Now that you have used pre-intent data to hone your ICP and find and segment your TAM, you’re ready to create your GTM strategy.
Designing a strategy to bring your product or service to the marketplace is exactly where pre-intent data shines. Reaching your selected prospects early with the right message about your brand can build a relationship before they know they need one.
But before you go wide, make sure you’re looking at your current customers for potential offerings.
Identifying Demand for Upselling and Cross-selling Among Current Customers
Looking within your existing customer base for upsell and cross-sell opportunities is one way to increase revenue and grow business.
Analyzing your current customer portfolio may reveal new opportunities with existing clients for solutions you already offer. You can also spot demand for additional services, and weigh the potential ROI of expanding your offerings to meet latent demand.
You’ll find the information you need in your own records. Customer purchase history can help you estimate future interest. And customer firmographic information will reveal patterns you can use to target similar clients with tailored offerings.
Once you have identified potential upsells and cross-sells, you need to create a GTM strategy to promote these products or services. This will involve creating marketing materials and campaigns that target these customers specifically.
By doing this, you can increase the chances of making a sale and growing your business.
Evaluating Potential Market Size and Revenue Potential
Once you determine the total potential customer base and revenue, it’s time to narrow that down a little by considering market size.
When it comes to market sizing, there are a few key things you need to consider: customer type, product type, and geography.
- Customer type: Such as small/medium/enterprise
- Product type: Such as software, hardware, services
- Geography: This will help you understand your product reach as well as any cultural considerations that need to be considered
Once you have this information, you can start to look at the revenue potential of each market. For example, the enterprise market is usually more lucrative than the SMB market, but it is also more competitive. (Sales cycles are often much longer, too.) To size the opportunity, you must look at two things: the number of prospective customers and the average deal size.
As with your TAM, there are a few ways to estimate the number of prospective customers:
- The first is to look at industry reports and analyst estimates
- The second is to use your own internal data, if you have any (If you don’t, you can use public data sources like LinkedIn.)
Once you have an estimate of the number of prospective customers, you need to estimate the average deal size. Use your historical data, if you have it, or industry averages.
After estimating the number of prospective customers and the average deal size, you can start to calculate the revenue potential of each market.
For example, if you think there are 10,000 prospective enterprise customers and the average deal size is $100,000, then the total revenue potential for this market would be $1 billion.
This exercise should give you a good idea of which markets are most attractive from a revenue perspective and where you should focus your GTM efforts.
Maximizing Market Opportunity with Pricing and Tiered Service Strategies
When determining pricing strategy, consider the following questions:
- What are the unique selling points of the product or service?
- What is the perceived value of the product or service?
- What are the competitors’ prices?
- What is the cost to produce the product or service?
After taking these factors into account, organizations can choose between a few pricing strategies:
- They can price their products or services at a premium to maximize profits
- Or price at a discount to attract more customers
- Or offer tiered pricing, where different customers pay different prices based on their needs
No matter what pricing strategy you choose, it is important to align it with the organization’s overall go-to-market strategy. If your organization is trying to attract new customers, you may want to consider discounting products or services. Alternatively, if your organization wants to increase profits, you may want to consider pricing products or services at a premium.
Organizations should also keep in mind that pricing strategies can change over time. As competitors enter and exit the market, as costs change, and as customer needs evolve, organizations may need to adjust their pricing accordingly.
By carefully considering all of these factors, organizations can develop a pricing strategy that will help them maximize market opportunities.