Professional Documents
Culture Documents
Market
Strategies
BY DANIEL PEREIRA
Daniel Pereira
The Business Model
Analyst Ottawa, ON,
Canada
businessmodelanalyst.com
Sales-led GTM
Sales-led GTM is a methodology that focuses on building a
sales team that can sell the product effectively. In this
approach, the company's sales team drives the entire GTM
process. The sales team identifies target customers and
markets, develops messaging and positioning, and creates
sales collateral. The sales team then works to close deals
with customers and generate revenue.
Product-led GTM
Product-led GTM is a methodology that focuses on building a
product that can sell itself. In this approach, the company's
product drives the entire GTM process. The product team
identifies target customers and markets, develops messaging
and positioning, and creates product demos and trials. The
product team then works to drive the adoption and usage of
the product.
Product-Market Fit
A successful GTM strategy starts with a clear understanding
of the target market and the product's fit within that market.
This involves identifying the product's unique value
proposition and how it meets the needs of the target
audience. Conducting market research, analyzing customer
feedback, and gathering data on customer behavior can help
in determining product-market fit.
Target Audience
Defining the target audience is crucial in developing a GTM
strategy. This includes identifying the ideal customer profile,
understanding their needs and pain points, and creating
messaging that resonates with them. Conducting customer
interviews and surveys, and analyzing customer data can
help in defining the target audience.
Distribution
Determining the right distribution channels is important in
reaching the target audience and maximizing product sales.
This involves identifying the most effective channels for
reaching the target audience, such as online marketplaces,
social media, or retail stores. Conducting market research,
analyzing customer behavior, and evaluating the competition
can help in determining the right distribution channels.
Customer Retention
Customer retention is critical to achieving long-term success
in the market. This involves creating a customer-centric
approach, providing excellent customer service, and building
customer loyalty. Conducting customer satisfaction surveys,
analyzing customer feedback, and implementing a customer
retention strategy can help in retaining customers.
Direct Sales
Direct sales is a go-to-market strategy where the company
sells its products or services directly to the end-users without
any intermediaries. This approach is often used by
companies that offer a high-touch, high-value product or
service that requires a lot of education and support. Direct
sales teams are typically composed of sales representatives
who work directly with customers to understand their needs,
provide product demos, and close deals.
Channel Sales
Channel sales is a go-to-market strategy where the company
sells its products or services through intermediaries such as
distributors, resellers, or value-added resellers (VARs). This
approach is often used by companies that have a broad
customer base and want to reach customers in different
geographies or verticals.
Online Sales
Online sales is a go-to-market strategy where the company
sells its products or services through its website or other
online channels. This approach is often used by companies
that have a large customer base and want to reach customers
who prefer to buy online.
Partner Sales
Partner sales is a go-to-market strategy where the company
sells its products or services through strategic partnerships
with other companies. This approach is often used by
companies that want to reach customers in specific verticals
or geographies, and that have complementary products or
services.
Apple
Apple's GTM strategy focuses on creating innovative,
high-quality products with a strong emphasis on design and
user experience. They target the premium segment of the
market and maintain a consistent brand image across all their
products and services. Apple relies on a mix of direct sales
through its Apple Stores, online sales via its website, and
partnerships with retailers and carriers.
Tesla
Tesla disrupted the automotive industry with their electric
vehicles and a unique GTM strategy. They target
environmentally conscious customers seeking
high-performance vehicles. Tesla primarily sells directly to
consumers through their website and showrooms, bypassing
the traditional dealership model. Furthermore, they invest
heavily in building charging infrastructure to support their
customers and create a comprehensive ecosystem around
their products.
Dropbox
Dropbox, a cloud storage service, employed a GTM strategy
that focused on user acquisition and growth through referrals
and word of mouth. They offered a freemium model, allowing
users to access basic features for free and upgrade for
additional storage and features. Dropbox incentivized
referrals by offering free storage space to users who invited
others to join the platform, rapidly growing their user base.
Netflix's Success
Netflix is one of the most successful companies to date when
it comes to go-to-market strategies. The streaming service
started as a DVD rental company, but quickly pivoted to
online streaming when it saw the potential in the market.
Netflix's success can be attributed to its customer-centric
approach.
Pepsi's Failure
In contrast to Netflix's success, Pepsi's attempt at a
go-to-market strategy was a failure. In the 1990s, Pepsi
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launched a new product called Crystal Pepsi, which was a
clear cola. The company invested heavily in marketing and
advertising, but the product failed to resonate with
consumers.
One of the main reasons for the failure was that Pepsi did not
conduct enough market research before launching the
product. The company assumed that consumers would be
drawn to a clear cola, but it turned out that consumers were
more interested in taste and brand loyalty.
Difference between
Go-To-Market Metrics and
Go-To-Market KPIs
Go-to-market (GTM) metrics and key performance indicators
(KPIs) are both essential for evaluating the success of a
company's go-to-market strategy. However, they serve
distinct purposes and have different scopes. This article
delves into the differences between GTM metrics and GTM
KPIs, and highlights their importance in assessing the
On the other hand, GTM KPIs are specific metrics that are
directly tied to a company's strategic objectives. KPIs are
carefully selected and prioritized to align with the
organization's most critical success factors. They indicate the
progress and effectiveness of a GTM strategy by focusing on
the aspects that matter most to the business. By tracking
KPIs, companies can prioritize their efforts and resources
toward achieving their strategic goals.
Important Go-To-Market
Metrics
Here, there are some key go-to-market metrics that you
should track:
CV = APV x PF
CLTV = CV x ACL
Conversion Rate
This metric measures the percentage of visitors to your
website or landing page who take a desired action, such as
filling out a form or making a purchase. To calculate the
Conversion Rate, follow these steps:
Market Share
This metric measures the percentage of total sales in your
industry that your company is responsible for. To calculate
Market Share, follow these steps:
Churn Rate
Churn rate, also known as attrition rate, is a metric that
measures the percentage of customers who leave or stop
using a product or service over a given period. It's particularly
relevant for subscription-based businesses or any business
that relies on customer retention for success. To calculate
churn rate, follow these steps:
In this example, your churn rate for the month is 5%, meaning
that 5% of your customers left or stopped using your product
or service during that time period.
Managing Stakeholder
Expectations and Aligning
Interests
A successful GTM strategy involves managing expectations
and aligning the interests of various stakeholders, including
employees, investors, partners, and customers. Ensuring that
all stakeholders are on board with the strategy can be
challenging, especially when dealing with differing priorities,
goals, and risk tolerance levels.