In our recent post on ways B2B companies can build revenue resiliency, we wrote about the importance of rigorously assessing the risk of your current and potential customers based on the recent shocks they are experiencing. What makes this economic disruption and the impact it is having on businesses unlike any other is the uneven and global effect it is having on companies. In some instances, companies are experiencing a tailwind from these events and as a result have seen a surge in demand for their product or service, while many others are facing detrimental headwinds.
Many of our portfolio companies are in the process of assessing existing customer and prospect risk–something they’ve been doing since the onset of the pandemic, but has now become much more difficult because of it. With the new quarter upon us, we know many CROs and sales leaders are once again taking a look at the next three months and are mapping out how best to navigate what’s ahead.
That’s why the Portfolio Growth team at Sapphire Ventures pulled together the Prospect Risk Assessment Model. This model is a framework for CROs and sales teams to leverage so that they can better measure and understand how potential customers are being affected by the crisis. By utilizing the following framework, which looks at four key factors, teams can adjust their GTM motions across a continuum of potential changes for each prospect rather than making a binary choice that will be less effective:
- Location: Evaluate how your prospect has been impacted by COVID-19 based on their geographic location.
- Size of Business: A prospect’s size (via employee count and/or revenue) is a relevant indicator of financial strength and how IT budgets may be impacted by COVID-19.
- Industry: COVID-19 has created a wide range of business impacts across industries and sub-industries. As we know, some are being hit more than others.
- Solution Relevance: COVID-19 is causing businesses and IT organizations to look for technologies to solve time-sensitive pain points.
View the Risk Assessment Model Here:
Our hope is that this framework provides a model that you as a CRO or sales leader can use to understand how this disruption may impact your business relationships, sales discussions and commercial opportunities. We believe that those that respond quickly with tailored GTM motions will be able to continue to strengthen their relationships with prospects, preserve ARR and identify new revenue opportunities.
