Does your Go-To-Market strategy answer the 1 million €uro-question?

HomeInspirationDoes your Go-To-Market strategy answer the 1 million €uro-question?
Marketing Donegal

Whenever I talk to companies about their Go-To-Market (GTM) strategy, no matter how big they are, I find myself going back to the 1 million €uro-question. Here it is: When you eventually become a 1 million €uro company, what will your customer base look like? Will it be: Go-To-Market-Planning-Strategy-Letterkenny-Donegal

  • 1 customer paying you €1 million a year
    10 customers paying you €100,000 a year
    100 customers paying you €10,000 a year
    1,000 customers paying you €1,000 a year
    10,000 customers paying you €100 a year
    100,000 customers paying you €10 a year

It’s crucial that you place yourself somewhere on that scale (or one like it depending on your business size) and I encourage people to define their goals according to the various channels they might use to market and sell their proposition.

Whenever I ask this question, some great dialogue always follows because the answer drives a whole bunch of downstream decisions, including what type of sales force or distribution model you should be building, how much you should be spending on marketing versus sales, and whether your value proposition justifies the price points you decide upon.

So far in my career I’ve had the opportunity to answer the 1million euro question twice, with very different answers and different results. Experience has thought me that having the right channel mix and GTM strategy in place is crucial in order to achieve the right mix between revenue and base.

Always consider the bottom line. Direct sales, door-2-door representatives, may deliver you 1,000 customers paying you an average of €1,000 a year however the CPA (Cost per Acquisition) may be €210 per customer so you need to ask yourself if it is more efficient and cost effective to target 1,000 customers paying you €900 a year via your online channel at CPA of €40 if insight suggests they have a high propensity to buy online when a discount is offered? (Assumed 10% discount for buying online) Your Channel mix strategy is something which should always be considered before implementing your GTM plan and the latter example doesn’t take account of all the other costs involved in delivering your propositions (Capital Costs…) but I hope you get the point.

However, This post is not about channel optimisation but rather Go-To-Market so what exactly is Go To Market?

is EXCELLENT DELIVERY of new propositions into the hands of CUSTOMERS at PACE.

EXCELLENT DELIVERY of new propositions…

This helps build long lasting, meaningful relationships with customers.

…into the hands of CUSTOMERS…

Customers judge brands by what they see, hear and receive so the links between every part of your business must be seamless.

…at PACE

Brands should strive to beat the competition by responding faster to customer needs identified through powerful insights (See my previous post “The Power of Insight”)

In 1993, Tesco adopted the now almost-legendary ‘Every little helps’ proposition, which informed all its advertising and a shift in marketing focus from produce to customers and formed the basis of it GTM strategy

The Go to Market approach

Tesco followed a three step approach to deliver this proposition to their customers.

What needed to be done?

Each part of the business understood the importance of the proposition ‘Every Little Helps’ and their role to deliver it.

The key to this step was to understand the role the different parts of the business (Front line staffCommunications, Distribution, Base Management/Customer service and operations) had to play in the GTM plan. From the greeting that the customer received upon entering the store to the packing of bags at the check-out, it was all proactively mapped out (Customer Journey Mapping) to reaffirm the ‘Every Little Help’s’ ethos.

How did they build the plan?

The purpose of the advertising was to encourage new customers into their stores. Meanwhile, store refurbishments and improvements to services and products made sure they liked what they found.

The key to step 2 is about building your plan across the different parts of the business. Capturing the tasks and identifying the risks and not forgetting the planning around how to avoid them.

How was the plan delivered?

All staff played a vital and willing part in delivering the plan. Performance delivery had been tracked using consistent measures so Tesco know what has worked and what hasn’t.

In order to deliver the plan and Go to Market, businesses need to execute relentlessly to excite and inspire their customers to take action.

  1. Keep focused on delivering what your customers want from you which should always be informed by REAL insight.
  2. Pay attention to detail in delivery of every aspect of the Go to Market plan
  3. Start by working out the different roles that on/offline communications, customer service, base management, channels and operations have to play in delivering propositions effectively.
  4.  Review, Refresh and Refine based on evolving insight which demonstrates real customer understanding.

A strong Go to Market needs a DART to secure that WIN WIN

Distinct – The GTM plan is so distinct it stands out in the mind of the customer as being different to what the competition delivers – this is true across all channels. If your competition doesn’t facilitate a click and collect service, include it in your proposition to reaffirm that ‘Every Little Helps’ to make it easier for customers to do business with you.

Achievable – The GTM is realistic and achievable, it guides everyone to do the right thing.

Real Insight – The GTM plan LINKS to the strategy and the proposition on which it’s based.

Tough Choices – The GTM plan makes tough choices on WHO to target and HOW to target them.

Go to Market is all about customer focus and relentless execution up to the launch and beyond.

A coherent and comprehensive Go to Market approach helps us to give our customer what they want, where and when they want it.