“In a PLG motion… you’re helping people to use the product more effectively, and ultimately, to upgrade to a paid experience. [In] the enterprise sale, you start by signing on the dotted line, so different expectations and skills are needed.” – Karen Budell, Chief Marketing Officer, Totango + Catalyst
Shifting from a product-led growth (PLG) model to an enterprise sales motion is a significant move for any SaaS company. And, the transition isn’t merely about changing tactics; it’s about reconfiguring your approach to sales, onboarding, and delivering customer value—often with marketing taking the first run.
In a recent episode of the SaaS Backwards Podcast hosted by Ken Lempit, Totango + Catalyst’s Chief Marketing Officer Karen Budell shared the three “hot take” lessons she learned when guiding this pivot for Totango and that she’s taking into the sales motion for the newly combined Totango + Catalyst company, including:
- Tips to avoid internal chaos as you pivot from PLG to enterprise sales
- Reconfiguring the marketing mix to match the buyer’s mindset
- Leaning into cross-channel thought leadership to fuel a new sales cycle
In her own words, here are a few highlights from the discussion and listen to the full episode to hear Karen’s complete perspective on mastering the PLG to enterprise sales shift.
Double down on executive influence to champion effective change management
Product-led growth is a business strategy that positions the product as the main driver of user acquisition, expansion, and retention. SaaS companies in particular have liked this model because it typically enables fast topline growth with lower acquisition costs than other channels. However, as Totango + Catalyst and many other SaaS companies have experienced, PLG becomes less aligned with the models and operations of enterprise companies. Not surprisingly, breaking through the noise of both the industry and enterprise arenas often requires more personalized, high-touch, and customized interactions and solutions.
Something to understand: Shifting from a PLG to enterprise sales motion isn’t just a sales shift; it can throw a wrench into internal organizational alignment. Getting the shift right requires clear communication, encouragement, resources, and grace from the executive level down to smooth the bumps of the transition.
“If you’re going to make that change and that shift, you can’t underestimate the impact that change will have on your individuals and your team. That is something that requires a lot of alignment at the executive level and understanding how to communicate and manage that change throughout your organization.”
Rethink the marketing mix for a new buyer
When making the shift from PLG to enterprise sales, one of the most critical changes for us to undertake was the change in our marketing mix. The messaging, targeting, content journey, and budgeting all had to be rebalanced for an enterprise buying committee—often including at least five people across different functions. This demanded a different scope of information and brought a higher level of scrutiny at each stage of the journey.
A marketer’s thought to keep in mind: While a heavy paid ads strategy may be effective under a PLG model, that strategy probably won’t work as effectively when switching to an enterprise sales motion. Lean into the high caliber instances—industry events, CXO communities, and targeted research—that are likely to cut through and attract the limited attention of a key buyer in your ICP.
“[The enterprise buying committee is] going to have a lot of different questions and a different attitude of information that they’re looking for; it was a big strategic shift for us to shift our messaging, to shift our advertising, and our marketing mix to support that buying motion for an enterprise committee.”
Sell your leadership expertise in addition to your product
Thought leadership proved to be a key part of Totango + Catalyst’s shift from PLG to enterprise sales for a simple reason: enterprises don’t just want software. Buyers in large organizations want to bring in best practices whenever possible and are always looking to learn from their trusted vendor partners. By showing up with our perspectives, we not only potentially teach customers something new but also give them a glimpse into how we help customers achieve their desired outcomes.
My quick tip: Lean into platforms like LinkedIn, targeted podcasts, industry events, and proprietary invitation events to shine a light on the expertise that your business leaders offer across all the elements of the go-to-market process.
“Written content or being a speaker at an industry event or on a podcast has been increasingly more important because we commonly hear from enterprise buyers asking what thought leadership we have. You can’t underestimate the fact that people are not only coming to you to buy your product or your solution but they’re looking to buy guidance and your expertise as well.”
Manage the change by preparing for the impact
Shifting from a product-led growth model to an enterprise sales motion is more than just a change for the sales team; it’s a change for the entire organization. Leaders must prepare for the impact this transition will have on their goals, metrics, and most importantly, their team members.
My most salient learning from this experience is to align and support your internal teams first—then shift, tape, glue, and build accordingly to execute the strategy with prospects and customers. This type of pivot is never going to roll out seamlessly; there will be bumps and snags. But, if your internal team is aligned and adequately resourced, then the taping, gluing, and building are much easier and can be done much more quickly.
To hear more about Totango + Catalyst’s switch to an enterprise sales model as well as my full set of enterprise-sales-hot-takes and some behind-the-scenes details about the merger, check out the full episode of the SaaS Backwards Podcast. If you’re considering making the shift from PLG to enterprise sales, you can learn more about how Totango + Catalyst can help you effectively manage the transition and reach your revenue goals here.
