So, you've got a great product or service, and you're ready to take over the world. But how do you get it out there and make it a success? That's where a go-to-market (GTM) strategy comes in. It's basically your roadmap for launching your product and reaching your target audience. A go-to-market (GTM) strategy outlines how a company will introduce its product or service to the market and achieve its business objectives. This strategy is crucial for ensuring that a product or service reaches its target audience and achieves the desired market penetration.
The best GTM strategy for a company will depend on various factors, including the product or service, target market, competition, and available resources. It is important to carefully consider these factors when developing a GTM strategy to ensure that it is effective and aligns with the company's overall business goals. To get started with it, there are multiple strategies you can adopt for your business. Let's discuss them in detail.
Inbound and Outbound Strategy:
Think of an inbound GTM as a fishing rod. Instead of casting a wide net and hoping for a bite, you're creating a cosy spot on the riverbank with tasty treats. Fish (or customers) naturally come to you because they want what you've got. Similarly, Inbound GTM represents a customer-centric approach to attracting, engaging, and converting potential customers. Content marketing, SEO, email marketing, etc. are some of the key components. Inbound marketing can be more cost-effective than traditional marketing methods, as it focuses on creating organic content and building relationships rather than paid advertising.
Outbound strategy relies heavily on direct sales efforts to generate leads and close deals. It involves proactively reaching out to potential customers through various channels, such as cold calling, email outreach, and attending industry events. The primary goal is to convert leads into paying customers. The sales team plays a central role in driving revenue growth, and they tailor their messaging and offerings to individual prospects. Sales-Led GTM is most effective for businesses that sell high-value products or services and have a well-defined target market.
2. Product-led strategy
Product-led strategy, or product-led growth (PLG), revolves around the product itself as the primary driver of customer acquisition and retention. In this model, the product is designed to be so valuable and easy to use that customers naturally discover and adopt it without significant sales or marketing intervention.
Some common examples of PLG are Slack, Zoom, Hubspot, Dropbox, etc. Hubspot offers a free grader tool to attract potential customers. Slack populates empty spaces with in-app messages that drive action. Dropbox reduces customer acquisition costs through referral programs.
When customers love the product, they are more likely to remain loyal and use it more. It can also reduce the need for traditional sales and marketing efforts, as the product itself drives customer acquisition and retention. By encouraging customers to upgrade to premium features or purchase additional products, PLG can increase customer lifetime value.
3. Channel-led strategy
Channel-led strategy involves leveraging third-party partners to distribute and sell a company's products or services. Rather than focusing on the product or marketing solely, it actually focuses on the sales partners and networks. These partners, known as channels, can include distributors, retailers, resellers, wholesalers, brokers, and agents. Some of the most common examples of CLG are Microsoft, Intel, etc.
Some of the key benefits of channel-led strategy are:
Expanded market reach: Partners can help a company reach new customers and markets that it might not be able to access on its own.
Increased sales: Partners can provide valuable sales expertise and resources, helping to drive sales and revenue growth.
Reduced costs: Partnering with channels can help reduce the costs associated with sales, marketing, and customer support.
Shared risk: By sharing the risk of market entry and customer acquisition with partners, companies can mitigate their exposure to potential losses.
By leveraging a channel-led growth strategy, businesses can expand their market reach, increase sales, and reduce costs. However, it is important to carefully select and manage partners to ensure that they are aligned with the company's goals and provide value to customers.
Now that we have discussed in detail the GTM strategies companies can adopt, the common question arrives: Which strategy to use?
Well, it's important to note that GTM strategies are not static. It's okay to mix and match these strategies and to tweak your approach as things change. The most important thing is to keep experimenting and finding what works best for your business. If you want to have a better understanding, you can check out Brewra's Market Development
Businesses may need to adapt their approach over time to respond to changing market conditions, customer preferences, and competitive pressures. So, there you have it—a bunch of different ways businesses can get their products or services out there. Whether you're going all-in on social media or building a massive sales team, the key is to pick a strategy that fits your product, your customers, and your goals for your business.
By Dimpi Singhal, Partner Manager
B2B Saas, Gtm Strategy, B2b Sales, B2b Marketing
This blog is written and maintained by Dimpi Singhal, an independent contributor. The views and opinions expressed in this blog are solely those of the author and do not necessarily reflect the views or positions of Brewra Ventures. This blog may also contain statistics and examples sourced from other websites and is for informational purposes only.