Your SaaS product can be exceptional with appealing features. But it may still fail to be a hit in the market if the Go-To-Market (GTM) strategy is not right. GTM strategies are comprehensive plans outlining product launch steps. There are several common GTM strategy mistakes that SaaS businesses often make. These missteps affect the momentum of their product.
A GTM strategy is an extensive plan outlining the approach to introduce a new offering to the market. It is also concerned with reaching the target customers with the new service or product. For SaaS businesses, GTM strategy serves as a roadmap. So, a strong B2B SaaS GTM strategy is particularly critical for start-ups in their early stage.
A GTM strategy will outline the steps required for successfully launching your SaaS product. So, it includes everything from target market identification to distribution channel setup.
It also involves defining SaaS sales and marketing strategies:
1. Failing To Define A Clear ICP (Ideal Customer Profile)
Companies often fail to clearly define their ideal customer profile.
What is the Problem?
SaaS start-ups often make the mistake of trying to create a solution to everything for everyone. When this is done, particularly in the early years, broader customers are targeted. The companies lack focus. They find it a challenge to craft content for targeted messaging. Moreover, doing so leads to dependence on assumptions for understanding customer preferences.
What is the Solution?
You need to define who your ideal customers are. Identify the firmographic or demographics. Understand the pain point and buying behaviours. Run interviews and collect feedback from ideal customers. Segment your customers and validate your assumptions using real-world data.
2. Launching Without Product-Market Fit
Many companies are launching solutions without adequately considering market fit.
What is the Problem?
Many SaaS companies launch their products prematurely. However, early engagement and initial positive reviews do not indicate a Product-Market Fit (PMF). But PMF is essential for long-term success. The start-ups also often fail to use metrics to understand PMF. Moreover, they mistake the traction from their Minimum Viable Product (MVP) as validation.
What is the Solution?
Don’t rush your product to the market without studying the problem-solution fit clearly. A good B2B SaaS GTM strategy should be founded on a clear PMF. A general rule for PMF is that around 40% of customers should express extreme disappointment if they cannot use your products anymore.
Use metrics like churn rate and Net Promoter Score (NPS) to understand PMF. Finally, use MVP to test, capture data, learn, and improve. Use feedback to improve products in an iterative way.
3. Weak Positioning & Messaging
Companies are failing to create strong product positioning and marketing messages.
What is the Problem?
SaaS start-ups often use language that the target audience cannot resonate with. They may also be focusing on technical features too much. Weak positioning and messaging also make it challenging for the start-ups to stand out from competitors.
What is the Solution?
Highlight product benefits in simple terms to make an impact. Position your products based on the clear advantages and outcomes of the features. Don’t just highlight the features in technical terms and expect that to be appealing.
It is also important for companies to create useful differentiation and highlight the value proposition. Give your customers enough reasons to consider your solution.
4. Ignoring The Sales-Marketing Alignment
Companies are not ensuring that their sales and marketing functions are aligned.
What is the Problem?
Failing to align sales and marketing functions is another mistake that SaaS companies make. This results in a disconnected funnel, where marketing channels and activities run in isolation. It further results in inconsistencies in customer experience. Organisations enjoy over 35% higher sales win rates if sales and marketing are aligned.
For example, if marketing and sales teams work independently, there can be different target audiences, messaging, or lead qualification criteria. This is why you will find that a renowned B2B lead gen agency has its sales and marketing functions aligned.
What is the Solution?
To reduce confusion for customers, consistent messages must be used across all channels. Shared goals and performance indicators must be established. Integrated workflows must also be developed. This will ensure that leads can be seamlessly transitioned from marketing to sales.
5. Poor Channel Strategy
Companies often choose the wrong channels or fail to identify the right ones.
What is the Problem?
SaaS companies often make the mistake of relying too much on a single acquisition channel. For example, they may only focus on paid ads while ignoring the unpaid channels. This can limit scalability. It can also increase the risk of failed reach and conversion.
Choosing the wrong channels is another common mistake that SaaS companies make. For example, you may want to target enterprises instead of individual developers.
What is the Solution?
Diversifying B2B SaaS GTM strategy with multiple channels can increase resilience against shifts in the market. Choosing the right channel can also determine reach and conversion. You must experiment with different channels. Focus on the ones that drive the most conversions.
6. Mispricing Or Overcomplicating The Pricing Model
Many companies are not using data and analytics to inform their pricing plans.
What is the Problem?
SaaS businesses often price their solutions either too high or too low. Excessively complex pricing tiers can lead to confusing feature limitations. Customers may find it overwhelming, leading to hesitation to adopt your solution. More than 70% SaaS companies reported not utilising data and analytics enough for product pricing.
What is the Solution?
An improvement of 1% in SaaS pricing can result in over 12% more profit. So, use market feedback when deciding the pricing structure. Consider value-based pricing for your B2B SaaS GTM strategy. Also, conduct A/B testing for different price tires. Refine the price of plans based on the collected data.
7. Treating GTM As A One-Time Event
Companies often fail to consider making ongoing improvements to their GTM strategy.
What is the Problem?
Treating GMT as a one-time event is another misstep that SaaS start-ups take. A static GTM does not help businesses adapt to the changing conditions in the market. They miss growth opportunities by not considering new customer feedback and competitor actions in their strategy.
What is the Solution?
Launching a solution is the initial step. It should be followed by continuous monitoring and analysis. Adjustments must be continuously made. Your B2B SaaS GTM strategy should be continuously optimised. It should be treated as an evolving process rather than a static plan. You should continuously refine your strategy based on feedback and real-world results.
To Reiterate…
Even the best SaaS solutions may fail to succeed in the market if the GTM strategy is weak. So, it is important for SaaS start-ups to avoid the common mistakes. Make sure you define your ideal customer profiles clearly and accurately.
Create differentiated features and highlight them as a value proposition. Appropriately choose marketing and sales channels to do so. And also ensure that the sales and marketing functions in your company are aligned. Finally, make sure you are continuously improving your strategy.
Ready for a B2B SaaS GTM strategy?
Crafting the ideal GTM strategy for your SaaS business can be confusing, especially if you run a startup. Reach out to a B2B lead gen agency for consultation and assistance.
