ROI Framework by GTM Partners

The Total Relevant Market v1 092722 A N e w R O I F r a m e w o r k P R E S E N T E D B Y Redefining ROI To Close Bigger Deals, Faster

© 2023 Go To Market Partners , LLC . All rights reserved . Page 2 When the economy is tight , there is naturally increased pressure on shrinking budgets . Your customers may be experiencing layoffs , budget cuts , and increased scrutiny on what is and isn ' t considered essential tech . As a result , technology vendors are experiencing slowed or stalled pipelines . Traditional d ecision makers have lost buying authority as CFOs and CEOs get more involved and prioritize spending that can clearly show returns in revenue or savings . Win rates are lower . Retention is down . Expansion is a struggle . Why ROI Matters More Than Ever 60% o f c o m p a n i e s s t r u g g l e t o a r t i c u l a t e a n d p r o v e R O I *Source: Go to Market Partners poll Failure to credibly demonstrate Return on Investment ( ROI ) is the number one reason your pipeline isn ’ t closing , your customers aren ’ t renewing , and you ' re having trouble upselling your best accounts . If you can pull just one growth lever today to impact revenue over the next 12 months , it would be ROI . It ' s tough out there . The good news is , you ' re not alone . According to our research , 60 % of companies struggle to show ROI . Business leaders are stuck with outdated , limited , and confining definitions of ROI that may not fit the ir business model . And without ROI , your decks , demos , and dinners are no longer enough to convince CFOs and CEOs to pull the trigger in a slow economy . The good news : there ' s still time to expand our understanding and execution of ROI before the end of the year . Companies that can demonstrate ROI will have a highe r chance of closing deals and retaining customers .

© 2023 Go To Market Partners , LLC . All rights reserved . Page 3 User loves your product but can ' t quantify ROI to their boss VENDOR ROI - ASSESSMENT Yes / No Vendors GTM teams are not aligned on how users should quantify ROI ROI is hard to quantify consistently across customers Yes / No Yes / No Proving ROI requires too much heavy lifting to be realistic Yes / No When most people talk about ROI , the most common definition is net income divided by the total cost of the investment times 100 . If you spend $ 10 , 000 on something and it generates $ 123 , 000 in net new revenue , the ROI is 1230 % . This narrow definition is limiting for companies tha t are either one part of a complex solution or who struggle to show directly attributable ROI . Or what about a company that is completely transforming the way their customers do business , but the y can ’ t prove it unless the entire company goes through an effective change management cycle ? Wha t about a company that increases employee satisfaction or ease of use , famously hard metrics to quantify to dollars ? Does it mean that your solution doesn ’ t have value if you can ’ t unequivocally prove you ’ re making or saving more than you cost ? We think not . Do You Have an ROI Problem? User is skeptical of vendors claims of ROI Yes / No Quantified ROI is not compelling enough to retain customers Yes / No ROI quantification is not part of the sales process Yes / No GTM teams are not enabled on how to quantify ROI Yes / No Buyers and users are not taught how to quantify the ROI Yes / No Source : GTM Partners ' ROI Framework © GTM Partners , All Rights Reserved gtmpartners . com The Old ROI Framework

The 5 Types of ROI T Y P E D E S C R I P T I O N M E A S U R E M E N T T r a n s f o r m a t i o n a l E f f i c i e n c y A t t r i b u t a b l e Y o u c a n c l e a r l y s h o w t h e l i n k b e t w e e n v a r i a b l e i n v e s t m e n t a n d t h e r e v e n u e t h a t r e s u l t s . M o r e i n v e s t e d w i l l r e s u l t i n m o r e r e v e n u e . D i r e c t r e v e n u e ( P i p e l i n e , N R R , A R R ) , T a n g i b l e o u t c o m e s / d e l i v e r a b l e s Y o u r s o l u t i o n w i l l h e l p c o m p a n i e s t r a n s f o r m , b u t i t i s w h o l l y d e p e n d e n t o n t h e o r g a n i z a t i o n d o i n g t h e w o r k t o c h a n g e t o o b s e r v e t h e v a l u e . A c c e s s t o a n e w m a r k e t , o r a n a b i l i t y t o o p e r a t e / s e l l i n a n e w w a y I m p r o v e d e m p l o y e e s a t i s f a c t i o n o r r e d u c t i o n i n h e a d c o u n t . Y o u c a n c l e a r l y s h o w t h e l i n k b e t w e e n t h e i m p l e m e n t a t i o n a n d a r e d u c t i o n i n c o s t s o r i n c r e a s e d p r o d u c t i v i t y . L o w e r c o s t s , f e w e r p e o p l e , w o r k f a s t e r T h e m o r e p a i n y o u r e m o v e t h e s t r o n g e r y o u r c a s e . N e c e s s i t y Y o u r s o l u t i o n i s a t a b l e s t a k e s t y p e o f t e c h n o l o g y t h a t c o m p a n i e s n e e d t o r u n t h e i r b u s i n e s s . E a s e o f u s e , p r i c e t o v a l u e , s e r v i c e , s u p p o r t , & f u n c t i o n a l i t y . I n d i r e c t Y o u c a n p r o v e t h a t y o u r s o l u t i o n p r o v i d e s i m p r o v e m e n t t o o n e a s p e c t o f t h e b u s i n e s s , b u t y o u c a n n o t e x p l i c i t l y t i e i m p r o v e m e n t t o y o u r s o l u t i o n . A m i x t u r e o f i n f l u e n c e d p i p e l i n e , r e v e n u e , a n d c o n v e r s i o n f u n n e l m e t r i c s . Source : GTM Partners ' ROI Framework © GTM Partners , All Rights Reserved gtmpartners . com © 2023 Go To Market Partners , LLC . All rights reserved . Page 4

The ROI Framework : Proving Your Value © 2023 Go To Market Partners , LLC . All rights reserved . Page 5 The Winning Zone : Companies that can show Attributable and Transformative ROI are at an almost insurmountable advantage . Since they are either transforming how customers do business or they can prove directly attributable ROI , the y ' re not getting cut . Companies in the winning zone can out - maneuver competitors through big strategic moves and investments . The Competition Zone : Vendors in the Efficiency and Necessity zones can be very successful and may even be category leaders . However , the y ’ re constantly defending against other players who can easily force competition on features , ease of use , price , and efficiency gains . The Instability Zone : Vendors who can only show Indirect ROI are in wha t we call the muddy middle , where retention gets hammered . In a down economy , CFOs will not approve new or renewed tech that can ’ t show ROI . Companies showing Indirect ROI get lumped with dozens of other providers as one of many contributors to some final outcome . Y o u r g o a l i s t o m o v e u p t h e s l o p e , f r o m t h e m u d d y m i d d l e t h r o u g h t h e C o m p e t i t i o n Z o n e , a n d h o p e f u l l y e v e n t u a l l y t o t h e W i n n i n g Z o n e . Intrinsic ROI : You provide inherent value without need for quantitative measurement . You ' re valuable because you are taking action or moving in the right direction . Extrinsic ROI : Valuable to the degree it creates measurable outcomes where the results speak for themselves . The Muddy Middle Intrinsic ROI Extrinsic ROI Win / Retention Rate Winning Zone ( Offense ) Competition Zone ( Defense ) ( Preservation ) Instability Zone Attributable Transformational Necessity Efficiency Indirect Source : GTM Partners ' ROI Framework © GTM Partners , All Rights Reserved gtmpartners . com

© 2023 Go To Market Partners , LLC . All rights reserved . Page 6 Necessity Efficiency How Slack Succeeded by Evolving Their ROI Story Win / Retention Rate Winning Zone ( Offense ) Competition Zone ( Defense ) ( Preservation ) Instability Zone Attributable Transformational Indirect ROI is not necessarily static or stable . When Slack first entered the market , it was a transformational tool and completely changed the way people communicated at work and in groups . Over time , as the market proliferated with othe r tools , Slack started to emphasize an Efficiency ROI story and leaned into the fact that using Slack saved employees time tha t would otherwise be spent on email or in meetings . Slack currently has a very strong Necessity ROI story ( the ir customers would struggle to live without them at this point , and they have a wide ecosystem of integrations ) , but the risk is that other solution providers can force them to compete on pricing , features , and functions . The Muddy Middle Intrinsic ROI Extrinsic ROI Source : GTM Partners ' ROI Framework © GTM Partners , All Rights Reserved gtmpartners . com

Advanced companies are thinking about ROI on multiple levels . The example above was taken from a middleware solution company tha t leverages SDKs , CLI , and code templates to reduce time spent building email and calendar functionality into software . This company has four distinct personas , and each cares about different ROI . Assuming that investment can only exist within the context of dollars - and - cents fails to recognize that while CFOs are primarily concerned with spending , end users and managers may have different opinions on what " investment " means . Financial ROI shouldn ' t be ignored , but one - size - fits - all - ROI definitions geared only to the financially - minded members of the buyer committee may hurt sales cycles just as much as not having tha t information at all . Take the time to map out your own personas and what kind of ROI might speak to each one . Sellers need to know how to win over the cha mpion and influencers . Sellers also have to arm their champion with the ROI that resonates with the economic buyer so the y can get approval from the budget holder . Matching ROI to Persona Source : GTM Partners ' ROI Framework © GTM Partners , All Rights Reserved gtmpartners . com Engineering / Product / Support / Dev Ops Engineering Manager / Product Manager CTO / CPO / Head of Engineering CEO CFO Prove it will reduce work / not add work ; Prove change management is simple / possible Prove it will make me better , make my job easier , add to my skill set Prove it will help me meet my objectives on time ( faster ) and / or budget ( cheaper ) Prove it will make money , save money , and / or that this decision is worth my time and energy Economic Buyer Champion Influencers / Stakeholders © 2023 Go To Market Partners , LLC . All rights reserved . Page 7

© 2023 Go To Market Partners , LLC . All rights reserved . Page 8 A New Way to Showcase ROI Tell us your top use cases and value propositions . We read select case studies or customer videos provided by you . We mine G2 review data to validate your use cases and value props . We produce a credible , validated , third - party document that you leverage throughout the customer journey . Our research shows that credible , validated , third - party ROI studies can address many common sales problems . These are examples of three ROI studies we created using proprietary research and validated G2 data . The Process 1 . 2 . 3 . 4 .

We often hear business leaders speak to the desired outcomes as though they are the plan: “We need 3X pipeline,” “Increase NRR by 3 points,” “30% increase in revenue,” etc. However, without a systematic way of confirming you have the correct processes and investment to achieve the goal, you might struggle to see risks that could prevent you from reaching it. How do you bridge the gap between your strategic planning process and your execution? The GTM Operating System is an 8- pillar framework that we have developed to provide organizations with a blueprint to provide clarity and alignment in their strategic planning and execution process. The Go-to-Market Operating System The GTM Operating System is made up of many interconnected parts that will allow your Go-to-Market team to stay aligned on a common goal, both as a GTM team and within specific disciplines such as Sales, Marketing, and Customer Success. It also allows the owner of GTM within your organization to validate your strategy and understand the capacity of the GTM team. The GTM Operating System provides blueprints for how to run a successful plan to manage the execution of a successful GTM Motion(s) across the entire company. Each pillar builds on the next, allowing you to connect the dots between teams with significantly different roles. These 8 pillars are critical to ensuring that GTM is a company-wide holistic initiative and not just a marketing and sales initiative. For example, without having the correct positioning and branding support, Sales will struggle to make their numbers, or if your customers can’t see value in your solution, having your revenue depend on expansion will become a challenge for your Account teams. The ROI Framework discussed here is part of Pillar 5: Customer Time to Value. How The GTM Operating System Works © 2023 Go To Market Partners , LLC . All rights reserved . Page 9

About GTM Partners Data and benchmarks collected from data providers, including G2 and Bombora, as well as our community of the world’s fastest-growing companies. Research, best practices, and design frameworks to provide guidance on the best-in-class approaches to strategizing, executing, and tooling your Go-to-Market approach. Personalized advice and support from experienced leaders and practitioners that help you address business challenges in a manner that is authentic and specific to you. Our consulting work focuses on areas such as Go-to-Market strategy, creating a Point of View, and Go-to-Market project execution strategy across the 8 pillars of GTM. Events and networking with industry leaders looking to define the category of Go-to-Market and revolutionize the way we create value for our organizations. About GTM Partners GTM Partners, a data-driven Go-To-Market Analyst firm helps organizations and GTM vendors to achieve efficient growth by transforming their GTM strategy. We work with high-growth companies to help them unify their GTM teams and to provide them with lasting strategies and frameworks. GTM Partners with a mission to make Go-To-Market simple aims to be the voice of the industry for all things GTM. We do this by offering: 1 . 2 . 3 . 4 . About the Analysts Bryan Brown, Chief Analyst Bryan is a SaaS pioneer and thought leader in the marketing and sales tech industry. He has both created and brought to market innovative software products and ideas while helping thousands of companies in their effort to grow revenue more efficiently. Bryan is a co-founder with multiple exits (Vtrenz) has led strategy teams in Fortune 100 Companies (IBM) and has helped multiple organizations scale their products & Go-to-Market approaches from point solutions to platforms via organic product development and through mergers & acquisitions (Silverpop, Terminus). His work over the years has been instrumental in forming new categories and securing top placements for his companies in both the Forrester WAVE and Gartner Magic Quadrant reports. Lindsay Cordell, Senior Go-To-Market Analyst Lindsay is a practitioner turned analyst who studies best practices and trends in Go-to-Market and develops actionable models and blueprints for our clients. She has held both practitioner and leadership roles in almost every aspect of Go-to-Market, including Product, Marketing, Sales, Revenue Operations, and Enablement for several Fortune 500 companies, including AT&T, Hearst, and Cox. She most recently ran the GTM Center of Excellence for the Account-Based Marketing Platform Solution Terminus. Sangram Vajre, Co-Founder and CEO Sangram is a three-time best-selling author and co-founder of several organizations, including Terminus, The Peak Community, and most recently, GTM Partners. Sangram has been at the forefront of B2B marketing trends, the Flip-my-Funnel movement, and defining the Account-Based Marketing category, ushering in a new generation of marketers. He has previously held CMO roles at Pardot, a Salesforce company, and Terminus. To find out how GTM Partners can help you with efficient growth and revenue, contact us at: Web: www.gtmpartners.com ; Email: [email protected] © 2023 Go To Market Partners , LLC . All rights reserved . Page 10