Definition of Go-to-Market (GTM) strategy
According to this interesting article published in Harvard Business Review, every year, 100,000 technology startups are said to get their first round of funding. Approximately half of these companies receive initial development support from angel investors (including friends and family).
A first round of funding from venture or private equity sources is only made available to less than 10% (or about 4,000) of companies, therefore thinking of a good B2B Growth Marketing partner to help solidify your GTM strategy is paramount either to get funds or simply to start the domination process in a stable way.
The article from McKinsey highlights the importance of tech-enabled go-to-market innovation for industrial companies, for example. It explains that with the rapid advancements in technology, traditional go-to-market strategies are becoming less effective. As a result, companies need to embrace marketing tech-enabled approaches in order to remain competitive and meet the evolving needs of their customers.
The article discusses the various benefits of tech-enabled go-to-market innovation, including increased efficiency, better customer experiences, and improved decision-making with the support of a good B2B Growth Marketing partner. The article concludes that companies must embrace technology if they want to succeed in today’s fast-paced and constantly changing marketplace.
Go-to-Market (GTM) strategy is a critical aspect of a successful business launch or B2B growth marketing or B2C growth marketing plan. It is a comprehensive plan that outlines how you will take your product or service to market and make it a success.
A solid GTM strategy should include a clear understanding of your target market, a well-defined value proposition, and a plan for delivering that value to your target customers. In this article, we’ll take a deep dive into the most critical elements of a successful GTM strategy and provide you with a comprehensive checklist to guide you in developing a strategy that will help you achieve your business goals.
Importance of a solid GTM strategy with the help of a good B2B Growth Marketing Agency
The importance of a B2B growth marketing agency cannot be overemphasized when it comes to developing and implementing a successful GTM strategy. A growth marketing agency has the expertise, tools, and resources to help you identify and target the right audience, create and execute effective marketing campaigns, and measure and analyze results to optimize your strategy over time.
Defining clear goals and KPIs. Understanding the target audience
Based on Awesomedia’s B2B Growth Marketing Insights research e-book, the first step in developing a GTM strategy is to identify your target market. This includes understanding the demographics, psychographics, and behaviors of your ideal customers. You’ll need to determine who your target customers are, what their pain points are, and what they’re looking for in a product or service like yours.
Define Your Unique Value Proposition:
Once you have a clear understanding of your target market, the next step is to define your unique value proposition. This is a unique benefit that your product or service provides that sets it apart from your competitors. Your value proposition should be concise, clearly communicated, and easy to understand.
Develop a Customer Segmentation Strategy:
Customer segmentation (including psychographic, demographic, etc) is the process of dividing your target market into smaller groups based on shared characteristics. This allows you to better understand your customers and tailor your messaging and marketing efforts to each segment.
Choose the Right Channels for Customer Acquisition:
The next step is to choose the channels you will use to reach and acquire new customers. This could include channels such as paid advertising, content marketing, email marketing, influencer marketing, and more.
Determine Your Pricing Strategy:
Your pricing strategy should take into account the value you’re delivering to your customers and your overall business goals. It’s important to find a pricing strategy that balances profitability with customer satisfaction.
Develop a Strong Sales Process:
Your sales process should be well-defined and tailored to your target market. It should include steps such as lead generation, lead nurturing, qualification, and closing.
Define Your Metrics and KPIs:
Defining your metrics and KPIs (key performance indicators) will help you track the success of your GTM strategy and make data-driven decisions. Some common metrics and KPIs include customer acquisition cost, lifetime value, churn rate, and conversion rate.
Plan for Scalability:
Scalability is a critical component of a successful GTM strategy. You need to have a plan in place for how you will scale your business as you acquire more customers and grow your revenue.
Consider Unconventional Tactics:
While the steps outlined above are the foundation of a successful GTM strategy, it’s also important to think outside the box and consider unconventional tactics. This could include new channels for customer acquisition, unique pricing models, or alternative sales processes.
Rough ideas on implementing a successful Go-to-Market (GTM) strategy:
Account-based marketing (ABM):
ABM is a highly targeted and personalized approach to marketing that focuses on specific high-value accounts. This strategy involves creating customized campaigns and messaging for each target account to increase the chances of converting them into customers.
Influencer marketing:
This involves partnering with influencers in your industry to promote your product or service. This can help increase brand awareness and credibility, especially if the influencer has a strong following in your target market.
Referral marketing:
Encouraging current customers to refer their friends and colleagues to your business can be an effective way to drive growth. Offer incentives to customers who refer new business to you, such as discounts or bonuses (Schivinski, B., & Dabrowski, D. (2016). The effect of social media communication on consumer perceptions of brands. Journal of Marketing Communications, 22(2), 189-214.).
Referral programs have long been a popular way for companies to acquire new customers. However, instead of simply offering incentives for referrals, companies can create a more personalized referral program that rewards customers for sharing their experiences with their networks.
By creating a more personalized referral program, companies can increase customer engagement and loyalty, while also attracting new customers (Alves, H., & Raposo, M. (2014). The influence of the components of a firm’s relationship marketing orientation on marketing mix decisions. Journal of Business and Industrial Marketing, 29(6), 472-483).
Event marketing:
Hosting events can be an effective way to generate leads and build relationships with potential customers. Consider hosting webinars, conferences, or workshops that are relevant to your target market.
Video marketing:
Video is a powerful tool for capturing the attention of potential customers. Create videos that demonstrate the features and benefits of your product or service, or use video to share thought leadership content that demonstrates your expertise in your industry.
Utilizing AI and Machine Learning in the planning process:
Artificial intelligence (AI) and machine learning have transformed the way companies approach marketing and sales. According to a survey by Salesforce, 51% of marketers are already using AI, with an additional 27% planning to use it in the near future. By using AI and machine learning, companies can gain valuable insights into customer behavior, optimize marketing campaigns, and improve the effectiveness of their sales pitches (Salesforce. (2018). State of Marketing: Insights and Trends from Nearly 4,000 Marketing Leaders Worldwide).
Utilizing Chatbots to increase customer engagement:
Chatbots have become increasingly popular in recent years, with companies using them to automate customer service and support. However, chatbots can also be used to increase customer engagement by providing personalized recommendations, answering questions, and providing real-time assistance. By using chatbots to increase customer engagement, companies can improve customer satisfaction and loyalty, while also saving time and resources (Kim, J., & Lee, K. (2019). Chatbot adoption model in service industries: An empirical study. Computers in Human Behavior, 92, 297-305).
Using Virtual Reality for product demos and sales pitches:
Virtual reality (VR) has become increasingly popular in recent years, with companies using it for product demos, training, and other applications. However, VR can also be used for sales pitches, allowing customers to experience products and services in a more immersive way. By using VR for sales pitches, companies can improve customer engagement and increase the likelihood of making a sale (Yu, R., & Dou, W. (2019). Integrating virtual reality with sales promotion: An empirical analysis. Information & Management).
Leveraging Augmented Reality for Sales and Marketing:
Augmented reality (AR) allows users to overlay digital content onto the physical world, creating immersive and interactive experiences. In the B2B context, AR can be used to showcase products, provide demos, and help customers visualize complex concepts. AR can also be used to create personalized experiences, allowing users to customize products or services to their specific needs. By leveraging AR for sales and marketing, B2B companies can differentiate their offerings, increase engagement, and drive conversions (Tang, T., & Chen, Y. (2019). Augmented reality and consumer purchase intention: The mediating role of consumer knowledge and perceived risk. Journal of Retailing and Consumer Services, 50, 43-53).
Creating Interactive Content:
Interactive content, such as quizzes, calculators, and games, can be an effective way to engage prospects, provide value, and differentiate your brand. Interactive content is highly shareable, often resulting in increased traffic and social shares. It also allows prospects to self-qualify, providing insights into their needs, pain points, and interests. In the B2B context, interactive content can be used to educate prospects on complex topics, demonstrate thought leadership, and drive lead generation (Kapelner, A., & Blei, D. M. (2014). Picking winners: A horse racing prediction using decision trees. Journal of Gambling Studies, 30(1), 31-45).
Crowdsourcing:
Crowdsourcing involves outsourcing tasks or projects to a large group of people, typically through an online platform. In the context of B2B marketing, this can involve tapping into the collective expertise of industry experts, customers, and employees to develop new marketing ideas, refine messaging, and validate product-market fit. Crowdsourcing can be an effective way to generate new ideas, increase engagement, and build a community around your brand (Howe, J. (2006). The rise of crowdsourcing. Wired, 14(6), 1-4).
Implementing a Cause Marketing Campaign:
Cause marketing campaigns can be an effective way to build brand loyalty and differentiate your brand from competitors. According to a survey by Cone Communications, 87% of consumers will purchase a product because a company advocated for an issue they cared about, while 76% will refuse to purchase a product if they disagree with the company’s stance on social issues. In the B2B context, cause marketing can be used to showcase the company’s values and social responsibility, while also providing a platform for thought leadership and industry influence (Cone Communications. (2017). 2017 Cone Communications CSR Study).
Launching a Product/Service Beta Program:
Beta programs can be an effective way to generate buzz and build anticipation around a new product or service, while also providing valuable feedback from early adopters. According to a study by the Harvard Business Review, companies that launch beta programs are 1.6 times more likely to achieve their product launch goals than those that don’t. In the B2B context, a beta program can be used to refine the product or service offering, identify pain points, and improve the customer experience (Thomke, S., & Nimgade, A. (2018). Building a culture of experimentation. Harvard Business Review, 96(2), 40-48).
Hosting Virtual Events:
Virtual events can be an effective way to engage prospects, provide thought leadership, and generate leads. According to a study by ON24, companies that use webinars as part of their marketing strategy generate 47% more leads than those that don’t. Virtual events can also be more cost-effective and accessible than traditional in-person events, allowing companies to reach a wider audience. In the B2B context, virtual events can be used to educate prospects on complex topics, demonstrate expertise and thought leadership, and provide networking opportunities (ON24. (2018). 2018 Webinar Benchmarks Report).
Leveraging Blockchain for Supply Chain Transparency:
Blockchain technology can be used to improve supply chain transparency, reduce fraud, and improve efficiency. In the B2B context, blockchain can be used to verify product authenticity, track inventory, and streamline logistics. According to a study by Deloitte, blockchain technology can reduce supply chain costs by up to 50%.
Developing a Voice-Activated Marketing Strategy:
With the rise of smart speakers and voice assistants, developing a voice-activated marketing strategy can be an effective way to engage customers in a more personalized and interactive way. According to a study by Adobe, 47% of consumers use voice assistants to search for product information, and 37% use them to make purchases. In the B2B context, voice-activated marketing can be used to provide a more seamless customer experience, automate routine tasks, and improve customer engagement (Adobe. (2019). State of Voice Assistants).
Using Predictive Analytics to Anticipate Customer Needs:
Predictive analytics involves using data, algorithms, and machine learning to identify patterns and make predictions about future outcomes. In the B2B context, predictive analytics can be used to anticipate customer needs, personalize marketing messages, and improve the effectiveness of sales outreach. According to a study by McKinsey & Company, companies that use predictive analytics are 2.9 times more likely to have higher customer engagement rates and 1.9 times more likely to have higher customer retention rates (McKinsey & Company. (2018). Winning with Prescriptive Analytics).
Beyond Chatbots and Virtual Assistants for Sales and Marketing:
Virtual assistants, such as chatbots and digital assistants, can be used to automate routine tasks, provide personalized recommendations, and improve customer engagement. According to a study by Juniper Research, the use of chatbots in the enterprise will save businesses over $8 billion per year by 2022. In the B2B context, virtual assistants can be used to automate customer service, provide real-time assistance, and help customers navigate complex product offerings (Juniper Research. (2017). Chatbots: Retail, eCommerce, Banking & Healthcare 2017-2022).
Implementing Personalized Pricing Strategies with Artificial Intelligence:
Artificial intelligence (AI) can be used to analyze customer data and behavior, and develop personalized pricing strategies that optimize revenue and customer satisfaction. According to a study by McKinsey & Company, personalized pricing can increase profits by 2-7% and increase customer satisfaction by up to 30%. In the B2B context, personalized pricing can be used to optimize contracts and negotiations, improve customer loyalty, and increase profitability (McKinsey & Company. (2018). Personalizing pricing for profit and customer satisfaction).
Pre-sales and discovery enhancements through digital marketing
Improving how people learn about a brand, product, or service before they buy it is called “presales and discovery.” Most companies often don’t realize the harm caused by having a bad website or only using old-fashioned ways to find customers.
The way customers shop is changing, and more and more are turning to online channels. So companies must figure out ways to attract customers to their websites and get more leads. If they do this well, they’ll perform better, as shown by a study from McKinsey. The study found that companies that have good presales practices often win 40-50% of new business and 80-90% of repeat business, which is much better than average.
An agency can provide valuable digital insights and recommendations on the latest growth marketing tactics, tools, and strategies, as well as help you stay ahead of the competition by staying up-to-date with industry trends and developments.
In summary, this article by McKinsey confirms the reasons you need a good B2B growth marketing agency, being the fact the way customers shop is changing, and more and more are turning to online channels. So companies must figure out ways to attract customers to their websites and get more leads. If they do this well, they’ll perform better.
The study found that companies that have good presales practices often win 40-50% of new business and 80-90% of repeat business, which is much better than average. They provide the support and guidance needed to develop and execute a successful GTM strategy and drive sustainable growth for your business.
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