B2B Revenue Acceleration
B2B Revenue Acceleration

Episode · 11 months ago

93: 3 Essentials for Scaling Your Business in Europe w/ Henrique Moniz de Aragão


Scaling your business in Europe is no easy thing.

Local knowledge, dozens of languages, tiny budgets, and brand awareness are just a few of the difficulties you’ll have to overcome.

In this episode, I interview Henrique Moniz de Aragão, VP and GM, EMEA at G2, about the challenges of breaking into the European tech market.

We talked about overcoming stereotypes about the European buyer, 3 essentials for scaling in Europe and, Pros & cons of scaling at startup or enterprise.

To hear this interview and many more like it, subscribe to The B2B Revenue Acceleration Podcast on Apple Podcasts, on Spotify, or on our website.

You're listening to Beto B revenue,acceleration, a podcast dedicated helping software executives stay on thecutting edge of sailes and marketing in their industry. Let's get into the show hi welcome to be to be a revingiacceleration. My name is Onta and Im er today with Enrique Monnis, the ADAGALVP and general manager. Emma at GTO are you? How are you doing today and RekaI'm very good at than get to be here thanks for having me that's a pleasure,that's a pleasure. So today we will be talking about a very, very, verytoptopic for most of our clients, which is scaling a business in Europe. Butbefore we go into the conversation, could you please tell us a little bitmore about yourself and Rique, as well as your role at GTO, and I would be socrazy if people don't know what Itu does, but I think you should alsocovera us in case to WHATC. You do as a fantination, yeah fantasty know it's great to be here,appreciate the invitatation, so yeah, I'm originally from Brazil, and I'vegot most of my tech career working primarily for US companies. In avariety of roles based in Europe in my Corri Roll Ar, due to as General ManageD frome, I basically joined March of lastyear, two thousand and nineteen to just coming up to eighteen months now, hatopen up our first European office and for those who don't know D to. We are abusiness software review websites in its symptest form where people go toreacha research software before they buy, but obviously there's been a bitmore to it than that. We publish fifteenthsand reports a quarter soevery quarter and we have over a million reviews that have been verifiedby R M real people using real software, and we, basically we add value and makemoney by helping marketing sales, marting and selfs teams and techcompanies connect with more than five million buyers a month that come to youto that's bee. My journey for the last eihteen months, like the companiesseries C Benthefbact IR founders have sold to companies prior. We now havefive label officers and yeah our ambitious to be like the trip redvisor,the software or the glass door or software. That's that's good. I mean wewill encourage anyone to go and shake our reviews on GTO and I believeexcellent. So that's really good, but but to get into the topic and requeyou've been you've been aiding the GTEXPENSION in Europe for the rest,eighteen months, pretty much as you as you mentioned, eighten teresting months,I think the less ts eigh nine moles- must have been a quite quiteoverwhelming for you as well. But what I would like to Undeson is, if youcould tell us a little bit more about this journey and then kind of takingthe US concept of Jito and- and the concert is definitely getting sometraction Bhat. We can see from our from ourcustomers in the US bparticit very saus in the US, and and now do you bringinto Europe to propably whet. I would. I would have expected to be aless Matromarkets to what you are doing and, to that extent may be little bit lesswelcoming. So so, can you tell us a little bit more about that? The journeythat you went through, discuss about gross that expension phase and Youareblook on it. Now? Eighteen months later, yeah, so look it's not the first timethat I've been in the position, an where I'm bringing something thatperhaps has more traction. More adoption and more market share in theUS into Europe, and, What's interesting, is that when I did this last time, Idid it within this umbrella of a big company, colled Sellsfolcom, bringing arecently acquired business that had ninety percent of its customers basedin the US into Europe, and a lot of it isn't different. I think that perhapsEuropean buyers have been miss, served underserved by stereotypes,predominantly stereotypes that you know...

...cloud adoption as years behind the USand we're more backwards and we take longer to adopt stuff. I don't thinkthat's true. I think that European byars are some of the most welleducated savve buyers in the world, and that really what we found ourselves inI like the cycle of were constantly bringing stuff from the US intoEuropesod is naturally it's going to take time to take hold, but yeah. Itwas an interesting decision for us to do it. We decided to bring the businessto Europe. Basically, I think, a few months after the Brexit vote right, sowe made that decision in the middle of a lot of business ancurtainty. Now. Thefunny thing is that in technology I think most people doe been building.Tech companies were used to uncertainty and we used to having to deal withuncertainty so yeah. It wasn't the the time where everyone would have thoughthey. It's the ideal time to be expanding into Europe and equally wedid that and then obviously we had probably about when I I joined in March,we build tha team. We start wrapping up the team, so there's a big challenge onwrapping up a new team and then a big challenge as well of building randawareness, and I think that, just as we were feeling fully ramped and a hey,we've arrived, we had covid hit and- and that was again a moment of, stopAdelize replan and I think that's just a cycle- that's going to go on and onand on every year, Thas something's going to happen. But yeah back to yourquestion on onl, I think that yeah Europeans, they're always hungry forNeu Tech. I think that the challenges that you have in a big company is thatyou know is no different to what we're do now a do to and that especially h with covid. I think youknow it's been a big shock, but after that Ithink that technology has experienced a renaissance this year. I think it's oneof the one of the few areas of the economy where people are feeling safeand looked after professionally and personally is if they work in tech. SoI think we have as well like a big responsibility to honor that, as wescale Businesses Yeah O. No, I agree with you onithing on question. Do Ilike to a CE which maybe Bo specitic to the ECTUAUL intrantic mature of the ofthe the European territory? You know you always have the Gemman saying yeain Germanyeverthings, differennt you're goot, the English things different fromfrone fora. Friench Ike noanoly are very specipicking. Far of friendship onsend to US people thin that you yoar a German you conse in Germany, if youdon't take a French person for Loon, you concern them. T exceptri, but theris lots. Ofpreciat, despite the pet wat, quit more pockets of territories inEurope, everybody likes to be very independent. What are your views onthat? You? Do you think that theyre actually, then different people,because I'm I know ATA Gentman, will probably be more inclined to use GTO and moretechniqually. You need to probably wow them technically whe in the US is morestory that will intheress people in the Germanys Mor okay, ow. You gotta plugout e o tecni table I'd like to get your soul on that, because I think witlike to get yourselv on that. I, so it doesn't matter what I tiront to knowwhat you think thelet me speak first from like personal experience right sothe other time that I was doing this. We were rolling out a SASS product thathad broad appeal across industries and was pretty much ready for prime timeand enterprise as well as midmarket and SMB, but the market just wasn't verymuch aware of it. So the distribution model for us verymuch relied on having field based sales teams in country typical, like BTB, SasSall, where you know longsele cycles, workshops, multiple stakeholders and Ihave to say yeah. I do think that there are. There is a huge value in being intouch with how people like to buy, and I do think that yeah we know wecelebrate our diversity in Europe and that translation to wiingw, which we dobusiness so now with with that stent,...

...you know I was actually building teansand I was you know: building teams of French people in France and Germanpeople in Germany and we weren't trying to understand different people indifferent way, we' just trying to reciprocate how they like to dobusiness now fast forward to GTO. I can tell you that our entire team is basedon the UK and UK business is not even thirty percent of our share of ofbusiness right and I think the fundamental difference there is notnecessary that we have which we do have a multilingual multinational team basedout of the UK. I think that's the case. I think it's the fact that we're notsetting field based anymore- and you know- I only sell into technologycompanies and ar tea many sells and markets setnology companies and inEurope there aren't that many enterprise, a lot of it, is midmarketand smaller businesses who a e very happy to do business remotely so yeah.I think that there are differences, but I think that how you're going to marketis key, but I have to say like starting with English speaking languages, N andcountries that are happy to do business in English is is definitely somethingthat you should like put top of your list when you're expanning into Europe,but I agree. Yeah stereotypes are not helpful, but the way to get around themIsu, don't guess just like build a diverse team and that's what I'vealways thought to do. Yeah. No, I agree with you and I think you know th t theUK territor is an interesting one to get started because I speak about it. Alot with with crients o even were just conversation, podcast abst a lot, maybenot absolutely everyone, but a good d, eighted nd. Ninety percent of technoogystartup would lend in the UG first, and I do believe that the UK prospect no matter with Yeu. Ifit's, if you're seting mark take or you Su Satting, you know finance solutionor infrastructural sable security. Those gays are overwent with people.You know going to them. Saying Y I've got the best things in slaves, bread,basically, and I think that they can have been some sort of cynicism andtare, quite siny gold as prospect and if you can get Ondethei Skil andactually get them interested and if you can be successful in you, Gus stronglybelieve that you can be successful anywise in the world, because I doagree with the first statements. You May, I think, the prospect of Europe,despite some of the thing that I'm mearing sometimes are extremely welleducated about what's going on, they are very against Sini Gol and to thepoint as to what they want and what they think and it's great to dopbusiness, which people like that, because you don't waste time, you knowTheys, tell you what it is. They tell you what they want, which is wonderfulbut I'll like to. I would like to move a little bit the conversation towar,the your best experience and and energy to so you know in the buildup of of this podcast o you discuss with madetim about the Fay that Yhou work with companies like ACCENTA sells. First,you mentioned next senfors a little Bittallyo and obviously you are GTO,which is a what I would say a bit more of astaffed up, scaleup type of of organization. What sort of differenceshave you perceived or sin in term of culture from an accential, SELV fors,big machine velsis? You know the start up scale upon Eron Mens. HMM. I can askthat a lot. I get OSF that, especially when talking to people know seekingmental ship or making big career decisions. I think look. No two bigbusinesses are the same, no to small or medium size. Businesses are the same. Ithink you know. Culture and vandues are unique to businesses. I think cultureis really the wrong lens to which to compare companies that are so differentin scale as well. You know like a biting about culture n. The big companyis that, like team culture match matters more than the company culture,Butt we've all heard the sayings like people don't leave a company. Theyleave a manager right. People leave teams right, so even Withan ECCENTUR.You know you could talk to a hundred people. Centes got. I don't know twohundred thousand people glavely. I talk to a hundred people and you're ahundred different things about what the...

...cultures like of that company, becausethey're telling ye their experience with their manageer with thei teamsrikt. Similarly with sells force, and then somebody would do to. I think itdoesn't matter how great you feel the COM, the companyCultur is it's. I think the best thing to look at is like the values of thecompany and how ther's relate to you, and I do think in bigger companies,though, like your ability, as you scale, to like keep that team cultural live,becomes harder rig. So give you some examples. You know ind ha big company.You want to do right by one of your team members and you might want toreward them with a spotbownus or do something to writ a wrong. You knowin a small company, that's quick! You can do that quick and in a big company.You will take you three months to get all the approvals by the time you getthe approvals. You know that person thinks you don't care and they'retalking to your competitors and the conciive. The company anything canhappen right. You get a lot more infighting and issues around you knowterritory allocation, especially in sales like splits on global. You know:glubal deals all that kind of stuff, so a big company will provide you moreobstacles in terms of building an environment that is supportive and thatis rewarding in a lot of ways, but I never chose to work for a big companyright and despite the fact that I've had the opportunity to do so, I endedup in big companies by virtue of acquisitions, and I think that ifyou're in that situation, you've got to embrace it because you stand to learnso much yeah. You know I had the better sells training of my career at Eccenturand also had the world class sales leadership, education at selvs force,and if you spend your entire career on the other side, you can just start up.So you will. I guarantee you especially Tif the first grane starter you'll getleft behind, because the company will outgrow you right. So there's never theright time to do it, but you'v given the opportunity, especially by virture,of an acquisition, I wouldn't push it away and I've seen a lot of people. Youknow a week a month, two months after an acquisition say, I'm kicking thebucket I'm done like this is not for me. So I do advise people against thatbecause, if F, all you veen own is big corporate, then all all you haver done is start up andyou won't be able to just scale up right. If you want to Jo scae up, weneed to know both sides of the equation and that's why I'm I'm like reallyfortunate about the position were room with g to because you know, we've gotwe phrase over a hundred million dollars. We've got five hundred peoplein three different continents and were starting to pull in a lot of the bigcorporate stuff that we've that leadership team Hav a learned over theyears and also all of our you know all of the fun all of the Grittiness,all of he, the hustle that comes with startups yeah, it's hard, it's hard yeah, but youreally ala start of Gayontou Eth, you lik it, which is good meanm. The same Ilike the I, like the I like what it's I like. When you are ounovating Y, it'sfast space. You don't have to wait for stuff to be approved. You can get onwith traying things when you want to try them when the ide is exciting.That's three months later, when you eventually got approval- and you can ofyou know it's a bit diflating, I think sometimes, when things are happeningquickly enough, but t all large organization ar like that. We have someretch village clans, who are extremely extremely flexibleedatatay board yeah,and I think people are very quick to like bash big corporate right and ohighlight all the stuff that sorry to point fingers that Ohadian that you'vejust mentioned yeah right, but actually one of the reasons why I felt some ofthe teams that I've had the privilege of leading and starts of and scateupshave Bein as successful as they have is because there a lot of the bigcorporate frameworks, processes, scalability initiatives that we'vebrought from our time at big corporates. And you know you don't need deeppockets to do great work and if you bring in people that have been thereand done that, that can be a huge competitive advantage, especially forcompanies that are just you know, going beyond the ten millon going from theten to twenty and the from two thusnd. Fifty I mean that's when stuff thewheels really start to fall off and...

...you've got two options right. You bringin somebody who's done big corporate for twenty five years of their careersand they are complety in the clash with the organization yeah or or youfeelooryou. Listen. Some crazy people like me, you've done like big porprt afew times now, two or three years here and there and I willing to come and try.You know bringing some of that into the business and I think that that's whatreally tends to work best yeah agree with you. I agree with you. So I'mcoming back to GTO ND and coming back to the STARTIN Europe. Well, did youactually starp? What was a chicken Inda? Did you get to get the customer PostMarketing Pirst recreiting? First? What's what would be your recommended?I mean I don't know. I don't think there is a blue friende TEP by tepsedsplayingbook of Ou, you expend your company in Europe, but what's the what would be the first thing that youwould advis audience if anyone was to besering to us that an Istratic company US company looking at Eurob, they maybegetting ther so on road of investment and want to go. Obviously they need to recreat theright terson on the ground, but what they've got the right individual? Whatdo you think is crost? What was the right sequence? Well, it's actually atopic, a refectot on, because not because of what we're doing as a teamhere at g dupid, also what we do in terms of how we service our customerswe're helping W us. Businesses grew into Europe or European businesses. TATwant to go global, and so I think about that a lot, and I think that I mean, ifyou're a co or cro of a US business, who's interested in how to crack Europeand and you're doing it for revenue purposes right, because some people doit for rnd purposes. I think some of the stuff that I always ask people tothink about is like things like number one. What level of brandawareness doyou have in Europe right run? Awayness is key because I found that you know even with thetwenty thousand person business like cells force and a five hundred personbusiness like you, do it doesn't matter how big and well known you think youare now building trust and awareness in Europe, especially to that scepticalbuyer that we were talking about. It will take the time and it was going totake more effort than you think so thinks to look out include like howmuch traffic you know do you? Does your website already get from Amer basedpeople? You know what levels of engagement do you get online fromEuropean prospects buyers? How Ell do you rank on search engines? If you werelike searching in Europe for a search and Suaching in the US, you know likepleep on a VP and then just see what the difference, dis right and usewebsites like GTO. You know rank yourself against your compeitors bypopularity by satisfaction, market presence in in the region. Mostcompanies, I speak to tend to be a quite surprised, sometimesoffended just at how unknown they are, or they feel in the region. That'snumber one and then the second one is obviously what an existing revenue do.You have beiuse that's going to dictate how you staff your team. I we didn'thave more than like twenty or thirty customers in Europe at t to and somecompanies that I've spoken to. So I know a few people who are doing asimilar job for other US companies coming into yourow they're. Coming toyou up already like the hunt, customers, yeah Oul have been service Remotey, soit's very easy for you to sort of starf a team based on custom success andaccount managers for us that GTO itis very much acquisition driven. It's likehey guys, nojituits here. This is what we do is how we can help you grow. Butif you have new customs, an no revenue, the first step is to hire one Ond, twopeople. Next and- and if you already past that say, series be funding, youshould have like some local customers that you've supported remotely and anyou can build out custom support to customer success, but you should haveyou should be able to justify some nonquota carrying roles, because Ithink that's really key to scaling right, especially if you're looking atskiing revenue rather than just sales, because with revenue you start to thinkabout how you look after your customers. How do you make sure thy succeed andthey stay with you and they spend more with you, so you've got to make thoseinvestments in unquote acquiring roles and then, lastly, resist the urge to gointo multiple mark markets and multiple segments right?...

What's your sweet spot is hat, I alwaysask what are you known for Tey goal, we're known for mid market, but now werenterprise? I know: what's your sweet sports all right, and so, if it'smidmarket, don't assume that, because you have a nailed enterprise in the USthat is going to transfer easiy over into Europe because it won't like whatI did Thatsell port. It took US eighteen months we already had like thewolls largest enterprise companies using up our p specific piece ofsoftware, and it took US eighteen months to get that same traction inenterprise in Europe. So I resist I'm to tell them reshist theOge to go wide. Andy, multiple markets and a most companies start with the UKright and most of the talent is here a lot of non UK talents. I mean look atthis call. Wiht you've got a Brusiin and a Frenchman. Speaking in thesubarbs of London over zoom there's, a lot of diverse Tiland, so UK tend to bethe first portof call. No, I agree with you. I agree with you and finally, youknow being a startup and I don't know you know becausesometimes which is o' start of is you mentioned the Dhelevel of of ofinvestment that you receive agto and we have. We have had a chance to walk withstarte that have been extremely well founded over the years and sometimes welook at it and people aron you. We you work with Ao record or you work with anAPM or you work wis. You know, Microsof e sells pos may go. This must bemassive clients, great clients, but in fact youknow sometimes IU started thatWul invest more money with us, but the question o've got for you is that youknow the usual rule of SOM. Is that when I startod coming to Europe andstart ing the European market, there is always a limitation in term of thepurcet marketing budget that can be allocated to thos tothos organization.What are your recommendation get in the most of every single marketing Doa whenyou get into Europe N, when you start in Europe what Wat's the? What would bethe activitis that you think, or the most important or Predominan forsuccess and to scame Wol? First of all, I hade to say: Having done the job ofbringing a product to Europe at a big company like cells force, I did feelthat times hat had less reesourcess than doing it at GTO, because don'tunderestimate help your bubeaucracy and I just like a big company's investingin so many different pots, like the only big advances we had was. The brandawareness- and you know show up on in Advante of the biggest booths, has gotyour company Lego on, like all of that's great to the big shift. Really,I would say it's when you're doing a startup wil scale up bringing that intoEurope. If you are the leader of that business unit, you will have a lot moreflexibility and say and to how you use the budget. That is availlable and youwon't have to hopefully answer to many people in terms of Wie. You thinkthat's what should be done on the flip side. You're not going to have you know,endless marketing budget to throw around every event and sponsorship thatpresents itself. So how do you make the best of your budgets while I'd say?First of all, as I said earlier, don't try and be everything to everyone rightand really just focus on nailing one market or one segment before moving onto the next. That will significantly help you focus your budget, but if youare going to be spending, you know financial and human capital onacquiring customers. They stop wasting our time and you add dollars oncompanies that are not in the market. Today's buyer s, as we ve said the mosteducated, prouctive and skeptical buyer that we have ever seen and COVID hasintensified that for us, because they have no choice but to do all theirresearch online now and they don't trust anyone like they don't justanyone but themselves their peers and people like them. So just because theyare your ideal. Customer profile doesn't mean they're interested right.Think about that for a second and how many outreaches do you get on a dailyweekly Bas is because you seem to fit the ideal custome profile for somethingthat you're not in the market for right now, and that you don't need right. Sodo yourself. An your budget, O favor,...

...is what I was saying: InvestingTechnology that allows you to understand what these activities thatthey are doing online say about their Reginis to buy, and that will allow ebody to go much further. That's my top tip for myefting budgets, but I think Ithink we also have an obsession with acquiring new customers, and thereality is that the keyto sustainable longterm revenue growth is very much intelight in your existing customers, and I see a lot of companies coming toEurope on this like acquisition frenzy, and we all know that the average timeit takes to expand H, revelunion exsisting customers, at least half ofthat- that it takes to acquire a new customer yeah and a third of the costso really get to know. Your growth economics for your existing businessand Youe focus on things like net revenue retention rather than just newlegal acquisition, and you know, am, for you know what we aimfor when we're looking at our plans is, we aim to spend no more than one dollarfor every one dollar of net new ACV and we try and keep to that ratio,because this is a sweet, stot sweet spot to like sustainable overal revenue,growth, Mik, perfect sense, thanks for that Tinreke, where he was great tochat with you today and thank you so much for your insight. Well, when weget to the tothe stage of the podcast, we aways o the session, we always ask oguessed: What's the best way to get in touch with them, so we've got a filmamount of of marketing. Folks were following the podcast and not fullylistening to this. This apisord they should speak to Gito. They should speakto you. They should Bob someone in your team to underson. Now they can increaseth the profile ad, and you know Yor one is arond. Ther, brandand and Maximo ismaximize the reviews and maximize theirupbecause Tomels, get them to Spek, get them to spread the good world. So onlynow. What is the best way to get in in front of you to speak with you toengage with you an ICAR? I look. I I just appreciate the opportunity to comehere and share some ideas every time I have these kind of conversations.Something yow arises as you reflect and there is no Cooti cut, cookie, cut, erapproach to anything in life right and I'm an avid learner myself. I spendmost of my free time listening to podcast like these, and you know, I'mquite active on linked in so please go on. Linkdin connect with me engageshare ideas, I'm always looking for opportunities to learn as well aboutthe space that I meant and if you're interested in Du, to disco to dtcom andcontact us on there and if you haven't yet plained your if you're in tech, youhaven't claimed your profile on gtcom pit, O Tami profile, update yourdetails and get started as well. That's fhar the fool! Well many things. Onceagain in Riquet, it was absolutely fantistic to Hav younger show today.Thank you. Thanks for having me, operatics has redefined the meaning ofrevenue generation for technology companies worldwide, while thetraditional concepts of building and managing inside sales teams in househas existed for many years. Companies are struggling with the lack of focus,agility and scale required in today's fast and complex world of enterprisetechnology sales see how operatics can help your company accelerate pipelineat operatics, dot net you've been listening to be to be revenueacceleration to ensure that you never miss an episode subscribe to the showin your favorite podcast player. Thank you so much for listening until nexttime.

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