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Sep 13, 2023
Snowflake's Approach to Sales and GTM Investment
The CEO of Snowflake once remarked that "everyone in the company works for Sales," highlighting the critical role Sales plays as the tip of the spear, leading the charge. This perspective positions everyone else in the company as the wood behind this arrowhead, reinforcing the notion that Sales is at the forefront of the company's efforts.
But does Snowflake go the extra mile when it comes to investing in Rev Ops and GTM Systems compared to its peers?
A deeper look into the numbers reveals that Snowflake invests a significant portion of its revenue—over 50%—in Sales and Marketing, with a substantial 32% of its workforce dedicated to the Sales domain.
And he is very clear about how much he values Sales: “They experience the reality of the marketplace first.The rest of the company sits far away from the cold winds of competition.”
However, interestingly, when comparing Snowflake's investment in enabling Sales with that of its peers, Snowflake invests proportionally similar amounts in both Sales and its supporting teams compared to other major players in the industry.
Let's compare:
Snowflake: 2,425 Sales Reps
Salesforce / GTM Systems Team: 64 people
Rev Ops Team: 60 people
Red Hat: 3,700+ Sales Reps
Salesforce / GTM Systems Team: 100+ people
Rev Ops Team: 150+ people
ServiceNow: 4,300 Sales Reps
Salesforce / GTM Systems Team: 45 people
Rev Ops Team: 300+ people
Splunk: 2,935 Sales Reps
Salesforce / GTM Systems Team: 68 people
Rev Ops Team: 55+ people
DocuSign: 2,742 Sales Reps
Salesforce / GTM Systems Team: 78 people
Rev Ops Team: 70 people
Autodesk: 2,413 Sales Reps
Salesforce / GTM Systems Team: 75+ people
Rev Ops Team: 110+ people
Workday: 3,225 Sales Reps
Salesforce / GTM Systems Team: 125+ people
Rev Ops Team: 100+ people
Okta: 2,175 Sales Reps
Salesforce / GTM Systems Team: 55+ people
Rev Ops Team: 40 people
Slootman, Snowflake's CEO, isn't suggesting that everyone in the company literally works for Sales. Instead, he highlights a mentality that benefits every team within an organization. By putting front-line GTM teams at the forefront, several positive impacts ripple across the organization:
It motivates the Sales team.
It empowers the Rev Ops team.
It raises the stakes for Support.
It grounds Product in user insights.
It keeps Engineering in check.
This approach sparks a question: Is this a well-founded mentality that maximizes the potential of various teams, or does it risk overstating the role of a specific team within the organization?
In conclusion, while Snowflake gives immense importance to Sales as the spearhead, it's evident that a balanced investment in GTM Systems and Rev Ops, aligned with peer companies, underscores the collaborative efforts required to drive success in the dynamic landscape of business. Balancing the focus on Sales while appreciating the synergy between all teams might just be the key to thriving in today's competitive markets.
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