Whether you’re launching a new product, entering a new market, or targeting a new type of customer, your business needs a plan. This is where the go-to-market strategy comes in. Keep reading to find out the elements of a go-to-market strategy and how to make one work for you.
What is a go-to-market strategy?
A go-to-market strategy is a step-by-step action plan that details what your business can do to achieve success in a new market. Here are a few examples of when you might need a go-to-market strategy:
Starting a new business
Rebranding your current business
Entering a new market
Launching new products or services
Reaching out to a new demographic
Like a marketing plan, a go-to-market strategy details the steps needed to achieve your goal. The difference is that a go-to-market strategy is more specific, focusing on just one new product, service, market, or branding exercise.
Benefits of developing a go-to-market strategy
The main benefit of a GTM strategy is that it helps to focus your efforts, saving you from wasting time and money. Here are a few reasons for developing a go-to-market strategy:
Reduce marketing costs
Reduce time to market
Ensure compliance with regulations
Create a more compelling customer experience
Clarify a step-by-step path to growth
What are the elements of a go-to-market strategy?
An effective GTM strategy will appeal directly to customers and their needs. So, what does a go-to-market strategy look like, and what are its main elements?
Value: What problem does it solve?
It’s one of the fundamental rules of business: every product or service should solve a problem. The first component of any effective GTM strategy will include this touchpoint. Look into the “why” behind your new product, service, or brand before it’s launched.
Customers: What do they want?
Back up the value with clear-cut research into your customer base, whether it’s a B2B or B2C firm. Who is the audience for your product, and what do they want? Look into data-driven demographic information of your target audience, creating profiles based on wants, needs, and buying habits.
Markets: Who is the competition?
You’re about to launch a new product. Will it be a good fit in the existing market? Any effective GTM strategy will include a deep dive into existing market conditions, including the main competition. Tap into current and future market trends that might impact your launch, considering how existing market leaders will react to a new competitor.
Product or Service: What is the USP?
What makes your product unique? Has the design been user-tested? Build research, customer testing, and marketability into development. This should all be outlined carefully in your go-to-market strategy. Simple messaging is essential here: pick one or two pain points when talking about the new product’s value.
Price: What will it cost?
A realistic pricing structure is vital to the success of any new launch. Price sends a message about the nature of your new product at launch time. A higher price signifies a premium product, while a competitively low price signifies market disruption. Be sure to weigh what your pricing means as part of a marketing strategy.
Channels: How will the service be distributed?
Develop a go-to-market strategy that looks into the most effective ways to distribute your products, whether this involves a physical retail space, an e-commerce site, or direct downloads. Think about how many stages there are in a customer’s journey and how these can be streamlined. Distribution channels must be cost-effective and scalable.
Marketing: How will customers find out about it?
No go-to-market strategy framework would be complete without a marketing plan. How will your customers find out about your launch? This section of the strategy should cover branding, lead generation, content creation, advertising, event planning, and PR.
The final step is to define your metric of success – a vital component of any go-to-market strategy framework. These metrics, related to revenue or lead generation, will help you hone your strategy for future growth.
We can help
GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.