GTM Diagnostics is developing a solution that shows B2B software companies why they win or lose deals. But for whom is this especially interesting? Going through the Startup Readiness Program made a lot clear.
Why did or didn't this party buy our solution? Or suppose the sales department has failed to meet its target for two consecutive quarters and you can't put your finger on exactly why? And why are we performing better in one segment than another?
How do you get answers and actionable insights?
"Yes, then you should turn to GTM Diagnostics," laughs Mike Sachs. Indeed, the software and consulting company he co-founded with Jeffrey de Jong helps clients analyze their sales process. Or more precisely, the startup gives clients insight into why they win or lose deals. 'We do that using a so-called win-loss analysis,' Mike explains. 'That is, we extract data from clients' CRM systems. That data is then analyzed by our application. Based in part on that, interviews are conducted. We really go into depth.'
The solution offers clients the ability to perform analyses, as well as reports, themselves. In addition, interactive methods have been developed to conduct interviews, using a so-called interview guide, in a well-constructed and thoughtful manner.
Better decisions
Very flatly, GTM Diagnostics organizes unstructured data and runs analytics on it. Successful deals and less successful deals are meticulously dissected, including identifying patterns in the sales process. The findings enable clients to make informed decisions and better align their marketing, sales, customer success and product with the marketplace.
GTM Diagnostics is initially targeting B2B software companies. However, interested customers will have to be patient for a while. The company is still in the start-up phase, a phase where the main focus is on validating the various components of the solution. So there are no paying customers yet. However, a number of pilots have been started to optimize a reporting tool, among other things, on the basis of raw data. At the same time, Mike and Jeffrey are working on the launch of a Minimum Viable Product (MVP).
Early this year, GTM Diagnostics applied for the Startup Readiness Program. How did that come about? 'As an entrepreneur in the Northern Netherlands you are quickly alerted to the existence of a party like NOM,' Mike explains. 'That's how I first heard about the Startup Readiness Program at the Youth Commercial Club, or JCC for short. When I started looking into it, I noticed that the program fit perfectly with the phase our company was in at the time. We ourselves may have been convinced of our added value, but were potential customers? And do we have the right customer groups in mind? Participation in the Startup Readiness Program offered us an excellent opportunity to explore that step by step.'
Tipping point
The concept of GTM Diagnostics is not entirely new. For years, consultants and software companies have been using the principle of win-loss analysis. Especially in the United States, there are a number of specialized companies that are extremely successful in analyzing sales processes in this way. Only: they focus primarily on organizations with more than 2,000 employees. Whereas GTM Diagnostics deliberately makes its services accessible to organizations with roughly between 75 and 1500 employees. A choice that was partly inspired by the insights gained during the Startup Readiness Program.
'In the very beginning, I was under the impression that small businesses that were still very much in search would benefit greatly from our solution,' says Mike. 'From talking to potential customers, a key part of the Startup Readiness Program, that need turned out to be less than expected. They already had numerous conversations with customers themselves, they said, and knew exactly what was going on with them. They saw no need to engage a party like GTM Diagnostics. They had sufficient control over their sales activities.
But what Mike and Jeffrey also saw: at B2B software companies with around 75 employees, there came a tipping point. Many times the founder was no longer actively involved in every sale, and sales activities were taken over by managers. That creates a growing interest in analyzing sales processes, it turned out. 'So if a company employs a product marketing manager, for example, that's already a trigger for us,' Mike emphasizes. 'Unless the organization has more than 1,500 employees. In most cases then, everything is controlled from the headquarters. In other words, the Startup Readiness Program has helped us tremendously in applying focus.
Software sales
Mike grew up in Enkhuizen in the province of North Holland. After high school, he moved to Groningen to study business administration at the RUG, and later technical business administration. He liked the city very much, but not the studies. He decided to quit and founded his first business shortly thereafter. As a personal trainer and coach, he guided people both in the gym and online. 'That started to take shape to the point where I actually wanted to open my own gym,' Mike says. 'I started looking for cooperation partners and found them. A month before opening that unfortunately broke down.'
After a brief foray into the hospitality industry, Mike rolled into the world of software sales. I have found my niche there, he stresses. What are customers up against and how can you help them? And how do you position a certain solution in the best possible way? I loved working on that. I did that at a software company in Groningen. There I was also introduced to win-loss analysis. It grabbed me immediately.'
Jeffrey de Jong, co-founder of GTM Diagnostics, he met at secondary school in Enkhuizen. After they both went to study in another city, Jeffrey in Utrecht and Mike in Groningen, the contact became somewhat diluted. 'Since a few years that has blossomed again,' says Mike. 'I knew that Jeffrey was active in Amsterdam as an expert in machine learning and data science. Combined with my interest in software sales and win-loss analysis, we might be able to set something up together, I suggested. Thus was born GTM Diagnostics.
Back to the Startup Readiness Program. So what is the most valuable lesson Mike learned in the program? Without hesitation, "That you have to ask the right questions to discover what actually moves a potential customer. You are often so caught up with your own assumptions in your head, creating a steered conversation. You're reasoning too much from yourself. This way you never find out if a customer really needs your solution. They may be open doors, but they have to be kicked in at some point. That is often forgotten.