The Role of Pricing Strategy in a Successful Go-To-Market Approach

The Role of Pricing Strategy in a Successful Go-To-Market Approach

The Role of Pricing Strategy in a Successful Go-To-Market Approach

Many of the pricing strategies that businesses take for granted today or feel dated were not the norm before 2020.

Let’s look at this article by HBR in 2020: Upgrading your pricing strategy to influence buying behavior.

These are the essential strategies. Frame higher prices as an upgrade or frame benefits in terms of cost or stack discounts.

While industry leaders have known this since the 90s, the public at large has just started to become aware of the subtle pricing cues the industry has set in place to make them buy, and instead of shirking away, people want to see what the tiers have to offer.

Pricing plays a huge part in decision-making, and it’s not because of the cost of the product but the trade-offs required. After all, why does anyone buy but when they have a need? Cross-selling and up-selling require this, too. If the need is not as urgent- why upgrade?

Usually, the answer is: because the price is right (no, not the show).

The trade-off of the price matches the features. And it is this balance that organizations must achieve (btw, this is the tl:dr of the entire blog).

What Is a GTM Pricing Strategy and Why It Matters?

The pricing strategy in GTM is a deliberate choice of positioning your product/service’s cost to better reflect market needs. These market needs are defined by your potential buyers and must reflect their buying habits.

Why does the pricing strategy matter?


People don’t buy because the price is right, they buy because of a desire and need. While B2B buying is logical, buying decisions are based on instinct- a businessperson will trust themselves, the data will just strengthen their case.

The price operates as a data point. When buying and explaining the reason for the buy the price acts as a leverage. A leader can tell their peers “This is their price and here the ROI they can yield us.” A clear comparison that works in the suggesting leader’s favor.

Decision-makers like these are your champions and champions are a core aspect of GTM.

It’s how Slack did it.

Before asking for the price, Slack lets small teams use its app. But once the user knows just how efficient communication through Slack can be- they end up as paying customers. Why? Because their price justifies it.

The pricing strategy in any GTM strategy serves a core purpose: justification.

Why Pricing Is About Trade-Offs, Not Just Cost

The market is full of solutions that look the same. The upgrades they offer are identical, what the tool does is the same, and the distinction between them is negligible.

What remains is the story of the brand and its pricing, often contributing to making the sale.

It’s like a funnel. If the story is good, buyers check the price; if the pricing is optimal, they check the benefits and what it does for them in their context.

In their article, Stoa talks about trade-offs and how each decision has one. It’s a fascinating read for current and aspiring leaders. There’s a particular line that illustrates how professionals think: in trade-offs.

Of course, because neither vendors nor sellers have infinite resources. Money must be mapped, technology must be integrated into existing stacks, and all the hassle of buying a product or service, which includes the scope of failure.

It’s all a web of trade-offs on both sides.

The group of decision-makers has to think about the trade-offs involved before making a decision.

The trade-offs of the buyers that we can think of are:

Market Size

Every organization has a limit to what it can acquire. Let’s look at the TAM of the search engine market, which is estimated to be $185.4 billion in 2024. And around ~80-95% of that market share is held by Google. (which changes depending on whether it’s desktop or mobile)

That’s a lot, but it’s still not 100% because owning any TAM is almost impossible. Even the great AI race, which should have been OpenAI’s, has many competitors.

That’s why decision-makers will think about their SOM first. Will this approach help them capture more of their market or make workflows easier so that it may happen eventually?

And importantly, can they generate enough revenue to integrate your product or service into their stack, and is it worth it?

Tech/Service Integration

One of the most persistent problems with buying and selling any service or product is integration. And it is tough. While many organizations talk about seamless integration, there is a lot of siloed data and tools that make it impossible to do so.

There may be a lot of tools that do integrate seamlessly, but that complexity needs to be managed, and the tool becomes expensive, especially as the prices hit the premium tiers.

But also, if they do need a tool or service like yours, where will they look? At the trade-off #1 and your pricing. Then integration will become secondary. The point would be to choose the best tool based on the safety net it offers.

This is trade-off #2

User Experience

The second is whether the price justifies the user experience. Think of all the cheap alternatives to some tools- everyone uses one in their professional life at some point. These tools are alright at what you want them to do.

But the user experience is not all there. (Of course, there are some exceptions.)

Their customer service may be spotty, or if many users log in, it might start to falter. There’s a host of issues.

Or on the other spectrum, there’s a fantastic tool with everything in place, and the pricing matches that.

That’s trade-off #3.

What is the buyer’s perspective on price?

There are many trade-offs you need to consider in a GTM strategy, but pricing is one that has many strings attached.

The core question will always be: Hey, is this worth it? i.e., worth the hassle, worth the time, worth the effort, and the price decides a lot of that. The buyers want a tool or service that doesn’t add more cost, and if it does, it either returns or multiplies value.

Basic principle; often forgotten.

The price says- This isn’t bad for what it’s worth, or this is too good to pass up, and the price justifies it.

The buyers’ perspective on price will be set by the market you’re addressing. And it goes beyond competitive analysis. When creating or selling a service, organizations undertake complex research to address gaps.

The price must be treated the same way. It must be treated like a gap you’re trying to solve for your core buyers. And the beauty of this approach is that it helps you find the right price.

Popular Pricing Models and How They Fit into the GTM Strategy

  • Value-based pricing
    • Value based pricing is the speculation of what your product/service should be worth.
    • Through research you will identify what the price should be based on number of factors including competition, buyer-problem, market economy, and your product’s role in it.
  • Cost-plus pricing
    • Essentially, setting the price such that it covers overhead costs.
    • For example, if running your organizations costs $100, then your product/service could be priced at $150 to cover the costs. (This is a gross oversimplification.)
  • Competitive pricing
    • This is the one that even the layman knows. Essentially setting a price in response to direct competition.
    • The advantage here is that you can control the narrative and set your price at higher or lower standards than your competitors. I.e., undercutting the competition.
  • Penetrative pricing
    • This one means you undercut to build your brand. A really good strategy if you have a good product, competitive market and funding.
    • For bootstrapped organizations this is a risky move.
    • And raising prices immediately could risk alienation of the audience without clear explanation. (Marketing messages could make it apparent that the pricing is only for a limited time.)
  • Dynamic pricing and Tiers
    • Pricing that changes based on the market and their needs. Tiers fall in dynamic pricing and there is a greater chance of up-selling.
  • Premium pricing
    • Essentially creating an exclusive club through pricing alone. Take ChatGPT’s $200 tier, which outsold and outperformed the rest of the tiers because how good it was. But premium pricing requires a powerful product or service or the buyers won’t be sold on the idea.

While the pricing models are a great start, they miss three crucial elements: TAM, SAM, and SOM.

Your GTM Pricing Strategy is also about the trade-offs.

Now, let’s talk about you: the vendor.

As buyers, people naturally think about trade-offs, but do they do the same when it comes to selling? If that were so, over-promising wouldn’t be a thing.

The Role of Market Size in your GTM Pricing strategy

Essentially, a lot of businesses get their market sizes confused with TAM, forgetting the other two, which actually drive the business.

Let us explain,

So, 1000$ TAM

Maybe out of that, you take your ICP, which are SMBs in say cybersecurity, that goes to $750

And then you niche down to who you can serve, which are SMBs in cybersecurity with a specialization in Kubernetes, then your SOM is actually $450

So that means you will get the chunk of the 450$ pie, not the $1000 one. This matters a lot- because your market size will determine how you can price your product.

Whether you will have to charge a premium or make it cheap will be decided here, based on how much you need to make per customer.

This is your trade-off #1.

The Role of integration in your GTM Pricing Strategy

Second is integration or complexity. SaaS products like SEMrush usually handle complexity well. And well, since most organizations today are built on the SaaS model, handling complexity is done by the servers.

But this can give rise to complexity on the buyers’ side. Integrating existing tools with yours might create silos, and someone needs to work around that. Either the vendor or the buyer has to make compromises.

And for the vendor, these compromises usually mean removing or adding features, especially knowing what the end user might go through. Often, this part is not spoken about in pricing.

It’s all about influencing the buyer, but what about setting a price that matches overhead and maintenance costs?

Or you can leverage this complexity to build tiers- think, the first tier lets your buyers handle the complexity, or tier 2, and so on, you handle it yourself. Now, there’s a reason to upgrade.

The Role of User Experience in your GTM Pricing Strategy

Okay, for this one, you won’t be able to ask for upgrades. You can’t go – you get better service because you’re paying for it.

That will ruin your pricing structure. But user experience matters, and it matters the most.

Everything hinges on how the end users feel and if the buyers see improvement in their teams’ efficiency. Even if your tool is complex and has a harder learning curve, is it learnable and teachable?

And good design requires investment, especially during GTM. Because the window to launch is usually tight. When your sales teams are displaying the tool or getting the buyer to demo it, is it intuitive enough for what it’s doing?

Investing in UX/UI and CX is costly, and the pricing must evaluate this. If it doesn’t, you may lose your customer or revenue. A business cannot run solely on ARR or MRR if it doesn’t break even. And if investors are involved, this is doubly true when pressure to perform starts mounting up.

The Role of CAC and CLV in GTM Pricing Strategy

Which directly leads to your customers. All trade-offs culminate here- everything your organization does yields a dollar price. From electricity to employees and the tools you use.

Your GTM pricing strategy needs to focus heavily on CAC and its CLV, for each customer, how much are you getting back if you charge $X? If the acquisition costs start mounting up and your pricing can’t catch up, that’s going to be a problem.

That means your solution cannot be so cheap that you can’t run your day-to-day. This is why many tools have premium prices and tiers, because running SaaS, AI, Cybersecurity, Data Management, SEO, etc., is not cheap. And, if it is, there is always a hidden cost that the vendors undertake.

Usually, the ones outlined above.

Pricing plays a vital role in making an organization sustainable.

While there is a lot to consider when setting a price for your product and service, it’s a task that many organizational leaders have to undertake.

Funding is good, but balancing the price helps you utilize the cash flow properly.

This is what it means to scale an organization, and that begins with GTM, not after it.

The Intersection of AI and Creativity

The Intersection of AI and Creativity

The Intersection of AI and Creativity

It’s a fact that creativity has always differentiated humans from machines. But AI is changing our beliefs and casting doubts on how wide the gap truly is.

Our creative prowess is one crucial atom that has always differentiated us from machines. It’s the intuition, complex thinking, and intent behind the process that drives the difference between human content and machine content.

But the rise in AI adoption has made business leaders and marketing professionals revisit this argument.

The ability to create was peculiar to a bunch of creatives, such as writers and designers. But today, with a couple of keystrokes and research-driven prompting, anyone can ask ChatGPT to produce a high-quality blog, design an engaging ad, and even pen down a novel.

The only succeeding question has been one of quality. Does the AI-generated blog compare to an expert with a decade of knowledge or the AI-written novel to Shakespeare’s?

However, to what extent does it hold precedence, especially over the speed and efficiency AI can afford? Why are we still stuck at using AI as a tool as an expressway to achieve business outcomes? Maybe because we are asking the wrong questions, and the existing focus needs to shift.

The market is actively investing billions into AI, giving rise to speculations on how modern tech could replace creatives. This vision is short-sighted, giving rise to even more doubts-

What is creativity without the human touch?

Let’s start the AI-creativity debate from here.

The AI-creativity debate

The market is proactively investing in the latent potential of AI, and it’s been constantly exploring the extent to which generative AI can thrive in a creative environment. And actually end up amplifying content. It was ChatGPT that prompted this thinking.

It had the market routinely questioning the disparate differences between human-created and artificially produced creativity. There are prevalent questions that have been answered:

  1. How does one nature of creativity differ from the other?
  2. How do you decide which one is worth valuing more compared to the other?
  3. Does it all boil down to valuing the labor in it?

Basically, the advent of gen AI sparked and even fueled doubts regarding the uniqueness and superiority of human-produced creative assets. So far, the advanced models have been able to create collections of different content formats- from audio to images.

And at the nexus of this wonder movement, there have also been moments of panic- does it compare to what humans are capable of? These are the two broad sentiments regarding using generative AI tools for content creation.

And business leaders and marketing professionals echo the same sentiments.

AI will replace human creativity: Is it a skewed perspective?

To a very significant extent, AI has become a fundamental aspect of marketing storytelling. And the segment that has faced the biggest hit is content writing.

Whether it’s B2C or B2B, artificial intelligence has witnessed a broad popularity. While it hasn’t yet taken over the workforce, it’s working towards it. It has sparked discussion around the fragility of human employees, how easily they’ll be replaced by this modern tech.

And it has led to a widespread belief: AI suppresses creativity. This purview is merely a speculation.

But to dig deeper into this, it’s crucial to grasp what creativity truly is and the space AI occupies amidst all of this.

A straightforward definition of creativity foregrounds the ability to create something new, practical, and surprising. An understanding that is one of the most significant hallmarks of human intelligence. So, when we’re asking whether AI does entail creative prowess, then we are basically probing if it can produce something new and surprising.

The age-old question was whether machines can generate something new. And the same has applied to AI since its introduction. The early-age programmers, Ada Lovelace and Alan Turing, dismissed any nod towards machine-generated value, one that cannot be imagined or delivered by human intelligence.

Even initial AI models, such as ChatGPT, echo this limitation. The tech’s creative output remains substantially derivative, at least for now.

Novelty and usefulness vs the element of surprise.

The truth is, creativity is messy, and its process inarguably cannot be copy-pasted. The intent, context, and judgement that creativity demands- it’s all human-centric traits. These are characteristics that truly aid humans in instilling the kind of creativity in the work they do.

So, the real question is, are large language models truly capable of creating something unique? Or are they adept at sifting through a myriad of possibilities and then creating something that appears novel? Can machines that lack the fundamentals actually be creative?

The long story short is that AI models can fundamentally do what we prompt them to do, and all of it is whatever we’re acquainted with. The thing is that LLMs are trained on massive datasets and outputs derived from probabilistic models. The responses are created from patterns they’ve learned and constantly operate on.

And even though artificial intelligence does create any ‘novel’ ideas, it does so through a specific brute-force approach. Unlike human creativity, which is powered by intent and purpose.

Does AI realize it’s being creative?

It’s a widely known concept that artificial intelligence systems aren’t creative in the traditional way. It exploits human ideas and imagination to drive anything unique, offering a sort of creative illusion.

If you roll two dice enough times, there is a significant probability that you’ll get an unusual combination at least once. This output is incidental, not purpose-driven. And that’s how the current AI models function.

Think about it: human creatives draw on complex thought processes and experiences to execute even the tiniest of ideas. It takes them days and even weeks to convert a single idea into a finished model. There’s a web of emotions, experiences, and cultural contexts that are woven to materialize a creative output.

The missing aspect is intent. And this is what is actually substantial for advertising and marketing to build genuine connections.

Do you think this sort of complexity can be tackled by learning systems that remain within a box?

Their reliance on historical data is where these models falter. Your AI models don’t know any better, at least not yet. And this stumbling block can easily give rise to legal and copyright issues- something that can topple industries such as advertising and marketing.

However, this is merely one side of the coin.

The other side doesn’t entirely cancel out AI’s potential to ideate and bring to reality any creative properties. This is something tech investors, business leaders, and Wall Street broadly believe in. And this is the vision that drives billions of dollars’ worth of investment into AI infrastructure.

AI as the strategic co-creator or a tool?

If you look closely, the crux of the conversation makes a 180-degree turn here. The conversation doesn’t surround whether ‘AI can be creative,’ but rather, to what extent it will transform creative processes.

In a recent study on Gen AI’s influence on creativity in the advertising domain, the conclusion was simple: the increasing use of Gen AI has undermined creative diversity. There’s a lack of differentiation, and each different style or format of creatives has been standardized.

With ad and marketing agencies leveraging the same prompts and data, and a strict adherence to the policy, ‘whatever worked before, could work now’- the market is facing acute uniformity. As everything becomes better, i.e., as AI helps with speed and scale, everything becomes the same. The same frameworks unify the outputs- the inflection point.

From here on, there’s one road to take- differentiating strategies to stand out.

In the same study, one of the respondents, A Head of Digital-

“I think we went through a similar thing where every Instagram grid looked the same because customers liked…this kind of imagery with this kind of text…We may end up having to go down that path with Gen AI, till you get to that inflection point…where you have to then spread back out and differentiate because everything is going to look the same if you allow it to.”

If you think about it this way, AI-generated content could become stale very rapidly. And avoiding this could demand a lot of maintenance. Someone has to take accountability and survey the end product that’s reaching the market.

AI and content creation: an assistant or a collaborator?

There are two determinants that every creative work is assessed against: novelty and usefulness (value)-

  1. Novelty measures the extent to which the output deviates from the norm and expectations.
  2. Usefulness assesses the relevance and practicality of the concept executed.

About these two components, Gen AI can work less as a job replacement and more as a collaborative tool. And the result is co-creation, a means to leverage AI in a way that augments human creativity.

One approach where its functionality has grown common is its role as a springboard for human-generated content. You can generate ideas and outlines using the AI tool, i.e., use it to provide prospective starting points that could be used to undertake different creative plotlines down the road. It’s up to the human creator to choose which path to take.

But this perspective also poses a challenge. What if gen AI roots the writer to one specific idea or starting point? The ability to establish multiple perspectives on a single situation stems from human intelligence. Because of their capability to judge. But by focusing on a single perspective, it could restrict the creator’s own thought process. And sometimes, it also conveys confirmation bias.

This way, the output would be less novel and sound similar to other content. This is where its derivative nature poses as a hindrance.

So, basically if you think about it. AI’s space in the business landscape rests on using it right, and not just using it as one pleases.

“Metacognition — thinking about your thinking — is the missing link between simply using AI and using it well.”

Each new AI model and tool brings with it another promise of enhanced storytelling and creative opportunities. This underlying value, in the form of efficiency and scale, that AI can still provide- this is how modern tech is helping human creativity evolve.

AI might not be creating the original and thought-out content that marketers and advertisers want it to. But it’s augmenting humans’ role in the creative process.

Humans are no longer mere content creators. They’re curators and editors of Gen AI content.

What AI’s perfect at is research, planning, and ideation. And at the advanced level, its capabilities of summarizing information quickly and generating multiple ideas to inspire writers and designers are in themselves a motivation. It’s a springboard, facilitating a flow of ideas, concepts, and plans to keep the blank pages filled in.

It is a strategic co-creator, at least given the capabilities of the most advanced models on the market. But only when used right.

Most businesses and teams are integrating AI models such as ChatGPT and Gemini to complete their work. But the question is, is this what AI is supposed to do- to complete your work or rather, improve it? And where is the human perspective instilled in the output? Are we at the stage where outcomes are assumed correct because they’re fabricated by a machine, all because machines can never be wrong?

This assumption is false. Humans must remain at the center of creative endeavors to retain brand authenticity and creative distinctiveness.

“This idea that you can just put something into a machine, and it bangs out an answer, and you go with it is ludicrous. The inputs you add based on your experiences- that’s the secret sauce. That is the authenticity.”

Your content creators, whether designers or writers, and SEO experts, must work in tandem with AI. A stable culture of creativity, experimentation, and inclusion is only possible when the output connects with overall brand goals and positioning.

At the nucleus of the AI-creativity debate is also an inquiry into transparency.

Both disclosure and transparency are of tremendous importance to advertisers and agencies. And principally due to the AdTech black box, there is an ensuing demand to peek behind the advertising processes, from the bidding to asset creation.

Think about the ad agencies that use AI models. The key concern here revolves around being transparent about where the models are deployed across the entire creative development process. If you’re a client paying an agency to come up with ideas using AI, won’t it beat the actual objective? The question here centers on whether outsourcing the ad agency is worth it.

And across advertising and marketing, there are always chances of copyright infringement, sensitive data disclosure, or even desensitized content based on historical data.

Making transparency between agencies and their clients imperative.

The bottom line is that the onus of accountability and responsibility lies with humans, at least in the current scenario. It’s on the brand, the humans, and the agency leveraging it.

The scrutiny and question isn’t whether AI is replacing human creativity. Instead, to truly understand AI’s space in creative strategies and content creation, the weight should be on-

Can AI balance creativity with ethical regulations? And to what extent will it be able to see this through without human interference?

Only an answer to these can truly foreground a response to the persisting question: Is AI creative?

Lead Generation For SaaS: Where are the High-Quality Leads?

Lead Generation For SaaS: Where are the High-Quality Leads?

Lead Generation For SaaS: Where are the High-Quality Leads?

SaaS is having its big moment. Start-ups are created almost every day, they receive Series A funding, and they’re off to a great start.

But the sales? That’s another question altogether. The competition for attention is so fierce that a SaaS organization’s core buyer has at least 10-15 options to choose from. And they have already made up their mind on which one they’ll choose.

The sales conversations go nowhere, and investors become skeptical. Eventually, doors have to be closed.

The issue here is a lack of high-quality leads. And this problem has become industry-wide; big companies and small face the same drought.

Is this a marketing problem? Or a sales one?

The answer is simple: It’s organizational. No single function of an organization can be pinpointed here because, believe it or not, lead generation requires the entire organization.

But it’s not happening right now, there’s too much noise and a lot of misinformation about what works. Let’s break that.

Why Lead Generation for SaaS

The SaaS market is enormous, and that’s an understatement. The size of the market is around $315.68 billion in 2025, and it’s poised to grow into $1,131.52 billion by 2032. That’s a CAGR of 20.00%.

These are gargantuan numbers. And they are undervalued, just think of this: AI is part of SaaS, and it will be valued at trillions in the coming decade.

But that means the competition will match this growth. Many start-ups, SMEs, and Enterprises will be vying for the same crown and for the same pool of buyers. Whom will the buyers choose?

  1. It’s the organizations they know and care about.
  2. Organizations with which they have built a relationship.

And this is facilitated by lead gen.

Lead gen isn’t about data, but acquiring the buyer’s interest, building a relationship with them, and influencing their decision in your favor.

The reason SaaS treats lead generation this way is simple: subscriptions are expensive and a recurring expense at that. Businesses must be frugal with their money, especially since leaders have become aware of the VUCA. This stands for Volatile, Uncertain, Complex, and Ambiguous, which is the current state of the world. It takes trust to nurture them.

Buyers need anchors to navigate the complexity, and lead gen gives SaaS companies leverage to be that anchor. But only if the quality of leads is good.

But what are good quality leads?

Okay, good is not subjective here. Good quality leads are essentially a cluster of people – your potential buyers- that have an active interest in what you do, care about the problem you solve, and know who you are.

This is usually the prerequisite of a good lead. If some part of it is missing, these aren’t leads but people who might buy similar products/services.

A good lead is someone who can say, “Hey, yeah, I know you.”

It’s a foot in the door. But to get here, the road is quite challenging.

SaaS companies struggle with consistent, high-quality leads.

Yeah, for anyone in SaaS, this challenge is intimate. It feels as if you’re the only one struggling with leads while businesses on LinkedIn are already generating $100 Million ARR.

But why is that? It’s because marketing efforts are all spent on closing rather than converting. Performance marketing, growth hacking, and everything else are done to drive sales rather than revenue.

Hey, we get it. Investors are constantly breathing down your necks to show sales and ROI through your efforts. Being a founder, especially in SaaS, is not easy. Not even close.

But it is a trap to get this quick win. And now the industry has finally caught up, buyers prefer to be self-directed, but there are no systems in place for vendors to provide this experience for them.

Many organizations still believe being self-directed means omnichannel experiences and creating self-buy options. It’s a part, yes. However, for them, being self-directed means being in control of where their money goes and for what period of time.

The Buying Committee and the Sales Cycle.

But that is from your side. What about the buyers? There are many elements involved in the buying cycle.

  1. The buying committee- a group of 8-11 people that collectively makes the decision to buy.
  2. The internal functions of the buying organization – essentially, all the processes they need to go through to buy something. This could be Finance & Procurement, Legal, Supply Chain logistics, etc.

You have no control over these things. It is with the buyer. And it’s at this step where many lead gen strategies falter. There’s no relation-building. And ties directly to the focus on short wins. Longer sales cycles mean more deliberation and many voices involved- how will your buyer maintain interest?

Their own processes are risk-averse and resistant to change. One of the most vital challenges of improving lead generation is for your buyers to care about what you do.

And that begins with the buyers themselves.

SaaS Lead-Generation Strategies

Let’s discuss strategies. But not some actionable framework that you will never use. But something more concrete.

In 1973, Shell’s upper management predicted the oil crisis, but they didn’t hire an oracle; all they did was present its leaders with different possible scenarios, and they did the rest.

Strategy has always been about doing unique things and anticipating likely scenarios.

1. Brand Building- Scenario

image 2

Exit Five is one of the fastest-growing B2B brands. They have built a tight-knit community around the brand, and just to make a point, here we are giving them a shoutout. That’s brand-building.

But how? The B2B community trusts Dave Gerhardt, the CEO of the brand. Just look at this post above; it has nothing to do with the brand, but there are many people appreciating him for his authenticity. And that’s how he built the brand, by making people care about what he does.

And providing value.

SaaS is moving from benefit-driven to value and trust-driven. And brands will build themselves here by

  1. Providing tangible value
  2. Aligning with a philosophy
  3. Displaying that philosophy through action

Marketing and lead generation have become relationship-based. And a great lead gen strategy means the buyers will come to you, too. Not just through your outreach.

2. The 95/5% Rule- Scenario

The second is for marketing. The answer to the long sales cycle is the 95/5% rule. Basically, it says 5% of your buyers are in-market to buy and 95% are out. But the creators of this stat advise organizations to focus on the 95%, too.

To build relationships and increase the brand’s awareness. However, that’s just the visible part. The real reason is to get into the vendor’s list.

It’s an exclusive list of maybe 5-7 vendors that have been pre-decided by the buyers after careful consideration. Think about it, no one is going to hear your sales pitch and think: Right, this is what I was missing.

It takes time for buyers to understand what your SaaS product does for them and what it will do after it has been integrated.

3. Organizational Alignment- Scenario

As you can see, all scenarios point towards building relationships. And that is the crux of lead gen. While lead-generation has been misconstrued as data collection, in reality, it is a method to find the right buyer and build on that.

But how can an organization build that relationship without explaining what the tool does and how? This can be done by people in product and in engineering.

Often, marketing messages talk about sales and marketing alignment. But that’s incomplete; alignment happens between many teams first, then the message is crafted, the problem is keenly identified, and the copy is created.

It’s this copy that the buyers connect with because it talks to them.

It’s the answer to why they should choose you. Marketing refines the message, but organizational behavior provides it in the first place.

Metrics Measuring SaaS Lead Gen Success

1. Lead-to-Customer Conversion Ratio

This one will be the most straightforward. How many leads did you get, and how many of those converted into paying customers?

That’s it. The final metric you need to keep track of.

2. Lead-to-Customer Conversion Cost

The other vital one is this. Since revenue for SaaS is monthly, the lead-to-customer conversion cost needs a lot of focus. If the costs outweigh the revenue, it’s time to look at the funnel for any friction.

3. Brand Mentions

Do people talk about your brand in the way you intend them to?

Are there conversations?

What is the number of inbound enquiries?

How much are you still spending on outreach even after you have good brand mentions and communications with the leads?

4. Time-to-Sell and Sales Velocity

What does the timeline look like? Once you have generated the leads, how long does it take them to become paying customers?

5. Real-World Example

Gong embodies all the principles we have outlined.

First, they became obsessed with their buyers- they understood what made their buyers tick. Not just their pain points, but psychological profiles too.

They then created content solely to help salespeople get better at their job, and they, the sales leaders and reps (their ICP), started to take notice of it. They hammered it home: they cared about the problem salespeople were dealing with, becoming a major player in the sales-tech world.

This built trust with their audience.

Here’s the entire case study in Devin Reed’s own words: https://blog.hubspot.com/marketing/95-5-rule-gong

So, What Now? The Right Lead Generation Partner

Lead gen isn’t easy, and that’s why agencies exist. To improve your conversion rates and increase your lead-to-sales velocity.

However, traditional agencies don’t want to understand your customer or build your brand. They treat lead generation as handing off data.

For them, leads are metrics. Not people.

It’s this chain of thinking that marketing agencies must break, and that’s what we’re trying to do at Ciente. Elevate the lead generation service process.

Multi-threading in Sales

Multi-threading in Sales: A Timeless Principle or Just Another Strategy?

Multi-threading in Sales: A Timeless Principle or Just Another Strategy?

The complex nature of sales should not be lost to anyone. It’s not easy, even if your teams make it look that way.

Sales, by its virtues, requires an observational approach to human nature that facilitates transactional communication.

And that’s when the sales folks target only one person, but what happens when they target multiple people from the same organization?

That’s called multi-threading. And it’s an effective strategy to capture an account and build deeper relationships.

But the thing is, many top leaders and decision-makers don’t have the time or capacity to keep talking to sales reps unless there is a clear advantage. Can multi-threading solve this, or is it just another “strategy” that is more advice and less execution?

What is multi-threading, and why is it useful?

What is multi-threading in sales?

B2B marketing and sales have faced two harsh realities.

  1. The vendor list- a list of pre-decided vendors that buyers choose from. Rarely does any organization enter this list a month or two before the purchase. This process can take from a year to 6 months.
  2. The buying committee- a group of 8-11 people who make the final purchase decision.

The basic premise of multi-threading in sales is to build relationships with this group or at least try to create a web of connections inside a single account with the hopes of influencing the buying group.

At this point, multi-threading is a prerequisite as organizational power moves away from a single decision-maker to a multi-layered process.

Why is multi-threading useful in sales?

In Salesforce’s Report, 84% of business buyers expect SDRs to act as advisors. And this is no surprise, Sales has shifted to a more consultancy role anyway.

The best sellers know the value of relationships, and that’s before any of it became common marketing knowledge. Multi-threading is an extension of this practice- for the SDRs starting out in the job, speak to your head of sales or your mentor, they’ll tell you their method, and it will resemble multi-threading.

In sales and marketing terms, they don’t just talk to influencers, champions, and CXOs but to the user who will be using the end-product and to the VP of IT, all just to understand the core problem they are facing.

This is why multi-threading is useful- it gives salespeople leverage by empowering them with a deeper understanding of their account and where the entry points may lie.

Often, with all this talk of AI, organizations and even leaders forget that a salesperson’s job is to use leverage to build relationships and convey why their solution is the best one. And that begins with understanding the account in its entirety.

How can sales reps use multi-threading to close more deals?

That is the crux of the matter. How does one do it? Well, there are two ways- one is the framework way, and the other is messy, or what it’s going to look like for you when you’re on call.

Framework for creating a multi-thread strategy- Part 1

The frameworks for selling are the same across the board-

1.) Identify if the lead is valid

When pitching a prospect, you must understand the technical viability of your lead and their hierarchy. You do this with BANT, ANNUM, NEAT, MEDDIC, and whatever method you plan on using.

Identifying the lead’s place in the food chain will ensure a smoother process and set expectations. In multi-threading, if your lead is not a decision-maker, it’s fine- the point is to build relationships with the account.

2.) Identify if the problem you solve is valid for them

Okay, this step of the framework is idealistic. You want to sell the solution, and quotas must be met. When the quotas are down, this step may seem like a massive waste of time.

But the undeniable waste lies in chasing quantity. Discerning for quality yields ROI. No one is saying don’t play the numbers game, but without quality, there is no sale. Anyway, digression aside.

Once you talk to the lead, check if they are the right fit for your organization and if they require your services. And to build a relationship, this step will need you to listen to their problems instead of running off a script. Plus, in this step, you’ll realize where your leverage is.

3.) Identify the decision-makers

With Sales Navigator, this one’s easy. It practically gives you everything you need, plus intent. But when humans are involved, a bit of personal effort goes a long way. And when the intro to a decision-maker comes from their peers or direct employees, it has a greater impact on receptivity.

4.) Research and Talking The Language

Once you have connected with the decision-maker(s), you will need to personalize your pitch for the individual and their designation. While this may seem obvious, it is not.

Speaking the language doesn’t just mean knowing what the tool does; it means researching what the tool or service does for the individual.

This includes knowing how it would benefit the decision-maker and explaining how it will do that.

For example, if you sell a cybersecurity tool that safeguards data in pockets, making it easy to retrieve and access, while making the clusters secure. Since the loss of one cluster won’t affect the entire database.

The CISO may love the idea, and the CTO and CIO may agree. But the CFO and CMO might object and say this will create data silos. And then you can explain why the tool is not siloed but has a virtual copy that consolidates the data. Or something like that. And that the clusters are actually not silos but rather pockets that make searching for particular insight easier.

The pitch will change because the questions change accordingly.

5.) Maintaining the Relationships.

Here’s where a lot of multi-threading falls apart. Remember, these are leaders from the same account, and that means they are discussing the sales process. And the way sales are conducted is a reflection of the organization.

These people will have to be nurtured without feeling as if they’re transactional. That is implied, but good selling involves a bit of vulnerability with leverage. It could be something as small as a gesture of goodwill or helping them understand the market better for their context.

And for each multi-thread, you must provide a unique value. After all, any good seller acts like an account director and not an SDR. It’s almost built that way.

But beyond using email and social media to nurture, it’s the way you nurture the prospects. One really nifty way is to provide insights. Not case studies but insights into their own market, and what if the solution is yours?

Well, isn’t that just the bonus on top?

Framework for creating a multi-thread strategy- Part mess

The framework above does have a lot of mess. But there are a few things a salesperson should know, and that happens on a call.

1.) Forget the pitch.

Keep the pitchforks down, C-suites. I don’t mean slander your organization, but SDRs need to understand that the pitch exists to help them understand the buyer in the initial stages- that means the first month.

To understand what the top management wants and what the buyer needs. When you’re on-call, you must ask questions and listen to what your buyers want. Because who wants to listen to a script for the sake of selling?

Would you?

2.) Active Listening.

Apologies for making you face this one. It’s something every SDR might have heard at least once in their career. Be an active listener and get the sale.

But where this deviates is in the understanding. Active listening, the way Carl Rogers intended, was a corporate tool for leaders to understand their employees. It involves foregoing the sell for a moment.

But why? Because it presents a leverage. Talk to any human being for too long, and they give out some of their ideas and plans. And when building a professional relationship with multiple people in an account, when they know who you are, it makes for easier conversation and facilitates the exchange of knowledge.

Active listening is a tool that uncovers intent by asking the right questions, and these questions are not BANT. What can someone do to help the buyers, and do they even want the help in the first place?

But if you rush in with the questions. You’ve lost them.

3.) Comms.

There’s an industry anecdote that says if you don’t reply to an email within the hour, you lose the buyer. Now you’re going to be dealing with multiple buyers who know each other and know you’re talking to them.

How does this play out? Either you club them all in an email (not recommended, but no method, if executed correctly, is bad) or send them personalized messages from the SDR handling these decision-makers.

And here, many SDRs will have to check if the anecdote is true because they’re bound to miss some. And objections will arise. Buyers are human, and they will contact you if they have doubts.

4.) The Decision-Makers and the Sell.

There’s an intentional flaw in everything written so far. Why did anyone assume the call went forward idealistically?

What if no decision-maker spoke, or even if they did, the SDR did not know what to do. That’s a crucial problem gap, and it’s persistent. In Salesforce’s report, 74% of buyers felt the interactions were transactional.

Of course it is! But they expect consultancy.

The answer to the question is: If you don’t listen, they don’t want to buy. And the only way of increasing your chances of influencing the buyers is by showing the SDRs and CSOs care about the problem, and then also showing buyers a better way forward.

How does one do that?

By building relationships that aren’t a corporate façade.

Multi-threading in sales is the norm. Not the outlier.

Building genuinely authentic relationships has always been the best way to sell. Insurance, cars, watches, gadgets, tech, and cloud, all the best salespeople talk to multiple people.

When selling a car, a person would talk to the buyer and her husband. When selling gadgets, they speak to a person and their friend accompanying them.

When selling cloud, they speak to the CSO, CEO, CFO, and VPs.

Selling is multifaceted and messy. And that’s the way it’s always been.

B2B Data-Driven Marketing Examples to Learn From: Rebuild Your Campaigns

B2B Data-Driven Marketing Examples to Learn From: Rebuild Your Campaigns

B2B Data-Driven Marketing Examples to Learn From: Rebuild Your Campaigns

Generic marketing campaigns don’t pack the required punch. B2B marketers must pivot towards the right gears- data-driven marketing strategies.

The explosive growth of media channels and platforms has only magnified the opportunities for brands to leverage this and offer more value to their customers.

This has spun a data-driven decision-making culture.

Businesses have recognized data’s potential and continue to invest a significant amount of effort in it. This has boosted the demand for personalized and interactive engagement.

Customers actually expect it- a kind of interaction only data-driven marketing can afford.

But with this widespread recognition, a fundamental knowledge gap persists-

Which datasets can actually help solve which marketing problems, and how can they be applied to guide the buyers down to the conversion stage?

There are multiple approaches to how customer and company data can help marketers.

We dive into three fundamental data-driven marketing examples- ones that have proven effective and profitable across the B2B landscape and helped brands instill long-term impact.

Example 1: Personalizing user journey.

Looking at the marketing field, personalizing isn’t as unidirectional as it is thought to be. While some marketers employ personalization across their products, others execute it across a broader segment of their marketing efforts.

In this respect, personalization can be broken down into three common approaches:

  1. Mass: All buyers receive the same offerings
  2. Segment-based: Different groups of buyers with homogenous preferences are identified, and the marketing mix is personalized similarly for customers in a segment.
  3. Individual-level: Each account receives personalized offerings according to interests and online behavior.

Access to individual-level customer data does not mean that businesses should personalize at the very granular level. But instead choose a level that each element of the marketing mix demands and what’s most optimal for the brand and its offerings.

Overall, personalizing the entire customer journey is crucial, and that entails both content and your comms strategy. Because 76% of buyers expect personalization, and when they don’t find it, it leads to frustration.

The result is always a negative customer experience that ultimately damages the brand reputation.

Personalization, in today’s age, transcends inserting someone’s name into your templated email. In B2B, for over 67% of buyers, personalization means giving them relevant service recommendations. While it’s simpler for B2C, it’s rather more difficult to appease the diverse stakeholders of a buying committee.

Think of how Amazon recommends products based on your purchasing history and search behavior. And Netflix curates a “Suggested for you” category depending on your viewing habits.

Personalization in B2B takes a different approach.

A visitor from a finance firm might see a different homepage than one from the manufacturing industry. But it goes beyond stagnant segmentation and leverages intent signals, firmographic data, demographics, and stage in the funnel to undertake account-level targeting.

This is what B2B personalization really entails.

Let’s take Monday.com as an example.

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These are Monday.com‘s homepage. As you can observe in the images, the browser has selected two different options- the first is “design” and the second is “marketing.”

And surprisingly enough, Monday.com transforms the aesthetic and image as you select different options on the homepage. The brand is prompting users to imagine why they wish to leverage the solution and for which business function.

Once the user chooses the desired option, the “Get Started” button and the visuals behind it light up in relation to that segment.

This is quite an innovative approach to leveraging zero-party data.

It’s not about just converting the aesthetic and making the visuals appealing to the user. The fun little aesthetic change will grasp the user’s attention, but for them to stay a bit longer on your website, there must be more.

It also means personalizing the landing page and the rest of the website after they choose “marketing” or “design.” This shows how you’re personalizing experiences by curating distinct messages and aesthetics for different customer segments.

In a way to showcase- “we have a little something for everyone,” while demonstrating the versatility of their solution. It’s a win-win situation for the business to establish its value and for customers to pinpoint their search.

The conclusion? For Monday.com, segment-based personalization drives the action.

Example 2: Sharing and analyzing data across different channels and touchpoints.

In a marketing age where an omnichannel marketing strategy has become the go-to, data silos can hinder a brand’s success.

B2B marketers are aware that their customers interact with brands across multiple channels and devices. That’s why cohesion and consistency have become imperative for marketing to deploy.

Sharing data from multiple channels not only helps you curate a unified marketing strategy but also helps unify the customer profiles. This is your single source of truth.

A. Elevating brand recognition

Someone who interacted with your service post on LinkedIn should be able to find the same service on your website. Or how specific prospects interact across your landing page can inform your social media strategy, i.e., outlining which topics or solutions they are leaning more towards?

Comparing and analyzing these data from different touchpoints can help you create marketing campaigns with consistent storytelling. The keywords that lead to higher conversion rates in your PPC campaigns can inform your content creation. Even your social media team can develop posts that target the same audience.

But brand consistency, i.e., building that harmony, isn’t as simple as copy-pasting the same messages across every channel. You’ve to primarily gauge the performance of each channel, for which you require accurate performance metrics.

This is where regular audits and cross-platform checks are conducted.

Only with the correct data can you draw accurate comparisons and gauge insights about improvements and overall brand performance.

It will also support you in leveraging newer marketing channels to boost your messages across additional customer segments and scale your services.

B. Amplifying audience reach

It is taxing to move beyond channels that work for your marketing campaigns. But elevating audience reach also demands testing new channels.

For example, your SaaS marketing-centric efforts significantly offer precedence to website and email marketing channels. But you also wish to expand your brand’s social media presence.

This means your team must start from scratch. But how far can intuitive decisions and guesswork drive your campaigns?

This is where predictive and prescriptive data analytics can become your saving grace.

Without starting from scratch, what you essentially do is tap into market trends and forecasts. A marketing ROI dashboard can help you complete the job.

Historical and present campaign data and customer data can help you build a broader and granular purview of upcoming market trends:

  1. Which are the top and least performing social media channels?
  2. On which social media platform do our customer segments interact the most?
  3. Which channels are your competitors using? And on which of them do they have a strong and loyal following base?
  4. Which social media channels can we execute in our campaigns?

The answers to such critical questions will outline your next plethora of actions.

The bottom line?

With this data-driven marketing strategy, you amplify the performance of your strongest marketing channels and affix additional touchpoints. You are basically increasing the possibility of your marketing messages being noticed.

Example 3: Using data to curate email campaigns, from strategy to execution.

Data-driven marketing allows B2B marketers to lean towards what customers value most. From behavioral and engagement patterns to purchasing history, you get one crucial step closer to understanding what your potential buyers are in-market for. And how you can engage them.

This data-driven marketing use case has been at the nucleus of revamped email marketing campaigns.

Previously, email marketing was about sending generic email blasts to a lengthy list of ICPs and hoping for fewer responses. Even though for the majority of professionals, the preferred channel of business communications was email, most of these went unnoticed or unopened.

One of the fundamental reasons for this was unsolicited emails.

It was because either your emails were reaching prospects at the most improper time or not reaching them at all.

Even today, the average email open rate has gone up 42.35%. But the suspicion remains: are they being seen by the right prospects?

This is where targeted email campaigns make a huge difference.

They not just ensure the relevant accounts receive the email, but also take the desired action. This can be strategically carried out by analyzing behavioral data. And that’s what most B2B marketers are galloping towards.

For example, your team has created a targeted email that focuses on helping prospects spotlight the business problems they are facing. And what they can do to act on it. If the email strategy is used within the context, then you might be reaching the correct set of prospects- ones at the top of the funnel, still figuring out what your brand can do for them.

And if you’re a business operating from the US, and wish to send emails to accounts in the UK, then email marketing automation tools can help you do just that. They help with optimizing the content, timing, and performance with respect to your target audience.

You’re now reaching the relevant accounts at the right time- timing that works for your prospective buyers. You can track open rates, CTRs, bounce rates, and unsubscribes, among other metrics.

But there’s an added layer-

With informed execution, a data-driven marketing strategy can also help re-engage your prospects.

Imagine that after coming across your email, they go on to sign up for your newsletter or fill in the brand’s contact page for further communication. But halfway through the process, they stop or drop off.

With the combined power of data analytics and automation tools, you can send a personalized email prompting the user to complete the process. And illustrate what they’re missing on if they don’t do so.

Basically, what happened was that your software flagged customer behavior and analyzed what the user meant to do. Accordingly, it sent them a reminder to complete their action.

This overall helps marketers with faster lead nurturing and conversion. And prompting your brand to remain on top of mind.

Data-driven marketing strategies are the key to revamping your marketing campaigns.

With data at the nexus of your marketing strategies, you don’t just expect all the different elements to come together. To make a lasting impact, the story requires a foundation.

Data is the foundation for your modern marketing campaigns. It puts together every nitty-gritty of a campaign- from creative assets to roadmaps and performance analysis in a neat package.

Every intricate facet is driven by strategy and purpose, such that all your decision-making while developing a campaign remains informed.

Data-driven marketing doesn’t transform your brand overnight. But when combined with the right tech and creative insight, it can connect your customers with your brand.

And deliver success at every step of the customer’s journey.

Intensive Competitive Analysis to Help Refine Your Go-To-Market Strategy

Intensive Competitive Analysis to Help Refine Your Go-To-Market Strategy

Intensive Competitive Analysis to Help Refine Your Go-To-Market Strategy

Under the pressure to accelerate innovation, can brands risk being blindsided by the competition? Adopt competitive analysis to boost your GTM success.

The market is a living ecosystem. It undergoes a drastic transformation every two to three years and remains in flux. From lifestyle changes to regulatory shifts, multiple factors influence this change.

There’s a constant to-and-fro that influences market movements. And it evolves and adapts according to these fluctuations. This has reiterated what businesses understand as growth and success. It’s no longer just brand positioning or delivering the best hands-on services in the industry.

Of course, these elements are crucial. But they are no longer the only focus. Because the competition is intense, your peers always remain eager to pounce on you as soon as they observe an opening. They’re willing to one-up you- that’s the reality of the market.

This is why brands must prioritize the whole picture.

Your marketing teams must remain vigilant, adaptive, and proactive. A new or established market entrant can easily plunder your market dominance, leading to a steady decline in market presence.

This is where competitive analysis becomes increasingly imperative, especially for your GTM success.

What is Competitive Analysis?

Competitive analysis is a comprehensive marketing tactic that involves undertaking thorough research, review, and assessment of industry competitors. This helps you evaluate how your competitors are navigating the market undercurrents and behaving in the digital and physical segments.

It’s technically a method to develop a response to a competitor’s actions.

By analyzing how your peers and counterparts are moving, your teams can curate strategies that’ll make you uniquely stand out and position your brand better.

Competitive analysis is a learning opportunity to understand the broader market movements. But you don’t do it once and forget it. The analysis must remain consistent to grasp any crucial shifts and trends amidst the existing patterns.

A significant chunk of competitive analysis deals with data points that outline what your competitors are doing differently (or better in some scenarios). Evaluating this provides a much granular view of your industry competitors and demonstrates the crevices you should truly focus on.

Why Conduct Competitive Analysis?

Some brands adapt to changes and catch up quickly, while others lag. Meanwhile, some remain as they are, somewhere in the middle- they react to market fluctuations on their own terms.

Shifting market dynamics demand a more proactive operational model.

Understanding the market competition and its effect.

Competition is an age-old notion, but the nitty-gritty remains the same. According to Michael E. Porter, when the market is on the offensive, overall profits suffer a loss.

And as the industry growth slows down, competition escalates as growth-led businesses attempt to knock over their counterparts to meet quarter-end objectives. Similarly, customers gripped by analysis paralysis switch between providers.

This is solely driven by a lack of differentiation among the offerings. Owing to this, brands compete on prices to attract the right customers.

Basically, this is how market competition impacts a single business. There’s a significant amount of push and pull.

The viable solution?

Learn how to survive.

This means that their business operations must shift 180 degrees to align with market conditions.

Here, competitive analysis can work like magic- to help brands shift from very unidirectional approaches to more adaptive and nuanced frameworks. But that’s not all.

Competitive analysis unearths a plethora of opportunities. And it’s simple-

Brands must align with the market environment to remain competitive and innovative.

How? By broadening your view of the competition across the market.

You’re just one of the many options amidst a very saturated market. Given the choices today, most customers face analysis paralysis, stuck in a hamster wheel. What is most prioritized are the adequacy of solutions and advantageous pricing models. These are what make some solutions desirable than others.

As a competitor, one of the primary focuses should be on delivering value that positions your brand as more beneficial than your competitors.

Benefits of Competitive Analysis: Revamp Your Business Strategies

A. Outline multiple perspectives to unlock diverse market insights.

The data points you collect and then analyze ensure that you aren’t entering a new market territory recklessly. And if you’re an established brand, it uncovers what may be hidden amidst the market noise.

By decoding the patterns of your market peers, you’re helping your brand stay ahead of the curve.

And you can gauge whether you want to be a part of the ongoing trend or take a more counterintuitive approach and stand out.

What can competitive analysis do for you?

With consistent research into the market, you can underscore:

  1. Competitors’ weaknesses and strengths- To uncover vulnerabilities, threats, and advantages.
  2. Market gaps signifying unmet needs in the market and underserved segments.
  3. How to position your efforts to compare with your peers in terms of brand recognition, market penetration, and size- Develop benchmarks that review the growth and performance of new initiatives.
  4. Latent industry trends in customer dynamics or market shifts- Join in or take a counter-approach.
  5. Identifying potential for alliances- Expand market reach by partnering with companies that sell complementary solutions.

Mapping out these aspects will offer a molecular insight into your brand’s capabilities and your competitors’. This way, you become privy to your own market position and can now decide whether you are supposed to play it safe or make a bold decision.

B. Spotlight the different threat levels within the industry- scope out competition.

Who are your competitors?

Competitive analysis in your GTM efforts can be different from one segment to another.

However, the primary step always remains the same: profiling the top brand competitors. It allows you to understand how these companies are behaving and what additional services they should offer. Through this, your brand can assess the threat level and rearrange the companies accordingly:

  1. Direct competitors- These companies sell to the same audience and offer solutions like yours.
  2. Potential competitors- These are prospective market entrants that offer complementary solutions or might plan to enter your market.
  3. Indirect competitors- The businesses that don’t sell the same solutions, but ones that can replace yours.

Assessing how many brands are under each level will allow your team to develop frameworks accordingly. Which competitors can you counter and which must you avoid? This information can help you outline an attack or a defense accordingly. Through this, you can additionally mitigate risks and navigate any potential undercurrents swiftly.

Most competitors wish to outshine you. And while rightfully so, your priority should be gauging your own benchmark performance to do better. Your competition is still your past performance, and competitive analysis is just the whole picture.

Setting benchmarks

All you’ve to do is breeze through the data points with the correct tools and software. And sift the latest details on these companies. For this, you can access:

  1. The Internet (simple) to search for companies in your geographical location with similar solutions.
  2. Industry reports, market research, and surveys to understand their intellectual position.
  3. Social media content to gauge what they’re currently focusing on, and the stands they take on ongoing business discussions.
  4. Industry experiences, such as product events, trade shows, and conferences, help us scope out those like you. And where they stand.
  5. Audience surveys to understand who their go-to choice is.

Here, you’re choosing how to cope best with the current market conditions or even influence the conditions in your favor. By unearthing what makes the industry tick from the very nexus.

This underscores the vitality of competitive analysis within your GTM strategy. It reveals what you’re already doing differently and what you can do better. It’s the whole point of executing competitive analysis across all business operations-

To learn the gaps in your roadmaps and your competitors. And then make alterations to differentiate yourself from your competitors across the same market segments.

How else will your target accounts gauge that you’re ‘the’ choice for them?

C. Assess gaps to understand where you stand compared to your peers.

With competitive analysis, you’re building a defense strategy against your competitors. And decoding the points where the forces are the weakest, especially where the brand reception is poor or there’s an unpenetrated market segment.

Market gaps present a window of opportunity.

This is the time and space where your team can learn from its lags as well as its lacks. Why did your competition not market to this specific segment? You can develop marketing tactics to help expand in this territory and position yourself as the only choice.

Doing this will solve a common snag diversification strategies face: What is the potential of your business?

Competitive analysis can help answer this.

You don’t merely react to market shifts, but proactively engage.

Competitive analysis is a measure of potential.

By studying where your competitors faltered, you can avoid similar risks and better gauge limitations on every front, from the broader market to your own organization.

Competitive analysis isn’t spying on your competitors or plagiarizing their strategies.

Instead, these data points will underline their and your market gaps.

You examine the competitor’s product benefits, quality, pricing, and customer service to highlight the cracks. And these cracks reveal the unmet demands the current offerings can’t satisfy.

For example, a software company conducted a competitive analysis to conclude that there are several high-quality project management tools. But the market lacks user-friendly and affordable ones for small businesses. This is a market gap.

And gauging this gap opens an opportunity to develop solutions tailored to that particular segment.

D. Predict competitors’ behavior to mitigate risks and take informed decisions.

Competitive edge isn’t just handed over; it must be earned. In the business world, it can make or break your brand and its growth. It’s obviously scary to watch other businesses build on your weaknesses. But competition is necessary to help your brand evolve and become a better version of itself.

With competitive analysis, you can gather more data and then leverage it to gain a competitive edge. This can be conferred as the ‘competitive-edge model.’

Adapting the competitive-edge model.

The model offers you a comprehensive and explicit picture of what’s happening with your business, your competitors, and the industry. It’s about looking at the big picture- how your brand is competing against others in the same industry and market segments.

This competitive model lets you anticipate scenarios that concern the future of your business, from how customers are likely to behave to the trends that could topple the market. This will allow you to tweak your plans of action today. This way, the high-stakes decisions are rooted in reality and informed by actual data.

A sure-shot way of mitigating risks- grasping what is going on within and around your brand. You understand the market movements even before they’ve happened and adjust your strategies from the get-go. This is the price a competitive-edge model infused with regular competitive analysis can afford you.

A mechanism to stay ahead and mitigate risks that your competitors couldn’t.

Framework for Competitive Analysis: Who’s Vying for the Same Market Share?

It’s vital to delve into each segment that can provide actionable insights while conducting competitive analysis. And help your strategic decisions to elevate effectiveness.

Here’s how.

1. Offerings assessment and differentiation

A comprehensive assessment doesn’t end with the features and benefits. To understand your competitor’s offerings from the inside out and determine their market positioning, grasping the product lifecycle, customer experiences, and after-conversion support is also fundamental.

The data points you’ve gathered should be able to provide insight into:

  1. Are there any unaddressed customer pain points? Or maybe a need for complementary services that can enhance the offerings?
  2. How frequently do competitors upgrade their offerings or introduce new ones?
  3. Do you notice any patterns in their innovation cycles?

Look for the cracks and crevices that can help you differentiate your offerings.

2. Brand positioning and image

Understand your and your competitors’ public perception. Some of the best sources for this are social media sentiments, customer reviews, and feedback surveys. Does their image actually align with the innovation roadmap required today- is it reliable and customer-centric?

Additionally, market share doesn’t offer the whole picture. Tap into brands’ reach across different demographics and geographic locations. This will paint a picture regarding the target markets you might’ve overlooked or a market where you can still develop a foothold.

3. Marketing strategies

Outline which digital and physical channels your industry counterparts are investing in, and what the potential returns on these are. It will help you diversify your marketing efforts across more channels and extend reach.

Learn whether their content marketing, advertising, SEO, or social strategies are really working out, and at what points they are taking a tumble. And further, you can gauge more from the existing data regarding how they’ve moderated and curated their marketing approaches-

  1. Evaluate how they’ve developed and instilled the core brand values in their messaging.
  2. Is their messaging cohesive and consistent across all platforms?
  3. Do the insights and value they provide align with the brand image?

4. Pricing models

Pricing points don’t tell you much about the thinking process behind them. Instead, focus on their pricing models- the bundled services, subscription, or freemium they provide. And how does their chosen strategy affect the perceived value: does it meet the brand promises?

Further, highlight if they leverage any discounts or customer loyalty programs to retain and attract new customers. And to what extent does this work in their favor?

5. Company culture

Assess the competition’s employee satisfaction levels and how their company culture impacts operational efficiency. And also brand growth. A high turnover rate signifies operational problems and a negative culture, while a high satisfaction rate correlates with stronger performance and efficiency.

6. Research

a. Secondary

  1. A thorough digital footprint analysis can help you examine your competitor’s online presence across platforms and channels, like press releases, websites, and social media activity. What are they doing differently while interacting with their target audience, and what form of content receives the most engagement?
  2. Customer sentiment tracking to quantify both positive and negative reactions. For this, use customer reviews and testimonials to identify what customers actually value and which tidbits receive the most complaints.
  • Analyze industry reports and market studies to gauge the umbrella trends that impact all industry players. Where are the most prominent shifts- customer behavior, regulatory changes, or tech adoption? Determine an industry benchmark to measure your performance against.

b. Primary

Curate very focused surveys to gauge customer sentiments first-hand. You can also conduct targeted interviews to establish what the recurring preferences and perceived lacks or edges that your competitors have.

Talking to customers directly removes any falsity in perception and gives you what you need- an honest review of where you might lack and where your competitor can surpass you.

But it also isn’t merely about decoding what these customers think. You must also find out why they hold a specific perspective, or is it all bias?

7. Strategic intelligence gathering

Data analysis isn’t analyzing numbers. It’s about interpreting and applying them correctly. When the process is implemented strategically, it can reveal where your brand stands in comparison. To do so, undertake:

a. Data aggregation and web scraping

Employ web scraping tools to collect large, significant datasets from your competitor’s websites. And then identify trends and patterns across the collated data that might not be visible at the surface level.

Like a shift in financial spending or related patterns could pinpoint a change in strategy- Is it reflective of an acquisition, rebranding, or a new product launch?

b. SWOT analysis and cross-research findings

Based on your research findings, conduct a SWOT analysis for each of your competitors- strengths, weaknesses, opportunities, and threats. Doing so will provide a clear insight into the data heaps and categorize them into meaningful and actionable segments.

8. Closing the loop- consistent learning

The insights collected from your competitive analysis should be utilized in mapping long-term strategies and daily decision-making processes. There’s less point in using such a nuanced strategy for short-term gains.

The market keeps on fluctuating, so of course, you must also create a loop of competitive analysis where you’re consistently learning and adapting your strategies. With competitive analysis done right, you aren’t just checking in on your competitors, but informing your end-to-end business strategy, from developing your USP to new market entry.

Ascertain that each loop culminates in actionable plans. And the result is improved agility, performance, and proactiveness. And of course, a competitive edge that positions you as the only choice.

The Key to Growth: Competitive Analysis to Develop Market Perceptiveness.

The business strategy and industrial economics expert, Michael E. Porter, once asserted that the “essence of strategic formulation is coping with the competition.”

And rightfully so. Basically, understanding your competitors means assessing the battlefield before the final battle and optimizing every intricate attack or defense strategy accordingly. It’s about helping marketers abandon a very myopic view of the market and dive into the specifics.

Your GTM strategy’s success depends on varied minute factors- the right timing, pricing, marketing and sales strategies, and distribution channels. And overall, your GTM plan of action must align with customer expectations and the base market realities.

This is what competitive analysis offers: a panoramic view of the industry and how your competitors are faring under current conditions. It helps you shine a light and navigate underlying threats and pivot at the right time.

The bottom line is that you anticipate a bloat beforehand. And position yourself as a sharp and proactive brand, one that stays ahead of the curve and plays the long game.