those two calls

19:44

It ultimately then does some deep

19:46

research, pulls in a bunch of

19:47

information from our databases and

19:49

crafts a response. But we have a human

19:52

review all of those and actually hit

19:54

send. Now for us, we had 10 SDRs doing

19:58

this inbound workflow and now we just

20:00

have one that is effectively QAing the

20:03

agent. The other nine we deployed on

20:05

outbound. So we got to move them up the

20:07

value chain. At some point I think we'll

20:09

get to a place where we feel like hey

20:12

you know the the human reviewer is um

20:15

saying yes enough of the time that we

20:17

feel confident that these will be

20:19

onbrand targeted etc. But right now uh

20:23

we're still trying to train um the agent

20:26

and it you know it incorporates feedback

20:28

on what we choose to reject edit etc.

20:31

>> And you shared that it's already having

20:32

a lot of impact like you said you had

20:34

you said 10 SDRs and now one can do the

20:36

job of 10. Yes.

20:37

>> Wow.

20:38

>> Um, yeah. And we, so before we did that

20:40

move, I mean, the other thing that's

20:42

just incredible about this is the person

20:43

who built the lead agent was a single

20:46

GTM engineer. He spent maybe 25 30% on

20:50

his time of his time on this. Uh, it was

20:53

6 weeks before we felt confident going

20:56

from 10 to one. So, it wasn't like this

20:58

was a multi-quarter process. It actually

21:00

moved super quickly. Um, so, uh, and

21:04

then again now we just sort of keep that

21:06

agent manager sort of working with the

21:09

agent to get it to a point where we say,

21:11

"Hey, we're ready to roll." Um, and

21:12

actually throughout the process, we also

21:14

tracked all of the KPIs that you

21:17

typically would hold an SDR accountable

21:19

to. So, we were looking at our lead to

21:22

opportunity conversion rate. We're

21:23

looking at the number of touches it

21:25

takes, the time to convert. Uh, and

21:28

basically what we were able to do is

21:30

hold that lead to opportunity conversion

21:31

rate flat. Um, so the agent is as good

21:34

as our humans were, but it's actually

21:37

condensed the number of touches it takes

21:39

to convert because it's so much quicker

21:42

at responding relative to leads

21:44

inevitably sitting in the queue or

21:46

coming in at night time and no one, you

21:47

know, can get to it. That that type of

21:49

deal. Um, so, uh, that's sort of, you

21:52

know, when we knew it was, uh, ready to

21:54

pull nine people off and shift them into

21:56

outbound. That's incredible. Okay,

21:57

that's interesting. So, you shifted them

21:58

to outbound. What I love about this is

22:00

this SDR that is now doing this is, as

22:02

you said, doing the things they enjoy

22:04

more. They're talking to customers more.

22:06

They're not doing all this kind of top

22:07

offunnel row work.

22:09

>> Yeah.

22:09

>> I don't want to get into whole like jobs

22:11

AI discussion, but uh there's always

22:13

been this talk about AI SDRs basically

22:16

replacing SDRs. It feels like that's one

22:18

thing where everyone's like this is 100%

22:19

going to be AI in the future. Uh what

22:21

I'm hearing here is it gives one a steer

22:23

a lot more leverage and obviously you

22:25

still need people running the show. T

22:27

thoughts there just like do you think AI

22:28

will replace all this at some point and

22:29

then I don't know you don't need

22:31

salespeople.

22:32

>> I think on prospecting it can replace a

22:37

fair amount because the average SDR

22:41

wasn't doing overly sophisticated

22:43

research in the first place. Um, so

22:47

where I I think the last part to go as I

22:50

mentioned will be in deep enterprise

22:53

prospecting where you know you can be at

22:55

multiple layers in an org chart. You've

22:57

got to pick between business lines. You

22:58

got to triangulate those. Um, but uh I I

23:02

do think for the things that are more

23:04

repetitive that often don't take that

23:07

much time to learn and get ramped AI

23:10

will be good at that. And in my view, no

23:14

one like graduated from college and was

23:17

like, "Yes, I just went to college for

23:19

four years to become an SDR." It was

23:22

more, okay, that's where you are forced

23:24

to start. But I think the average STR

23:28

could have gone straight into outbound

23:30

or straight into an SMB closing role.

23:33

Uh, and so basically what we're just

23:35

doing is shifting folks into something

23:38

that uses more of their full capacity

23:41

right out of the gates rather than sort

23:43

of the uh, you know, the the forcing

23:46

function of working your way up the

23:47

totem pole.

23:48

>> Awesome. Since a lot of people listening

23:50

to this aren't sales people, don't have

23:51

a lot of background in sales, we've used

23:53

this term SDR. There's also the term AE.

23:56

Can you just help people understand what

23:57

is an SDR? What do they do? What's an

23:59

AE? And then what's kind of the role

24:00

above?

24:01

>> Sure. So SDR is typically in charge of

24:05

generating pipeline. So they're meant to

24:08

talk to prospective customers and uh get

24:12

them to a point where it is worth

24:16

investing time to run them through a

24:18

sales process. So you t typically have

24:21

two types of an STR. You have an inbound

24:23

one. So, this is where people come to

24:24

your website, they fill out contact

24:26

sales, they'll be the first call uh to

24:29

make sure that it's actually worth a

24:30

more expensive account executive to go

24:32

and run a sales process. Or you then

24:35

have outbound. So, this is where when

24:37

you want to grow faster than your

24:39

inbound demand, they will go out and at

24:42

this point you probably have a point of

24:43

view on where you think you have product

24:46

market fit. And so they will target that

24:49

part of the market and try to drum up

24:50

interest from folks who weren't

24:52

otherwise raising their hand saying,

24:53

"I'd like to talk to you." So that's

24:55

sales development, basically pipeline

24:57

generation. Account executives are

25:00

closers. So it's their job to take

25:02

somebody from, okay, hey, I'm interested

25:04

in learning about your solution. I have

25:05

a legitimate problem. I potentially

25:07

could make a decision to I now believe

25:10

that your product is the best in the

25:12

market and for me and I'm willing to pay

25:15

for it. And then account executives

25:17

depending on uh the segments that your

25:21

company sells into, eg small business,

25:23

mid-market, enterprise, etc. They may

25:26

work their way up the food chain from

25:28

selling to a smaller company like an SMB

25:31

or a startup. Those tend to be a little

25:33

bit more of a transactional sale. You

25:36

often have a single decision maker to

25:38

then going into a mid-market or

25:40

commercial role where now maybe you have

25:42

an economic buyer like somebody in

25:44

finance and a technical buyer like

25:47

somebody in engineering to getting into

25:49

enterprise where you know you now have

25:51

procurement and you have committees and

25:54

10 people have to weigh in and um you

25:56

know you've got to help them figure out

25:58

how to derisk the fact that they're

25:59

probably migrating from something. So

26:01

much more complicated um coordination

26:04

effort to sell. That was extremely

26:06

helpful. So, SDR pipeline generation AE

26:09

closer. Such a simple way of thinking

26:11

about it. Okay, this is great. Uh, going

26:14

back to the GDM engineer, a few

26:15

questions for people that may want to

26:17

try this at their company. What scale do

26:19

you think it makes sense to start hiring

26:21

for this role, having someone automate

26:24

the go to market process?

26:25

>> What's interesting about this is it will

26:27

force companies to be more rigorous

26:30

about their sales process early. So

26:33

often startups when they go from founder

26:36

sales to say I'm going to have my first

26:39

salesperson whether that's an actual you

26:41

know account executive who has prior

26:43

sales experience or your general athlete

26:45

wicked smart who's going to go figure it

26:47

out you know often founders will just

26:51

say okay sales is showing up and talking

26:54

to people isn't you know isn't that what

26:55

I just did for the last couple years but

26:58

actually sales is is more than that it's

27:00

a skill just like writing code as a

27:03

skill or building a financial model as a

27:05

skill. It's about discovery. So asking

27:08

all the right questions that help you uh

27:10

identify challenges and pain,

27:12

willingness to pay, um you know, etc. Uh

27:16

and then going through a process to

27:18

handle those objections and showcase,

27:20

you know, where you add enough value

27:21

such that somebody ultimately wants to

27:23

hand over some money. So often, you

27:26

know, startups will get particularly

27:28

ones with strong product market fit to

27:30

pretty significant scale without really

27:32

having a replicable process. And you

27:35

can't really apply go to market

27:36

engineering unless you actually have a

27:38

point of view on what best practice

27:40

should look like. And so I think

27:43

basically this is going to force folks

27:45

to have more of a playbook out of the

27:47

gates. What's working? What's not? Can I

27:49

document it? Do I have content for the

27:52

different parts of the sales process?

27:54

And then you know once you do that which

27:56

you know maybe 10 people is a good size

27:58

and scale for that ostensibly you know a

28:01

GTM engineer can come in and turn that

28:03

into an agent. You could also argue that

28:06

if you know you're a founder who wants

28:08

to bring in a general athlete profile

28:11

and that person is technically minded

28:14

that you could have a hybrid AE GTM

28:17

engineer who figures out what their best

28:19

practice is and then tries to turn that

28:21

into an agent. you know, that's riding

28:23

alongside them and making them more

28:25

effective as well. So um you know I I

28:29

don't know that I have a point of view

28:30

yet on what's the optimal size and scale

28:33

but I forever have given founders the

28:35

advice that uh it's you often want to

28:39

bring in revenue operations which is

28:41

basically the analytical arm of sales

28:44

earlier than you think because having

28:46

data having process is actually what

28:49

gives you insights as a founder into

28:51

what is and isn't working and so I would

28:54

argue just like it's a good idea to have

28:55

that sooner later. Increasingly, it'll

28:57

probably be a good idea to have GTM

29:00

engine and be looking to bring agents to

29:02

bear on your process uh at the outset.

29:05

>> While we're on this topic, just a quick

29:06

tangent. The advice for hiring your

29:08

first salesperson that I usually hear is

29:09

wait until you're around a million in

29:11

ARR when you have a repeatable process

29:13

you can teach someone. Anything there?

29:16

Is that does that seem right? What would

29:17

you what would you recommend?

29:18

>> Yeah, I think that seems about right. Um

29:20

I do think uh as a founder you want to

29:23

stay deeply connected to customers and

29:25

get it to a scale and get it to a point

29:28

where you know you use the word there's

29:30

some repeatability there. I think that's

29:32

one of the things that not all founders

29:34

get right is founders are incredible

29:36

salespeople right they convinced a VC

29:39

angel investors to fork over a bunch of

29:41

money so clearly they're going to

29:43

inspire people to buy. But if you're

29:45

getting to a million in ARR and the set

29:47

of customers you have look nothing like

29:49

one another you still have very much

29:52

like an evangelist sale very much

29:54

founder sale versus if you can say hey I

29:57

now have an ICP here or ideal customer

30:00

profile eg something you can write down

30:03

you know we are good uh our product fits

30:06

with uh startups with less than 100

30:08

employees who are typically building SAS

30:11

applications right something like that

30:14

um then they're probably ready to hand

30:16

over the reigns. Uh and then what

30:19

founders have to remember is to actually

30:20

hand over the reigns. So, you know, you

30:22

got to enable the person who comes in

30:25

what is it that you know you're doing

30:26

effectively? What's your content? What

30:28

are the discovery questions you're

30:30

asking? How are you handling objections?

30:32

Um so you can transition that knowledge,

30:35

but also don't hand them over entirely,

30:37

right? You want to stay connected to the

30:39

customer because you still have a fair

30:41

amount of R&D to do to figure out where

30:44

are you, you know, where is the product

30:46

next going to resonate, where are you

30:48

getting, you know, stock as you scale,

30:50

etc.

30:51

>> To close the loop on the go to market

30:52

engineer, what's the profile of the

30:54

ideal go to market engineer, maybe your

30:56

first

30:57

>> what we have found works really well is

31:00

somebody who uh does have go to market

31:03

experience. So at Verscell, our first

31:06

three go to market engineers were

31:08

actually sales engineers. So Verscell

31:11

hires very technical uh sales engineers.

31:14

All of them were front-end developers

31:16

before they decided they wanted to get

31:17

into sales. And so we just said, "Hey,

31:20

three of you, congrats. You're now

31:22

founding members of our GTME team." Uh

31:25

and the thing that works well there is

31:27

uh you know, you do understand aspects

31:30

of uh what is good GTM? uh what does a

31:33

process look like? It's been really

31:35

interesting actually. Um so the

31:38

gentleman who runs GTM for me um we were

31:41

going through you know this this lead

31:43

agent and QAing it uh and you know so

31:47

I'm going and I'm looking at some of the

31:49

responses that we've ultimately uh had

31:52

had the lead agent send and realized oh

31:56

I wouldn't have sent that. Um, and

31:58

that's because I have 20 years of sales

32:00

experience and we model the lead agent

32:02

off, you know, our best person, but our

32:05

best person who has two years of sales

32:07

experience. So, it actually is important

32:09

to understand the art and the science of

32:12

sales and how you bring best practice to

32:14

bear. So, either you've done it and so

32:17

you know some best practice or you're

32:19

going to geek out on sales, read a bunch

32:21

of books, learn a thing or two, um, you

32:24

know, and and try to incorporate some of

32:25

those into into your agent development.

32:28

>> That is really interesting. So, come

32:30

from the sales side, not from the

32:31

engineering side. And I imagine this is

32:33

such a cool opportunity for sales people

32:35

to do something completely different and

32:36

move closer to engineering.

32:38

>> Yeah, I I mean, we're having a lot of

32:40

fun with it at uh at Rurell in

32:42

particular. We basically get to be

32:44

customer zero. So everything that we're

32:47

building with agents, we're building on

32:49

Versell's AI cloud. So you know these

32:51

agents are now have multiple steps that

32:54

they go through. So we're using

32:55

Verscell's uh workflow SDK and um

33:00

workflow offering. We um you know use

33:02

the AI gateway to call the different

33:04

models that we use to do deep research

33:07

um or uh other enrichment that we do.

33:10

Uh, so for us it's it's great because we

33:13

basically sort of bang on everything the

33:15

engineering team is is building and get

33:18

to go be a discerning customer before we

33:20

actually get it out the door to real

33:22

customers.

33:22

>> What a fun time to be alive. I could

33:25

tell the the fun that you guys are

33:27

having just the way you describe it.

33:29

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33:31

complexity of many of the world's

33:33

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33:35

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33:38

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33:40

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33:42

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33:44

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33:46

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33:49

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33:51

had more leaders from Stripe on this

33:53

podcast than any other company. They

33:55

know how to build great products that

33:57

scale and that people love. And Stripe

34:00

is a lot more than payments. They've

34:02

also got a category leading billing

34:04

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34:24

zooming out a little bit in terms of you

34:25

mentioned tools, some tools that you

34:27

use. I'm curious just what are kind of

34:28

the state-of-the-art tools within the

34:30

goto market stack that you love that

34:32

you'd recommend?

34:33

>> Well, so I'm going to have an

34:34

interesting answer to this. Um, uh, so

34:37

I'll give you one, and it's not

34:38

state-of-the-art per se, although that I

34:40

don't don't mean that, uh,

34:42

disparagingly. It's just that it's been

34:44

around for for a while now, and and a

34:46

lot of folks use it. But I think Gong

34:49

has gotten just meaningfully more

34:51

interesting in the last year. Um, and

34:54

then second half my question I will get

34:56

into. I think the calculus on build

34:59

verse buy is changing. So all right,

35:02

Gong. Uh, Gong is incredible because you

35:05

can run agents against it now. Um, so we

35:10

take all of our gong transcripts and we

35:13

dump them um into an agent called the

35:16

dealbot. And that dealbot then can do a

35:20

bunch of things. So the first thing we

35:23

had it do was uh lost a lost opportunity

35:27

review. So we had just finished Q2. we

35:31

had, you know, a list of our top losses

35:33

for the quarter sorted by deal size and

35:36

we ran it against that and uh it was

35:38

incredibly interesting. So the biggest

35:40

loss that quarter uh according to the

35:42

account executive was lost on price. And

35:45

when you ran the agent over every Slack

35:49

interaction, every email, every gong

35:51

call, it said actually you lost because

35:55

you never really got in touch with

35:57

economic buyer. And when you talked to

36:00

somebody about ROI and total cost of

36:02

ownership, it was clear from their

36:05

reaction that they didn't really buy

36:07

your math. And so really the reason we

36:10

lost was an inability to demonstrate

36:12

value. Um which you know upon reflection

36:16

I've got work to do to build out how we

36:18

quantify the value of versell uh which

36:21

actually is very easily quantifiable.

36:23

It's one of the things I love about

36:24

selling this product but we got to

36:25

codify that for the go to market team.

36:28

Um, so that was incredibly interesting

36:30

and now we run it against all of our

36:32

lost opportunities and actually do a

36:34

much better job of categorizing why it

36:37

was we really really lost and then

36:39

either feeding that back into the

36:40

engineering team or back into marketing

36:44

sales leadership on hey where are we

36:46

falling short in the sales process and

36:48

so that was awesome but then we're like

36:51

well it's not very fun to lose so why

36:54

don't we pull that forward and so we

36:56

went from lost bot to dealbot And now

36:58

the dealbot is running in real time and

37:01

we basically feed insights into Slack.

37:05

Versel is incredibly heavy users of

37:07

Slack. So we have a channel for every

37:10

single customer either opportunity or

37:13

existing one. And so now we're feeding

37:16

insights into that Slack channel which

37:19

is you know hey you're this far into the

37:22

sales process and you haven't talked to

37:23

an economic buyer. You should think

37:25

about that. or hey, you just got off

37:27

that call with an economic buyer. It

37:28

didn't sound like it went that that that

37:30

well. You know, here are some things to

37:32

consider and how you might follow up.

37:34

And uh last thing before I pause, the

37:36

other thing that's really interesting

37:37

and how we're we're using this too is,

37:40

you know, we are in this moment, right?

37:42

We're like I I have never seen an

37:44

iteration velocity like exists now in my

37:48

career. My 20 plus year career has all

37:51

been in tech. Um, and so for go to

37:54

market teams, that's really hard. If you

37:55

are launching something every other day,

37:58

the ability to be enabled on that is

38:00

actually quite challenging. And so this

38:04

uh bot agent um is now also letting us

38:08

where we're starting to go with it is

38:10

we'll release something. We'll do our

38:12

best to enable the team. Then we'll go

38:15

run the agent across uh calls,

38:17

interactions, and we'll diagnose where

38:20

we did a bad job of objection handling

38:24

where we're getting stuck. And then at

38:26

the end of the week, we can have a

38:27

huddle and say, "Okay, what are all the

38:30

places that our agent would suggest we

38:32

aren't selling effectively?" And then

38:35

almost like an engineering team, we'll

38:36

now run sprints, which is like those are

38:38

just bugs. They're bugs in your go to

38:40

market process, so you should not have

38:41

them. And you know, by the next week,

38:44

we're going to add content to our

38:46

objection handling to guide. We're going

38:47

to add content to a discovery guide.

38:49

We're going to figure out something we

38:50

need to change about our demo. So on and

38:52

so forth. So that's early. That's a

38:53

little bit of a preview. Um but but

38:55

that's where we're talking about taking

38:57

things right now within our our go to

38:59

market org.

39:00

>> Jean, you're blowing my mind in so many

39:02

ways. This just sounds so fun and just

39:05

like you guys are going to win is what

39:07

I'm feeling when I hear all this. Uh

39:09

incredible. What I love about this is

39:12

this AI tool, this agent you built sees

39:14

things that humans were not seeing. The

39:16

fact that you were surprised of just

39:18

like this is a completely different

39:19

conclusion is such a big deal. This is

39:21

the whole promise of the eye. is going

39:23

to do things we aren't even thinking

39:24

about or capable of. It is I we had a

39:27

really interesting one of the things

39:28

we're doing um aber so you know we have

39:31

an AI cloud so people use that to put AI

39:34

native features into their customerf

39:35

facing applications but they're also

39:37

using it to build internal applications

39:39

to improve productivity or outcomes and

39:42

we are talking to a very large airline

39:47

and that airline uh obviously gets tons

39:50

and tons of support queries so uh of

39:52

course they would want to go apply AI I

39:55

to hey how can we have AI answer these

39:58

so that our cost to support goes down

40:00

sort of the obvious thing but the more

40:02

interesting conversation was actually um

40:05

with uh one of the sea level executives

40:07

who said we also actually transcribe

40:10

every single one of those support calls

40:12

and so what I really want to know is why

40:14

are they calling and how do I make it so

40:17

that fewer people call the next week.

40:19

Um, and so again, this is now with AI,

40:22

you can rapidly go through all of that

40:25

content and actually be able to much

40:27

more quickly than having a human, you

40:29

know, in your CRM sort of pick some

40:31

status, why it was that folks were

40:34

calling the airline this week and and

40:36

what if anything you can do to make it

40:38

less the case next week.

40:39

>> I imagine many people hearing this are

40:41

like, I need one of these deal bots and

40:42

los bots. Uh, these are all internal

40:44

products that you all built.

40:46

>> Yes. Is there anything that you've

40:48

learned about making them this good? Any

40:50

tips you can share? Here's how to make a

40:52

really good bot for sales.

40:54

>> Yes. Um, so actually that's the second

40:57

half of my answer that I forgot to uh

40:59

forgot. That's perfect.

41:00

>> Which is sort of like build versus buy

41:02

calculus.

41:03

>> Um, so I think one of our learnings is

41:06

that it's not that hard to build these

41:08

agents and they aren't that expensive

41:11

either. So, you know, I mentioned with

41:13

the lead agent, um that was a six- week

41:16

process with one human, a third of his

41:18

time. Uh that dealbot, the Lostbot

41:21

version was like two days. Um like

41:23

basically we rifted on it. He had it 40

41:25

hours later. Um you know, now we're

41:27

continuing to refine it for for the

41:29

other things I mentioned. Um and and

41:32

what's also interesting about them is

41:34

they uh it's you know for better for

41:37

worse for Brcell but that uh that lead

41:40

agent which runs full stack on Verscell

41:42

will cost us about $1,000 to run for the

41:46

entire year. So if you remember I told

41:50

you we had 10 people in the SDR

41:52

function. So I'm I'm paying well over a

41:54

million dollars for that from a salary

41:56

perspective. I got that down to one and

41:59

then behind that I have a lead agent

42:01

that costs a thousand bucks. Um so

42:04

that's like a you know 90 plus%

42:07

reduction in total cost there. Um so and

42:11

you know there are a lot there's lots of

42:13

software for for agents on on um out

42:16

there right now. And I think one of the

42:17

things we're learning is because this

42:20

whole space is so nent, often your own

42:24

esoteric context, you know, your

42:26

content, your workflow is really key to

42:29

unlocking the power of the agent. And so

42:32

I think there's real value in

42:34

experimenting with your own internal

42:36

agent development. We may ultimately end

42:39

up on, you know, better integrated agent

42:42

platforms in the fullness of time. Um,

42:44

or we may find that the CIO increasingly

42:47

goes from a procurer of software to a

42:50

builder of software and you'll have an

42:52

AI AI internal platform with a thousand

42:55

agents running across your org. I'm not

42:57

really sure yet. Um, but I certainly

43:00

think um there's value in trying it

43:02

yourself because you may find that it's

43:04

meaningfully easier than you think. Um,

43:08

and you get returns pretty quickly. So

43:10

what I'm hearing here is that you're

43:12

finding that there are not tools out

43:13

there to plug and play. The alpha is

43:16

essentially in building your own stuff.

43:18

>> I think that's partially true. And I

43:20

think because you also have all these

43:22

tools proliferating right now, you get

43:25

into the perennial problem where you

43:27

wind up with 20 of them uh to do you

43:31

know the 20 jobs to be done basically

43:34

rather than an integrated platform

43:36

that's doing all of them. Uh I'm hearing

43:38

this a lot actually when I'm talking to

43:40

customers right now where their biggest

43:44

issue

43:46

uh in deploying AI is actually just

43:48

getting through procurement and it's

43:50

sort of because everyone's got an AI

43:52

mandate. You kind of have a blank check.

43:54

Uh I recently heard the term of instead

43:56

of ARR it's ERR which is experimental

43:59

run rate revenue which is to say you

44:02

know everyone's out there sort of hey

44:04

we're going to give this thing a go for

44:05

a year and then TBD on whether or not

44:07

you know we keep it but you know

44:09

basically you're having to procure 20

44:11

different things because most things are

44:13

getting off the ground and so you know

44:14

they're solving something relatively

44:16

narrow and that'll change in the

44:17

fullness of time but I do think there's

44:20

an opportunity to figure out hey where

44:22

do I likely have a more specific

44:24

workflow, you know, internally. For

44:26

that, it might be will worth worth

44:28

building your own agent and then maybe

44:30

for the things that are a little bit

44:32

more generalizable, you go get something

44:34

off the shelf.

44:34

>> Are there any platforms or tools you

44:36

want to shout out that allow you to

44:38

build these agents so quickly? I know

44:39

they sit on Versel. So, shout out

44:41

Versel, but just uh anything that you

44:43

point people to to like are these SDR

44:45

these GTM engineers, they're former

44:47

salespeople. Are they learning to code?

44:49

Are they bip coding these agents? How

44:51

does that

44:51

>> uh well the so our sales engineers all

44:54

have uh CS degrees so they they were

44:56

engineers um uh in a sales capacity so

44:59

they're writing code and actually these

45:01

agents they're building directly on

45:03

Verscell um so you get the AI gateway

45:06

that lets you you know call different

45:08

models um you have a sandbox if you're

45:11

running untrusted code you've got uh

45:13

workflows that let you build the process

45:16

you've got fluid compute which lets you

45:18

um really efficiently use compute when

45:20

you need it. Um so so we're just sort of

45:24

building it from the ground up um here

45:26

because again it's not that hard. Now

45:28

you do need to write code for that. Um

45:31

certainly there are a lot of vibe coding

45:33

tools out there that also give you more

45:37

um kind of workflow will build builders

45:39

that are somewhere between fully

45:41

wizzywig um almost like drag and drop um

45:44

and a little bit more more code forward.

45:47

Um, so you've got a bunch uh out there

45:49

along those lines. But, uh, you know, I

45:52

I do think we've sort of found like one

45:54

of one of the reasons actually the GTME

45:56

team at Verscell can build these agents

45:58

so easily is because the Verscell

46:01

platform is making it that easy to use

46:04

our, you know, framework defined

46:05

infrastructure and get that agent onto

46:08

into production very rapidly.

46:11

>> What a neat unfair advantage you all

46:12

have to do this.

46:13

>> Yes, it is. It is fun to like I mean I I

46:16

do think this company is better than any

46:17

I've seen at eating its own dog food. Um

46:20

and just everyone is constantly we say

46:23

Verscell builds Verscell with Verscell.

46:25

So you're just always looking for ways

46:27

to hey how can we use our product to go

46:30

do what we need to do and as a result

46:32

either understand then what a customer

46:34

would want or what's missing from our

46:36

product that we could go make better.

46:37

Along these lines, something that's

46:39

already come across a lot in the way

46:40

that you describe this stuff is I've

46:42

heard a lot about how you think about go

46:43

to market as a product. A lot of people

46:46

listening to this, as I've said, are

46:47

product builders. So, I think this is a

46:48

really uh nice way of thinking about go

46:50

to market. Uh I'm guessing you've

46:52

already talked about elements of this,

46:53

but just what's a way to think about go

46:55

to market as a product?

46:56

>> Yeah, I've always um so I had this

46:59

realization um probably a little over a

47:01

decade ago in my career. Um, so my first

47:04

job out of college was working on Gmail

47:07

in 2004. So Gmail launched on April 1st.

47:11

I joined on June 1st. And, uh, as I'm

47:15

sure you'll remember as well, Gmail was

47:16

this incredible innovation, uh, you

47:18

know, massive JavaScript application

47:20

that didn't really exist at the time.

47:22

And it had this gig of storage. It was a

47:24

full year before Yahoo Mail caught up

47:28

and even longer before Hotmail and

47:30

others did. Right? So that that was the

47:31

level of like technical differentiation

47:34

between you know Gmail and the next

47:36

best. And a decade later I you know you

47:40

had cloud uh computing enabling folks to

47:43

do stuff that you never would have been

47:44

able to do previously. And so I kind of

47:47

felt like huh like software is starting

47:50

to commoditize a little bit. Um and so

47:53

uh you know when when that happens when

47:55

technical differentiation kind of

47:57

narrows what are other things that will

47:59

differentiate you? Um and you know sort

48:02

of thinking outside of tech like we buy

48:04

a lot of things because of how we feel

48:06

about them. Um and so I started to

48:09

develop this thesis that um actually the

48:12

experience that you have of being sold

48:14

to will increasingly actually uh

48:17

differentiate a company and uh drive

48:20

buying decisions if uh products are are

48:24

only different at the margin. Uh and so

48:28

if if you believe that then you really

48:30

want to create a customer buying journey

48:33

that feels like very unique experiences.

48:37

And so we did a lot of this at Stripe

48:39

and now we're looking to replicate this

48:41

here. But an example of one of the

48:43

things I think we did really nicely at

48:44

Stripe was, you know, a lot of companies

48:47

sales sort of the first call after

48:50

you're qualified, you know, we've

48:51

decided you're wortha engaging in sales

48:53

process is discovery, which is basically

48:56

let me ask you a lot of questions to try

48:58

to under uncover pain, figure out where

49:01

buying power lies, etc. And so that is

49:04

kind of boring sometimes for a customer.

49:06

You're basically being quizzed um often

49:08

on the phone. Uh and so what we started

49:11

to do at Stripe was that first session

49:14

was a whiteboarding session and we would

49:17

actually get together and have you, you

49:20

know, draw your architecture um for

49:23

payments um and all the other things

49:25

that were under the hood to enable you

49:27

to take money and drive customer

49:29

outcomes. And through that we would

49:31

learn a ton about, you know, what was in

49:34

your stack, what we were going to have

49:36

to compete with, displace where value

49:37

lied. But the customer also learned a

49:41

lot themselves because in many cases

49:42

they'd never drawn their architecture

49:44

diagram. And so they left that meeting

49:45

with an asset and a sense of like wow

49:48

this is a really collaborative person

49:50

who's like deeply interested and helping

49:52

me like you know develop a mental model

49:54

for how to think about this um you know

49:56

and then we had other things that we we

49:58

would do. Um so uh that's sort of how I

50:02

think about building go to market like a

50:04

product is basically you need to go

50:07

through from the first time you become

50:10

aware that the company exists to again

50:12

that sort of five-year heavily retained

50:14

wall-to-all customer a set of

50:16

experiences and those experiences can

50:18

feel transactional flat boring or they

50:22

can feel very human personalized and

50:25

unique. Um, and so, you know, we try to

50:28

go map those out and figure out how do

50:30

you, you know, bring the product to

50:32

bear, make it really human. Um, and and

50:34

hopefully that, uh, creates a customer

50:36

for life in the end.

50:37

>> I love that whiteboarding example. Are

50:39

there any other examples of what you've

50:41

done to make it actually work really

50:42

well in this way?

50:43

>> Yeah. Another principle, we really

50:45

developed this um at Stripe 2 and I

50:48

brought it to to Verscell was just the

50:50

idea of adding value at any touch point

50:55

regardless of whether or not that

50:56

customer bought because even if

50:59

customers don't buy, you often find that

51:02

if you miss them on that buying cycle,

51:04

three or four years later when they're

51:06

in another buying cycle, they do come

51:08

back. you know, I was at Stripe for nine

51:10

years and so I saw the number of

51:12

customers that we lost and then half a

51:14

decade later here they are and they

51:15

bought. So, um uh that that was sort of

51:19

another one. So, you know, examples of

51:21

this that we're doing at Verscell is um

51:24

we uh you can there's great data on the

51:27

internet um that helps people understand

51:30

the performance of their website and how

51:33

fast uh your website is um actually

51:36

impacts SEO and SEO impacts AEO and

51:41

everybody's thinking about AEO right

51:42

now. Um, and so, you know, one of the

51:45

things we try to do when we reach out is

51:47

actually give folks insight immediately

51:49

into how they're performing on an

51:51

absolute basis, how they're performing

51:53

relative to peers. So, ideally, you

51:56

know, that piqus your interest and you

51:58

want to learn more from us. Um, but even

52:00

if it doesn't, you still have insights

52:02

that you may or may not have been aware

52:03

of um that maybe make you contemplate

52:05

whether or not you've got the optimal

52:07

setup.

52:07

>> Awesome. So what I'm hearing here is uh

52:10

when you say think of it like a product,

52:11

it's basically a product person thinks

52:13

about the experience of their product at

52:15

every step of the journey. Here's the

52:16

flow. Step 1 2 3 4 5. How do we make

52:19

every step awesome? Keep them going

52:21

along that journey. And so what you

52:22

think about is just from the prospect's

52:25

perspective, how do we make every step

52:26

of that journey awesome? Continue them

52:29

down that journey.

52:30

>> Yeah. Yeah. How do you make it be an

52:32

experience rather than a transaction

52:34

>> versus just like feel like sales coming

52:36

at you trying to sell you stuff? Yeah.

52:38

>> Okay. Uh staying along this track of

52:40

being staying tactical, uh I want to go

52:43

even further there. So what are just

52:45

some go to market tactics that you find

52:48

really effective these days for people

52:50

trying to just to be more successful in

52:53

getting people to pay attention to their

52:54

stuff to buy their stuff? Uh I mean one

52:57

I would sort of say uh dubtales with

53:00

where I just ended but is what are the

53:02

unique insights that you can bring to

53:04

bear um about your product or you know

53:08

how that that customer may be in a

53:12

suboptimal state. So I do think

53:14

investing in in data to tease that out

53:18

is is one thing. I think the other thing

53:21

this is is straightforward but often um

53:24

not done enough is like a lot of good

53:26

companies invest in docs um you know

53:29

good thing to do and but they they stop

53:32

there and particularly if you're selling

53:35

into a slightly larger company doing

53:38

things like um you know AWS calls it

53:41

well architected guides um or blueprints

53:45

uh a lot of customers particularly

53:47

larger ones really want to know the best

53:50

practice for how exactly to implement

53:53

your product in with their particular

53:55

setup. Uh, a great example of this, um,

53:58

this is from Stripe was, you know,

54:01

Stripe was excellent at marketplaces.

54:03

Most, you know, Lyft, Instacart, Door

54:05

Dash, they were all on Stripe. Um, and

54:07

so Stripe definitely knew the best way

54:09

to set up payments for a marketplace.

54:11

Because we'd seen them all. And so when

54:14

you then would go and sell a marketplace

54:15

and, you know, say, "Oh yeah, we've got

54:17

docs. Go check them out." They didn't

54:19

like that, right? Because they're like,

54:21

"Hey, every marketplace runs on Stripe.

54:22

I don't want to look at generic docs. I

54:24

want you to tell me what's the best way

54:26

to set up payments for a marketplace.

54:28

Um, and so I think that's another key

54:30

thing to be doing. Um, particularly as

54:32

you move past that sort of solo

54:34

developer, startup founder as

54:36

potentially a target uh, audience. Um,

54:39

and then I don't know this is a tactic

54:41

per se. Um, but I do think just a good

54:45

reminder for founders in particular who

54:49

um are still in that maybe founder-ledd

54:52

sales moment is just the value of really

54:54

good discovery. Uh I often find founders

54:58

are so in you know so excited about uh

55:01

talking about their product or you know

55:03

you ask one question and now they've got

55:06

a hook of like I can fix that for you.

55:08

But, uh, excellent salespeople

55:11

typically, uh, will talk well under half

55:15

the time in, uh, a conversation because

55:18

they're out asking questions, probing,

55:21

often helping a customer, uh, arrive at

55:24

conclusions on their own. And so,

55:26

learning how to, you know, do five W's,

55:30

go deep, rather than immediately going

55:32

into problemsolving mode. You know, if

55:34

they ask a question, you respond. often

55:36

if they ask a question, you should ask a

55:38

question about the question and then

55:39

respond, right? So learning to be great

55:41

at that I I think differentiates people.

55:43

>> So the last tip I think there something

55:45

a lot of I bet everyone could learn is

55:46

just listen more and talk less.

55:48

>> Yeah.

55:49

>> On that first piece of advice, this kind

55:51

of sharing unique insights and how

55:52

you're suboptimal. Is there an example

55:54

you could share of how you did that?

55:57

Maybe a story of just how you convince

55:59

someone you're selling striper versus

56:00

sell care. Something you you're missing.

56:02

Here's how this could help you become

56:03

much better. So with versell the um sort

56:07

of is giving an example but I'll make it

56:09

more specific. So um you know the

56:12

performance point you can go and look at

56:14

core web vitals um and so we can

56:17

actually see the different things um

56:19

within their site that are fast uh or

56:23

you know load correctly etc. So at that

56:27

we then so anyone can go look that up

56:30

but what we can do is actually then help

56:32

with benchmarking relative to peers. Um

56:35

so that's been um a big one that we've

56:37

gone out and done. The other one that

56:40

we've spent some good time on is just

56:42

around helping customers understand

56:46

uh MCP servers and when it would make

56:48

sense to use one. Um, so I think you

56:52

know those are all the rage but often

56:54

people don't know how to contemplate

56:55

them within their own product. So that

56:58

was uh another one that that we've gone

57:00

pretty deep on and then related to the

57:02

first one is um AEO answer engine

57:04

optimization uh is actually you know

57:07

somewhat tangential to Versell right so

57:09

we drive performance performance drives

57:11

SEO SEO is an input into AEO uh but we

57:15

have spent a ton of time um sharing

57:18

insights on AEO because we ourselves

57:20

focus deeply on it and think we

57:22

understand it better than many and so

57:25

again as part of just building a trusted

57:26

relationship ship. You know, folks may

57:29

go from those AMAs or that content um

57:32

into okay, great. You learn, you taught

57:35

me a lot and therefore I want Versel to

57:37

help me with performance. Um but in many

57:40

cases, they actually now are just like

57:41

this is a company that seems insightful.

57:43

It seems like one I can learn from and

57:44

now I'm going to pay a little bit more

57:46

attention to them and over the fullness

57:48

of time maybe, you know, they see

57:50

something that triggers them to decide

57:51

now's the time I want to go investigate

57:53

that aspect of Versell.

57:55

>> Awesome. So, what I'm hearing here in

57:56

many ways, and this resonates, I had

57:58

Jenna Ael on the podcast recently, and

58:00

it was all about sales skills and how to

58:02

sell. Nice.

58:02

>> And one of her tips is you don't want to

58:05

be focusing on here's the pain and

58:07

problem we're solving. And instead,

58:08

focus on here's how you will be better

58:10

than your competitors. Here's a big gap

58:12

and alpha that you can achieve if you

58:15

use say Versel. So, here's like you

58:17

you're missing out on speed and you're

58:19

going to get screwed in AO and all these

58:21

things. here's like how you can

58:22

architect your entire payments art

58:24

system to be top tier. Does that

58:26

resonate?

58:27

>> Yeah, it uh there's I I was told this

58:30

stat. It's round numbers so I can't

58:33

imagine it's entirely accurate but um

58:36

you know basically that um customers 80%

58:40

of customers buy to avoid pain or reduce

58:44

risk as opposed to the other one out of

58:47

five to increase upside which is a good

58:51

thing again for startup founders to

58:52

understand. So you know we all love to

58:55

talk about the art of the possible you

58:57

know uh everything we're going to enable

58:59

in the future. It's very exciting.

59:01

Everyone's visionaries, right? But, um,

59:04

that's often really a sale that's going

59:06

to resonate with another founder. Um,

59:09

and for everybody else, uh, you know, it

59:12

particularly enterprises, you're

59:14

avoiding the risk of not making your

59:17

revenue target next quarter, uh, the

59:20

risk of having comp, you know, being

59:23

outdone by the competition, the risk of

59:26

having brand damage, etc. And so it's

59:29

really hard actually for uh many

59:32

startups to make that pivot because it

59:34

it feels off-brand. But it does actually

59:37

drive more buying behavior is setting up

59:41

a little bit of that concern that either

59:44

I might not be well positioned or again

59:47

through good question asking I know

59:48

exactly where I'm not well positioned

59:50

and you can help me derisk that.

59:53

>> That is such an important stat you

59:55

shared. This has come up actually before

59:56

in this podcast that buying people are

59:59

buying in large part to reduce risk to

60:03

basically not hurt themselves in their

60:05

career not hurt the company like that's

60:07

a bigger factor in the buying decision

60:08

then I have this problem I need to solve

60:10

and okay thank you this solving and the

60:12

way April Dunford came on the podcast

60:14

and talked about this of just like like

60:15

it's such a massive career bet we are

60:18

going to bring in product X and it's

60:20

going to become like Stripe let's say

60:21

let's not talk about her cell but let's

60:23

say Stripe we're going to adopt Stripe

60:25

Right. That's like a huge decision. If

60:27

it doesn't go well, your career is hurt.

60:29

Your manager is going to be mad at you.

60:30

It's going to set your company back.

60:32

Yeah.

60:32

>> So, a lot of the buying decision, as

60:34

you've said, is I just don't want to

60:35

screw this up.

60:36

>> Right. Absolutely.

60:38

>> Okay. Along the line of tactics,

60:40

something that I know you're a big fan

60:41

of and uh help people think about is

60:44

segmentation.

60:45

>> Yes.

60:45

>> This is something a lot of founders

60:47

struggle with. They know, okay, I need

60:48

to figure out my segmentation strategy

60:50

and here we're going after. Can you just

60:52

kind of give us a primer on

60:53

segmentation? what people should know

60:54

about why this is important and how they

60:57

might approach this.

60:58

>> Yeah. So, segmentation is basically how

61:01

do you carve up the world of companies

61:03

that exist on the planet uh to reason

61:08

about them where they buy differently.

61:11

So, I'll give um I'll give examples from

61:14

from Stripe and Burcell to bring this

61:15

home. So, a very very typical company

61:19

segmentation is small, medium, large.

61:22

That's a rational way to do things. Uh

61:24

small, you often have a single decision

61:26

maker. Medium, you know, a small team

61:29

and large, it's complex, it's a

61:31

committee, etc. Um so the buying process

61:35

does change across SMB, mid-market,

61:37

enterprise. Um but if you stop there, uh

61:41

you are likely missing. Okay. But what

61:44

are the things within your offering that

61:46

also change the way something gets sold?

61:49

So at Stripe um there there were two

61:54

ways we further cut the business. Way

61:56

one was so think of segmentation as as a

61:59

graph. So x-axis was size um so small,

62:03

medium, large. Yaxis was growth

62:06

potential and that was important for

62:08

Stripe because it was a consumptionbased

62:10

business. So if you were going to grow

62:11

at 200% yearon-year, you were more

62:14

valuable to Stripe than if you were

62:15

going to grow at 8% year-on-year. And so

62:17

we wanted to spend more time, spend more

62:19

money um going after the 200% growers

62:22

than the 8%. So that was one that

62:25

informed your strategy on who you

62:26

targeted. And then for Stripe, the other

62:28

thing that we cut it was business model.

62:31

So are you a B2B? Are you B to C? Are

62:35

you B2B T2B? Eg a platform or B2B TOC eg

62:40

marketplace. And why is that relevant?

62:42

Well, if you're B2B, you are going to

62:44

need business payments, right? credit

62:46

card was useful for a PLG function, uh,

62:49

PLG sale, but you were going to need a

62:52

wires, etc. And you probably had a

62:54

recurring business, so you were going to

62:56

want Stripe billing. You know, if you

62:58

were B toC, that's consumer, so you're

63:00

going to want consumer payments. Apple

63:01

Pay is super important. If you were in

63:04

the like the platform or the

63:05

marketplace, you were going to buy our

63:07

connect product. Um, so it helped us

63:09

basically then craft uh a more targeted

63:12

and replicable sales or sell sort of

63:15

similar deal. So small, medium, large

63:17

buying uh complexity. We also do the

63:20

same thing on growth potential because

63:22

we are similarly a consumption based

63:23

business. But for us um a couple other

63:27

things on uh the x-axis we layer in uh

63:31

promote which is uh one of the things

63:34

that is observable is um traffic site

63:38

traffic on the internet. So Google

63:40

publishes a crux score which is

63:42

basically they have a bunch of data in

63:44

Chrome and so they know that Lenny's

63:46

site gets you know a millionx the amount

63:48

volume that Jean's site does.

63:51

>> Um and so um basically if you're a small

63:55

company but you have super high traffic

63:58

that's going to be more complex is going

64:00

to make more money and so we want to

64:01

promote you. So great example of this uh

64:04

would be OpenAI. Open AI I forget these

64:07

days how many uh employees it has. Let's

64:09

say it's 3,000. It's probably more than

64:11

that at this point, but so that's going

64:12

to put it in uh the mid-market at most

64:15

companies, but they're a top 25 traffic

64:18

site on the internet. So for us, that's

64:21

going to push them in our enterprise

64:23

because we need to go uh you know lean

64:25

in with a much uh you know a more

64:28

in-depth sales process. And then the

64:31

other thing we layer on is uh workload

64:34

type. So, if you are an e-commerce

64:37

company, that's going to be a very

64:38

different sale. We're going to have to

64:40

you actually use different language. You

64:42

talk about product uh listing pages and

64:45

product description pages and you've got

64:47

an order management system as the back

64:49

end. Super different from a crypto

64:51

company where, you know, you might be

64:53

running soup to nuts uh on AWS. And so,

64:56

again, that helps us start to then have

64:58

a really different uh buying content for

65:03

you. Okay, this is awesome. So,

65:05

essentially what you do is you break up

65:07

this universe going back to your

65:09

original story at Stripe into uh help

65:12

you sort essentially which companies are

65:14

most likely to buy your product and what

65:15

you're coming up with is these

65:16

attributes that are

65:17

>> y

65:18

>> uh correlated with they are likely to be

65:20

great potential customers.

65:22

>> Y

65:22

>> do you recommend using this uh xyaxis as

65:26

the approach versus something else like

65:28

a spreadsheet with like five columns

65:29

like I don't know how do you start?

65:31

there's probably something to be said

65:32

for X and Y like I do think size is

65:34

going to play into most buying decisions

65:37

and then these days there is a fair

65:39

amount of you know consumption um

65:42

happening so there'll be aspects of this

65:43

that I think are somewhat universal but

65:46

I think uh basically like when I came to

65:49

Burcell new product market product

65:51

offering for me it's a new market I had

65:53

a lot to learn but this is one of the

65:54

first things I did in the first 30 days

65:57

um and so basically I sat down uh with

66:00

the gentleman man Obby who leads data

66:02

science here and uh you know said okay

66:06

what what drives revenue so what are

66:09

what are the things that you can look at

66:11

xanty about a customer to know this

66:14

person's likely to pay us $100,000

66:16

versus a million those that's probably

66:18

going to be part of a segmentation

66:20

framework and then similarly okay uh

66:23

where can we how how what attributes

66:26

would we look for to cluster where we

66:28

seem to be winning repeatedly

66:31

And that was how we ultimately got at

66:33

okay crux rank is going to be super

66:35

important. Um because what you pay for

66:37

cell is correlated with your traffic.

66:40

And then workload type was super

66:42

important as well. Um so uh you know and

66:46

for for Brazelle when we did that it was

66:47

really interesting um because you know

66:50

we saw wow like we have a lot of

66:54

penetration and ecom not not that

66:56

surprising actually uh given that we you

67:00

know drive highly performant sites and

67:02

ecom having a super fast performance

67:04

site really matters um but you know at

67:07

the time if you looked at as an example

67:10

in enterprise SAS companies uh we didn't

67:13

have a lot penetration. Um, even though

67:15

you would have thought, okay, front-end

67:17

cloud, very developer oriented, of

67:18

course, software companies would be on

67:20

us. Um, but in enterprise, most of those

67:22

companies built that SAS offering before

67:24

Verscell existed. And so, you know,

67:27

migrating 200 or two million lines of

67:29

code, you know, to Verscell, that that's

67:31

a big lift, right? Um so it helped us

67:33

really understand where are we winning

67:35

where are we not you know and now uh as

67:38

an example like uh in within SAS

67:41

companies and enterprise we're actually

67:42

seeing a lot of interest in the AI cloud

67:44

because those are some of the earlier

67:46

adopters of hey let's add AI native

67:49

functionality to our existing SAS app.

67:51

Um and so again it helps us figure out

67:53

what to target where.

67:55

>> Okay so essentially you're doing kind of

67:56

this regression analysis on what's

67:58

working and then here's the attributes

67:59

that are most correlated with

68:01

>> success. Uh something I always recommend

68:03

when founders ask me for how do I figure

68:05

out my CP? How do I figure out where to

68:07

focus? I my heristic is just think of

68:09

three attributes that narrow them down.

68:11

So it's like series A company with

68:13

that's angelled that's a marketplace

68:15

something like that. I feel like a good

68:16

like just rule of thumb just to start.

68:18

>> I think like beyond three I like you

68:21

know that's getting pretty detailed and

68:23

reasonably speaking you're not going to

68:24

cut like you have five sellers so you're

68:28

going to put one seller in five

68:29

different segments. So I I do think

68:31

three is something you can reason about.

68:33

The other thing I'll say on this topic

68:35

that I think is really important is a

68:37

lot of times folks think segmentation is

68:38

a go to market thing. I really think

68:40

it's a company thing. So when you join

68:43

Verscell um I actually deliver and every

68:46

new hire's first week one of our company

68:49

values is KYC know your customer. Um and

68:51

I deliver the KYC SE section. um and uh

68:56

you know talk through our segmentation

68:58

framework how our customer base maps

69:00

into those segments because it's really

69:02

important as you know those new product

69:05

managers leave the room that when

69:06

they're building something they think to

69:08

themselves okay I'm building a new

69:10

back-end product who is this targeted at

69:12

is it targeted at an enterprise or um or

69:15

a startup um you know basically do I

69:17

have a point of view on where I'm trying

69:18

to win and why um and if you're doing

69:21

that out of the gates then it's much

69:23

much easier to then speak the same

69:25

language with the go to market org and

69:26

figure out okay how are we going to take

69:28

that to market in line with the other

69:29

motions that we we have in play.

69:31

>> Okay, this is a great segue to uh

69:33

there's a couple other things I want to

69:34

talk about. One is something I've heard

69:36

from so many people you've worked with

69:38

is that you are amazing at building a go

69:40

to market org that works really well

69:42

with product and engineering. So I'll

69:44

read this quote from your former

69:46

colleague Kate Jensen. She said that

69:48

your superpower is building a sales or

69:49

that doesn't feel like a sales or to

69:51

engineers. So the question she suggested

69:53

asked just like what does it take to do

69:55

that? What are the ingredients to

69:56

building a sales or that engineers and

69:57

product teams really like working with?

69:59

>> The litmus test I have always given my

70:01

sales team is if you are an account

70:05

executive in my org and I put you in

70:08

front of 10 engineers at our company. It

70:12

should take them 10 minutes to figure

70:13

out you aren't a product manager. And

70:16

what I'm trying to get across is you

70:18

need to have incredible product depth.

70:21

And uh the reason for that is twofold.

70:24

One, it gives you credibility with the

70:26

product and engineering org. And two, I

70:29

also believe that the best go to market

70:32

orgs on the planet are equal parts

70:35

revenue driving and R&D.

70:38

And the reason I emphasize the latter is

70:40

if you think about a product management

70:42

organization, you know, you may have a

70:45

UXR team, you know, out doing research.

70:47

Product managers certainly should be out

70:48

talking to customers. Well, if I have a

70:52

20 person sales team, think of the

70:55

number of customers that we talk to in a

70:56

week. And so, if we can do an excellent

70:59

job of translating all of that, uh,

71:02

feedback into signal and then feeding

71:05

that into the road map, um, you know, we

71:09

can be actually an extension of the

71:11

product management org. Um, but that

71:14

takes being really good at discerning

71:16

signal from noise, understanding when

71:18

something is an objection that should be

71:19

overcome versus a, you know, a a market

71:22

an opportunity in the market. So, uh, I

71:25

think I think those things have helped.

71:27

>> I just love this as a product manager,

71:30

maybe former product manager. I don't

71:31

know what the hell I am these days. Uh,

71:33

I just love the idea of the salesperson

71:35

like you not knowing the difference

71:36

between a product manager and a

71:38

salesperson. The most classic challenge

71:40

is sales orgs ask for all these

71:42

features. Yes. NPMs are constantly

71:44

having to push back and think about does

71:46

this fit into everything. So it feels

71:48

like that's a big part of this is to

71:49

understand that deeply.

71:51

>> Yeah. You want a sales uh you want a

71:54

sales org that can think like a general

71:56

manager. So you know that's not just

71:59

trying to get deals done but is trying

72:02

to help build a business. And so again,

72:04

knows when to say no, knows when to

72:06

objection handle versus knows, hey, I've

72:09

actually heard this on the last three

72:11

calls. And I I do think this would be a

72:13

really big unlock that would make us

72:15

more competitive, you know, would be

72:17

something that new that nobody's doing.

72:19

So, um, you know, I think that takes

72:22

looking for a profile that both has

72:24

sales skills, but also is going to think

72:27

with, you know, that product mindset.

72:29

>> I love that. Okay, so another quote uh

72:32

from Claire Hughes Johnson, former

72:34

podcast guest, amazing sales leader. I

72:37

worked with you at Stripe. She said

72:39

something along these lines, but a

72:40

little different. That Gina is probably

72:41

the best go to market person at

72:43

connecting with product and engineering,

72:44

deeply understanding the product and

72:46

providing the most valuable input to her

72:48

counterparts of any I've ever seen.

72:51

[snorts] It sounds like just another

72:52

ingredient here is just sales feeling

72:54

like a real partner to product

72:56

engineering. actually not just being

72:57

like, "Hey, do these things for me," but

72:59

actually feeling like a partner.

73:00

>> You know, ultimately

73:04

company strategy is is basically product

73:07

strategy meets go to market strategy,

73:09

right? Um, and so I spend, I guess, as a

73:13

goto market leader, I'm constantly

73:15

trying to figure out, you know, how do I

73:18

make more money more efficiently? And

73:21

you typically do that by having a

73:23

winning product in the market that is

73:25

well commercialized. And so that means

73:27

that I I really lean into thinking about

73:30

product strategy and thinking about

73:32

pricing strategy. Um because if those

73:34

two things are optimal, you're you know,

73:36

you're going to win more often and

73:38

there'll be less friction um in it. Um,

73:40

and so that's sort of where you got to

73:43

put as a revenue leader like a GM hat

73:46

on. Um, and not just think how do I

73:49

sell, but actually how do I how do I

73:52

enable the the insights I'm getting from

73:55

talking to customers constantly to have

73:57

the company strategy be more effective.

74:00

Speaking of product, going in a slightly

74:02

different direction. PLG productle

74:05

growth was it felt like it was very hot

74:07

for a while where everyone's like you

74:09

got to go PLG. That's the only way to

74:10

win now. It's impossible to do sales.

74:12

There's no uh the future is PLG. It

74:15

feels like that's gone away in in large

74:16

part. Obviously still companies grow

74:18

through PLG and work through PLG. What's

74:20

just kind of your thoughts on PLG and

74:22

when does it make sense for a company

74:24

these days to actually think this is how

74:26

they will grow for a while? I I think a

74:28

lot PLG is makes sense for a lot of

74:30

companies at the outset unless you are

74:33

very explicitly building a product for

74:37

enterprise. Um so Sierra as an example,

74:40

right? Like they are very clearly going

74:42

after global 2000 or you know some

74:45

something close to that. So PLG is not

74:47

going to be overly useful to them

74:49

because they are trying to win eight

74:50

figure deals from day one. But for a lot

74:53

of products um folks are targeting a

74:55

startup audience at the outset and then

74:57

they're adding more functionality so

74:59

that they can ultimately continue to

75:01

scale up market. So I think PLG is still

75:04

super relevant. It's a it's a major

75:05

driver of Versell's growth. It was a big

75:07

driver of of Stripe's growth. The thing

75:10

that folks get wrong is um it does

75:13

typically have a ceiling. So people are

75:17

generally not going to, you know, go

75:21

give a give you a million dollars via

75:23

self-s served flow. So at some point,

75:27

um, if you want to sustain growth rates,

75:30

you're going to have to have your deal

75:31

sizes get bigger and bigger. And where I

75:35

I think folks get stuck is uh waiting

75:37

too long on PLG because it does take a

75:40

while to build a replicable sales

75:42

process and a sales process which often

75:46

you're getting fed by inbound at the

75:47

beginning and then you got to add

75:48

outbound. It takes a while actually to

75:51

turn outbound into a predictable engine.

75:54

So I think where you see companies hit

75:55

walls is just when they don't add the

75:58

sales portion of it soon enough. So

76:00

essentially every company ends up having

76:02

to build a sales org. Some start

76:05

productled and then at sales. Some just

76:06

start sales and and and have it from the

76:08

beginning.

76:09

>> Yeah, I would I would agree. There are

76:11

um you know there are probably some good

76:14

examples of like large vertical SAS

76:17

platforms that are are SMB but even they

76:19

wind up with like a you know velocity

76:21

sales team. So um yeah I don't I don't

76:24

know that I can think of like a hundred

76:27

billion dollar company that's PLG only.

76:30

Yeah, like it just feels like a big like

76:31

you're losing you're leaving money on

76:33

the table even if you are growing really

76:34

fast. I know Lastian was a long time PLG

76:37

company but uh but eventually uh to calm

76:40

down I don't know if that's the right

76:41

way to put it. Okay. Um you mentioned

76:43

pricing. I know you have strong opinions

76:46

on pricing and pricing strategy. What's

76:48

just like a couple tips you might share

76:49

with someone thinking about how to price

76:51

their product?

76:52

>> Uh yeah. So I uh this kind of the theme

76:56

but uh I think the first thing is like

76:59

you got to think about pricing like a

77:00

product. Um so it's another one where um

77:04

it it actually really matters how you

77:07

choose to price a product. Um do you

77:11

really understand where customers are

77:14

going to drive value? Do you really

77:16

understand where you incur costs? and

77:19

are you doing a smart job of aligning

77:21

those things? You know, you've got lots

77:24

of examples of companies grossly

77:26

underpricing um because you're sort of

77:28

afraid to charge for the value that you

77:31

actually provide. I think there are a

77:33

lot of examples where people default to

77:35

including a premium strategy without

77:38

that actually being a strategy. Uh like

77:41

a good example at Stripe, we launched

77:43

Stripe billing years ago. um it had a

77:45

premium strategy because that's what you

77:47

do and then we sort of looked at it and

77:50

we're like you know actually integrating

77:52

straight building takes a little bit of

77:53

work. So if you do that you're probably

77:55

going to stay and so we killed that

77:58

killed that uh killed the free trial to

78:01

zero downside. Uh so you know that's

78:04

that's another one. Um, at Verscell,

78:07

we've been going through that transition

78:08

where, you know, we're a

78:10

consumption-based uh business model

78:12

ultimately, but for at the outset, we

78:15

basically kind of bundled that into what

78:18

looked like a SAS-like price. And, you

78:21

know, as we've added a lot more

78:22

functionality, that that wasn't working

78:24

anymore. Um, and so we did an

78:26

unbundling. Um, and right now actually

78:29

we we did a pretty substantial pricing

78:31

change in in August where we have an

78:33

enterprise at a pro skew. And if you

78:37

looked at the enterprise skew, it's

78:39

called enterprise for a reason.

78:40

Enterprise

78:43

and actually um about half of the folks

78:47

on the enterprise skew were startups,

78:49

which suggests that there's stuff in the

78:51

enterprise skew that a startup really

78:53

wants. So we kicked a lot of that stuff

78:56

out of the enterprise skew and made it

78:57

so you could buy it self-s serve online

78:59

and what do you know people are so you

79:02

know so now that's like really driven a

79:05

lot of growth in our PLG funnel which is

79:07

awesome for startups because it let it's

79:09

super efficient they they can just buy

79:10

things they want that it's awesome for

79:12

us because you don't have to have a

79:14

human intermediate that so you know

79:16

getting all of these knobs really tuned

79:19

uh is a a key to both a great customer

79:21

experience and optimal revenue outcomes.

79:24

S maybe just one more question before we

79:26

get to our very exciting lightning

79:27

round. It's going to be a combo

79:28

question. Uh I hear you have a hot take

79:31

on kind of sales comp, how to comp sales

79:34

people that's different from other

79:35

people and also who to hire when you're

79:37

hiring folks in sales. Can you just talk

79:40

about your takes there?

79:41

>> I struggle with sales comp because um uh

79:45

you know it's all about pay for

79:47

performance which I'm obviously uh a fan

79:49

of. Um but it is um it makes your

79:56

organization less flexible because you

79:58

basically have to decide 12 months in

80:00

advance these are things I value. Um and

80:04

particularly in this moment that could

80:07

be different. Um as a great example of

80:09

this uh when you know we wrote the sales

80:13

plans for this year at Verscell the AI

80:16

cloud did not exist. we were selling our

80:19

front-end cloud and we were selling

80:20

vzero and you know introduce the AI

80:22

cloud halfway through the year. Now we

80:24

had all sorts of good ways to still

80:26

incentivize that. Um but um you know I I

80:30

think um you want to be able to be

80:32

innovative and pivot and um you know

80:36

when you have a well-designed sales plan

80:39

um uh or you know a very structured

80:41

sales plan that that can be challenging.

80:44

So that's that's a little bit of of my

80:47

hot take is just I'm trying to figure

80:50

out how do you have the upside of sales

80:53

of you know motivates people. It's a

80:55

quantitative function which is great but

80:58

also the flexibility to change your mind

81:01

because I think a lot of companies right

81:03

now are having a hard time doing annual

81:05

planning. So so that's one. Um on

81:07

profiles I have always valued what just

81:11

sort of a diversified portfolio. Um, so

81:14

I I strongly believe that sales is a

81:17

skill and so you want sales people with

81:20

actual sales experience in your

81:22

organization, but I think there's value

81:25

in pairing them with um more

81:28

non-traditional backgrounds, in

81:30

particular a consulting or a banking um,

81:34

you know, background. Those folks are

81:36

really good at uh, you know, more

81:39

quantitative and analytical aspects of

81:41

sales. So getting into that

81:42

consultative, you know, part which I

81:44

think we talked about at the at the

81:46

outset. Um, and so I find that when you

81:49

mix these together, uh, the sort of, you

81:52

know, consultant banker profile

81:54

realizes, oh, wait a minute, sales is a

81:57

skill and I didn't really have it. Um,

81:59

and so they go learn from, you know,

82:01

your, uh, your account executives with

82:04

that background. And then your AES learn

82:07

more about, okay, how do I think about a

82:09

P&L? how can I talk to a CFO? You know,

82:12

how do I present a TCO analysis more

82:16

effectively? Um, and so just creates a

82:18

much richer learning environment where

82:20

people are bouncing ideas off each

82:22

other.

82:22

>> That is awesome. I love that strategy.

82:25

Okay, final question. Just is there

82:26

anything else you wanted to share?

82:27

Anything else you want to leave

82:28

listeners with before we get to our very

82:30

exciting lightning round?

82:31

>> Oh man. Um, I feel like we've been very

82:33

thorough.

82:34

>> I think so, too.

82:35

>> Yeah, I'm going to You stumped me on

82:37

that one.

82:37

>> Okay, that's the goal. With that, Gan,

82:40

we reached our very exciting lightning

82:41

round. I'm going to make it very quick

82:42

because I know you got to run. Uh, I'm

82:44

gonna ask you just two questions.

82:46

>> Okay.

82:46

>> One is uh I'm gonna skip to your life

82:49

motto. Do you have a favorite life motto

82:51

that you often come back to find useful

82:53

in work or in life?

82:54

>> I do. Um I I actually have found that

82:57

I'm known for saying a handful of things

82:59

um that I didn't necessarily realize it,

83:01

but when you leave an organization,

83:03

people tend to, you know, tell you what

83:04

stuck with them. But there is one that I

83:07

think I'm I'm known for saying growing

83:10

up. My mom always said to me, when the

83:12

going gets tough, the tough get going.

83:15

And um I, you know, in sales, you're

83:18

always going to have a quarter when

83:20

you're not on pace. And so that's one

83:23

that I feel like I pull on um not

83:27

infrequently because uh you know there's

83:30

in my view there's another another

83:33

version of this my mom also would always

83:34

says was where there's a will there's a

83:36

way. So you know I think you can always

83:39

choose to find a path forward even when

83:42

that's not uh super clear.

83:45

>> I love these. Okay last question. Uh, I

83:47

read that you were a very competitive

83:49

diver in college early on. Uh, I'm just

83:53

curious if there's something you learned

83:54

from that experience that you brought

83:55

with you that helps you be as successful

83:57

as you've become.

83:58

>> Um, well, I mean, first of all, I should

84:00

say I was I was uh generally coming in

84:02

like third place out of three on my

84:04

team. So, um, you know, I I managed

84:07

managed to to do it in college, but uh,

84:09

that that was the extent of that career.

84:11

Um so I do think so diving is a

84:14

precision sport and it is a repetitive

84:16

sport and it is also a sport where uh

84:19

when you land flat on your back and

84:22

literally as you are swimming to the

84:24

side of the pool like welts are forbing

84:26

on it you uh always 100% of the time

84:31

will be forced to immediately get back

84:33

on the diving board and do that exact

84:35

same dive again. And so I think that has

84:38

a lot of stuff that's transferable. um

84:41

to to work and to sales. So, you know,

84:44

for me, I I just have an obsession with

84:48

excellence and within sales, sales is

84:51

about replicability. How do you drive

84:53

predictable outcomes? Um you know, how

84:55

excellent are you at your ability to

84:58

forecast? Um and so I think I bring that

85:01

to bear within sales a lot. Um and then

85:04

similarly, like you get a lot of nos in

85:06

sales. Um, and so, you know, I another

85:09

phrase that a sales guru said to me once

85:13

uh or in a training was yeses are great,

85:16

nos are great, may will kill you. And

85:18

so, how do you get really comfortable

85:20

that no is a great thing? And that just

85:22

gave you data and now you can go do

85:24

something with it.

85:25

>> This is a really uh inspiring and uh

85:28

empowering way to end the conversation.

85:31

Jean, thank you so much for being here.

85:33

>> Thanks so much for having me, Lenny. It

85:34

was a lot of fun.

85:35

>> Bye, everyone.

85:37

Thank you so much for listening. If you

85:39

found this valuable, you can subscribe

85:40

to the show on Apple Podcasts, Spotify,

85:43

or your favorite podcast app. Also,

85:45

please consider giving us a rating or

85:47

leaving a review as that really helps

85:49

other listeners find the podcast. You

85:51

can find all past episodes or learn more

85:53

about the show at lennispodcast.com.

85:56

See you in the next episode.

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