What are the common reasons of GTM strategy failure, how to spot the symptoms and what you can do about them?
With regard to GTM strategy many companies experience difficulties, sometimes spectacular failures that can stall or even derail market entry efforts. Understanding why these strategies don’t work, recognising the symptoms of a failing Go to Market (GTM) strategy, and knowing how to adjust, pivot or exit are essential for turning potential setbacks into profitable paths forward.
First you need a market strategy, then you need a GTM strategy. You only need a GTM Strategy if you’re actually going to market with something new, or you’re entering a new market, otherwise you’re probably ‘in-market’, and you need a Market Strategy. So, either way, you need a Market strategy and that’s often the first point of failure – no Market strategy.
Reasons for failure
No strategy at all
The first and perhaps most significant challenge is failure to realise that you don’t actually need a GTM strategy at all, you’re already in-market and you need a market strategy. The second point of failure is that those businesses that actually do need a GTM strategy, don’t have a GTM strategy. They have a plan, a series of tactical actions embedded in a marketing execution process, but not a GTM strategy. The third is the mistaken belief that GTM is all about ‘channels to market and communication’, it’s not.
What’s often missing from strategic perspective is they haven’t thought through their ‘big ideas’, and the scenarios that affect market identification, prioritisation, alignment, opportunity management, offer configuration and pricing. They may have thought about tactical entry, initial positioning, and growth, but they don’t know how (strategically or operationally), they will deal with the challenges different market scenarios might present and what their decision-making principles are. That is the way they will deal with volatility, change and complexity. They may not be crystal clear about why the first cohort of prospects will buy from them rather than any other alternative available, the lead times, lag times and current pre-disposition of those customers and subsequent cohorts.
Misunderstanding the Market
A fundamental flaw in many GTM strategies is a lack of deep, nuanced understanding of the market. Companies often rely on superficial market research or outdated data, leading to a misalignment between what the market needs and what the company delivers. Poor analysis, misinterpretation and underestimation of the challenges around market trends, localisation, regulation, customer and competitor insight is often a source poor strategic decision-making. They don’t test emergent trends, uncertainty, and many key assumptions, preferring to operate on ‘gut feel and intuition’. These disconnects can result in poor propositions, branding, communication, positioning and adoption, and disappointing sales performance.
It’s shocking how many businesses don’t talk to customers about their expectations and needs regarding GTM, many businesses think GTM is all about product, inbound, outbound, partners and channels…the product and the comms, the execution, the how – it’s not…
No effective opportunity management
Qualifying and quantifying market opportunities is an essential part of market strategy. It’s critical in prioritising resource, focusing on winnable opportunities. However, it’s often overlooked as a commercial discipline in the rush to get to market. The reality is that if available market opportunities are not properly managed costs can quickly escalate, other emergent, better opportunities are missed. It’s important to continuously monitor a portfolio of opportunities, to balance risk, costs and returns so that the business has perspective across available opportunities and can pivot if necessary.
Undefined Customer Journeys
Failure to clearly define and understand customers and what they are really trying to do can lead to ineffective marketing and sales tactics. Without knowing who the real customers are, their context, journey, characteristics, their decision-making, available choices and behaviours, businesses cannot tailor their offers, propositions or messaging effectively, resulting in weak market penetration, low and potentially costly acquisition and poor conversion rates.
By customer journeys and characteristics, we are not talking here about generalised sales funnel stages and personas, there needs to be far more detailed and nuanced insight than that. We’re talking about understanding customers goals and ambitions, their needs, what influences their decision-making and behaviour and their potential, proclivity, propensity or pre-disposition to offers from the business that clearly overcome their challenges or realise their opportunities.
Inadequate Distinctiveness – No Differential Advantage
In any market, but especially crowded markets, distinctiveness is key to visibility and success. A GTM strategy that fails to stand out or does not convincingly communicate the proposition, offer, product or services quantified differential advantage for customers will likely struggle against established competitors. Established incumbents, especially larger ones have significant market presence, visibility, reach and brand advantage. Any GTM strategy needs to know how to combat this. Many don’t.
Poor pricing policy
Unfortunately, pricing tends to be an afterthought in GTM. Very often there’s simply not enough early focus on GTM pricing, strategies and tactics to adjust pricing ‘in-market’ aren’t thought through, discounts aren’t managed, and margin is lost. It’s not just a case of setting an entry price based on some cost-plus calculation, it’s creating and implementing pricing policy that helps sell at the right price to the right customers. It’s about using the tools and techniques of pricing policy to grow market share and margin.
Why is pricing policy an afterthought, nothing more than a cost-plus calculation? Much of the answer probably lies in poor understanding of market opportunities and the alignment of propositions, offers and customers willingness to pay.
Poorly Aligned Offers and Operations
Successful GTM execution requires seamless integration of all offers, products, and services relevant to the market. Misalignment confuses customers, makes the product and service portfolio hard to understand. There also has to be alignment across all go to market capabilities, including strategy, marketing, sales, product development, and customer support. Lack of coordination and communication of offers and operations can lead to mixed messages, unmet customer expectations, and operational inefficiencies that prevent effective market entry and growth.
Unrealistic Goals and Expectations
Setting overly optimistic or unachievable goals can demoralise teams and create a sense of failure even if reasonable progress is made. Realistic, clearly defined goals aligned with thorough market analysis are crucial for sustaining momentum and achieving long-term success.
Recognising Signs of Failure
Sensing negativity and discontent
An early sign that things are not going well is negative customer sentiment. That’s why it’s so important to embed customer support and feedback in any GTM motion. This isn’t just about passive acceptance of feedback, it means listening to learn, engaging customers to understand how they feel, use cases, unmet needs, and challenges they have with the offer and product and their journey more generally.
Poor Momentum and Greater Inertia, lead and lag
Perhaps a few of the most difficult things to judge are time, inertia and momentum. Unexpectedly long timelines to gain market traction, or higher than expected inertia are potential signals the GTM strategy is failing. So too, is ‘quitting too early’, misinterpretation of inertia. While a potential signal of success may be increasing momentum, (revenue and sales volume), momentum needs to be sustained to be significant.
Sales Plateau or Decline
One of the clearest indicators that a GTM strategy is failing is when sales begin to plateau or decline shortly after launch, despite significant investment in marketing and sales efforts.
Low Customer Engagement
Poor customer engagement across marketing channels, including low brand awareness, lack of recognition, low click-through rates, poor email engagement, and lacklustre social media interaction, can signal ineffective communication and misalignment with customer interests.
Negative Market Feedback
Receiving predominantly neutral or negative feedback or observing increasing or high churn rates shortly after acquisition are strong indicators that the product or its marketing does not meet customer expectations or needs or that the wrong customers are currently being targeted.
Misaligned or Ineffective Channels
Channel friction, distribution and delivery delays inefficiency or misalignment of brand values between the business and third-party channel partners can have a detrimental impact on brand, perception and customer experience, damaging market entry and scaling opportunities.
Inefficient Resource Allocation
If the GTM strategy is draining resources without delivering proportional gains in market share or revenue. If cash flow and margin are lower than expected, if costs of acquisition are unexpectedly high, these inefficiencies can highlight strategic misalignment or operational shortcomings.
Strategic Adjustments
Continuous Review, Reassessment and Pivots
Regular and frequent review of expected results and current status is essential to gather information and insight and track any deviations from plan. Taking a step back to reassess the original market research, market opportunities, propositions, offers, pricing, customer feedback, and competitive landscape is crucial. This may lead to significant changes in the proposition, offer, product features, pricing strategy, or target market.
Strengthen Market Intelligence
Without the right information and insight any GTM strategy is doomed to fail. Tracking critical customer and market data and information is essential. Enhancing market intelligence with real-time data and analytics can provide deeper insights into customer behaviour and market trends, enabling more agile and informed decision-making. However, above all it’s critical to talk to customers, top engage them in continuous, deeper dialogue about what they are trying to do and why the businesses offers are relevant to them, or not.
Adjust Goals and Metrics
Refining goals and performance metrics to reflect realistic, measurable and attainable targets can help maintain team morale and focus efforts on achievable outcomes, thereby enhancing the overall effectiveness of the GTM strategy. However, the key is to set the right metrics and measures in the first place, metrics and measures that are aligned to business outcomes and are useful in assessing the real strategic and tactical, customer and commercial impact of GTM strategy.
Enhance Cross-Functional Collaboration
Improving communication and collaboration among teams can ensure that all aspects of the GTM strategy are aligned and mutually reinforcing, from business strategy to product development through to sales and customer support. However, this is perhaps one of the most significant and common failing in GTM strategy execution, simply because there is no blueprint or roadmap, no reference model that’s designed to encourage this kind of integrated commercial strategy, operations and approach to market.
Conclusion
Do you have a market strategy? If not, you need to get one before you think about GTM. Ultimately, turning a faltering GTM strategy around requires a candid assessment of its shortcomings, a commitment to strategic and tactical realignment, and a resilience to adapt efficiently and effectively to market feedback. By addressing these areas, companies can revitalise their market approach and enhance their competitive stance.
However, one last point and it's a critical one, there needs to be a cohesive, integrated approach to market across the business. That requires a common reference model a way to coordinate and execute commercial stategy and operations focused on market opportunities that are clearly aligned to strategic business outcomes. Many businesses simply don’t have this or the operational rigour to implement it.
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