A go-to-market strategy (GTM for short) is imperative to have for an organization to succeed. A GTM strategy gives your company a foundation to build on, along with the tools necessary to plan and adjust.
As an example, let’s say that you’re looking to buy a house; you wouldn’t go into the process without a clear idea of what you’re looking for. You would conduct research, looking at the house itself, the cost of the house, the property history, what the area around the house has to offer, and more. By doing the research, you’re using that information to make a decision, similarly to how business owners would use a GTM strategy to make a decision regarding their company.
WHAT IS A GO-TO-MARKET STRATEGY?
A go-to-market strategy is a step-by-step plan created to deliver a unique value proposition to your customers. This is done to give yourself a competitive advantage in the field you’re looking to penetrate.
A GTM strategy benefits two parties: the company creating the GTM strategy, and the customers of said company. The strategy creates a clear framework for the company to follow, while also providing tools for market research; this research is monumental in discovering what the customer wants. In turn, the customers receive a superior product that they would not have received if the company did not put invest in building a solid GTM strategy.
As a company grows, managing all the different factors that go into a successful GTM platform can be tough to do singlehandedly, which is why many companies opt into using a GTM software that can help them organize their thoughts, providing structure and clarity so they can execute strategies faster and better.
A GTM strategy looks to service three tiers of companies, as follows:
- Startups
- Scaleups
- Enterprises
Below is a summary of each stage, their needs from a GTM strategy, as well as what the expected returns are.
STARTUPS
A startup requires 3 components from its GTM strategy:
- Market Validation – A process in which a product or service is tested to see if it is viable to enter the market. To put it simply, it tests if there is a need for whatever you are providing in the market.
- Ideal Customer Profile (ICP) – A detailed description of what customer would most likely be a long-term purchaser of the product. This customer will stick with the company through thick and thin, and they are by far the most valuable customer base. It is imperative to identify this group for the growth of a healthy company.
- Launch Playbook – A descriptive guide that lists, step-by-step, the plan to introduce a new product or service to your target audience (the ideal customer profile). This may be the first public step a startup makes into the market, and first impressions matter.
If a startup is able to pull off all three steps successfully, they’ll be able to secure a first wave of customers that seeks them out, clamoring for their product and eager to try it out for themselves. This is important; they’re the ones giving the company money. It also gives them an early adopter acquisition, a market base that offers feedback and allows the product to be further improved on.
SCALEUPS
A scaleup is a company that has passed the hardest step of being a startup and is already launched. It also has a clear avenue for growth, a scalable business model that can be put into motion to become bigger and bigger.
A scaleup requires 4 things which their GTM strategy will be particularly useful for:
- Growth Channel Optimization – The refinement of business strategies to continue growth. With a multitude of growth options available, choosing the one that is most efficient is critical for an effective GTM plan.
- Competitive Intelligence – The process of gathering information on potential competitors to inform business decisions.
- Sales team Alignment – The strategic coordination of the sales team, the people in charge of selling the product. Being on the same page is key, as it allows the company to wholeheartedly sell the direction in which the scaleup is growing towards.
- Market Expansion Strategy – A growth plan where the scaleup looks to generate revenue by entering a new market. This process is vast, and can include looking at geographic data, targeting new demographics, and more.
The growth of a scaleup can take years, but if effective GTM research is being conducted, it will take less time and the rewards can be vast. Primarily, these processes can further increase customer acquisition, reaching more people that need your product or service. It also allows for the scaleup to enter new markets, and can evolve or refine the company’s short- and long-term strategy from their startup phase.
ENTERPRISES
An enterprise is a large scale organization with many employees and bringing in a substantial amount of revenue. The goal from your GTM plan at this point is stability without complacency. An enterprise can continue to grow, but the strategy will change, just as it did with the other tiers of business.
There are 4 things a GTM strategy can help accomplish for an enterprise:
- New Product Introduction – The complete process of taking a business from development all the way to market availability in a market you are already in. This differs from the market expansion strategy mentioned earlier because with NPI, you’re already in said market.
- Portfolio GTM Strategy – The creation of a comprehensive portfolio for all services and/or products an enterprise will launch, placing everything an enterprise has built under one umbrella.
- Market Disruption Analysis – Evaluating how new technologies, business processes, and innovations can transform a market landscape. This isn’t only limited to competitors, but environmental changes and innovations as well. To stay on top of things, an enterprise must constantly adapt to its surroundings, and a market disruption analysis is one way to do so.
- Enterprise-Grade Collaboration – Collaboration to the highest level, between departments with dozen, if not hundreds, of employees. Communication between departments is of utmost importance, allowing the team to focus their energy on the agreed upon business strategy.
The support of a GTM plan here is essential to the continuation of an enterprise’s steady growth. In return, the executive team will accomplish leading a company that impacts millions, creating a shield that protects against potential market disruption, developing a research process that provides a safety net for launching new products, and ensuring future cross-functional GTM success, alleviating the uncertainty of collaboration to benefit all.
THE IMPORTANCE OF THE RIGHT GTM SOFTWARE
As you’ve seen, there is much to accomplish as your business continues to grow and evolve. The stakes are high, with any step you take having the ability to shape the future of your company. A lot rides on picking the right GTM software to help you through this process. Check out this article where we’ve put together a guide with the most common problems you’ll find with GTM software.