Ten Steps to Making a Go-To-Market (GTM) Strategy

Why is a GTM Strategy Important?

A go-to-market strategy is essential because it provides a structured approach to launching a product, ensuring your teams work cohesively while targeting the right audience. Without it, companies risk wasting resources and losing customers.

Metrics that you should actually consider:

When introducing a new product, it’s essential to note that research shows most companies— about 85%, believe their Go-to-Market (GTM) strategies help them succeed, and 30% even find them extremely effective at growing revenue and meeting goals.

But here’s the problem: 73% of companies say that less than half of their customers actually adopt their new products. Why? Because their plans often aren’t detailed enough. In fact, 68% don’t prepare a proper step-by-step plan for every launch, leading to mistakes and missed opportunities.

Starbucks’ GTM Strategy in China

When Starbucks decided to enter the Chinese market in the late 1990s, it faced a unique set of challenges. Tea, not coffee, was the dominant beverage in Chinese culture, and coffee consumption was minimal. Additionally, China has a rich tea culture spanning thousands of years, making it a daunting task for Starbucks to position itself as relevant in this market.

To overcome these challenges, Starbucks developed a highly localized and thoughtful GTM strategy:

1. Market Research: Starbucks conducted extensive research to understand Chinese consumer preferences and identified metropolitan cities like Beijing and Shanghai as its initial target markets.
2. Adapting the Menu: Recognizing that many Chinese consumers found coffee too bitter, Starbucks introduced tea-based drinks and sweetened coffee beverages to cater to local tastes.
3. Creating a Premium Brand: Starbucks positioned itself as a symbol of modernity and sophistication, appealing to younger, urban professionals. It branded its stores as aspirational spaces where customers could relax and socialize, a concept relatively new to China at the time.
4. Strategic Partnerships: Starbucks partnered with local suppliers and distributors to ensure smooth operations and access to high-quality resources.
5. Localization: They incorporated elements of Chinese culture into their stores, such as Chinese-style architecture and festive promotions for local holidays like the Lunar New Year.

The results of this GTM strategy were remarkable. By the mid-2010s, China became Starbucks’ fastest-growing market, with over 4,000 stores operating across the country by 2020. This success demonstrates how a well-crafted GTM strategy can transform market challenges into growth opportunities.

The case of Starbucks is a prime example of what 62% of organizations describe as product-led GTM strategies, emphasizing the importance of tailoring product features and benefits to market needs.

 Additionally, the role of Account-Based Marketing (ABM) in modern GTM strategies cannot be overlooked. With 94.2% of organizations adopting ABM programs, it’s clear that targeted efforts, like Starbucks’ localized menu and branding, can drive substantial success.

Steps to Create a Winning GTM Strategy

1. Set Realistic Launch Goals

Why it matters: Overestimating a product’s success can lead to overspending and missed targets.

• Use data-driven sales forecasts to set achievable goals.
• Focus on steady growth rather than instant profitability.

Tip: Start with a small-scale launch to gauge demand before scaling up.

2. Define Clear Deadlines

Why it matters: Deadlines ensure teams stay aligned and meet launch milestones.

• Sync deadlines across sales, marketing, and inventory teams.
• Use project management tools to track progress.

Tip: Keep a live document that updates all stakeholders on project status.

3. Identify Your Product’s Key Value Proposition

Why it matters: A clear value proposition communicates why your product is worth buying.

• Ask: What problems does the product solve? How does it stand out from competitors?
• Tailor your messaging to highlight these unique benefits.

Tip: Use customer feedback and competitor analysis to refine your value proposition.

4. Define Your Target Customer

Why it matters: Understanding your audience helps create more effective marketing and sales strategies.

• Identify pain points, preferences, and product usage scenarios.
• Segment your audience and create detailed buyer personas.

Tip: Use data analytics to validate your assumptions about customer behavior.

5. Select Key Performance Indicators (KPIs)

Why it matters: KPIs let you measure the effectiveness of your GTM strategy.

• Choose metrics like conversion rates, customer satisfaction, or ad clicks.
• Regularly review your KPIs to adjust your strategy as needed.

Tip: Invest in sales funnel software to track performance from the start.

6. Repurpose Old GTM Strategies

Why it matters: Consistency builds brand trust and reduces the cost of creating new strategies.

• Analyze previous successful launches to identify repeatable tactics.
• Avoid dramatic changes that could confuse loyal customers.

Tip: Create a GTM template to customize for future product launches.

7. Optimize Sales Cycles and Data Collection

Why it matters: A streamlined sales cycle ensures smoother conversions.

• Update sales processes and finalize changes before launching the product.
• Collect relevant data to evaluate both the product and sales strategies.

Tip: Plan changes a year in advance to avoid overlapping with the product launch timeline.

8. Optimize Lead Funnels

Why it matters: Each product may attract a slightly different audience.

• Create a new lead funnel tailored to your product’s niche.
• Conduct market research to identify new audience segments.

Tip: Fill your lead funnel with qualified prospects before launch day.

9. Align Sales Activities with the Customer Journey

Why it matters: Personalized engagement at each stage of the journey increases conversions.

• Map out activities for awareness, discovery, evaluation, intent, purchase, and loyalty stages.
• Train sales reps to tailor their approach based on where a buyer is in the funnel.

Tip: Create a detailed playbook for sales reps to ensure consistent messaging.

10. Prepare Customer Service Teams

Why it matters: A knowledgeable support team minimizes customer frustration.

• Train the team to address potential questions or issues.
• Host product demonstrations to familiarize them with the product.

Tip: Prepare an FAQ guide to help address common customer concerns efficiently.

Conclusion

A go-to-market strategy bridges the gap between product creation and market success. It ensures your team is aligned, your resources are optimized, and your customers are engaged effectively. By following these ten steps, you can mitigate risks, maximize ROI, and position your product for long-term success.