Problem
Company Context
WarmPath is a B2B SaaS startup that sells an AI-powered sales enablement platform to mid-market companies. The product helps account executives generate account briefs, personalize outreach, and summarize customer calls. WarmPath has found early traction in technology startups and digital agencies, reaching $4.8M ARR, with 92 customers, an average annual contract value of $52K, and gross margin of 78%. The company now wants to expand into the healthcare provider segment, where sales teams are larger and contracts are stickier, but WarmPath has limited brand recognition and no dedicated healthcare sales team.
Strategic Situation
The CEO has asked you, the Head of Strategy, to recommend whether WarmPath should pursue a referral-led go-to-market motion using internal connections, advisors, and existing customer introductions to open doors in healthcare, or instead invest primarily in a traditional outbound sales motion. The question is urgent because the board expects a clear vertical expansion plan for the next fiscal year, and WarmPath has only one quarter to show credible pipeline creation in a new market.
WarmPath has one potentially useful asset: its COO previously worked at MedCore, a healthcare IT vendor with relationships across hospital systems, and two current customers have offered to introduce WarmPath to peers in provider organizations. However, healthcare buyers are known for long sales cycles, strict compliance reviews, and preference for trusted vendors.
Data Points
| Metric | Current Business | Healthcare Expansion Assumption |
|---|---|---|
| Current ARR | $4.8M | Board target: $7.0M ARR in 12 months |
| Average contract value | $52K | Expected healthcare ACV: $85K |
| Current sales cycle | 72 days | Healthcare sales cycle: 150 days outbound / 95 days warm intro |
| Win rate | 24% outbound | 38% via referral-led introductions |
| Budget available for expansion | - | $1.2M over 12 months |
Additional facts:
- Total US healthcare provider sales-enablement software spend is estimated at $1.4B.
- WarmPath estimates an initial SAM of 1,200 provider organizations, with a realistic 12-month target list of 150 accounts.
- A referral-led motion could access 40 accounts in the first two quarters through advisors, customers, and former colleagues.
- Building a full outbound healthcare team would require hiring 2 account executives and 1 solutions engineer, costing roughly $650K annually fully loaded.
Deliverables
- Assess whether a referral-led strategy is a viable primary wedge into healthcare.
- Compare referral-led entry versus traditional outbound on market access, economics, speed, and scalability.
- Estimate the 12-month revenue impact of each approach using the data provided.
- Recommend a go-to-market strategy and explain how WarmPath should sequence referrals, partnerships, and direct sales.
- Identify the main risks and what milestones management should track in the first two quarters.
Constraints
- WarmPath must show meaningful healthcare pipeline within 6 months.
- Expansion budget is capped at $1.2M.
- Product is mostly healthcare-ready, but compliance and security reviews still require support from a small engineering team.
- Leadership does not want to overhire before proving product-market fit in the vertical.
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