2.3 Different GTM Approaches
If you are selling at $5 a month – to – month Chrome plugin to a Pro – user it is foolish to expect a sales – person to travel across country for an in – person demonstration. Likewise you can’t expect an Enterprise client to commit to a $100,000 platform by simply surfing a website and entering their credit card. Each has a different Go To Market approach based on a different client acquisition cost (CAC).
Figure 15 Depiction of GTM Approaches as a function of Annual Contract Value
Below you will see the variety of GTM Approaches we know per today as a function of Annual Contract Volume and Volume of Deals/Month. Each of these approaches is modeled against the best customer experience. For Web-sales that may be optimized for speed (online), and for Local Sales for complexity (integration in existing infrastructure).
Figure 16 Depiction of GTM models as a function of Annual Contract Value
Clients sign up for a free service. Client gets hooked and has to pay for more premium services (e.g. more storage, personalization). A common strategy is to use Freemium clients as LeadGen. Transactions are processed online via credit card, questions are addressed through FAQ and Youtube videos. Think of a Google Chrome Plug-in/extension.
If multiple customers from the same domain name sign-up for a Freemium account a company can convince them of a “Corporate License” with “security” as a feature. This can be automated. This sales For example LinkedIn’s Sales Navigator Subscription.
As a solution becomes more comprehensive clients have more questions as complexity increases for example signing up for a Zoom.us group license. Clients want to “talk” to someone instead of using the online FAQ. Online chat offers a solution where Inside Sales Rep (ISR) addressing the client’s questions. This is preferred over inbound phone calls to avoid any challenges with accents etc.
INSIDE SALES (OUTREACH)
Inbound Centric – As the solution increases in complexity once again more questions arise and clients go through a purchasing procedure. They need assistance. Clients reach out to talk to an Expert (Account Executive). A Sales Development Rep picks up the phone and directs the call based on the qualification. This works well for growth organizations that leverage marketing to generate inbound.
Outbound Centric – The solution does not generate enough inbound, and/or the amount of inbound generated does not provide enough quality. A group of Sales Development Reps (SDRs) is used to identify and contact prospective clients and set up meetings with solution experts (AEs). This is one of the most common approaches to kick – start sales, and it is often based on a service that sits on a platform (CRM).
FIELD SALES FORCE
This applies more to platform sales such as an ERP or CRM. Clients demand integration with their database, workflow etc. Clients want to discuss their specific situation and their customized needs. A sales professional gets on an airplane and visits the customers. To identify these customers you need a more sophisticated approach with an Account Development Rep (ADR) who targets multiple people in the account with coherent messaging. This is often split by region to keep the travel cost low.
LOCAL SALES FORCE
If you are targeting a small set of specific accounts with a platform, think of an Marketing Automation System that offers to overhaul the existing provider. You may wish to target AT&T Dallas and therefore use a local sales approach with a Dallas based Sales Executive. The local sales professional is expected to have in depth relationships within the account, to allow smooth navigation through the org-chart This the most costly approach but it also comes with the highest rewards. This approach is often reserved for million dollar deals, under a multi – year, wall – to – wall enterprise deal to warrant the cost associated with a dedicated resource.