How to build a winning go-to-market strategy [including template]

Every company looking to attract users or customers needs a go-to-market strategy. Explore how to create yours and what good looks like.

What is a go-to-market (G2M) strategy?

A go-to-market strategy is a plan for how to launch a new product or service in-market or launch an existing product in a new market. As such, go-to-market strategies tend to focus on the short-term, but effective ones will also consider how any immediate success can be sustained over a longer period.

There is no standard format for a go-to-market strategy. Different companies will need to consider and prioritize different elements, depending on their maturity, their existing presence in the market, their business model, how they are organized and financed, and any exit plans they may have.

Who needs a go-to-market strategy, and when?

Any project that aims to attract new customers needs a go-to-market strategy. Some of the obvious scenarios include:

• A startup launching their first product
• An established company launching a new offering
• The relaunch of a product that has been innovated to attract new users
• Building on the early success of a product with a stronger growth trajectory

Even companies and products that consider themselves settled can benefit from regular go-to-market strategy reviews, as a way to be aware and prepare for new competition and other market forces. So should your business have one? Absolutely.

How does a go-to-market strategy deliver growth?

It is possible to succeed without a go-to-market strategy, but for that to happen you need a once-in-a-generation product or a huge amount of luck. A good go-to-market strategy is designed to mitigate risk and maximize return on investment (ROI) by gathering knowledge before the event and using those insights to make the most effective action.

The three pillars of growth

• Product strategy - explains the value the product brings and to whom.
• Go-to-market strategy - finds and persuades the people most likely to benefit.
• Revenue operations strategy - defines the processes and tools needed to commercialize the product.

What types of go-to-market strategy are there?

How you approach your go-to-market strategy depends on what will be driving your growth. In simple terms, there are two options: growth that is product-led; and growth that is sales-led.

A product-led go-to-market strategy

A product-led go-to-market strategy puts the product at the heart of growth. The product is not only a solution to a business problem but also serves as a silent salesperson by letting customers buy, renew and upgrade all without leaving the product.

A sales-led go-to-market strategy

A sales-led go-to-market strategy sees sales initiated and closed by a salesperson. Though the product will be a key part of any sales conversation, the sale itself takes place away from the platform.

How to build your go-to-market strategy

Whether you’re launching a new startup or a new product, a good go-to-market strategy includes certain core elements. Here we look at four of the main components you should consider when creating a go-to-market strategy.

1. Target market: Who is going to benefit most from what we offer, where are they (geographically and in terms of sector), what else can we find out about what they have in common?
2. Product market fit: What are the specific pains that we are helping to overcome, how do we communicate that in a way that resonates?
3. Pricing strategy: How much money is someone likely to pay for what we do (if at all), how does that mentality change if we offer more capabilities?
4. Distribution and adoption plan: What channels and formats are the best to reach our target customers, what support do they need to maximize their investment with us?

1. Define the target market

Markets can be defined in different ways, such as a specific sector, a profession, a demographic, or a physical place. Key is to build personas for every possible target that helps move the strategy toward reality.

2. Make your product fit your market

This involves explaining how to communicate the benefits of the product to each market being targeted. Value propositions should be created for each group.

3. Set the right prices and packages

Understanding pricing is crucial, including how much customers are willing to pay and their preferred payment methods.

4. Reach (and keep) customers

This part of the strategy should take the prospect journey through sales closure, adoption, and future upgrades. A well-designed onboarding and support system is important to sustain growth.

How to measure the success of your go-to-market strategy

To do this, it must include meaningful and measurable KPIs that track both short-term and long-term sustainable growth indicators. Many go-to-market strategies will visualize progress in terms of a funnel, measuring success at each step of the acquisition journey.

Examples of KPIs:

• Operational: Visits, click-throughs, touchpoints.
• Financial: Cost-per-acquisition, average revenue-per-customer, cash burn rate.
• Subscriptions: Churn, average and recurring revenue.
• Brand: Customer review scores, brand tracker surveys, share of conversation.

Three real-life examples of go-to-market strategies

Kaleido

Launched a tool to automatically remove backgrounds from images called remove.bg, capturing media attention and millions of users with a subscription model.

Mailchimp

Initially targeted small businesses with a free service, creating buzz through SEO, PR, and word-of-mouth marketing.

Acorio

Used research and content creation to reinforce its market position and effectively communicate with key decision-makers.

Ready to build a killer go-to-market strategy? Check out the Paddle go-to-market strategy template and get started on yours today.