How to Make a Go To Market Strategy With Our Proven Template

The Winning by Design Blueprint Series provides a step-by-step go to market plan for every part of the sales process, including developing a go to market strategy.

This guide answers the following questions:

What are the steps in creating a good GTM strategy?

First, we will define what “go to market” really means. Next, I’ll share my tactical approach on how startups and mature software companies can build a go-to-market strategy for their business. Finally, I’ll explain why you need a GTM strategy and where it should be used.

By diversifying your revenue sources, you will be able to better prepare for economic downturns and have more long-term growth. This is the perfect go to market plan!


Need Help Automating Your Sales Prospecting Process?

LeadFuze gives you all the data you need to find ideal leads, including full contact information.

Go through a variety of filters to zero in on the leads you want to reach. This is crazy specific, but you could find all the people that match the following:Ā 

  • A company in the Financial Services or Banking industry
  • Who have more than 10 employees
  • That spend money on Adwords
  • Who use Hubspot
  • Who currently have job openings for marketing help
  • With the role of HR Manager
  • That has only been in this role for less than 1 year
Just to give you an idea. šŸ˜€

Table of Contents

  • The best go to market strategy is a complex issue that will need thought and discussion.
  • A Google Tag Manager strategy can help a business become more efficient by reducing the time it takes to implement changes, which in turn will lead to increased profits.
  • You can apply this strategy anywhere that you need to generate interest and sales.
  • I am often asked how to build a go-to market strategy. Here are some tips for getting started.
  • What are the ingredients of a successful go-to market strategy?
  • 6 Marketing Strategies to Decrease Your Cost of Customer Acquisition
  • A company was not satisfied with the success of their inside sales team, so they tested a 2-stage model. They soon found that it did not work as well and decided to go back.
  • After some time spent in the field, I realized that you need to put together a go-to-market strategy if you want your salespeople to succeed.

Go To Market Strategy

What Is Go To Market Strategy? When you are looking to expand your company into a new market, it is important that you have an effective go-to-market strategy. This means understanding the target market and what they need, having a compelling message for them about how your product solves their problems or meets their needs, determining appropriate pricing for this customer base as well as distribution plans.

To avoid the problem of lack of distribution, make sure you have a go to market plan in place before launching your product.

Why Is It Necessary to Have a Go To Market Strategy?

The Bureau of Labor Statistics found that only 50% of small businesses make it past five years, and by ten years more than 70% have failed.

When an entrepreneur starts a business, they often come up with the idea and then fall in love with it. If not careful, this can lead to blinders that don’t allow them to see potential pitfalls or practicalities.

Even the best of ideas have a hard time succeeding without an effective go-to-market strategy. This is because even if you have a great product and good marketing, it will be difficult to find success in the market.

A good GTM strategy will help you identify and address any problems before they get too big. This is important for startups as well as mature companies looking to expand their product line.

Where Can This Go To Market Strategy Be Used?

Across regions

Unless you are a S&P 500 company, it is best to start with your own region. You can then expand from there.

Different parts of the world will respond to economic conditions differently. Countries like Asia, Latin America and South Pacific may take 1-2 years before they feel an effect on their economy while countries in Scandinavia behave similarly as the US.

Spanning markets

What industry or vertical does your product solve the most pressing problem for? Do you help healthcare professionals by providing a service that makes their lives easier and more efficient, do you provide technology to B2B SaaS marketing executives in order to make them better at their jobs, or are state and local government officials turning to your company because they need assistance with solving an issue like water quality.

Each vertical market is different and requires its own specialized sales strategy. This may require you to change your product or pricing, as well as distribution plan for each industry.

Covering multiple segments

The way you market your product would be different if the target customer is an individual or a large company. If the customers are individuals, then there’s no need to invest in expensive marketing strategies because they’re not likely going to buy from you anyways.

Selling to individuals is usually much easier than selling for large enterprises because it takes less time and you can charge more. Small businesses are somewhere in the middle.

SkyStream had to diversify its business when the “bubble” burst in 2002. They did this by securing a contract with Disney on new products, signing an agreement with the Department of Defense for $5 million over 3 years and developed revenue streams from both EMEA and APAC regions.

How Do I Develop a Go To Market Strategy In 7 Steps?

Developing a go to market strategy can be daunting, but it doesnt have to paralyze you. We break the process down into seven steps that are easy enough for anyone: 1) identify your value proposition; 2) define what success looks like and why customers should care about this product or service; 3) develop an understanding of who your target customer is – both in terms of demographics as well as psychographics 4), create one-to-one marketing messages tailored specifically for each audience segment 5), map out how these messages will spread across channels 6,) determine which tacticstools best suit specific goals 7.) put together a sales go to market plan with clear objectives

Step 1: Define your target market and ideal customer profile

To find a product-market fit, you need to know who your target audience is and what they care about.

You need to know not only who you are selling to, but also what problems they have that your product or service can solve.

  • The answer to this question is the key to your success.
  • What are you trying to achieve with your team?
  • I also found that what my customers wanted was not just a paycheck. They cared about how they were treated and the quality of service provided.

Furthermore, youll need to create a buyer persona for your product or service in order to effectively market it.

Step 2: Define your offer and value proposition

When I first began hiring salespeople, the value proposition was something that seemed like a great idea to me. But now it seems as though this is not enough motivation for them.

To come up with a good value proposition, consider these steps:

  • You have 30 seconds to pitch your product or service. What do you say?
  • Delete the unnecessary information and make sure to focus on what’s important.
  • Don’t make the mistake of assuming that a paycheck is enough to motivate people.

In order to stand out from the competition, it is important that you focus on a specific target market. The more narrowly focused your marketing message and product are, the easier they will be for potential customers to understand.

Step 3: Define your brand and positioning

One of the most important parts in any marketing strategy is coming up with a strong, creative brand. Once you’ve created your own identity for your product or service, it’s time to figure out how best to communicate that message.

  • Personality
  • Language
  • Colors
  • Values

To find success, it is important to position your brand in the market.

  • What is your company’s image?
  • What is your competitive advantage?
  • How can you differentiate your product or service from the competition?

Step 4: Decide which channels to reach your target customers

How will your potential customers find out about you? Will they do research online, or attend a trade show and then purchase from there? If so, that is where to focus the majority of your efforts. Other channels include door-to-door salesmen or direct partners.

To find the best channels for your business, ask yourself these questions:What is my target customer? Where are they at in their buying process? How will I use each channel to influence them towards purchasesignupsubscription etc.?

  • Where are your target prospects located?
  • Where do they buy?
  • What is the best way to communicate with them?
  • What type of sales model will work best for your product?
  • How do you ensure that your channels work together seamlessly?

Step 5: Decide on your pricing strategy

It is important to have a strategy for pricing your product. The best way to do this is by working with the marketing and finance teams if you have them, or checking what competitors are doing before deciding on a price.

You can either go for high volume and low prices or vice versa, but you also want to factor in quality. If your goal is to make a statement in the market by penetrating it with new customers who are attracted by lower prices, then start out with higher-quality products at competitive rates.

The other option is to start with a low-quality product. Low quality could mean fewer features or limited scope of the offering (which may sound like it has little value, but thats because we are judging from an assumption). The best go to market strategy example for this would be SaaS businesses who use freemium models and offer free services in exchange for their users signing up on higher tiers.

go to market strategy

Image source: Wikipedia

If you want to make a lower profit margin, but still keep customers coming back for more and paying higher prices in the long run, go with premium products.

Step 6: Set your sales and distribution plan

What are your sales channels? Are you selling to retailers, wholesalers or directly-to-consumers only?

When you are thinking about your distribution plan, it is important to consider the location-based strategies or tactics that will work best for selling your products. This includes information on where potential customers purchase similar items from competitors and how this might affect sales volumes, costs of productiondistribution, as well as profit margins.

You also need to consider what message your product is sending when you sell through a boutique versus a mass retailer. If you want customers to think of your brand as upscale, it would be better for them not see the same products on sale at Target.

Another option is to go wholesale, which may require higher commissions but provides access to more stores than you might own.

You can cut out the middleman expenses, but you also have to take on other costs such as shipping and customer support staff.

A B2B SaaS solution is easy to distribute because it happens over the internet, which has lower overhead costs than traditional brick-and-mortar or eCommerce businesses with physical products. That makes for a simple go-to market strategy.

Step 7: Select the right metrics to monitor your progress

Monitoring your GTM strategy early and often will give you the chance to make changes before running out of runway. Some metrics that are helpful in monitoring performance include:

  • How much money a company makes from selling goods and services, divided by the amount of money spent on getting those customers.
  • The average CAC for a company is $100,000.
  • LTV (customer lifetime value)
  • Lead conversion rates
  • It turns out that a paycheck is not the only thing that matters. The sales cycle length, or how long it takes to close on an average sale, also has some bearing.

Other metrics that are important to track when hiring salespeople include number of deals closed, pipeline stage distribution and churn rate.

Elements of a Go To Market Strategy Template for B2B

For B2B, there are three key elements to a GTM strategy template: 1. A salesperson’s compensation package should be more than just base pay and commissions. It needs the incentive of bonuses as well. 2 2 Marketing channels need to include trade shows, online marketing campaigns for lead generation purposes, social media engagement with prospects on Facebook or Twitter., etc. 3 3 Sales managers have an important role in coordinating all these efforts by setting goals that drive performance am

  • Market intelligence
  • Segmentation
  • Cost to acquire a customer

Market intelligence in your go to market framework

In creating your gtm strategy framework, you need to know more than just the market. You also have to understand how your product will relate with its target audience.

When you are working on your GTM strategy, it is important to figure out how the customer perceives what sets your company apart from its competitors. In order to do this, conduct research and work on messaging in steps 1 and 2 above.

It would be redundant to repeat this element, so we will move on to segmentation.

Segmentation of your B2B customers

When we look at the number of deals made against listed prices, you will notice that there are natural levels for discounts. Deals seem to cluster around those areas.

When I have a salesperson offer discounts, they will always be around 10% and 20%. However, this does not mean that it has to be in the shape of a bell curve.

go to market strategy

Figure 1 shows the distribution of B2B deals as a function of price.

B2B segments:

  • Enterprise-wide, we will use a contract to sell our CRM and ERP software.
  • Companies in the middle range and department stores can use contracts to ensure that they get a certain amount of usage out of an application or platform.
  • It seems that businesses are now looking for ways to make a more even and long-term relationship with software vendors. One way they can do this is by offering an annual, monthly or usage contract rather than paying one lump sum at the beginning of their service agreement.
  • The pro-user model is a way to sell browser plug-ins, typically under monthlyfreemium contracts.

The next figure shows how segments are clustered in different ways. For example, the number of deals will be spread out among these groups.

go to market strategy

Figure 2 shows the segments of customers based on their average contract value (ACV).

The SMB Segment: Going Upstream vs. Downstream

When a SaaS company starts in the SMB market and then moves up-stream, this is called moving Up-Stream. When they start to sell more enterprise solutions or target larger enterprises as their customers after starting with small businesses it’s referred to as going Down Stream.

The most common problem is that companies just hire more salespeople, not realizing the effects it has on other parts of their company. It’s important to pursue new segments strategically and reassess your product-market fit before making any changes.

go to market strategy

Figure 3 shows the importance of SMBs in this industry.

When it comes to pricing, youll find that Pro-user is very cost conscious and only spends up to $1,000year. In Mid-Market the value of a specific product can be obscured by many other products so often sales are made on just one or two departments at best.

In the enterprise market, you have to follow long and tedious purchasing procedures for purchases over a certain spending threshold. In contrast, SMB offers more flexibilityspending anywhere from $1-100k with shorter sales cycles of 30-90 days.

CASE IN POINT:

An SMB with a $100k problem is willing to spend $12k on a solution. That same SMB is willing to spend 3x that for a $300k problem. 3x the problem, 3x the spend. An enterprise with a $1M problem is willing to spend $100k, however, its hard to convince the enterprise to spend 3x the money for 3x the problem. Purchasing procedures and spending thresholds put in place over decades have flattened out spending flexibility.

I’m looking at the difference between SaaS startups and established businesses in terms of their go-to-market strategy. The former often start with SMB while the latter starts by targeting Enterprise clients.

CAC’s impact on your GTM strategy

The old adage that you should travel across the country to meet a potential customer is not always true. There are many examples of people who have sold something for 5 dollars and made it worth their time.

It is also foolish to expect a company like IBM or Google will commit $100,000 for your product simply by visiting the website and entering their credit card information.

One go-to-market strategy will not work for every company. This is based on the unique needs of your business and what you are offering.

A company’s marketing strategy will determine the customer acquisition cost (CAC) of each approach, and must align with revenue.

go to market strategy

Figure 4 is a graph of GTM approaches as they relate to the annual contract value.

GTM approaches have been modeled to create the best customer experience. You can see below that they are structured by Annual Contract Volume and then Volume of DealsMonth.

For web sales, this may be optimized for speed and simplicity. For local sale teams, it is complex to integrate into the existing infrastructure.

go to market strategy

Go to market strategy models are influenced by the Annual Contract Value.

Six Examples of Go To Market Strategies Based on Your CAC

go to market strategy

1) Freemium

One strategy that companies use to get customers hooked on their product is by offering a free trial. Once the customer has signed up, they are given more premium services (e.g., increased storage or personalization) in order to lead them into buying these things.

When customers purchase a product, they can pay with their credit card and contact the company through YouTube videos or FAQs.

2) Web sales

The more a customer interacts with your product, the better chance they will be convinced to upgrade. LinkedIns Sales Navigator is an example of this.

3) Online sales

As a customer moves from one area of need to another, they tend to have more questions. For example, once someone has signed up for Zoomus Group Licensing and wants help with their system.

Customer service is very important to the customer, so it’s essential that they be able to speak with someone. The use of online chat helps solve this problem by allowing an Inside Sales Representative (ISR) field questions from customers.

4) Inside sales

A. Inbound-centric

With more complexity, customers will want to know more about the product and they may not make a purchase right away.

Every company needs an inbound marketing strategy to generate leads. It is best for companies that use a Sales Development Rep (SDR) and the Account Executive (AE). This works well with growing organizations because they can attract qualified people.

B. Outbound-centric

The solution does not generate enough leads, andor the quality of those leads doesnt match what we need.

There are many ways to start a sales process, but one of the most common approaches is having Sales Development Reps reach out and set up meetings with potential customers. These reps often have access to CRMs or other tools that allow them quick access for setting these appointments.

5) Field salesforce

When you’re selling an ERP or CRM, the product is not enough of a motivator.

Customers want to discuss their specific needs and situation with you. They will ask for custom integrations, workflows etc.

With account-based selling, you will need to identify customers. To do this, I would recommend hiring an Account Development Rep (ADR) who targets multiple people in the account with coherent messaging.

6) Local salesforce

You may want to target AT&T Dallas, and therefore you should use a local salesperson who has deep relationships with the account. This will make it easier for them to navigate their organizational chart.

This is the most expensive approach, but it also offers a higher rate of success. This method tends to be used for million-dollar deals and multi-year contracts because these provide enough incentive to justify the cost associated with hiring someone full time.

Case Example: Implications of a Two-Stage Inside Sales Organization

The two-stage inside sales model consists of a first stage consisting of the SDRs who send thousands and place hundreds, while AEs make appointments for themselves.

I have been utilizing this method for a while now and I am finding that it is not working as well because the response rates to emails and phone calls are down.

  • A team of 3 SDRs and 2 AEs close three deals a month with an average ACV of $6,000 per deal.
  • The average AE is only successful in 1 out of 5 deals, which means that they need to be generating 15 SQLs per month.
  • Sales Development Representatives spend their time trying to set up meetings with the leads they have generated. They make hundreds of calls and send out a couple hundred emails each month in order to get 15 qualified sales opportunities.
  • With the Sales Development RepresentativeAccount Executive combo, we generate $216,000 in annual recurring revenue.
  • The total pay for an SDR is $80,000 and the AE’s salary totals to be at a higher level of $150,000. Adding up their salaries equals to 230K.

Heres the problem:

The hard cost of customer acquisition exceeds the first-year revenue by $25,000.

Solution 1: Tackle compensation

I found that I could save money by moving my sales team to a cheaper location.

When companies are not located in the same office, there is a reduced effectiveness that nullifies any positive impact.

go to market strategy

In Figure 6, you can see that if a company has an ACV of $6,000 and uses the 2-stage sales model then they will get 15.8% conversion rates.

Solution 2: Apply a different prospecting process

 

go to market strategy

Figure 7. Split the go to market model.

Solution 3: Raise your products price (remember the elasticity in SMB!)

go to market strategy

When it comes to pricing, you should try not only raising the price but also using your inside sales team on bigger deals.

How to Begin: Resources for Developing Your Sales Go To Market Strategy

Planning your go-to-market strategy can be overwhelming. You have to take into account many different factors, including what markets you want to enter and how much money will this cost? The best way is not try everything at once but work out the easiest parts first.

Youll feel confident in your ability to carve out space in the market when you have a plan. The strategies that work for one product may not be appropriate for another.

Here are some resources to help you get started: -Outsource your sales team if it is not feasible for you or just starting out. You can then save money on hiring and training, as well as the time needed to train them.

  • A panel of experts discussed the four components needed for a successful go-to-market framework.
  • What you need to know about 10x your sales efficiency
  • I found a free sales go to market plan template online that I am excited to use!
  • I have found that there are a few key elements to an effective go to market strategy for B2B saas companies. These include:-Developing personas -Honing in on specific goals for the company and each personacustomer type, as well as potential obstacles to achieving these goals -Evaluating your current customers’ needs from those who you want
  • When I made the switch to enterprise sales, my marketing and lead generation strategy changed.

A go-to-marketing strategy is a plan that helps new products and services reach the market.

It’s important to come up with a plan and set out objectives in order to get the best results.


Need Help Automating Your Sales Prospecting Process?

LeadFuze gives you all the data you need to find ideal leads, including full contact information.

Go through a variety of filters to zero in on the leads you want to reach. This is crazy specific, but you could find all the people that match the following:Ā 

  • A company in the Financial Services or Banking industry
  • Who have more than 10 employees
  • That spend money on Adwords
  • Who use Hubspot
  • Who currently have job openings for marketing help
  • With the role of HR Manager
  • That has only been in this role for less than 1 year
Just to give you an idea. šŸ˜€
Editors Note:

Want to help contribute to future articles? Have data-backed and tactical advice to share? Iā€™d love to hear from you!

We have over 60,000 monthly readers that would love to see it! Contact us and let's discuss your ideas!

Justin McGill
About Author: Justin McGill
Justin McGill is the Founder of LeadFuze - a lead generation platform that discovers new leads for you automatically. Get 25 leads free.