In today’s economic environment, achieving greater efficiency in Go-to-Market (GTM) strategies has become essential. Many businesses are scrutinizing their expenses more carefully, seeking to eliminate costs that don’t contribute directly to their return on investment (ROI). A recurring challenge, particularly for B2B companies, is the bloating of sales and marketing budgets without corresponding growth in revenue. This misalignment creates significant pressure on profitability and growth.
In this article, we’ll explore how businesses can enhance GTM efficiency by cutting down expenses that don’t translate into ROI, and where they can redirect their resources for optimal returns.
Understanding GTM Bloat: The Core Problem
GTM bloat is a term used to describe the inefficiencies that arise when companies invest too much in areas like demand generation, marketing technology, or an overextended sales force, without seeing a proportional increase in pipeline or closed deals. This overspending can affect the entire GTM engine, increasing customer acquisition costs (CAC) and extending the payback period for investments.
In many cases, the root cause of GTM inefficiency starts in the marketing department. Companies often spend significant amounts of money on generating leads through digital marketing campaigns, events, and sales development resources. However, without strategic alignment and thoughtful investment, these activities fail to create the desired pipeline.
As Chris Walker explained, “B2B companies overspend in demand generation and related headcount, SDRs, BDRs, and various technology and advertising costs, yet they are not producing enough qualified pipeline” (Walker). This inefficiency, according to Walker, leads to a situation where many companies have too many sales reps sitting idle without enough leads to work on.
How Misallocation Leads to GTM Inefficiency
One of the key causes of GTM inefficiency is the reliance on outdated demand generation models and misallocation of resources. For example, companies often funnel large sums of money into digital advertising campaigns on platforms like Google or LinkedIn, hoping to generate leads. However, many of these leads are of low quality, and the downstream costs of pursuing them add up quickly.
Walker notes that “digital spend, especially in paid lead generation campaigns, often yields poor returns when companies don’t evaluate the true productivity of SDRs and the revenue created through these efforts.” In many cases, this leads to an ineffective marketing-to-sales handoff, where SDR teams are tasked with following up on leads that have a low probability of conversion. This not only results in wasted effort but also bloated headcounts in sales and marketing teams.
Steps to Eliminate Expenses that Don’t Translate to ROI
To improve GTM efficiency and eliminate unnecessary expenses, companies need to take a more strategic and data-driven approach to resource allocation. Below are some actionable steps that can help businesses cut expenses while driving greater returns.
1. Adopt a Top-Down Approach to Budgeting and Analytics
The traditional bottom-up approach to GTM analytics, where each channel reports its own performance, often paints an overly positive picture of overall success. This can create a misleading impression that everything is working when, in fact, the top-line business metrics (e.g., CAC, growth rate) show otherwise. Instead, a top-down approach should be adopted, where GTM efforts are evaluated based on their contribution to core business objectives such as growth rate, net new ARR, and sales and marketing efficiency.
This approach, as Walker suggests, allows companies to “look at the high-level business metrics first and then drill down into specific channels with a clearer understanding of what’s working and what’s not.”
2. Optimize the Marketing-to-Sales Handoff
One of the most significant points of inefficiency in the GTM process occurs during the marketing-to-sales handoff. Companies often focus too much on generating a high volume of leads without ensuring that those leads are qualified. This results in wasted resources in the form of SDRs chasing unqualified leads and sales teams working on deals that are unlikely to close.
To address this, companies should focus on improving lead qualification at the top of the funnel, ensuring that only leads with a higher likelihood of converting are passed to sales. Additionally, using data to track and optimize the performance of SDR teams can help improve the efficiency of the marketing-to-sales handoff.
3. Reduce Overinvestment in Low-ROI Channels
Another critical step to eliminating waste in the GTM process is to reduce overinvestment in channels that do not yield high returns. As Walker points out, “many B2B companies spend millions of dollars on national trade shows and digital ads, which often fail to deliver the desired results due to the high cost and low-quality leads.”
To increase ROI, companies should reallocate budgets toward more cost-effective channels. For example, rather than relying on expensive trade shows, businesses can explore alternatives like digital events, webinars, and content marketing, which often have a lower cost per lead and can reach a larger, more targeted audience.
4. Evaluate and Streamline Technology Stack
Many companies suffer from having an over-bloated technology stack, where multiple tools are purchased but not fully utilized. These technologies, while helpful in some cases, often overlap in functionality and don’t provide a clear ROI. By performing a thorough audit of their current tools, companies can identify redundant or underutilized technologies and cut down on unnecessary subscription costs.
As Walker highlights, “although technology makes up a small percentage of overall marketing spend, the over-bloated tech stack is a source of unnecessary costs that can be eliminated.”
5. Align GTM Strategy with Customer Behavior
One of the most overlooked aspects of GTM efficiency is alignment with modern customer behaviors. Many B2B companies continue to rely on outdated tactics that no longer resonate with today’s buyers. Instead, businesses should focus on meeting customers where they are—through digital communities, social networks, and virtual events.
Walker emphasizes the need for GTM teams to focus on understanding “what customers are doing right now” and designing campaigns that align with these behaviors, rather than being stuck in traditional marketing and sales paradigms.
6. Focus on Content that Educates and Builds Trust
Content plays a significant role in demand generation, but its purpose is often misunderstood. The goal of content is not just to generate leads but also to educate and build trust with potential buyers throughout the buying journey. Companies that focus on creating high-quality, educational content are more likely to engage buyers earlier in the decision-making process and drive higher conversion rates down the line.
Walker recommends creating content that not only informs potential buyers but also helps them self-educate about the problems they are facing and the solutions available to them. This type of content allows buyers to feel more confident in their decision-making process, reducing the need for aggressive sales tactics.
Final Thoughts: Streamlining GTM for Sustainable Growth
In today’s economy, businesses must focus on maximizing the efficiency of their GTM efforts by eliminating expenses that don’t contribute to ROI. By adopting a top-down approach to budgeting, optimizing the marketing-to-sales handoff, reducing overinvestment in low-ROI channels, streamlining the technology stack, aligning with customer behavior, and creating educational content, companies can achieve greater ROI and long-term sustainable growth.
The key takeaway is that companies must shift from growth-at-all-costs to a more strategic, data-driven approach that prioritizes efficiency and profitability. By cutting waste and focusing on what truly drives value, businesses can thrive even in challenging economic times.
.png)
.png)
.png)
