Snowflake's initial high-velocity sales model hit a wall with large enterprises. New CEO Frank Slootman mandated a change, forcing CRO Chris Degnan to "rip the bandaid off" and restructure the entire GTM organization in the middle of a fiscal year to create a dedicated enterprise sales motion.
Snowflake's CRO argues that while large enterprise deals are attractive, a business built solely on them is fragile. He championed a parallel high-velocity motion focused on acquiring new logos of all sizes, creating a more predictable and ultimately larger market over the long term.
To navigate the unpredictable AI landscape, Snowflake's CEO dismantled its specialized, multi-layered structure that had slowed down iteration. This shift prioritized accountability and shorter engineer-to-customer feedback loops, recognizing that speed and adaptability now trump carefully laid out strategies.
To eliminate friction, Snowflake's marketing team, led by CMO Denise Pearson, abandoned MQLs. Instead, they focused solely on delivering qualified meetings for the sales team, treating sales as their primary customer whose success was paramount.
In the run-up to its IPO, Snowflake slowed hiring to optimize for profitability. This caused the sales team to focus on easier upsells from existing accounts (with 177% net retention) instead of new business. As a result, they neglected new logo acquisition for two years, hurting long-term growth.
To eliminate data silos, Snowflake consolidated all departmental data analysts into one central intelligence team under the Chief Data Officer. This team serves the entire go-to-market organization, while departmental RevOps teams act as business stakeholders, defining problems for the central team to solve.
Snowflake invested seven months of its entire engineering team's effort to solve a specific clustering problem for one customer, Localytics. This seemingly costly detour created a core feature that became the key to winning major enterprise accounts like Nielsen, proving that bending for the right customer can redefine the product.
The "PLG Trap" occurs when founders assume moving upmarket is just a pricing change. In reality, shifting from PLG to enterprise sales requires a difficult, company-wide transition across product (e.g., SOC 2 compliance), organization (e.g., sales engineers), and culture.
Where the SDR/BDR team reports has significant cultural and career-pathing consequences. When Snowflake moved SDRs under marketing, they began aspiring to be marketers, not salespeople. This created a hiring bottleneck for the sales organization, which needed that talent pipeline to fuel its growth.
Chris Degnan got rid of the Customer Success function at Snowflake because he wasn't willing to give the "B team" access to his "A accounts." He made the sales team responsible for the entire customer lifecycle, including upsells and renewals, to ensure top talent handled high-stakes competitive situations.
A sales organization has truly scaled when leadership stops talking about individual deals and starts managing based on predictable capacity. This means knowing that a certain number of ramped sellers will predictably generate a specific amount of revenue each quarter, turning sales into a machine.