What is a Go to market (GTM) strategy?
The Go-to-market strategy is a plan that businesses use to products and services to market. This includes identifying the target market, choosing the best channels to reach them, setting pricing, and more.
Go-to-market strategies can be complex, but they are essential for businesses that want to succeed. Companies struggle to reach their target audiences and generate sales without a go-to-market strategy.
As a result, go-to-market strategies are an essential part of any business plan. Crafting an effective go-to-market strategy requires careful research and planning. Businesses that take the time to develop a solid go-to-market strategy are more likely to succeed in the long run.
A go-to-market strategy includes the following components:
Product – The product is what you sell. The product may be a physical item, a service, or information. A product can be delivered in different ways, such as online, in-store, or call center.
Channels – Channels are the paths that you use to reach customers. You can use various channels, such as online, by phone, in a store, or via a catalog.
Partners – Partners can help you reach customers and make your go-to-market strategy more effective. They can include distributors, resellers, and service providers.
Customers – The customers you want to reach are the focus of your entire go-to-market strategy. Understanding the customers, you want to reach will help you choose the right products and services and the best channels to reach them.
Value proposition – A value proposition is a promise you make to customers in exchange for their money. The most common value proposition is better health, increased productivity, and better quality of life.
When it comes to launching a new product or service, having a go-to-market strategy is essential. While building a Go to market strategy, ask yourself the following questions:
- Customers: Who are you trying to reach with your product or service? Be as specific as possible.
- Product: What sets your offering apart from the competition? What need does it address?
- Key Partners: What kind of partnership is required to take the product to the market?
- Action Plan: How will you reach your target market? What promotions will you use? What pricing strategy will you employ?
- Measure of Success: How will you know if your go-to-market strategy is successful? Set realistic goals and track progress over time.
Let’s see how you can find answers to these questions.
How to build a killer Go-To-Market (GTM) strategy?
1. Define your customer segment
Every company has customers, but the best ones clearly understand their customer segment. Defining the characteristics of your most profitable customer segment is essential for creating an effective go-to-market strategy.
There are several different ways to segment customers, but some standard methods include using demographic data, customer behavior, and customer needs. Understanding your customer segment will help you focus your marketing and sales efforts.
It will also help you decide which product features to prioritize. Your go-to-market strategy will be far more effective when you know your customers.
Defining your customer segment will also help you determine what your company’s value proposition should be. This is the promise you make to customers in exchange for their money.
By taking the time to segment their customers properly, businesses can improve their marketing ROI and better meet the needs of their target market.
2. Define your product strategy
Your product strategy is how you plan to develop and sell your product or service. It’s essential to have a strong product strategy before you launch your new product or service. Otherwise, you’ll have trouble finding customers and getting your product off the ground.
This is especially true for startups. A product strategy is a critical component of a go-to-market system. It helps you decide which features to include, which channels to focus on, and how much you need to charge for your product or service.
Your product strategy will also help you decide how to position your product in the market. You can position your product as either a low-cost or premium product. You can also position your product as a high-value product focused on solving a specific problem.
Your product strategy will also help you decide how to balance features and costs. Product features are the things that make your product unique. These features can range from the shape of a button in a phone application to the type of leather seats in a luxury car.
3. Establish partnerships and dependencies
Partnerships can help you reach customers and make your go-to-market strategy more effective. They can include joint ventures, co-marketing agreements, or licensing agreements.
You can also establish dependencies by partnering with complementary businesses. A complimentary business has similar customers or a similar value proposition.
Dependencies and partnerships can make your go-to-market strategy more effective. They can help you reach customers and scale your business faster. Partnerships and dependencies can also help you avoid the common pitfalls that startups often face.
4. Establish your go-to-market actions
After you’ve decided on your customer segment, product strategy, and partner channels, it’s time to put your go-to-market plan into action.
Start by asking yourself when and where you want to sell your product or service. Make sure to consider the competitive landscape of your industry. You may decide that you want to sell your product in a brick-and-mortar store, at trade shows, or online.
Next, decide how you’ll reach potential customers. You may decide that you want to hire a sales team or host a marketing campaign. Make sure to consider the costs associated with these options.
You can also partner with complementary businesses as part of your GTM strategy. A joint venture or co-marketing agreement can help you reach customers faster.
5. Continuously measure the success
As a GTM leader, a lot of your time and effort goes into asking and answering this question: Is my team on track to hit the numbers for the quarter? Fortunately, there are several ways to measure the success of a go-to-market strategy. One common approach is to track key performance indicators (KPIs).
KPIs are measurable values that can be used to assess the progress of a go-to-market strategy. There are hundreds of KPIs across Marketing, Sales, and Customer Success that GTM leaders have to track.
For example, a company might track the number of new customers acquired, the amount of revenue generated, the number of demo bookings, number of qualified leads, website traffic, customer acquisition cost (CAC), net promoter score (NPS), or the level of customer satisfaction.
A go-to-market strategy is essential for any company looking to succeed in today’s saturated market. A well thought go-to-market strategy helps you decide how to reach potential customers, what channels you’ll use, and what product features you prioritize.
It’s essential to define your customer segment, decide on a product strategy, and establish partnerships and dependencies as part of your go-to-market strategy. Once you’ve decided on these things, it’s time to implement your go-to-market strategy and measure success parameters.