From Growth-at-All-Costs to Growth-with-Purpose
- May 5
- 5 min read
What 200 B2B Leaders Say on Budget Cuts, Sales Cycles & Standing Out
In a period of economic uncertainty and funding slowdowns, B2B sales and marketing leaders are operating in a new reality. Growth-at-all-costs is out. Strategic focus, operational precision, and bold differentiation are in.
Norwest's 2024 B2B Sales and Marketing Benchmark Report, based on a survey of 200 revenue leaders at venture capital and private equity-backed companies, reveals what’s really working and what needs to change in today’s go-to-market strategies.
We discussed the results with Norwest’s Operating Executive Renée Cohen, 621 Founder Scott Kabat, and 621 Partner Simon Fleming-Wood – the data offers a compelling view into how companies are navigating tighter budgets, slower sales cycles, and higher expectations.
Renee Cohen, Operating Executive at Norwest
Renée joined Norwest in 2022 as an Operating Executive. As a member of the portfolio services team, she lends her 20+ years of B2B marketing experience to the portfolio, working shoulder-to-shoulder with company leaders to help them optimize and scale their revenue engines for growth.
Here’s what’s rising to the top:
1. Budget Pressure Is Forcing Tighter Strategic Focus
Norwest found that companies with $25M–$100M in revenue, especially those that raised funding at high valuations, have significantly reduced their marketing budgets (in some cases by half). They’re adjusting their expectations: the number of companies projecting more than 50% growth has dropped from 38% to just 9% year over year.
“Growth-at-all-costs might not be dead – but it’s definitely hibernating,” said Renée.
What’s more, budget cuts haven’t been evenly distributed. Most companies are pulling back more on program spend than headcount, signaling a prioritization of long-term value over quick wins.
Cohen notes that companies are shifting their focus to stronger positioning, deeper customer relationships, and more disciplined execution as they work to build growth engines that last.
“That trade-off can feel painful in the moment, but it’s buying them time and optionality,” she says. “Teams are learning how to focus, prioritize, and operate with more rigor. In the long run, that’s a muscle they’ll be glad they built–even if we see a shift back toward growth investments.”
2. Product Marketing (and Brand Differentiation) Moves to the Center of the Strategy
In the study, marketing leaders named positioning and differentiation as two of their top three challenges. Specifically, “positioning our product as a must-have” ranked #1, and “differentiating in a crowded category” ranked #3. These foundational issues are triggering a reset of priorities, and putting product marketing at the heart of both messaging and GTM execution.
“You can’t cast a wide net anymore and hope you land your buyer,” said Simon. “You have to be laser-focused on who you’re targeting and what you say to them. That focus doesn’t stop at product – it ladders up to the brand. A clear, bold brand strategy amplifies what product marketing defines, and helps it stand out in the market.”
That mindset is showing up in hiring plans, too. Product marketing topped the list of skills B2B leaders are prioritizing in the next 12 months. Teams are looking for PMMs who can sharpen ideal customer profiles (ICPs), build connective tissue across functions, and turn positioning into a repeatable advantage. With fewer resources to pour into big, splashy campaigns, companies are going back to the basics, doubling down on what makes them different.
“It’s notable that companies aren’t falling back on small-ball tactics – they’re leaning into bigger questions about how they position, differentiate, and show up,” said Scott. “That’s why product messaging and brand strategy can’t be separate tracks. When they’re aligned, and built on deep customer insight, you get storytelling that strongly resonates with your audience.”
3. Sales Cycles Are Slowing Down, So Teams Are Ramping Up Enablement and ABM
Norwest found that mid-market deals with ACVs of $50K–$100K now take about nine months to close – nearly matching enterprise timelines. It’s a wake-up call for go-to-market teams that moved down-market expecting faster velocity, and for those already in the mid-market now facing a new wave of competition.
The data shows that teams are doubling down on field marketing, ideal customer profile (ICP) refinement, win/loss analysis, and competitive intel to improve how they engage high-potential accounts.
"Account-Based Marketing (ABM) is a forcing function of discipline,” says Renée. “It’s about aligning around a core set of accounts that data shows are most likely to convert.”
With this comes the rise of sales enablement: 83% of companies over $25M ARR now have a dedicated sales enablement owner. As deal cycles slow and competition rises, sales enablement is no longer a nice-to-have. It’s becoming the key link between product, rev ops, and marketing, helping teams better support sales in a more disciplined, account-driven environment.
4. MQLs Are Losing Ground to More Account-Centric Metrics
Marketers are rethinking everything they know about MQLs. In 2023, 55% of marketing leaders said they used lead scoring to define MQLs. In 2024, that number dropped to just 38%.
That sharp decline reflects a broader shift. While 86% of teams still track MQLs to some degree, many are abandoning lead scoring as the core method for qualification. “Lead scoring is so variable and arbitrary,” says Renée. “It hasn’t been a reliable predictor of intent, and it incentivizes the wrong behavior on all sides, causing real misalignment between marketing and sales.”
Instead, companies are focusing on meetings booked, logo penetration, and account engagement as more meaningful indicators of success. These metrics offer clearer insight into sales readiness and connect more directly to revenue outcomes, something MQLs alone often fail to do.
“We’re seeing a move away from lead whack-a-mole,” she added. “Teams are starting to look at the full picture of account activity and they’re prioritizing smarter, not just faster.”
5. Companies Are Adopting AI, But They’re Still Writing the Playbook
While over 60% of respondents plan to test a variety of AI use cases in the next 6 months, few have landed on a dominant approach. The appetite is there, but best practices are still taking shape.
Winning companies are building a culture of experimentation. From using generative AI to scale content to deploying LLMs for account intel, the most forward-thinking teams aren’t chasing full automation, they’re using AI to supercharge human decision-making.
“Nobody really has the playbook yet. It feels a lot like the early days of digital, everyone’s waiting for the real, repeatable value to emerge” said Simon. “The teams that will benefit most are the ones building a culture of curiosity and getting hands-on with AI now.”
Final Thought: Efficiency Is the New Advantage
The companies succeeding in 2025 aren’t the ones spending the most. They’re the ones asking better questions: Who exactly are we selling to? What makes our story unforgettable? Where do we win most often? If your team is disciplined about those answers, and bold enough to lead with them, you won’t just survive this market. You’ll grow.
How 621 Can Help
621 Consulting works with B2B companies to shape go-to-market strategy, refine ICPs, strengthen positioning, and build ABM strategies that drive results. We also help teams explore how AI can support more efficient go-to-market plans. Let’s talk about how we can help you take the next step in your growth.
Reach out to us at 621 Consulting.
