You've found your passion and are ready to start your own business. But before you can launch your product or service, you must take several crucial steps. One of them is creating an effective GTM strategy.
Even if you do not know what it is and how it can help your sales team establish a successful product launch. Do not worry - we've got you covered.
In this article, you will learn what is a go-to-market strategy, how it is different from similar marketing terms, what competitive advantage it can provide, as well as how to create an effective GTM strategy for your business. So, without wasting any more time, let's get into it!
For your marketing efforts to be spread rationally, you must decide what is worth your time and money and what is not. To help you fully understand the benefits of implementing a go-to-market strategy and how it can help you reach your business objectives, firstly, we need to know its definition.
A go-to-market (GTM) strategy is a detailed panel that outlines all steps necessary for the product launch on the existing market. The term is also applied when an existing product or service is expanded to a new market.
The goal of GTM strategies is to reach out to the target audience and turn them into your existing customers as soon as possible. The effectiveness of the implemented strategy is valued by the efficiency of the results and the amount of time it took to reach the initial goals.
A solid GTM strategy will help you raise brand awareness and establish your company among other competitors to gain the desired market share. This is especially important for new businesses since there is no room for any mistakes, especially in the beginning.
However, a go-to-market strategy is not a one-time event. It must be implemented based on the various product stages throughout the entire sales cycle. Every strategy will, of course, differ based on its goals as well as the business model.
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Get StartedCreating a successful GTM strategy, as well as any other sales strategy, requires thorough market research. With this step, the main goal of reaching out to your target customers is unattainable.
There are several components of the go-to-market strategy. When established correctly, they will help your business enter the market or conduct a product launch successfully.
Go-to-market strategies must include:
Target audience description - detailed characterization of the ideal customer for your product or service;
Set your customer service advisors - set your customer support services for instant pain points location and more pleasing customer satisfaction;
Customer value proposition - you must outline how the product or service can be helpful to prospective customers and what problems it can solve;
Product positioning - define the product's place on the market as well as its benefits when compared to the competitors;
Pricing strategy - define your price ranges based on the market demand and average prices of your competitors or provide a unique value proposition to create your customer base;
Distribution model - establish your distribution channels, including how the product is delivered to the customers, its storage, etc;
General target market analysis - learn about your competitors, potential customer segments, average customer acquisition cost as well as market prospects and risks.
Another thing to keep in mind before any product launches is timing. Common sales strategies usually revolve around holidays and celebrations. However, this is the time of huge spending, sales, and low prices from your competitors will attract all your potential customers.
These terms not only sound very similar but also have a lot in common. Yet, go-to-market strategy, marketing strategy, and marketing plan are still very different and must not be mistaken for one another.
The definition of marketing strategy includes outlining the general marketing objectives of the company. This is a long-term system of distribution of marketing efforts, which is usually planned for many years ahead. For example, creating the entire buyer's journey, including complementing support and repetitive purchases after the initial sale.
A marketing plan is a list of steps or actions that must be taken to create a marketing campaign. A marketing plan usually aligns with the marketing strategy or a GTM strategy since it is a definition of how the marketing team will reach established goals.
A go-to-market (GTM) strategy outlines the specific actions and considerations that must be included when bringing a product to a new market or a new product to the existing target market. A GTM strategy might include a marketing plan (a go-to-market plan) and can be directed by the company's marketing strategy. However, neither of these elements incorporates a definite GTM strategy.
Based on what we have learned previously in the article, it is clear that with the help of a go-to-market strategy, we can launch a product as well as attract target customers successfully. Since this is its purpose, there is no doubt in accomplishing these goals.
However, this is not the only way your business can benefit from a go-to-market strategy. Additional perks include:
Product-market fit
Establishing your target audience is one thing, yet creating a product that will connect with them is another. It is important to know not only who you are selling the product or service to but also what attracts and interests them.
Creating precise target market profiles while keeping potential needs and feelings in mind is a must. With a go-to-market model, you will be able to gather essential customer insights.
Established responsibility distribution strategy
With various marketing channels, it can be hard to specify the responsibilities of each person and department. a GTM strategy creates alignment between documentation and the product sales funnel. This helps to maintain clarity regarding who does what and finding the responsible party when needed.
Cost-efficiency
With a go-to-market strategy, you will be able to save money when launching a new product or service on the market. By avoiding spending that will not affect reaching your goals, you will keep the marketing costs down since your sales team will focus on the distribution channels with higher ROI.
Faster market entry
The correct go-to-market strategy will speed the process of entering the market with higher efficiency. With the set up of distribution channels and understanding the needs of your potential customers, you will save time in the process of releasing your product or service to the target market.
Creating a bond with your customers
Establishing good customer relationships is everything in the modern-day business. These can raise your company to the sky in an instant. With a GTM strategy, you will be able to build customer loyalty by understanding their needs, being relatable as well as solving their problems.
Customer experience
Another way the go-to-market strategy will be of assistance. By outlining your customer's journey, you will be able to better predict their needs throughout the sales process and create a more pleasing experience as well as product satisfaction.
Faster growth
Indeed, a GTM strategy is not an immediate solution to all your problems that will lead you to overnight success. However, it helps you better analyze all the data and market feedback and distribute your efforts accordingly. This way, you will create your customer base faster by establishing a value proposition.
To create an effective go-to-market strategy, you must conduct deep research and collect a lot of data. This must take a while, so before starting the launching process, have some time aside to sit with your sales manager to go through the next steps.
This way, you will be able to create a suitable business model based on your business model and target audience and receive the best outcome. It's time to start building your own GTM strategy.
Just like in any other aspect, in order to create a successful GTM strategy, there are several key elements to focus on. These will play a significant role in establishing the process of reaching out to your potential customers:
Calculating customer acquisition costs
This metric will allow you to make data-driven conclusions to determine the efficiency of your choices. Customer acquisition cost is calculated as a summary of marketing costs and sales costs divided by the number of newly arrived customers. This formula should be used separately for each campaign and estimated time period.
The goal is to get the lowest number possible. The metric can also be used to calculate the amount of customers required to pay off all the invested resources.
Distribution strategy
Deciding on your distribution channels is another essential part of any GTM strategy. Whether your product or service can be received online or has a physical execution, this part is something to take into consideration.
If you have an online product, like a game or a fitness app, you must decide what platform it will be displayed on. For physical products, you must think about how the product will be delivered to your customers. Maybe you need a warehouse, or you can collaborate with another new business to save money.
Distribution can be the main expenditure item. You might have to revise the price system due to high costs, so take your time when deciding on this matter.
Marketing tactics
Every product or service has its own specifics that require different marketing tactics. This leads to the appearance of many go-to-market strategies that have their own way of reaching the goal.
You must decide what marketing platforms should be a priority, what paid ads require more investment, whether or not you are going to work with influencers, and on what terms. All this must be decided before the product launch, and specific metrics must be used to track the efficiency of each campaign and tactic.
To clearly understand who can be your potential customer, you need to divide people into 3 main segments and create a detailed report. These are the descriptions you should focus on
From the name, it is already clear that this is your perfect customer. You absolutely understand his problems and provide the solution he needs. These customers are already aware of their issues, and the solution they are already looking for is your product or service.
Here is the collected data that can help you create an ideal customer profile:
Social and other media preferences - this information will help you with navigating investments into paid ads. You might be focusing on the FB ads when reaching out to your customers through the Google search is more efficient.
Customer's budget - based on the type of product and its cost, it is essential to target the correct group of people. This is especially crucial for more expensive products.
Geographical location - make sure you target people who align with your product's geographical orientation. For online services, this metric can be less important, but for the small businesses that have to deliver their product, this can be one of the main considerations.
Pain points and customer needs - you must clearly understand what issues and frustrations your product can solve. At the same time, keep in mind some other customer needs that might come up with the issue. For some people, the aesthetics of the product might play a key role in making a decision.
Influence factors - every person has their own strategy for making a decision, sometimes even without realizing it. Some people ask for advice from colleagues, while others watch YouTube review videos and read reviews or ask their friends. Look into the factors that will influence your product consumption the most and focus on them.
Since we do not live in a perfect world, most of your customers are not going to possess the characteristics of your ideal customer. This is why you need to create buyer personas.
This is a way to extend the list of potential customers based on their different features. If the age range for your ideal customer is 25-30, you can create a personal for a different age group with their own potential issues and interests.
All people have their own issues, views, workplaces, and goals. By taking into consideration other potential buyers, you will be able to have more efficient results. An ideal customer profile helps you establish your general goals as a company. This segmentation created a more detailed approach for a broader amount of people.
This idea is based on a presumption that your buying group consists of 10 different types of decision-makers. All of these people combined are creating the buying center.
According to the roles a person can play in making a purchase decision, he can be one of the following:
Initiator - one of the small groups and the crucial one. These are your first customers that are willing to try something new.
User - the people who are loyal to you and are constantly buying your products or have a continuous subscription.
Influencer - one who has the power over other people's decision-making processes.
Decision maker - this person can eliminate the last doubts and lead to the purchase.
Buyer - the one paying for the product or service.
Approver - a person with a higher status whose opinion or approval is highly valued.
Gatekeeper - the one against the product that can also bring some issues on the way to a product release.
Based on the specifics of your sector, potential customers, or the product itself, each description might be very different. So, clearly describe each persona that can influence the purchase process.
Once you have a clear understanding of who your target customers are and have a description of your personas, a value matrix will help you with further analysis. This mapping tactic will help you with a deeper understanding of every buying center role, with a focus on solving specific problems and breaking down the value for each specific part.
The table will Include:
Persona (with a small description)
Potential pain pons
Product usefulness (how the product solves a problem, and what is the outcome)
Message (usually based on the pleasant outcome the product provides)
Discovering pain points is one of the most important parts of creating a chart. Some problems might have never crossed your mind. This is where a thorough brainstorming session with your team is required. You can also research your competitor's experience to search for the issue.
Product launch is both very stressful and important. This is where creating a GTM strategy comes in handy. With all the necessary research and a thorough approach, it will help ease the go-to-market process, helping you find your place on the market.
To help store and analyze all the data, there is a 99,9% chance you are going to need a CRM. Bitrix24 has all the features for both small businesses and big corporations. You can be just starting your company or looking for ways to expand the business; in both cases - a CRM tool will be of help.
Even if you do not know where to start, a CRM system can lead you through all the necessary metrics. You can begin creating your GTM strategy today!