go-to-market strategies that will not work in the post-pandemic era //
We are now recalibrating our go-to market plans to reflect what I refer to as the “next norm” for the second half 2023.
Brands began transforming GTM efforts before the pandemic. Many brands, including startups, then simply redlined their way through the crisis. According to my analysis, I found that the new GTM investments led to a drastic decline in returns. All this at record-high costs.
Then we began to see savvy startups and enterprises begin to shift gears. The shared our GTM long-term mindset, which helped them to be resilient during the pandemic. GTM efforts that were well-planned, carefully researched and tailored provided greater operational benefits.
It’s important to avoid making mistakes. Here are some strategies and tactics which were popular once in an environment with a lot of money, but no longer work or have a reduced return.
The failure of category creation
This advice, popularized by point solution evangelists with high growth rates, was the most difficult to achieve and also the most expensive. When researching the martech landscape, Scott Brinker and I found that only one out of a thousand companies had successfully created a new category.
In the ABM sector, most startups were merely repackaging or magnifying existing categories. Tens of millions in venture capital and enterprise budgets have been wasted on failed categories.
What you can do instead
You can use your best resources by focusing on the “problem identification” and identifying your addressable serviceable market. Your SAM is a segment of the total addressable markets that you can reach with your current business.
Instead of creating clever combination of terms or names, create narratives that resonate to stakeholders’ identities. Let the category grow naturally rather than trying to force it.
Marketing is often an afterthought
If you do marketing incorrectly, it can seriously damage your brand. The energy required to engage with customers decreases when a brand becomes complacent in its marketing. You can witness a decline in market share as the experiential muscles weaken.
Marketing Operations is becoming increasingly important to the capabilities of a company. When budget cuts are needed, it’s common to focus on marketing operations or marketing. Some people even assume that sales can sustain a business through tough times.
This is a high-risk strategy.
What you can do instead
Engagement with customers is key to a company’s success and resilience. You still need to stay toned even if you cannot add more marketing muscle.
Marketing budgets fluctuate. Set expectations for what you can achieve during a cutback. Consider hiring a marketing leader who is aligned with sales and setting a higher than average compensation for the long-term.
Growth hacking: All-in or nothing
Companies with a sudden influx of money rushed to hire quickly and recklessly in the name of ” Growth Hacking“. Agile practices were implemented without any thought. This wastes time, money, and development cycles.
A startup with which I worked at the beginning thought it had discovered lightning in a jar. They were thrilled with the rapid growth and stayed in their comfort zone. Unfortunately, our longer-term advice was never heeded to turn their point solution platform. When they finally did, it was already too late. Even after receiving over $100M more funding, they were never able to recover.
What you can do instead
Planning for contingencies and strategic planning are in style. After the pandemic, we saw companies recalibrating their strategies. The best advice was provided by seasoned peers or advisors from across industries. decision intelligence practices were encouraged to be used in reviewing the decisions made by employees.
Over-engineering customer experience
CX is a valuable asset for companies in terms of gaining market share, increasing margins and retaining customers. As brands hastened their digital transformations, many advisors suggested that customer engagement should be boiled to death. The result was a slew of over-engineered journey orchestrations, and automation that left frustrated customers.
I was brought in by a recently IPOed firm to solve a problem with market share. It turned out massive efforts in the area of digital transformation and CX had been largely undefined, and were disconnected from specific business objectives.
What you can do instead
This was a great attempt. The new approaches required more time for them to marinate, and especially so that the brand could understand the responses of the customers. This was not possible because of the accelerated framework.
We identified overengineered experiences with the CRO. We reactivated the customer advisory boards and monitored priority use-cases. These “innovative experiences” were tried by many loyal customers, but the implementation speed and ad-hoc, duct-taped solutions led to experience doldrums.
LTV to CAC ratio dropped while customers remained loyal. The average contract value dropped, as did the number of referrals. Rethinking rushed experiences was essential.
Third-Party Data
Third-party data, once a cheap resource for build awareness, has lost all its appeal. This is especially true as the last major web browser to track it (Chrome) will likely be deprecated soon. However, we have found that some brands seem paralyzed by the transition. These brands lacked the skills, insight, leadership or talent necessary to adapt. These brands are in a wait-and see mode.
What you can do instead
Losing third-party information can also be an opportunity to gain market share. Brands who have built real customer relationships, including by using first-party data, and gained market trust will experience minimal impact. Spend more time and money on your customer database and take a new look at contextual ads.
GTM to be shifted away from
Partnerships that are not taken seriously. Your brand is more than just a window dressing. Brand building is returning in a post pandemic world. This includes improving your ecosystem. Partners and advocates help your customers connect to your shared purpose.
Not utilizing the technology stack More is not always better. Budget cuts are forcing organizations into streamlining operations. There is no need to collect data or buy technology solutions at random.
A single North Star metric. When navigating growth, it may have appeared that one key GTM metric was justified. The pandemic has revealed that there are dozens of factors at play which can be used to gauge progress. They should also be closely monitored for sustainable growth. These key operational metrics will help you avoid blind spots and open up new opportunities.
Random sales. Before the pandemic began, sales were able to act independently. Reps tried to use whatever tactic they could in order to close the deal. Sales reps will optimize their route to conversion. Teams still require consistent guidance about pricing, tools and narratives as well as general information on products and services. Sales engagements that were inconsistent and disjointed created huge gaps in growth and opportunity. Sales is a sport that requires teamwork, both within your sales organization and with other teams.
Checking boxes is no longer a way to win. In competitive situations, feature lists pale in comparison to value creation. It is important to understand the capabilities of customers and their use cases.
The customer has the power
Leaders sacrificed GTM success in the long term for short-term gains when funding was plentiful. It was easy to repeat these playbooks as the customers were less powerful. The tables are now turned.
Even after the pandemic, market dynamics require that we continue to invest in ecosystem strategies, customer engagements of the right size, and solid partner relationships. As we navigate through the “next norm” in global markets, technology, operational efficiency, and narratives of value creation serve as growth drivers.
I have only mentioned a few of the GTM principles that are becoming less effective as we move into the post-pandemic age. What other GTM concepts do you ignore or navigate around? Tell us.
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