Having a solid product and a talented team without a sound go-to-market strategy is a one-way ticket to failure. Consider this: according to research by CB Insights, a lack of understanding of the market’s needs is one of the top reasons startups reach a dead end. Even the most groundbreaking ideas can fail to work in unfamiliar territory. But why exactly is a go-to-market strategy so crucial?
In this article, as the Chief Marketing Officer of Educate Online, I'll talk about the frequently overlooked challenges when designing ago-to-market strategy for uncharted markets. You will find practical solutions to address these obstacles head-on through basic steps.
A Real-Life Example
Looking at the Educate Online GTM strategy results, we come across strong numbers:
However, upon entering India as a target market, we faced challenges that greatly impacted our growth and revenue. We kick-started our GTM cycle and, soon enough, had to take a hard look at what really drives our business's success versus what's just nice to have.
Let's explore our challenges and the reasons why restructuring and optimizing GTM strategy is the key to remarkable success.
7 Key Steps to a Dream Outcome
CHALLENGE 1: Building a business in a new industry on uncharted territory
One major mistake is to fail to prioritize local expertise. In our case, it led to a lack of understanding of the target market.
Solution: Getting a team of local experts
We recognized the power of people and sought experts from the EdTech startup industry who shared our passion and vision, leveraging their valuable expertise to propel us forward. We based our choice on expertise and partnership with the top local marketers.
Highly talented professionals are often already employed in companies with attractive perks. We enhanced our hiring process by implementing a multi-stage funnel, maintaining constant communication with candidates, and fostering strong relationships.
Result: You attract top-notch talents with the help of proper analysis and strategic hiring.
CHALLENGE 2: Rational assessment of product-market fit value
We entered the market with an aggressive marketing approach, neglecting the essential process of building brand awareness and trust with our target audience, pinning our hopes on our product-market fit strategy.
Solution: Prioritizing brand awareness and credibility
Customers often rely on search engines to evaluate a company before making a purchase, which makes a strong brand presence essential for growth. We chose to consult opinion leaders who already had a reputation for selling their products at co-events and worked on establishing credibility, which turned out to be essential for our successful integration.
Result: You gain the trust of your potential customers.
CHALLENGE 3: Bridging the gap between working teams
The lack of smooth teamwork between our international and local subordinates led to inconsistent processes and failing approaches to task execution.
Solution: Aligning international and local teams
To foster effective collaboration in our teams, we used OKR (Objectives and Key Results) – a valuable tool that helped us track progress and align it with our plans. We ensured everyone was working towards the same goals and understood their work's direct influence on our company's success.
Result: Your entire team is directed towards the right goals.
CHALLENGE 4: Navigating the competitive landscape
We faced fierce competition with well-established major players when entering the market, which soon extended beyond traditional means. Every alternative solution, from self-education facilitated by parents to IB schools, posed a potential challenge for us as overseas high school education providers.
Solution: Focusing on your USP
Startups often try to address all of their users' problems at once. On the other hand, identifying one area where you could outperform your competitors and focusing on excelling in it could bring you much more profit. In our business, we developed a clear product strategy, conducted trade USP, collected customer feedback, and emphasized distribution and experimentation.
Result: You know your competitive advantage.
CHALLENGE 5: Chaotic product development process
At first, we relied heavily on the expertise of Indian and international market professionals and our current clients, assuming their opinions would guide us in the right direction. Soon, we realized that without allocating sufficient resources to the product development goals, we could not shape the product ourselves, as no one else could do it for us.
Solution: Strong leadership
Your business success relies on the effective coordination of product marketing, brand, content, and growth marketing, and it was the growth marketing engine that drove success for Educate Online.
Result: Your business is based on a solid foundation.
CHALLENGE 6: Implementing Customer Acquisition Cost Wisely
Initially, our focus was on short-term profits and the immediate economic landscape. Yet, we discovered that relying solely on Customer Acquisition Cost (CAC) as a performance metric was ineffective.
Solution: Using the power of the payback period
If it takes you three years to recover a mere $100 spent on customer acquisition, it signifies a dreaded funnel demanding an immediate halt to spending. However, if you invest $10,000 to acquire a customer and can recoup that investment within a month, this loop warrants further investment.
Result: You accelerate your growth through better business decisions
CHALLENGE 7: Experimenting
Innovation demands experimentation for learning and growth, including valuing failure and its insights. The consequences of investing time and money into a single hypothesis didn’t lead us to achieve the desired breakthrough.
Solution: Investing in multiple hypotheses
We created a growth system that was predictable, sustainable, and could withstand competition. The main goal of the team growth was to understand and address any gaps between how customers perceive the product and the actual product experience.
Result: You are aware of your strategy's gaps and strong points.
All in all, despite all the challenges, we succeeded by following all seven steps. Follow these guidelines, build your brand, deepen your understanding of the desired market, and let your own journey strengthen your business.