It’s 2020, and you are just launching your annual go-to-market strategy. You are feeling good about your plan. You have solid teams around each initiative and feel confident that the timeframes are achievable. You made some big bets, and you are not concerned about missing the mark. You are set up for success—or are you?
Did you plan for the “what if’s?” You may have too many projects being managed by various stakeholders. Develop growth strategies that are focused on both organic and inorganic growth and ensure you are pulling the right organic growth strategy lever for the market today and for the next 11 months. If you have not yet read SBIs annual research on how the Top 16% grow faster than their peers, download it here and begin defining your big bets to drive your initiatives.
Start your revenue growth program by downloading SBIs Go-To-Market Interlock Tool and align executives towards common outcomes.
Market-leading CEO’s continually evaluate their growth levers and have a plan when market conditions change.
Did You Make Big Bets for 2020?
Your plan should include a big bet for expanding your current offering into new markets and taking market share, and therefore revenue, away from your competitors. Additionally, develop a multi-year plan that includes a roadmap with two to three initiatives per year that your 2020 plan can pursue and break them into quarterly objectives.
Fast-growth CEO’s have developed their multi-year strategic objectives by looking beyond ROI. Leaders realistically evaluate the level of effort and time to realization. These CEOs ultimately focused on and made conscious decisions on their “Big Bets.”
Here is an example of annual big bets (green), aligning to strategic initiatives, focusing on achievability and time.
Market-leading CEO’s look at a multi-year roadmap and select two to three initiatives per year. The graphic below shows how these strategic initiatives are broken down into quarterly objectives.
Big Bet: Market Expansion or Market Share Gain?
Market Expansion as a Go-To-Market Strategy
Fast-growth CEOs have execution plans for growing new revenue in a growing market. Their go-to-market strategies define an execution plan for extending their products or services towards new customer acquisition and sales channels.
A key to driving expansion is understanding current market conditions. If market conditions are strong, CEOs place their business in growth areas. Some factors that are critical for market expansion initiatives:
- Strong current rate of growth
- Competitor growth rate
- Historical growth rates
- Forecast growth for your market
- Whitespace in your existing client base
- Ability for your internal teams to support expansion efforts, i.e., Sales, Marketing, Customer Success, etc.
If you have a strategic objective of Market Expansion, set yourself up for success. Ensure that you have quarterly objectives that define the path to capture this new revenue. GTM critical plays to drive new revenue in expanding markets include:
- Detailed Propensity to Buy Analysis to activate your team around
- Targeted Marketing campaigns
- Adding/increasing distribution channels
- Improving product quality, communicating stronger standards
- Reducing variable costs
- Make purchasing easier
- Developing strategic alliances
It is important to note that in a recession, the market expansion lever is not a viable option. When growth is flat or declining, you will need to pull another growth lever. Market share gain is one of those levers that you can pull.
Market expansion is a lost growth lever in a recession. Most companies will experience flat or declining revenue during a recession.
Market Share Gain as a Go-To-Market Strategy
If your go-to-market strategy includes market share gain, you are looking to win customers from your competitors. Capturing revenue that is currently going to your competition is an offensive play. Protecting your revenue from the competition is a defensive play. How are you planning on driving those customers to you rather than your competition? Your quarterly objectives should clearly define how your team plans on achieving incremental market share.
Fast-growth CEOs step-back and look at their company objectively, knowing where they stand in their marketplace. They look at growing market share in a variety of ways.
- Grow upmarket (e.g., SMB to mid-market)
- Relevance through innovation
- Customer engagement, let your loyal customers be your ambassadors
- Develop unique brand positioning (i.e., don’t “follow the leader”)
- Acquire your competition
- Enable and incent your partner channel
How do you know if your team has the right initiatives in place to secure more share? They should be able to provide answers to the following questions:
- What is the market saying? What listening strategies have they put into place?
- Are they taking an outward in approach (i.e., stop reading your own press releases and listen to the customer)
- What have they learned from current customers that you should continue to do well?
- What have they learned from lost or at-risk customers? How are they activating against this information?
- What is your partner channel seeing and hearing? What opportunities are they seeing? Where do they see you succeeding, and how?
The benefit of a market share gain strategy is that it can be executed in any market condition. Whether the market is growing, stagnant, or declining, growth CEOs can drive incremental or transformative strategies.
Market share growth is a growth lever that can be pulled in any marketplace condition. It is, however, a lever that growth-CEOs activate last in healthy economic times.
If you have a multi-year strategy in place that focuses on two to three annual initiatives, you’re on track. If these initiatives are broken down into quarterly objectives, you have a path. Making sure that your organization is focused on the short-term and long-term strategic goals is critical. Listening and watching to market conditions is equally as important. Knowing when to pivot when execution is at risk and deploy “Plan B” is essential.
Download the GTM Interlock Tool to surface bottlenecks that impede execution and align executives.
How Else Can SBI Help?
SBI conducts in-depth market research and partners with business leaders to develop strategies that enhance performance and drive results. Through evidence-based agile methods, we create actionable procedures that, once embraced and adopted, make your business better. We tailor our benchmarking methods to each client, so they achieve increased revenue growth and lasting success.