Sales
Marketing
Top 10 Go-To-Market Mistakes You Need to Avoid!
10 mistakes to avoid when selling your product. Expert advice for entrepreneurs on nailing your product launch and sales strategy.
10 mistakes to avoid when selling your product. Expert advice for entrepreneurs on nailing your product launch and sales strategy.
Launching a new product or service can be exciting, but there's also that knot of fear in your stomach. Will people love your offering as much as you do? Or will it flop spectacularly?
A bad launch can send you tumbling down a steep hill, struggling to regain momentum. It can drain your resources, crush your morale, and leave you wondering if you should've stayed in your day job.
Don't let these fears paralyze you, though! We're about to walk you through the top 10 go-to-market mistakes so you can avoid them and set yourself up for success.
Launching a new product needs brave souls, as the odds aren't in your favor. Did you know that only 40% of developed products ever reach the market? And of those that do, only 60% will generate any revenue at all.
It gets even more daunting when you consider that over 30,000 new products are launched each year, but a staggering 95% of them fail.
Don't panic just yet. Many of these failures could have been avoided if the companies had steered clear of some common pitfalls. That's why we've put together this list of the top 10 go-to-market mistakes you should avoid:
So, you've poured your heart and soul into creating an amazing product. Now it's time to sell it, and you think, "I need to hire a professional sales team immediately!" Hold up there. This is a classic mistake that can cost you dearly.
You can miss out on firsthand market feedback. This can result in a product that doesn't quite fit customer needs. You might spend months or even years developing features customers don't want or need.
Without direct customer interaction, you also lose the opportunity to build strong, early relationships with potential brand advocates. Just 11% of people who try new products stay engaged after 52 weeks.
This number can be much higher if you engage with customers. Early adopters can be invaluable for word-of-mouth marketing and providing testimonials.
As the founder, you are the beating heart of your business. You understand your product inside and out, and your passion is infectious. No hired personnel can match your intimate knowledge and enthusiasm.
Instead of immediately delegating sales, roll up your sleeves and get in the trenches yourself. Talking directly to potential customers will give you invaluable insights. You'll learn firsthand about their needs, concerns, and how your product fits into their lives.
This direct feedback is pure gold for refining your offering and your pitch. These early conversations often lead to your first loyal customers and brand advocates.
Remember, investors and future team members will be far more impressed by a founder who knows their market intimately than one removed from the sales process. So embrace your role as chief salesperson, at least in the beginning.
Imagine you're a chef opening a new restaurant. You've created what you think is the perfect menu, but you've never asked anyone what kind of food they want. Sounds ridiculous, right?
Yet many entrepreneurs make this exact mistake when launching a product or service. One out of five product marketers doesn’t communicate with their target audience.
Proper market research isn't just about confirming that people want your product. It's about deeply understanding your potential customers' needs, desires, and pain points.
Start with some good old-fashioned conversation. Talk to people in your target market. Listen more than you speak.
What problems are they facing? What solutions have they tried? What do they wish existed? Online surveys, focus groups, and analyzing competitors can also provide valuable insights.
This research phase might feel like it's slowing you down, but it's actually setting you up for a much smoother and more successful launch.
The insights you gain will help you refine your product, craft more compelling marketing messages, and maybe even uncover new market opportunities you hadn't considered.
You might think your product is unique, but chances are you're not alone in the market. Failing to understand your competitive landscape can leave you vulnerable. You might unknowingly position your product in a way that's already been done, making it hard to stand out.
Worse, you could be blindsided by a competitor's move and lose market share before realizing what's happening. Chances are, your competitors are taking 30% of your sales opportunities.
First, identify who else is solving similar problems. Look at their products, pricing, and marketing strategies. What are they doing well? Where are they falling short? This isn't about copying others but about understanding the playing field.
Pay attention to how customers talk about your competitors. What do they love? What frustrates them? These insights can help you position your product more effectively.
Remember, competition isn't always bad. It proves there's a market for what you're offering. Your job is to show why your solution is better or different. Maybe you're more affordable, easier to use, or solve an additional problem.
Whatever it is, make sure you can clearly explain why someone should choose you over the alternatives.
Think of this as really getting to know your customers and being able to explain why they need you. It sounds simple, but many businesses skip this step.
Start with your Ideal Customer Profile (ICP). This describes the type of customer who's perfect for your product. Are they big companies or small startups? What industry are they in? What problems do they face?
Next, create Buyer Personas. These are detailed profiles of the individuals who might buy from you. What's their job title? What are their goals and challenges? Understanding these helps you speak their language and address their specific needs.
Finally, nail your Value Proposition. This clearly shows how your product solves your customers' problems or improves their situation. It should answer the question, "Why should I buy from you instead of someone else?"
These might seem like abstract exercises, but they're incredibly practical. They help you focus your efforts, craft better marketing messages, and sell more effectively.
There are mainly two ways to sell: letting the product sell itself (product-led) or having a sales team do the convincing (sales-driven). Picking the wrong approach can make things much harder than they need to be.
Product-led growth works well for products that are easy to understand and use. Think of software like Dropbox or Slack. People can try them out easily and see the value quickly. If your product needs a lot of explanation or customization, this approach might also not work.
Sales-driven growth is better for complex products or services, especially high-priced ones. Enterprise software or consulting services often fall into this category. Salespeople need to explain the value and guide customers through the buying process.
Consider how your customers prefer to buy. Do they want to try things themselves or expect a more personal touch? Also, think about your resources. Do you have the budget for a sales team? Can you create a product that's simple enough for people to adopt on their own?
Choosing the right approach can make your go-to-market strategy much more effective. It ensures you're meeting your customers where they are and using your resources wisely.
Positioning is all about how you present your product to different groups of customers. It's like choosing the right outfit for different occasions—what works for a beach party won't work for a job interview.
First, understand that different segments of your market might value different things. A small business owner might care most about cost and ease of use, while a large corporation might prioritize advanced features and scalability.
The mistake happens when you use the same pitch for everyone. You might highlight features one group doesn't care about while neglecting to mention what would grab their attention.
You'll struggle to gain traction when your product positioning doesn't align with your target market. Your marketing messages will also not resonate, leading to low engagement and poor conversion rates.
You might attract the wrong type of customers, resulting in high churn rates as they realize your product isn't what they need.
To avoid this, create tailored messages for each segment of your market. Highlight the benefits that matter most to each group. Use language they're familiar with. Show them how your product solves their specific problems.
Good positioning isn't about changing your product for each customer. It's about emphasizing the aspects of your product that resonate most with each group.
Every business needs to find potential customers (or "generate leads"), but not all methods work equally well. Many companies make the mistake of putting all their eggs in one basket or copying others.
You should test different channels. This might include:
Start by trying out a few different methods. Keep track of how much time and money you spend on each and how many good leads they bring in. This will help you figure out which channels give you the best return on investment.
Without testing different lead sources, you risk over-relying on inefficient or expensive channels. This can lead to unsustainable customer acquisition costs, eating into your profits, or requiring constant fundraising to maintain growth.
Don't be afraid to get creative. Sometimes, your business's most effective lead generation method might be something unique that your competitors aren't doing.
Also, remember that what works can change over time. Keep testing and adjusting your approach as your business grows and the market evolves.
Getting caught up in the excitement of finding new customers is easy. But here's a secret: your existing customers are often your best source of growth. A 5% boost in customer retention can raise company revenue by 25-95%.
Happy customers are more likely to buy from you again, spend more over time, recommend you to others, and provide valuable feedback for improvement.
Many businesses make the mistake of focusing all their energy on new customer acquisition while neglecting the ones they already have.
Neglecting your existing customers in favor of new acquisitions can lead to high churn rates. This creates a "leaky bucket" scenario where you're constantly trying to fill the bucket (your customer base) while losing customers out the bottom.
To avoid this mistake, create a strategy for customer success. This might include:
Remember, it often costs much less to keep an existing customer than to acquire a new one. Plus, a strong base of loyal customers can provide stability and steady growth for your business.
It's tempting to think that hiring a star sales team will solve all your revenue problems. But this is like expecting a great driver to win a race with a car that's not quite ready for the track.
Don't get me wrong – good salespeople are important. But they're not magicians. They need the right tools and environment to succeed. This includes:
Remember, sales is just one piece of the puzzle. Your product needs to be solid, your marketing needs to be on point, and your overall strategy needs to make sense.
Instead of expecting sales hires to be a silver bullet, focus on building a strong foundation first. Ensure your product meets a real need, your pricing makes sense, and you clearly understand your target market.
Then, when you do bring on sales talent, they'll have what they need to truly excel.
It's easy to get overwhelmed by all the metrics you could be tracking. Many businesses make the mistake of not tracking enough data or focusing on the wrong numbers.
Without tracking the right numbers, you might miss early warning signs of problems in your business. For example, if you're not tracking customer acquisition costs alongside customer lifetime value, you could lose money on each new customer without realizing it.
Vanity metrics—numbers that look good on paper but don't tell you much about the health of your business—are particularly dangerous. For example, having a lot of social media followers is nice, but if they're not turning into customers, it might not mean much for your bottom line.
Instead, focus on metrics that give you actionable insights, such as:
These metrics can help you understand what's working, what isn't, and where you need to focus your efforts to improve.
Remember, the goal isn't just to collect data but to use it to make informed decisions about your business.
Launching a product or service is like setting sail on a new adventure. It's exciting, but there are plenty of potential pitfalls along the way. You're already ahead of the game by being aware of these common go-to-market mistakes.
Don't be discouraged if you've made some of these mistakes – even experienced entrepreneurs stumble sometimes. The important thing is to keep learning, adapting, and improving.
Your go-to-market strategy isn't set in stone. It's a living thing that should evolve as you gain more insights and the market changes. Stay curious, be willing to adjust your approach, and always keep your customers's needs at the forefront.
Starting a business is tough, and we get that. If you're looking for more tips and tricks to help you get your product out there and make some sales, Lunas has your back with helpful stuff like easy-to-read guides on selling your product.
Why struggle alone when you can learn from others who've already figured it out? See what Luna has to offer and give your business a boost!
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