Growth Strategy Formulation

In 2012, when I joined ZoomInfo as the VP Product, Growth & Strategy, they were stuck at $9M ARR. When I left 5 years later, we were at over $80M ARR. Here’s the 5-step GTM playbook we used to get unstuck and build the foundation to scale: Step 1: Develop contrarian products that satisfy unmet demand - Most companies can't convince themselves to radically innovate - In 2012, data companies were selling CSVs, no one was investing in product - We took massive risk and doubled down on building products to streamline data delivery - We started to "look different" from the space - Sometimes it's better to "look different" than "be better" Step 2: Focus on SMB or lower end of the market - Market disruption always happens at the low end - As a small company, it’s difficult to compete for your competitor’s best customers - Instead aim your efforts at the customers your competitors would give up without a fight - We focused on the SMB and lower mid market with a self-serve product at a low price - Everyone else was fighting for the more lucrative enterprise customers Step 3: Increase Prices, Decrease Churn, Add Features Rapidly - We rapidly developed features that gave GTM teams ammo for upgrades - With new products, we could add a new line item in the invoice and post growth with relative ease - New features also gave us the reason to reach out to customers to talk about upsell - All this was predicated on our ability to develop a sustained product roadmap with a strong understanding of the impact on GTM and our ability to attach growth initiatives to every small feature release Step 4: Intentionally Design Market Expansion for Virality - Nonlinear growth comes from getting the inbound engine started early - At first, we went after the spray and pray approach with some automation, which worked well - However, our revenues exploded when we started getting strategic with TAM and went after market niches, especially the ones that were ignored by other B2B data vendors - This allowed us to dominate multiple small verticals and as we got popular within those verticals it resulted in word of mouth - virality, inbound inquiries and increased retention contributing to the non linear growth Step 5: Cultivate a Leader's Mindset - Startups are often fighting just to stay afloat - this creates chaos, panic & unrest in organizations - By switching the mental model from a survival mindset to a leader's mindset, you can switch from a perpetual struggle for revenue growth to attempting to decimate competitors - You switch from being a price follower to becoming a price setter in the long run - This mindset provides a purpose, a better decision making framework, and results in a much healthier business and work culture TAKEAWAY: Markets are always evolving, and every market can be disrupted. Any business can get unstuck. The specific plays required to disrupt the B2B data market would be different today, but the ZoomInfo playbook's principles are timeless.

In 66 months, I helped grow Gong from $200k ARR to $7.2B in valuation and worked alongside some of the planet's best sales leaders. Here's the 6 biggest lessons I learned: 1. Overinvest in great marketing early on. I’m still shocked at how few startups do this. Sales with no (effective) marketing early on to pave demand and provide air-cover is a brute-force way to build. 2. Measure twice, cut once when hiring leaders. Your first leadership hires will have cascading effects on your company that ripple through many years. Their fingerprints will weigh heavy on everything from your sales motion, to company culture, to the people they hire, whether you want it to or not. Even after they’re gone. Recruit and hire accordingly. 3. Beat the hell out of what’s working. Finding what works in growing a startup is like drilling for oil. You’re going to drill a number of "wells" and come up dry. But soon, you’ll find one to go DEEP with. Drill it for all it’s worth. Don’t screw around trying to find too many other oil wells when you haven’t even maxed out your best one. 4. Hire salespeople who thrive on ambiguity. Not just those who CAN do that, but those who LOVE to do it (because they'll be doing this for a while as your market evolves). Do this, and you’ll accelerate your learning curve to a repeatable sales motion. Hire entrepreneurial reps. 5. Inject risk into the business as you scale. As you scale, your “portfolio” of growth initiatives should contain more and more risk. It's as if you're a fund manager. Early on, find what works and cling to it. But as you grow and you’re able to rely on several well-established growth vectors, start to introduce risk into your portfolio. Examples: Experimenting with channel partnerships, international, new segments of the market or use cases. 6. Realize the "growth at scale" playbook is different than the "scale up" and "startup" playbooks. What got you to $50M or $100M will not get you to the next level by itself. The path to $100M, and going beyond that (“growth-at-scale”) are two very different situations demanding different means of growing. Early on, nothing matters but (the right) customer acquisition, controlling churn, and making your product absolutely amazing. But if you’re going to continue growing at a fast rate, several other methods have to start firing: high net dollar retention (NDR), multi-product and multiple streams of ARR, going hard and fast on international expansion, and crossing the chasm into “low tech” industries. This list is non-exhaustive. For those of you who have ridden that tornado, what would you add? P.S. Turn "open opps" into paying customers at any phase of growth with these 10 closing motion scripts: https://lnkd.in/gtxYd9Vs

Growth isn’t just “do more” It’s knowing what to do in the right order Marketing, CRO, pricing, retention, logistics, ads… With limited time and team bandwidth, even good ideas can turn into bad decisions if done too soon or in the wrong sequence. So we mapped out The E-commerce Growth Roadmap. A clear, actionable view of what to fix, improve, and scale, and when. Here’s how it works: Level 1: Fix critical leaks You’re not growing yet. You’re stopping the bleeding. Level 2: Monetize what you already have Once the basics are stable, extract more value per transaction. Level 3: Build retention and repeat value Now make customers come back and spend again. Level 4: Tune pricing and upsells Your economics are clear. Time to pull smart strategic levers. Level 5: Scale the validated model Now you’re ready for top-line growth responsibly. 📌 Save this. Share with your team. Use it as a roadmap for your next growth sprint. Do you agree with this framework and sequence?

Most companies suck at launching products. They’re like Alice in Wonderland — chasing shiny objects and getting lost along the way. Here’s the 11-step process we perfected after 25 years of product launches (in a collaboration with Jason Oakley): 1. Competitive Research The key to great strategy is to look externally. Take notes on competitor's features and how they grow. Build a database so you can counter-position appropriately. 2. Segmentation A launch aimed at “everyone” will miss everyone. Instead, build a laser-focused Ideal Customer Profile (ICP). Follow this chain of thought: What are they craving? → What frustrates them daily? → What job are they trying to accomplish? 3. Pricing & Packaging Even the smallest feature can have a ripple effect on your pricing and packaging. Don’t wait until launch week to figure this out. Before launching, assess things like: Will this be a paid feature or free? Who will get access? What’s the plan for feature gating? 4. Positioning Now it’s time to craft a message that resonates. Speak to their deeper desires, not just their immediate problems. Communicate the outcome your product delivers and why you’re different from the rest. 5. Assemble Your Launch Team You can’t do it alone, and you shouldn’t. A successful launch involves stakeholders across the company. Use the RACI framework to assign clear roles. 6. Clear Objectives Too many teams dive into a launch without defined goals. And that’s why they miss the mark. Set clear objectives and key results. 7. Distribution Channels Many teams fall into the trap of trying to be everywhere; LinkedIn, email, ads, you name it. Reality check: Most startups only have 1-2 effective distribution channels. Find yours and double down on it. 8. Launch Milestones Planning your entire launch around individual tasks will overwhelm you. Instead, focus on major milestones and build a work-back plan. Some key milestones to include: Early access launch → Customer launch → Kickoff meeting. 9. Bill of Materials Your Bill of Materials is the content engine of your launch. Focus on: → Writing the message they want to hear → Designing visuals that captivate and appeal to them → Creating email sequences tailored to every user flow 10. Sales & Customer Success Teams Too many launches fail because these teams are looped in at the last minute. Enable them early with a messaging deck, internal FAQs, and demo materials... And they’ll become powerful advocates for your product. 11. Launch Day Make sure everything is launched smoothly and on time. If you achieve early wins, be the first to celebrate them and rally the team. And don’t forget to keep pushing the momentum forward. There's much more in the deep dive: https://lnkd.in/eB7s6umA If you don't plan your launches, even the best products will fail.

Most eCommerce brands obsess over revenue and ROAS. But the real game is in the metrics no one talks about. Here are 10 overlooked KPIs that actually drive growth (and how to optimize them): ~~ 1. LTV:CAC Ratio (The Ultimate Health Check) LTV:CAC = Customer Lifetime Value ÷ Customer Acquisition Cost 1:1 = You’re bleeding money 3:1 = Healthy 5:1+ = Printing cash If you’re below 3:1, either: ✅ Lower CAC (better targeting, UGC ads, referrals) ✅ Increase LTV (subscriptions, upsells, memberships) == 2. 90-Day Repurchase Rate If a customer doesn’t buy again within 90 days, they probably won’t. Fix it by: • Winback campaigns with targeted incentives • Selling bundles that create habits • Building a loyalty program that rewards repeat buyers == 3. Contribution Margin (What’s Actually Left?) CM = Revenue – (COGS + Shipping + Discounts + Ad Spend) If your CM is under 30%, you’re scaling a business that won’t survive. Get margins up by: • Cutting discount dependency • Negotiating lower fulfillment costs • Adding Onward shipping protection == 4. Subscription Churn Rate (The Silent Killer) High churn = your brand is a leaky bucket Fix it by: • Adding pause & skip options via SMS (Skio for example) • Add more delivery options and product variety • Sending an email 7 days before renewal reminding them potential lost perks == 5. Time to Second Purchase (T2P) Track how long it takes for a customer to place their second order—then cut that time in half. Tactics to speed it up: • AI-based Email/SMS flows with hyper-targeted recommendations • Exclusive discounts for second-time buyers • Reorder reminders based on average usage time == 6. Gross Margin per Order (The Scaling Checkpoint) At scale, 40%+ gross margins keep you profitable. If you're below that: • Increase prices (test 10% bumps) • Reduce discounting, do Cashback instead (@ Onward) • Negotiate better supplier terms (carrier rates, 3pl, etc) == 7. Refund & Return Rate A high return rate = a CAC multiplier. Fix it by: • Charging for returns (but offering free exchanges) • Clearer product descriptions & sizing charts • Post-purchase emails on how to use the product == 8. Organic vs. Paid Revenue Ratio If 60%+ of your sales come from paid ads, you’re in trouble. Brands with real staying power win on organic channels. The fix? • SEO & content marketing • Affiliate & referral programs • Retention tactics (VIP, loyalty, subscriptions) == 8. SKU Concentration Risk If 80%+ of your revenue comes from one product, you’re vulnerable. Great brands expand without overextending. Turn one-time buyers into multi-SKU customers with: • Bundles • Exclusive add-ons • Subscription perks == 9. % of Revenue from Returning Customers A healthy DTC brand makes 40%+ of revenue from repeat buyers. If you’re below that, focus on LTV levers: • VIP memberships • Personalized email/SMS offers • Post-purchase nurture flows Follow Josh Payne for deep dives on DTC, SaaS, and investing.

Notes from the field ✍ One of the biggest mistakes growth-stage companies make is raising too much money before the machine actually works. It’s like proposing marriage to save a crumbling relationship - sure, it feels like commitment, but really, you’re just signing up for a more expensive breakup. Capital is a force multiplier - it amplifies whatever is already happening in your business. If your fundamentals are sound, more capital accelerates growth. If they’re broken, it accelerates collapse. Think of it like this: if you have a leaky pipe, increasing the water pressure doesn’t solve the problem. It just makes the mess bigger. Whenever I look at a growth-stage business, I plot net new ARR vs. burn. If those two numbers aren’t at least vaguely related, you’re not scaling a business. You’re scaling an experiment. And experiments, by definition, are uncertain. Signs You Shouldn’t Raise (Yet): 💸 You’re trying to buy product-market fit. If demand isn’t pulling your product forward, pushing it with VC dollars won’t fix that - it’ll just make your CAC obscene. 🏗️ GTM isn’t working, but you’re scaling anyway. A constantly resetting sales org, rising CAC, and high churn are all signals that adding more headcount won’t help. 🧩 No clarity on growth levers. Spending more isn't a strategy. If every quarter involves a new growth hack, a different go-to-market motion, and a fresh round of “let’s rethink pricing,” that’s not iteration - it’s panic disguised as innovation. 📉 Your most important metric is “next round valuation.” A good business optimizes for customers and cash flow. When Raising Actually Makes Sense: ✅ Every $1 spent has a predictable return. This is the core of scalable business models. ✅ Growth is repeatable and systematized. If revenue is dependent on unique circumstances instead of repeatable playbooks, you don’t have a business—you have a lucky streak. ✅ The company understands why customers buy. The best companies have a clear view of their value proposition and competitive differentiation. More capital doesn’t solve fundamental problems—it just hides them. In the worst cases, it lets companies grow in ways that increase fragility instead of reducing it. Fix the machine. Then add fuel. 🔥

It’s time to stop thinking like it’s 2005. Correlation may flatter your GTM story, but only causation proves impact. More than 80% of companies missed their sales forecast in at least one quarter over the last two years (Gong, 2024). In H1 2024, 49% of companies missed their revenue goals (GTM Partners Benchmark Report, 2024). At the same time, executives keep putting faith in attribution models that only tell a sliver of the story. 𝗛𝗲𝗿𝗲’𝘀 𝘁𝗵𝗲 𝗽𝗿𝗼𝗯𝗹𝗲𝗺: too often, data is interpreted in ways that confirm existing assumptions rather than test them. Harvard Business Review found that sales leaders are frequently blindsided by overinflated forecasts driven by “all-too-human behavior” (Harvard Business Review, 2019). GTM Partners research shows that poor data quality can cost companies up to 25% of annual revenue, yet 60% don’t even measure these costs. That’s value leakage every CFO cares about. It’s time to fix this. Here are 5 ways to make GTM decisions actually data-driven: 1. 𝗦𝘁𝗮𝗿𝘁 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗻𝘂𝗹𝗹 𝗵𝘆𝗽𝗼𝘁𝗵𝗲𝘀𝗶𝘀: Harvard Business Review notes that “consistently accurate sales forecasts are rare because many companies fail to align their sales and marketing departments.” Assume your campaign 𝘸𝘰𝘯’𝘵 work—then try to prove yourself wrong.     2. 𝗥𝘂𝗻 𝗽𝗿𝗼𝗽𝗲𝗿 𝗶𝗻𝗰𝗿𝗲𝗺𝗲𝗻𝘁𝗮𝗹𝗶𝘁𝘆 𝘁𝗲𝘀𝘁𝘀: Compare your marketing results to a control group to see the actual lift your efforts create. MIT Sloan warns that confirmation bias leads us to “interpret ambiguous facts in light of preexisting attitudes.” Stop crediting natural growth to your LinkedIn ads.     3. 𝗕𝘂𝗶𝗹𝗱 𝗿𝗲𝗱 𝘁𝗲𝗮𝗺𝘀 𝗳𝗼𝗿 𝗺𝗮𝗷𝗼𝗿 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀: MIT Sloan recommends bringing together “different perspectives on the same issue” because organizational biases cloud interpretation. Create space for contrarians—the risks of blind spots are too expensive to ignore.     4. 𝗧𝗿𝗮𝗰𝗸 𝗹𝗲𝗮𝗱𝗶𝗻𝗴 𝙖𝙣𝙙 𝗹𝗮𝗴𝗴𝗶𝗻𝗴 𝗶𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿𝘀: Research shows the average B2B buyer has ~31 touchpoints with a brand before deciding (Dreamdata, 2024). Your last-touch attribution is missing most of the story.     5. 𝗣𝗿𝗲-𝗿𝗲𝗴𝗶𝘀𝘁𝗲𝗿 𝘆𝗼𝘂𝗿 𝗲𝘅𝗽𝗲𝗿𝗶𝗺𝗲𝗻𝘁𝘀: Record in advance your testing methodology and success criteria. This prevents “analysis after the fact” bias and ensures accountability when results don’t fit expectations. 𝗕𝗼𝘁𝘁𝗼𝗺 𝗹𝗶𝗻𝗲: If your data never challenges you, it’s not science; it’s storytelling. The companies that break through are the ones willing to let the data argue back. What’s the most obvious confirmation bias you’ve seen in GTM? #GTM #MarketingLeadership #causalinference  

Your company's growth is a tightrope walk between innovation and complacency. Take too few risks? You'll be forgotten. Take the wrong risks? You'll compromise your brand. Plenty of the world’s most innovative companies we work with at Motto have figured it out, and we’ve seen some patterns. They expand boldly *without* compromising who they are. How’s this possible? By aligning innovation with their core values at the foundational level. Here's what that looks like in practice ↓ ⦿ Value-driven decision making Every new initiative should be measured against your company's fundamental beliefs. If it doesn't align, it's not worth pursuing. ⦿ Create a "failure budget." Allocate resources specifically for experimental projects Reward people for trying, not just succeeding. This tells your team it's okay — wonderful, even — to take calculated risks. ⦿ Implement an innovation framework. Set clear guidelines for new ideas. Leaders should ask themselves… → What will keep our company in the leader position? → What is the impact if we play it safe? → How will this innovation align (or not align) with our values? Make sure innovations contribute positively, inside and out. ⦿ Foster cross-pollination Form diverse "skunk works" teams. Give them a specific goal and deadline. Then, watch as fresh perspectives lead to groundbreaking ideas. ⦿ Embed values through education. Your team should breathe your company's values—When they do, even their boldest ideas will align with your core identity. Innovation isn’t about recklessness— It’s about daring to fly while staying true to your roots. When you master this balance true growth happens. Motto® helps tech companies align vision with bold growth. Let's talk about your next big move. → wearemotto.com

When I joined Khan Academy, we were just four people in a small office, united by a vision of bringing free education to everyone, everywhere. Over the years, we grew to hundreds of employees, reaching over 100 million students worldwide. This exponential growth brought a significant challenge: how do you scale a team without losing the culture and values that made the organization special? The most crucial lesson I learned was that culture doesn't scale automatically - it demands constant attention and effort. The best way I found to attend to culture was to treat your culture like a product. You have to design it. As we grew, it became increasingly important to consider how to help team members learn about and carry the culture forward. Here are three strategies that helped us maintain our culture during rapid growth: 1. Over-communicate the Mission and the Principles that Guide it: As our team grew, we doubled down on ensuring everyone felt connected to our mission and understood our principles. Three of the most important principles were to focus on the student, Always be learning, and deliver exceptional ROI for donors. We regularly shared stories of how our work impacted students' lives, and what we learned from failures and successes, and calculated the number of learning minutes to keep the team aligned with our "why" and “how” and motivated by our shared purpose. 2. Create Rituals that Reinforce Values: We have meaningful rituals, such as starting meetings with student success stories and celebrating what teams learned, not just what they accomplished when we gave status updates. We also organized a yearly talent show and encouraged people to showcase new talents and skills. These practices served as constant reminders of our principles in action. 3. Adapt, but Stay True to Core Values: Growth necessitated changes in processes, tools, and communication methods. For example, we used to be able to share what we were learning during all-hands meetings, but at some point, it became impossible for each team to give an update. As part of our commitment to learning, we began to document our learnings and shared long-form asynchronous updates with everyone. We then shared summaries during all-hands meetings. Scaling a team while preserving its culture is challenging, and we weren’t always successful, either. But we were lucky that the team let us know when they thought we weren’t living up to the mission or principles and encouraged us to make changes.  It is achievable if you remain open to feedback and stay focused on core principles. What strategies have you employed to maintain culture as your team or organization grew?

If I was hired as Head of Growth at a $5M+ DTC brand, here’s exactly what I’d do. (Based on lessons from growing Neat™, running 4,000+ tests, and managing $250M in client revenue at GrowthHit.) Let’s start with what I wouldn’t do… 👎 Burn $50K on a fancy rebrand or redesign 👎 Launch a brand campaign that looks cool but sells nothing 👎 Add Pinterest and YouTube just to “test new channels” 👎 Hire an agency to “run paid ads” without fixing the funnel 👎 Launch 5 SKUs when 1 can scale 👎 Start posting TikToks with zero tracking in place 👎 Fire the media buyer when it’s actually a CRO issue Now, here’s what I would do instead: ⸻ 1️⃣ Get on the same page with the founder ASAP What’s your runway? What’s your risk tolerance? Are you trying to exit in 18 months or build for the long haul? I want to know: • Your gross margin • What you think is working (and what actually is) • And what you’d do if this was your last $100K in ad spend Because every growth strategy lives and dies by your business model. ⸻ 2️⃣ Hunt for the fastest levers to unlock revenue The first 30 days are about quick wins. Usually it’s not ad copy—it’s offer + funnel. Here’s where I’d look: • Upsell flows & bundling • Cart abandonment email/SMS (you’re probably missing 20%) • Product page redesign to hit 3.5%+ conversion • Scaling 1 winning ad with 3x the budget and fresh creative Small tweaks. Big lift. ⸻ 3️⃣ Talk to 10 actual customers (and 5 who bounced) Before I touch creative or copy, I want voice-of-customer gold: • Why did they buy? • What were they nervous about? • What did they try before you? This is where your next 3 campaigns come from—and why your Facebook ROAS isn’t “just bad targeting.” ⸻ 4️⃣ Go back to the founder and ask for budget + trust Now I’ve got receipts. I’ve earned the right to pitch a plan. I’d lay out: • What we’re scaling • Where we’re testing • What metrics we’re tracking weekly (hint: it’s not ROAS) ⸻ 5️⃣ THEN we swing big 💥 Test TikTok or Meta Creator Marketplace 💥 Launch a product drop with scarcity baked in 💥 Build a referral engine tied to UGC 💥 Roll out pre-orders with a killer offer 💥 Engineer a viral stunt that your founder can tweet But only after we’ve earned the right to experiment. ⸻ Bottom line? Don’t chase scale with a leaky funnel. Don’t chase creative before you’ve nailed your positioning. And don’t expect marketing to save a product that doesn’t convert. Get the foundation right, then build the machine.