Sales & Marketing Archives - Battery Ventures https://www.battery.com/blog/category/business-trends/sales-marketing/ Battery is a global, technology-focused investment firm. Markets: application software, IT infrastructure, consumer internet/mobile & industrial technology. Tue, 16 Sep 2025 16:19:57 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.2 https://www.battery.com/wp-content/uploads/2025/03/cropped-battery-favicon-circle-32x32.png Sales & Marketing Archives - Battery Ventures https://www.battery.com/blog/category/business-trends/sales-marketing/ 32 32 The New CRO Playbook: Leading Revenue Teams in the Age of AI https://www.battery.com/blog/the-new-cro-playbook-leading-revenue-teams-in-the-age-of-ai/ Mon, 15 Sep 2025 17:40:25 +0000 https://www.battery.com/?p=20961 Figuring out the most efficient way to grow revenue has always been a cornerstone of B2B startups. But today, compressed product cycles, shifting buyer expectations and the rise of AI is forcing CROs to adapt the rulebook in real time. At the 2025 Battery Kick-Off (BKO) in San Francisco, more than a hundred CROs and… Continue reading The New CRO Playbook: Leading Revenue Teams in the Age of AI

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Figuring out the most efficient way to grow revenue has always been a cornerstone of B2B startups. But today, compressed product cycles, shifting buyer expectations and the rise of AI is forcing CROs to adapt the rulebook in real time.

At the 2025 Battery Kick-Off (BKO) in San Francisco, more than a hundred CROs and revenue leaders came together to tackle the most pressing questions facing go-to-market organizations today.

As Battery Operating Partner (and former two-time CRO) Bill Binch reminded the room: “You were hired for the playbook that worked last time, but if you don’t adjust it, you’ll lose credibility fast.”

Here are six takeaways shaping the new, AI-powered CRO playbook, as shared by revenue leaders who’ve built and scaled iconic, industry-leading teams.

1.  AI moves from product feature to sales force multiplier

AI isn’t just transforming what companies sell, it’s reshaping how revenue teams operate.

Leaders are embedding AI into daily workflows to free up time and amplify selling capacity.

At OpenAI, Head of Revenue Ashley Kramer’s team has no sales development reps at all. Instead, an internal workflow agent – nicknamed Taylor – qualifies inbound leads, parses intent and even closes deals. Sellers prepare for high-stakes conversations by role-playing with a simulation agent, while Kramer herself relies on ChatGPT as a “chief of staff” surfacing account history, sentiment and competitive intel before meetings.

Gong* CRO Shane Evans shared that conversational intelligence tools now give each rep back nearly a full workday per week. Instead of losing hours to CRM updates, call notes and forecasts, reps are redirecting that time to higher-impact selling.

Across the board, AI isn’t an experiment or add-on. It’s becoming the backbone of revenue operations.

2.  The “quota question” in the AI era

Quotas have always been the north star of sales teams. But AI is reshaping what they mean, how they’re set and how they’re achieved.

At OpenAI, traditional quota-setting has been scrapped entirely. Targets can expand by billions from one quarter to the next with no corresponding jump in headcount. There’s no variable compensation plan because adoption is too volatile to anchor incentives. As Kramer put it: “I probably have 5x the target with one-fifth the team.”

CRO’s are looking to bend the traditional $1M quota per sales rep into more using AI. Boards are responding by pushing for AI-first strategies anchored to measurable conversion outcomes, not just tool adoption.

3.  Why AI can automate selling, but not trust

For all its sophistication, AI isn’t replacing the human factor in enterprise selling.

Kramer noted that Taylor can close smaller contracts, but multimillion-dollar deals still demand her personal involvement. For those, Ashley personally gets involved and shares her direct cell number. “That kind of trust is not going away,” she says.

It’s a pattern across companies. At Vercel, AI bots qualify inbound leads, but a human still oversees edge cases. At Gong, forecasting tools flag risks, but Evans steps in to coach strategy directly.

Just as system administrators thrived when they embraced the cloud, sellers who embrace AI will thrive, too. But in complex deals, trust, negotiation and empathy remain distinctly human.

4.  Hire for technical curiosity

The sales org chart is being rewritten. SDR-heavy models are fading, while new roles like GTM engineers, RevOps specialists and forward-deployed engineers are on the rise.

At Vercel, sales engineers were redeployed into a dedicated GTM engineering team. Unlike traditional SEs, these hires were former developers who could both sell and code — building internal tools that rewire the sales motion itself. One of their first projects was an inbound qualification bot, built in just six weeks and costing under $1,000 a month to run. The bot improved lead-to-opportunity conversion while freeing SDRs to focus on higher-value outbound work.

Forward-deployed engineers, meanwhile, are being embedded directly with customers in highly regulated industries, where deep domain knowledge is required to fine-tune AI models before scaling.

Michelle Benfer, former CRO at BILL and HubSpot, stressed that intellectual curiosity and coachability now outweigh tenure as predictors of sales success. Dennis Lyandres, former CRO at Procore, added that in leaner, AI-powered orgs, high performers shine while average performers are quickly exposed.

The new hiring bar? Technical curiosity and adaptability over resume pedigree.

5.  Design for change, not static playbooks

Traditional selling frameworks like MEDDICC — which asks reps to qualify deals based on metrics, economic buyer, decision criteria & decision process, ID pain, champion, and competition — or stage-based forecasting, are losing relevance in AI-powered GTM, where sales motions are dynamic, data-driven, and continuously adapted in real time.

At New Relic, usage data is combined with CRM records to highlight patterns invisible to traditional forecasts. These signals shape how reps prioritize accounts, how managers coach and how leadership directs strategy.

Gong is taking a similar approach to forecasting. Instead of relying on rep-entered deal stages, systems now assign stages automatically and prescribe next steps. The question shifts from “What stage is this deal in?” to “What is the system predicting what this customer will do next?”

6.  The evolving role of the CRO

Perhaps the most profound shift is in the role of the CRO itself. Today’s revenue leaders are part sales chief, part product thinker and part analyst.

Vercel COO Jeanne DeWitt Grosser observed that the best GTM orgs are equal parts revenue generating and R&D. Rather than receiving fully packaged motions, CROs are handed raw product capabilities and must quickly test where they resonate with customers, identify what’s missing, and adapt accordingly. In her words, that means spending “half my job being a product manager”.

Lyandres emphasized that learning velocity is the CRO’s most critical skill. With customer behaviors and AI capabilities evolving rapidly, leaders must set the tone by experimenting, adapting and discarding what doesn’t work.

Where GTM goes from here

The new CRO playbook isn’t humans versus AI, but humans amplified by AI. The leaders who embrace this balance will not only future-proof their own roles; they’ll build revenue teams capable of thriving in the most transformative GTM era yet.

The post The New CRO Playbook: Leading Revenue Teams in the Age of AI appeared first on Battery Ventures.

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Bull or Bear? A Mock Buy, Sell, Hold Report on Popular SaaS Marketing Practices https://www.battery.com/blog/bull-or-bear-a-mock-buy-sell-hold-report-on-popular-saas-marketing-practices/ Wed, 26 Mar 2025 13:16:25 +0000 https://www.battery.com/?p=19159 What becomes of vendor-authored “How to” content when a precise AI Overview is zero clicks away? Is the bloom off of the ABM rose, or have tools allowed marketers to finally scale account-based marketing programs? What’s the role of brand in an age when AI can generate our content and agents can engage with our… Continue reading Bull or Bear? A Mock Buy, Sell, Hold Report on Popular SaaS Marketing Practices

The post Bull or Bear? A Mock Buy, Sell, Hold Report on Popular SaaS Marketing Practices appeared first on Battery Ventures.

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What becomes of vendor-authored “How to” content when a precise AI Overview is zero clicks away? Is the bloom off of the ABM rose, or have tools allowed marketers to finally scale account-based marketing programs? What’s the role of brand in an age when AI can generate our content and agents can engage with our prospects–better still, is there a role for brand marketing?

CMOs often think of their programs as a portfolio, balancing conservative but predictable investments with some higher risk, higher upside experiments. Yet generative and agentic AI has changed market dynamics, so to speak. So we decided to extend this investment metaphor and publish a mock “buy, sell, hold” report on marketing programs in the age of AI. From content to digital ads, product-led growth to field marketing, and just about everything in between, we share our perspective on how CMOs should think about rebalancing their programs portfolio as we enter this new era.

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The post Bull or Bear? A Mock Buy, Sell, Hold Report on Popular SaaS Marketing Practices appeared first on Battery Ventures.

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Building your First Sales Compensation Plan https://www.battery.com/blog/building-your-first-sales-compensation-plan/ Thu, 23 Jan 2025 19:24:02 +0000 https://www.battery.com/?p=18577 This is no easy task – attempting to guide early-stage companies on building their first sales compensation plan. Phew… cue the pitchforks for all the incoming commentary! But it’s worth the try. In my role here at Battery, I work with a lot of companies that are just figuring out their GTM motions, many of which… Continue reading Building your First Sales Compensation Plan

The post Building your First Sales Compensation Plan appeared first on Battery Ventures.

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This is no easy task – attempting to guide early-stage companies on building their first sales compensation plan. Phew… cue the pitchforks for all the incoming commentary!

But it’s worth the try. In my role here at Battery, I work with a lot of companies that are just figuring out their GTM motions, many of which have less mature comp plans. I’m using this blog to cover some of the comp-planning fundamentals I often review in those conversations.

The Basics of Comp Planning

There are three of what I call the “core covenants” of a comp plan. First, make it simple – a rep sells X, which is multiplied by Y rate, which means they earn Z. Next, make it logical – the sale amount multiplied by the rate should produce what a seller’s variable commission will be. Lastly, and most importantly, it should be motivational.

Let’s start through the lens of the sales rep. When I would interview top-tier AEs, I’d often hear a few old chestnuts in the interview cycle:

  • How much did the top AE earn last year?
  • How many of your reps made quota?
  • What will my territory be?
  • Can I see a copy of the comp plan?

Some of these questions may be difficult to answer for very early-stage companies, but they are all questions you should aspire to answer proudly. And if you want to hire top-tier talent, then these are all questions you should anticipate.

This last of these questions – can I see the comp plan – is the moment of truth. If you’re scared of sharing your comp plan, something’s wrong. The comp plan is a great recruiting tool, and if built correctly, it’s a secret weapon for landing top performing reps.

The Core Elements of a Comp Plan

There are three key elements in any comp plan: the quota, the timing of the quota and the variable commission amount. These three work together to form the comp plan, so let’s start with them and then walk through a few examples.

Quota

Quota is typically a dollar amount of sales that a rep needs to close. In higher velocity orgs, it could be based on the number of logos signed. In consumption models, there could be a number of variables. But for simplicity’s sake, dollar-based quotas are the most common, so let’s run with that and say our quota is $1,000,000.

Timing

Per above, we said the quota amount is one million dollars. Next, we must determine the period of time allotted to meet the quota. The most common options for quota calendars are monthly, quarterly and annual quotas. This timing element is critical, as it creates a mindset for how sales reps grind to get deals done.

For instance, if an AE has a quarterly quota that includes accelerated rates for >100% performance (more on accelerators below), and they are above quota, they realize that by closing more business while above quota = more earnings for me. This is the motivational factor of comp plans.

And smart sales reps know, the more quota cycles with an accelerator, the more chances they have to earn a bigger commission.

Variable

Sales reps are unique people. They accept a job where some portion of their pay is fixed – their base pay, and then some portion of their pay that is variable – the commissionable amount. Not everyone is fit to be on this type of plan: If I sell lots, I make lots. But if I don’t sell, then I don’t make commissions (and may even lose my job).

In the SaaS world, it’s very common to see sales reps on what we call a 50/50 plan, meaning they make 50% of their target earnings on base salary, and the other 50% on variable commissionable amount. Together, base salary and commission are referred to as OTE: on-target earnings.

You may ask – why would anyone subject themselves to this type of financial and mental torture? Because the OTE is predicated on sales reps achieving 100% of the quota. A good comp plan incentivizes a rep to go above 100% . . . because it provides greater rewards. This is the reason for an accelerator. The accelerator is a higher commission rate paid to the sales reps who overachieve on their quota. For any company not building an accelerator or too weak of an accelerator into your plan, you’re creating obstacles to hiring good talent.

Before we dive into examples, let’s cover the most basic comp planning formula – calculating the base rate and the accelerated rate. I often see comp plans that don’t “foot” out on their mathematical calculations, so want to provide this simple metric that calculates the base rate.

What this means is that if a rep sells $1M of software and gets paid 10%, they make $100,000. Pretty easy, huh?

You’d be stunned by how many companies don’t use this simple base rate formula. Instead, they read a blog, get some ideas and then decide to “force” their commission rates. I hear strange comments like, “I don’t want my reps to make more than 9%,” or, “I want to cap the amount my sales reps can earn.”

This is a bad idea. If the rep is selling software, your company is making money. If the rep is selling more than they are supposed to, they should share in the upside.

Accelerated Rates:

We have now established the formula for determining the base rate that your sales reps will be paid. Now let’s figure out the high motivation part – the accelerators.

Unfortunately, there isn’t a common methodology to determine the accelerator rate, but a commonly used rule of thumb is 125%. Meaning, if your base rate is 10%, and you overachieve your quota, then the rate increases by 125% – to 12.5%.  But wait, there’s more! Some comp plans “tier” rates above 100% of quota. For instance, you’ll see plans that pay 125% for 101-110% of performance, and then 135% for 111-120% of performance, and then maybe 150% for 121%+ of performance. This is all about the motivation factor – reps chase after the higher rates–which is great for everyone. The rep who achieves more sales earns bigger commissions, and the company gets more revenue NOW.

While there isn’t a specific formula for determining the accelerator, seasoned sales reps know a good one from a poor one. Again, if you’re talking the game of hiring the best talent, then be aware that the best sales talent goes to where it can make lots of money.

PLAN EXAMPLES:

Let’s explore how comp plans work. This is fun, as you’ll see how timing and tiers really play into the earnings potential for a sales rep.

For all examples, let’s assume the rate tiers are as follows:

Example 1: Straight Rate Plan

This is the simplest version of a comp plan and truthfully not very exciting for a sales rep. But it sets the tone, so let’s start with it.

Pretty straightforward – I sold 43% of my quota and I made 43% of my variable pay.  As stated above, it is not too complex but also doesn’t motivate me to work hard to drive toward a monthly or quarterly timeframe in closing my deals.

Example 2: Earn Through Your Tiers Plan

This is where comp planning gets fun, as this type of plan offers a bit more “juice” for the sales rep. In this case, the rep has a $1M annual quota, but it’s quarterly timing, so that means that the rep has a $250K quarterly quota. This also means that if the rep sells more than $250K in the quarter, then they move up to their accelerated rates.

See what happened there between example 1 and example 2?  The rep closed the same $430K deal, but in one case earned $43,000, and in the other, earned $51,000.

In scenario one, the rep closed 43% of their annual quota and earned exactly 43% of their variable. In scenario 2, they closed 43% of their annual quota, but because it was a quarterly timed plan, they earned 51% of their annual commissions. Or said another way – the rep was supposed to earn $25K at 100% of quota in example two. They sold 172% of their Q1 quota, and they earned 204% of their targeted variable (they earned $51K versus a $25K target).

This plan accelerated nicely and is motivational.

Example 3: Achieve the Next Cliff (Retroactive Rates Style Plan)

This is the most motivational plan of the examples. This plan allows the rep to move up once they cross a tier and get paid for all dollars at that higher rate. Sales reps love this plan because they earn that higher rate on all the dollars sold for that period.

The sales rep earns $64,500 in this instance. They sold $430K, which is 172% of quota for the Q1 period, therefore they are at their top accelerator tier = 150%. To calculate their commission, take the $25,000 commission at 100% of plan, multiply by 172% (their percentage of performance) and multiply that by 150%. In this instance, the sales rep sold 172% of their quota, and they made 258% of their on-target variable for the quarter. Now you see why people go into sales!

In Conclusion…

To reiterate, these are just the basics. This blog doesn’t cover commission-payment frequency, for example, but that’s another competitive tool. Comp plans can quickly become more complex by incorporating components that pay differently for multi-year agreements, pay differently on how the cash is collected (quarterly vs annual upfront), pay incentives for consistency, that pay rates for implementations, etc.

Good sales reps get ahold of the comp plan and dissect it quickly, determining the best ways to maximize their earnings. As CEO or CRO, take the challenge yourself – pull out your comp and calculate how much an AE would earn. Is it motivational and will it attract talent, or do you need to give your plans a face-lift?

The post Building your First Sales Compensation Plan appeared first on Battery Ventures.

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Building Human Connection in a Technical World: The Weaviate Approach to Marketing https://www.battery.com/blog/building-human-connection-in-a-technical-world/ Mon, 09 Dec 2024 15:07:28 +0000 https://www.battery.com/?p=18284 The best part of my job is that I get to meet so many wonderful people, but I don’t always remember the exact moment we met. But I definitely remember meeting Bob van Luijt, CEO of Weaviate.* When I introduced myself to Bob, he reacted with contagious enthusiasm. He was warm and engaged in our… Continue reading Building Human Connection in a Technical World: The Weaviate Approach to Marketing

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The best part of my job is that I get to meet so many wonderful people, but I don’t always remember the exact moment we met. But I definitely remember meeting Bob van Luijt, CEO of Weaviate.*

When I introduced myself to Bob, he reacted with contagious enthusiasm. He was warm and engaged in our conversation. At one point, he pulled out his phone to show me pictures of Weaviate’s new billboard with Intel, clearly excited and proud to show me one of his team’s recent wins. After the event, he followed me on Twitter/X (a generous move on his part, given that I had fewer than 250 followers at the time).

Bob’s warmth and zeal stuck with me. Whenever I see Weaviate’s content in my social media feed, I think about that first meeting. Isn’t that what ‘brand’ is all about? It’s how people remember you. More than just the product or service you offer, brand is how people feel when they interact with your company, whether it’s a passing mention in conversation, a billboard, a booth at a conference or a post on LinkedIn. While a product is valued primarily for its function, a brand offers something deeper: an emotional experience that leaves a lasting impression.

Weaviate’s brand is vibrant, fun and approachable—a stark contrast to the dry, technical stuff many in the B2B space opt for (or feel forced to implement). Yet, Weaviate itself is deeply technical. As their LinkedIn company description explains, “Weaviate is a cloud-native, real-time vector database that allows you to bring your machine-learning models to scale. There are extensions for specific use cases, such as semantic search, plugins to integrate Weaviate in any application of your choice and a console to visualize your data.”

But the Weaviate approach to brand isn’t just about the technology: It’s about people connecting with people. And that’s why it’s so effective.

Brand is an Experience, Not a Commodity

Humans make decisions based on emotions and perceived value, not just rational cost-benefit analyses. For fans of data-driven marketing insights, many of whom work in the software industry, I’m sure human irrationality can be frustrating or dissatisfying… but it’s not entirely unpredictable, or even really that complicated. You don’t need a convoluted lead qualification process and a bloated marketing tech stack to figure out what people want. Starbucks learned this the hard way: removing in-store seating and over-rotating on mobile orders and complex custom drinks when many of its customers just wanted to get a quick cup of coffee and sit down.

When a company associates positive emotions, like belonging, prestige and pride, with its brand, it becomes something people—employees, customers and investors—want to be part of. And those emotions can override what looks, from an outside perspective, like obvious choices. I even see it in my own behavior: I’ll walk an additional three or four blocks from my apartment to buy coffee from the shop where the barista remembers my name. Even if it’s raining!

Software companies must appreciate that it’s not enough to simply say you can help people do their jobs better, faster or cheaper. When we say better, faster and cheaper, we must ask – for whom is it better? What makes it better? If it’s ambiguously ‘better’ for the business, an incremental improvement of net present value, I am confident no one will care. It’s more compelling (and stickier) to be beloved instead of just ‘better.’

Every interaction, from the aesthetic of the product to your social media feed to how you engage customers before and after a sale, is an opportunity to be beloved. That’s why your product must be memorable, not just functional, as our General Partner Dharmesh Thakker has written. Product aside, humanizing your company’s brand (even if you’re selling into other businesses) is also essential. When you put the people behind your company front and center, it reminds people that your brand isn’t simply offering a technical service—it’s built by humans to help other humans.

Marketing to people, the real consumers of software (at least, until AI takes over the world), requires finding where they spend time and speaking like you yourself are human. In practice, this means investing heavily in social media – which is where many of us, even if we don’t want to admit it, spend most of our time. You can be playful, kind and approachable on social media, too, even as a B2B brand. And you should! That’s what sticks with people.

When Bob asks customers why they buy from Weaviate, they often cite three factors: the company’s content, the onboarding process and the company’s walkthrough videos, each of which features an actual human. This reaffirms the strengths of Weaviate’s marketing approach – the faces behind the company are front and center to its brand.

Another important part of selling to humans is to recognize that they want to feel important, heard and valued, a philosophy that Bob and the Weaviate team refer to as “customer centricity.” We’ve heard it before: the customer is always right. But beyond recognition, customers also want a smooth onboarding process, responsiveness and, of course, to stand out in front of their boss and among their colleagues. If you can support your customers in the ways they desire, it should be easier to attract new ones and maintain the ones you already have.

Brand-Building Starts at the Top

Experiential marketing is most powerful when championed by the founder or CEO, whose vision and energy shape the brand. When the face of the company is visible, he or she can humanize the business and build rapport with customers. Like many effective startup founders, Bob is actively public-facing and has been for some time. Bob and the Weaviate team are active on social channels, regularly attend conferences and are covered frequently in media.

Visibility, while important, is not enough to sustain a brand on its own. As a leader, Bob is approachable, customer-obsessed, creative and, like Weaviate users, highly technical. He personally wrote the company’s mission statement, which is short and unembellished:

We believe that the best way to empower AI developers is through a vibrant community and accessible technology in an open-source ecosystem. We believe in building together.

You’ll note that while the words ‘vector databases’ do not appear in the company’s mission statement, the word “developers” does, reflective of the ‘customer-centricity’ approach endemic to Weaviate’s culture, something Bob and his leadership team continually reinforce. Who your product is for is more important than what it is. Ask yourself: Who is using it? How does it change their lives? How does it make them feel?

Another important tenet of the Weaviate brand is to ignore competitors, an occasionally unpopular approach in the AI space, which is replete with leaderboards and quadrants. But for Bob, focusing on the Weaviate product and its customers is not only a better use of time, but the only way to spend time. Bob, and other prominent AI leaders, recognize that it’s a fruitless task to rely on marketing claims of being 10% better, faster or cheaper than the other guy, when customer apathy is the real competition.

While this approach may seem novel for the B2B software industry, it’s old news for many consumer brands. Take Nike, for example. You can buy sneakers anywhere, but people line up for hours to buy Jordans. Nike transformed itself by shifting its marketing focus from simply selling footwear to ‘inspiring athletes.’ People don’t just want sneakers; they want to feel like Michael Jordan. Forget a LLM leaderboard, how can your brand give people the “AI experience”? That’s what Weaviate offers you. Many people who want “to do AI” are venturing into unfamiliar territory. How do you gain their trust?

In Conclusion…

Every B2B transaction is inherently B2C, because behind every business deal is a person. People buy from those they like and trust. If you’re easy to work with and treat people well, they’re more likely to buy and less likely to churn.

I remember when people are kind to me, just like I remember when Bob made me laugh and was warm and engaged. And I’m not even a Weaviate customer! If you treat customers like people, not like data points or transactions, in your marketing, your customer support and your organizational approach, and center the humanity of your organization in your marketing efforts, it will only help you succeed.

The post Building Human Connection in a Technical World: The Weaviate Approach to Marketing appeared first on Battery Ventures.

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