This section on how dbt Labs transitioned from a purely PLG motion to layering on enterprise is a fascinating one.
Two instructive passages that I have bolded (below from First Round Review's path to PMF series featuring dbt Labs)
TLDR: GTM comprises your ICP, channel, and message. When you transition from PLG / bottom up to Enterprise / top down motion, naturally your ICP and channel also changes, but your messaging / proposition needs to change too, e.g., the enterprise may be multiple personas and are buying assurance as much as solution.
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"Handy found product-market fit organically for dbt as an open-source tool mostly used by data practitioners and developers. But a few years into running a commercial business, he realized he had to build a growth curve all over again with C-suite data leaders.
“Even though we had an unbelievable amount of market pull, as we initially commercialized, it wasn’t easy for us to transform this open-source command line tool into a product that enterprises would pay a million dollars for,” says Handy.
“When you have enough product-market fit, sometimes it allows you to get away with not being super tight on product marketing or sales motions. So around 2022, we went from this gigantic acceleration curve and overnight we realized, we have to sit at the adults’ table and figure things out real fast,” says Handy.
After the PLG flame started to fizzle, Handy turned his attention to layering on a sales-led motion for the cloud platform. “We had to focus our efforts on telling cohesive stories to senior data leaders. We had to have a very clear, explainable answer to the question, ‘Why should I use the commercial product and not the open-source product? And it had to be digestible by someone with a C in their title,” he says.
Handy’s answer: dbt Cloud can handle complex data for companies of every size.
“The longer people used dbt, the more complex their code became,” he says. “It was a problem for the most sophisticated dbt users, who were often at the largest companies. So there was a real opportunity for us to step in and solve that for them with dbt Cloud.”
To tell that story to enterprise customers, Handy relied on data, naturally. “At a user conference we presented a chart that showed the number of dbt projects that had a certain number of models in them — over 100, over 1,000, et cetera,” he says. “We watched that number climb and we knew as users ourselves, ‘Oh my God, trying to work in a dbt project with 5,000 models in it is challenging.’ So we started with that quantitative data point and asked folks in our community about their experiences with these very large, complex dbt projects, and validated that this was a pain in the ass without a cloud platform.”
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