In the business world, any movement is relevant, and the launch of a product is no exception.. A good one go-to-market (GTM) strategy increases the chances of a successful presentation to the market and establishes the foundations for continuous and sustainable business growth.
In fact, launching a new product or service requires a lot of effort, for several reasons. Tight deadlines, fierce competition and limited resources There are complexities involved in this process.
Market entry addresses these issues and requires a structured script that guides the launch and revitalization of an existing brand.
To define the best GTM strategies, it is essential tosiderconsider factors such as the target market, the value proposition of the product/service and the customer journey, thus ensuring an approach aligned with the company's objectives.
In the context of SaaS companies, this dynamic presents extra challenges due to the peculiarities of this business model. One of the main ones is keep the product updated and, in parallel, meet customer expectations.
In SaaS, you have to deal with a customer base that probably already uses a solution. Therefore, it is crucial that the GTM strategy emphasizes improvements and innovations of this service to the detriment of other options.
The market is growing, but some companies are falling behind
The digital advertising and marketing industry is growing by leaps and bounds, with projections of a almost 1 trillion dollars by 2027.
When we talk about the software as a service market, we have an even more impactful fact: according to the Gitnux Marketdata Report 2024, 99% of global companies use one or more SaaS solutions.
Software vendors and businesses in general are eager for a slice of that pie, but the reality is that the vast majority of them don't survive — according to data from Investopedia, 90% of new businesses do not prosper. Why? Often, one of the problems lies in the approach: focusing only on product development and forgetting about the market entry strategy.
This statistic points to the pressing need for a solid go-to-market strategy, which goes far beyond a conventional marketing plan.
The true essence of a go-to-market strategy lies in its ability to go beyond a launch of a product or service. The secret is to outline the steps for its effective adoption by the target market. This includes everything from identifying the most effective communication channels to defining a coherent and persuasive marketing message.
In SaaS, we go a little further: identify and communicate clearly and assertively how your product solves a problem is difference for the conversion.
In fact, companies that have a well-defined launch process are more likely to achieve success, according to data from State of go-to-market 2023. According to the report, they have, on average, 10% higher success rates.
Revenue from these businesses also tends to be three times higher compared to companies without defined launch processes.
By focusing efforts exclusively on developing the next product, companies risk losing sight of the critical importance of how it will actually be adopted by customers.
A well-designed go-to-market strategy is not just restricted to tangible aspects, such as communication channels and strategies. It also covers intangible items, such as precise market segmentation, strategic brand positioning and competitive differentiation.
Value needs to be created – but how?
Placing a new product or service on the market is no easy task. To ensure success, you need a solid, effective plan. But how do you build a GTM strategy that really works?
Well, avoid the trap of false hope! In other words, don’t assume that your product will be an instant success. Set realistic sales goals based on solid forecasts,siderbear the costs of marketing, sales and development. It's better to be positively surprised than to be deeply disappointed.
Another important point is, before launching your product, be clear about what it offers that is unique and valuable to the market. Answer questions like: Why are you being released? What problem does it solve? What value does it add to the customer?
To achieve this, it is essential to know your audience for the success of GTM. Understand your ideal customer’s pain points, needs, and behavior. This will enable your actions and messages to be effective.
Remember that each new product can attract a different audience, requiring adjustments to your sales funnels. Take time to research the market, create new marketing strategies, and optimize the conversion process to maximize results.
In the SaaS market, these strategies must be even more precise and aligned with the specificities of this model. For this, it is important tosiderair:
- TAM (total addressable market): demand for your product or service;
- SAM (specific addressable market): focus on the part of the market that you can reasonably reach;
- SOM (specific market available): represents the market segment you can serve immediately, based on your current resources.
Also don’t forget that sales activities must accompany the customer on their journey. Deliver the right message at the right time, from awareness to loyalty. Adapt your strategies according to the stage of the purchasing journey each customer is in.
Finally, finalize all changes and optimizations in your sales cycle before launching the product. This will ensure a fluid and efficient process, avoiding bottlenecks during launch.
To create value with go-to-market strategies, here at Softplan our starting point is a framework based on Gartner GTM Matrix – tool for directing product launch strategy.
Measure to manage
After the launch itself, measuring the results of go-to-market strategies is essential to understand the impact of your actions and adjust the course as necessary. There are smart ways to carry out this assessment.
Before you go deeper into the data, It's crucial to have a clear vision of what you want to achieve with your go-to-market strategy. To do this, set smart goals (SMART) — specific, measurable, achievable, relevant and limited in time.
Raise awareness, generate leads, convert sales, increase revenue, reduce churn or improve customer retention: these objectives must be aligned with the needs of your market and the overall objectives of your business.
After this, select relevant metrics and key performance indicators (KPIs) to measure campaign progress.
As metrics they are individual measures of aspects of your go-to-market activities and provide raw data about what is happening. Website traffic, email open rates and social media engagement are some of them.
Moreover, KPIs combine metrics to assess progress toward a company's strategic goals. They tell you if you are on the right path to achieving what you want. Examples include cost per customer acquisition, conversion rate from leads to actual customers, and customer satisfaction after purchase.
Use marketing automation and CRM tools to collect and analyze your go-to-market data. That will help you understand how your strategy is performing and identify areas for improvement.
Segment and filter your data by different criteria such as product, market or channel to gain deeper insights and identify patterns.
Based on data analysis, optimize your strategy and use the insights you gain to adjust your tactics, add or remove features, expand your market reach, or experiment with new channels.
Monitor the impact of these changes on your metrics and KPIs and repeat the optimization process as needed to ensure consistent, positive results.
Entering a competitive market and conquering your space requires more than just a good product. A well-structured go-to-market strategy is fundamental to the success of your business.
This article has covered the essentials for building a solid foundation for your planning, but this is just the beginning. To delve deeper into the GTM universe and learn from practical cases, an essential reading tip is the e-book “Growth and go-to-market strategies for B2B SaaS". In it, you will find lessons from the MultiSaaS ecosystem of Softplan to scale your company!