Today we want to walk through a high-level overview of how to create an effective go to market strategy for your SaaS product. We purposely included SaaS in the title because there are key differences when launching a SaaS product (like Weav's ecommerce marketing automation) vs. physical product vs. services and so on.
On top of that, it's been something we're heavily involved with lately as we're preparing to "go to market" with Weav very soon.
Defining a go to market strategy can sound intimidating but it's just a fancy way of saying "this is our plan when we launch our product". Let's jump into it. 🐙
Value Proposition: What is the value of your product and why should someone buy from you vs. a competitor?
When it comes to SaaS, things are becoming more and more competitive daily. What choices should you be making to avoid being in a market of "me too" products?
To be ultra clear, a value proposition is a brief statement that explains how your product solves a customer’s problem and gives them some sort of benefit. Lastly, it should clearly state to your customers why your solution is better than the competition.
- Describe the problem you’re solving.
- Say the advantage of the solution.
- Finally, tell them why yours is better than the other guys.
Before you do anything, establish your unique value prop.
Markets: What markets do we want to pursue for your Go to Market Strategy?
As you consider your target market, think through the potential markets you can play in. Be careful though, if you're just kicking things off, try to keep this focused. Initially narrowing down your target market can help you create a laser-focused offering. Don't worry though, you can always expand as you grow.
As you're considering your markets to go after, it's important to think through target demographics, psychographics, different user personas, etc.
Here are a few example target markets to start with:
- What markets can you easily reach?
- Where do you currently see the biggest gap?
- What markets align with your initial product offering?
This may also be a good time to talk to potential customers or survey potential markets to get a better understanding of the demand.
Customers: Who are we selling to? Who is your target customer?
Ok at this point, you should have your value prop and target market locked down. This, in theory, will make it easy to identify your target customers. Additionally, this is where narrowing your focus, like I mentioned earlier, can really help streamline this exercise.
As you start to map out your target customer here are some things to consider:
- Where do your potential customer's hangout?
- Who are they? Moms? Executives? Females 25-32?
- What are they into?
Channels: Where do your target customers buy?
In a perfect world, you're able to market to potential customers in all channels. With that being said, it's not always realistic. Especially when you're just starting out. For this section, we would suggest on identifying not only a few channels to start but also mediums you have a skillset within.
For example, you may want to start a YouTube channel about your product or service but if you're not good on camera or have the videographer chops to do it, maybe don't start there.
Here's a few channel ideas to get things kicked off for your go to market strategy:
- Start a Company Blog
- Build an Instagram Following
- Facebook/Insta Ads
- Attend Meetups
- Get involved with Forums (related to your niche)
- Create win/win Partnerships
- Attend industry focused Conferences
Product: What product/service are we selling? And what unique value do we offer to each target customer group?
It's important to define your product offering. This isn't always just about features either or who has the lowest price either. Think through how your customers will be using your product and what they will find most valuable.
Consider a few of these questions as you define your product:
- What problem is your product solving for your customer?
- What are the features that fix those problems?
- How is product different from what is already out there?
Again, it's important to put yourself in your customer's shoes. It will help you identify what's most important and avoid you from competing on just features and price with your competitors.
Pricing: How much will you charge for our product for each customer group?
This is an interesting part of the go to market strategy. On one hand, it's important to make sure you take your costs into account to ensure you're profitable. However, it's easy to get hung up on the perfect price. Sometimes you need to just throw something out there and let the market decide for you. Don't get us wrong, pricing is important, we're just saying don't get romantic about it.
What is the best pricing strategy for your SaaS product?
Here are a few of our favorite pricing strategies for SaaS products. Just like anything else, there are PRO's and CON's to each one but ultimately it comes down to what's best for your business.
- Tiered pricing - The most popular among SaaS products. Most common offer is 3 different plans for users to choose from. (/e.g. Buffer)/
- Usage based pricing - Price of the product increases as the customers increases their usage. (/e.g. MailChimp)/
- Flat rate pricing - Simple pricing. Offer a single product and single set of features for one flat rate price. (/e.g. Bear Note App/)
- Per user pricing - Customers are required to buy a 'seat' for each user using the product within a team or company. (/e.g. Zendesk)/
- Per feature pricing - Strictly about the features you gain access to rather than how many users or usage of product. (/e.g. Squarespace)/
We may do another post to follow up on the pricing strategies that exist today and the pros and cons but for now, we hope the simple explanation can give the direction you need.
Have anything to add?
We hope this guide to how to make a go to market strategy has helped you. Again, we focused strictly on developing this for a SaaS product. Let us know what we missed or if you have any follow up questions.