Building a signal-based system
Signal-based selling is the latest industry buzzword, but it's causing confusion. Many existing capabilities have been rebranded under this term, obscuring the art of the possible and muddying the waters of what vendors truly offer.
To bring clarity to this complex landscape, I've developed a framework capturing the anatomy of a signal-based system. This builds upon my previously introduced signal taxonomy, providing a robust foundation for understanding and implementing these systems.
Assembling a signal-based system involves five critical steps:
Define monitoring lists based on your segmentation, ideal customer profiles (ICPs), and persona attributes.
Identify signals most relevant to your business and select acquisition providers.
Aggregate signals across people and companies, linking them to account data (firmographics and technographics) and contact information (demographics).
Apply logic to surface and prioritize actionable people and accounts.
Push selected accounts and individuals to systems of engagement.
Critically, design a solution that fuels all revenue motions — marketing, sales, and customer success/development.
This framework enables you to map relevant signals, outline collection methods, and visualize processing steps.
1st party signals include:
Website activity captured through site instrumentation. Website Visitor Identification & Tracking software is available as standalone or integrated solutions.
Product usage data gathered via product instrumentation.
Other capturable interactions within your ecosystem.
2nd party signals include:
Customer and project information shared by partners through ecosystem platforms.
Insights from review and community sites, revealing accounts exploring specific brands or categories.
3rd party signals include:
Content consumption on media sites or via ads, indicating intent.
Contact-level news such as job changes and social network activities.
Company news and events.
Signal aggregation requires careful design, with several options available:
Some providers offer multi-source signals with built-in aggregation and scoring.
Account-based platforms (ABX) like 6sense, Demandbase, or ZoomInfo feature signal aggregation, scoring, and activation capabilities.
You can leverage a customer data platform (CDP) if in place.
Given the multitude of signal sources and the necessity for customizable processing logic, some businesses are opting to build their own aggregation and scoring systems. This approach can be implemented through custom data warehouses using platforms like Databricks or Snowflake. Alternatively, emerging aggregation platforms such as Cargo, Clay, or Common Room offer tailored solutions. This strategy allows for greater control and flexibility in managing signal pipelines and federating data from multiple providers.
You may implement multiple consolidation steps. Importantly, ensure your architecture maintains visibility into original signals, as finding and tuning relevant signals demands continuous refinement.
Ultimately, this consolidated information can be pushed directly into your systems of engagement or through data orchestration software.
Signal-based selling represents one of the most promising advancements in driving revenue, but its success hinges on careful solution design. By rigorously defining your ICP, selecting relevant signals from solid sources, and implementing a well-architected system for aggregation and processing, you can unlock its full potential.