In it to win it!
Critical choices that could make or break your B2B business
The go-to-market strategy for a new product is as important as the product itself. Without a winning strategy, your product may never get into the hands of your target customer, no matter how ground-breaking it may be. That’s why it’s critical that business-to-business (B2B) companies define and develop a go-to-market strategy at the same time that they are developing their product.
Your formula for success
The first crucial step is to develop the right formula to create, promote, and sell your products and services and grow your brand. Every successful go-to-market strategy consists of the following key elements that, when mixed properly, will maximize results: (i) your selection of products and services; (ii) your target market; (iii) the channels in which you decide to operate; and (iv) the degree to which you are able to successfully craft and communicate your unique value proposition. You should not focus on any one of these elements at the expense of the others. For your organization to meet or exceed its defined success criteria, all four of these elements must be carefully aligned and supported by a firm commitment to allocate the necessary resources to support your strategy. Successful organizations devote significant time, effort, and financial resources to properly create, support, and assess their go-to-market strategies. Effective strategies are therefore the result of critical choices made by leaders.
The value of your value proposition
In order to entice customers and convince them to purchase your products and services, you need to offer a unique and compelling value proposition, and you need to properly convey that value proposition at every step of the customer journey. Buyers are looking for a clear upside in order to make the decision to purchase, and most of the time this decision is not based on price alone. Many customers in the B2B space want proof that your products and services are the real deal before committing to purchase. Ultimately, they are looking for positive outcomes that enable them to drive greater operational efficiency, savings, and growth. Your offerings must address these needs and you must be able to communicate this effectively.
Define your target
B2B companies will find themselves weighing two key go-to-market target alternatives in their effort to drive growth and bolster their strategic position in the market. On the one hand, they can choose to target one or two large prospects with the hope of making a giant leap forward. Alternatively, they can focus on a broader selection of small- or medium-sized prospects with the goal of generating multiple wins designed to drive upward momentum. Which of these is the preferred strategy for your organization? To answer this question, you and your key decision-makers will need to develop a profound understanding of both your success criteria and the limited resources available to you. In determining the right path forward for your business, you will need to balance your taste for the big win with your appetite for the risks involved.
Going for the big win
You may conclude that the best path to grow your business is the fastest path. It may be tempting to go after the acquisition of a large, well-known target with the hope of winning the war in one decisive move. Call it “going for the big win”. The thinking behind this strategy is that companies highly admired by others will ease the promotion of your products and services and translate into faster sales. While the benefits of this approach may prove to be substantial, the associated risks (namely of failing to acquire the large customer) can be enormous. You may be betting everything on one roll of the dice. By choosing to target one large customer that can provide a substantial revenue boost in short order, your path to revenue growth may turn treacherous if the target takes much longer than anticipated to make the decision to purchase. Your organization must define its true appetite for the potential scenario where the buyer’s purchasing cycle keeps lengthening. As months pass and your investment in the customer relationship deepens without return, your organization will begin to question whether it makes sense to continue, spending good money after bad, or to pivot. This may turn out to be an expensive lesson that could have significant long-term implications on your organization’s health and growth.
Focusing on small wins
Another alternative to consider is acquiring clients that are smaller and less known in the marketplace but far more likely to be nimble in their purchasing and more open to being an early adopter. This “focus on small wins” strategy is often less risky, generates greater sales momentum over a shorter period of time, and has more sustainability over the long term. In addition, it will enable your organization to build a solid base of customers from which to grow into the top segment of the market. Turning a set of small- or medium- sized players into key customers and brand ambassadors for your business can have a profound impact in building success and enable your organization to “go for the big win” when the timing is right.
Make the right choice for your organization
Many factors will influence the choices your organization makes to select the right go-to-market strategy to pursue. How well you’re known in the marketplace, your overall financial position, your appetite for risk, and general market conditions are all critical factors that must be considered. The choices you make when determining your strategy need to be based on careful consideration of all relevant factors and, most critically, the balancing of unlimited aspirations with limited resources. Before launching your marketing campaigns and engaging with potential buyers, take the time to analyze all relevant factors. This will increase the likelihood of success and reduce the possibility of your spend overtaking your returns. While there’s no ideal, one-size-fits-all strategy for companies to go to market, investing the time and effort upfront to define the right strategy for your organization will pay dividends.