Guide to Different Go-To-Market Strategies
Dive into the art of customising Go-To-Market strategies with our guide. Explore the nuances of GTM scenarios, from new features to global expansion, and learn to shape your approach for optimal business impact.
Every market challenge requires a tailored approach, and this is your cheat sheet for discerning and identifying the right Go-to-Market strategy for your business needs. For example, sales-led GTM is the right option only for some companies.
This guide offers a collection of GTM scenarios, each shedding light on the strategic complications critical for a successful product launch or partnership introduction. While these scenarios provide a guide, remember that your business will need to tweak these strategies to fit your particular circumstances, obstacles, and objectives.
The list below outlines a range of GTM situations, from introducing an innovative feature to venturing into the global market. Each entry gives an overview of possible strategies and points to ponder, showcasing the varied tactics at your disposal. However, the real skill is tailoring these strategies to your company's specific market environment and vision.
GTM for New Product
Description: Identify target customer segments and understand competitors. Aim for a complimentary offering to your existing customers. Use the knowledge learned from your current customers to deliver a value-adding new product with the potential for rapid market entry.
Example: A cloud storage company launches a project management product for small businesses.
Sales Perspective: The sales team needs to be well-equipped with product knowledge and trained in consultative selling techniques to articulate the product's benefits and address specific customer pain points.
Average Deal Size: Like existing products, customers and business models are presumably the same. Higher than existing if the new product is meant to move up-market.
Reason to Fail: Not doing enough competitive analysis or failing to refine the product based on early feedback.
Timeline to Completion: Typically, it takes 6-18 months to transition from launch to a stable market position.
GTM for a Niche Market Product
Description: Undertake thorough market research to grasp the niche's preferences and pain points.
Example: A gaming hardware producer creates a top-tier controller for pro eSports players.
Sales Perspective: Ensure marketing speaks the language of the niche. Identify correct sales channels and trendsetters for the target audience.
Average Deal Size: Generally moderate, reflecting the niche's spending power.
Reason to Fail: If the niche is misunderstood or the product doesn't meet their needs.
Timeline to Completion: Aim for 3-6 months to break into the niche, considerably longer to build a lasting impact.
GTM for New Feature
Description: Announcing the new feature through your established customer channels, focusing on the enhancements and benefits it adds to your product.
Example: A cloud storage service launches an AI tool for more intelligent file sorting.
Sales Perspective: Arm your sales force with details about the new feature to boost upsells and re-engage potential lost customers attracted by the upgrade.
Average Deal Size: Depending on your pricing model, the current ticket size will likely increase slightly.
Reason to Fail: If the sales team isn't well-versed in the feature, they can't effectively educate customers, leading to poor uptake.
Timeline to Completion: Typically 1-6 months after development.
GTM for New Add-on
Description: Introducing the add-on to existing customers, illustrating how it addresses additional needs or enhances the main product.
Example: An email marketing service rolls out a sophisticated analytics add-on for deeper engagement insights.
Sales Perspective: Craft sales pitches highlighting the add-on's benefits, possibly offering package deals to attract new and current customers.
Average Deal Size: This is generally lower than new products but can significantly boost overall customer value (direct income plus additional analytics might increase consumption-based income).
Reason to Fail: If the add-on's benefits differ from the core product, customers may be confused and less interested.
Timeline to Completion: Expect 3-9 months for integration and noticeable sales uptake.
GTM for New Startup
Description: Crafting a GTM strategy that defines its unique offering and targets early adopters, being ready to iterate based on feedback.
Example: A B2B analytics startup offers an AI tool for real-time trends, catering to medium-sized e-commerce businesses seeking data-driven solutions.
Sales Perspective: Sales should build a story around the product's uniqueness and connect with early users for valuable feedback and referrals. As the company is new, a founder-led sales approach is expected.
Average Deal Size: It might start small but has the potential to grow as the startup proves its concept and value.
Reason to Fail: Startups often stumble if they don't correctly validate their product-market fit or fail to engage deeply with early customers.
Timeline to Completion: Typically, a startup takes 3-5 years from launch to a solid, expanding customer base (depending on the idea and funding).
GTM for New Partnership
Description: Leveraging the strengths of two businesses, aiming to benefit from combined expertise, technology, and market reach. Look for mutual strengths and craft a joint value proposition that marries both partners' offerings.
Example: An enterprise software firm and a hardware producer team up to sell a bundled solution, marrying software efficiency with optimised hardware.
Sales Perspective: Sales teams from both companies need to align, be ready to cross-sell, and explain the partnership's benefits to respected customers.
Average Deal Size: Typically, deals are larger, drawing on the added value of bundled products and the potential to upsell to the existing customer base.
Reason to Fail: Partnerships may falter due to poor communication, misaligned goals, or an unconvincing joint value proposition.
Timeline to Completion: Preparations can take a few months to over a year, factoring in product complexity and integration for a seamless offering.
GTM for Tech Platform Integration
Description: Partnering with a third-party tech platform, this strategy aims to integrate products seamlessly, streamlining user experience and increasing efficiency.
Example: A project management tool now syncs with a business communication platform, simplifying task management within the communication interface.
Sales Perspective: Sales teams highlight the enhanced functionality and efficiency of the integrated products to prospects. Target the customer base mutually recognised as the sweet spot.
Average Deal Size: This may increase as the integrated solution attracts platform users seeking additional capabilities.
Reason to Fail: Poor integration, causing user experience issues, undermining trust.
Timeline to Completion: Ranges from several months to a year, including development, testing, and rollout.
GTM for Market Expansion
Description: Broadening the customer base or entering new domestic markets within the same country, often by targeting different industries, demographics, or regions previously untapped by the existing product or service offerings.
Example: A B2B software company that initially catered to the healthcare industry begins offering solutions to educational institutions, addressing their need for similar data management and security features.
Sales Perspective: Develop region—or sector-specific sales teams that understand the unique challenges and needs of the new domestic markets being targeted. To speed up the process, consider an extended SDR team.
Average Deal Size: This may vary depending on the industry and market potential but typically starts smaller and grows as the product gains acceptance.
Reason to Fail: Underestimating the new market segments' distinct needs and buying processes can lead to ineffective sales and marketing strategies.
Timeline to Completion: It varies, but it often ranges from 6 months to 2 years to establish a strong presence and achieve significant market penetration.
Ilkka - Club President
Sales-led GTM would be a suitable strategy for the market expansion of a complex B2B product.
GTM for International Expansion
Description: Taking the business global by entering new international markets involves adapting to different cultural, regulatory, and economic environments and often requires modifying products or services to meet local market needs.
Example: A B2B software company offering solutions to healthcare and education markets expands from the US into European markets, necessitating adjustments to their software to comply with localisation to suit various languages and business practices.
Sales Perspective: Build a sales force that includes local hires who understand the local business culture and tailor sales strategies to align with local market dynamics. When considering an international expansion, look for a suitable SDR partner to speed up local operations.
Average Deal Size: Potentially high, as international clients may have larger-scale needs, but also varies with local economic conditions and the ability to meet specific regional requirements.
Reason to Fail: Failure to adequately localise the product offering or to navigate the complexity of legal and cultural differences can hinder acceptance and growth.
Timeline to Completion: Navigating entry barriers, adapting products, and achieving a sustainable market position can take 2-5 years.
GTM for a Merger or Acquisition
Description: Articulating the newly combined value proposition to all stakeholders and customers.
Example: Two software firms merge, offering a complete enterprise solution stack.
Sales Perspective: Merge sales teams, ensuring they can offer a new range of solutions.
Average Deal Size: High potential as the new entity can cross-sell to an expanded customer base.
Reason to Fail: Cultural and change resistance can disrupt integration, requiring careful management.
Timeline to Completion: Integration of cultures, systems, and customer bases can take multiple years.
GTM for a Pivot in Business Model
Description: Keep stakeholders in the loop about the pivot's advantages and reasons so you maintain their trust.
Example: A traditional software vendor moves to a SaaS model, offering products by subscription.
Sales Perspective: Adjust sales strategies and incentives to reflect the new business model's objectives.
Average Deal Size: This may initially dip as customers adapt but can rise with strategic positioning.
Reason to Fail: Neglecting or not supporting current customers during the changeover.
Timeline to Completion: A complete pivot and market adjustment can take up to 12-24 months, depending on the deal size and contract length of the legacy offering.
GTM for Crowdfunded Products
Description: Maintaining active engagement with your crowdfunding backers to cultivate community and loyalty.
Example: A tech startup promotes a novel portable solar power bank via crowdfunding.
Sales Perspective: Leverage the crowdfunding community as brand advocates and initiate referral programs to transform backers into sales drivers.
Average Deal Size: Usually small initially but can expand with broader market acceptance and scaling.
Reason to Fail: Failing to keep backers engaged after the campaign can reduce advocacy and momentum.
Timeline to Completion: Crowdfunding duration plus an extra 3-9 months for market shift.
