What separates the companies that make it past the early growth stage and those who don’t? A big factor is the ability to target the right customer segments and dominate them. OpenView founder Scott Maxwell shares five market segmentation strategies proven to work.
At OpenView, we spend a lot of time helping our portfolio companies segment their customer markets and then developing a strategic plan for what segments they should attack, how they should attack them, and when. There are lots of strategies to consider and unfortunately many companies don’t take the time to thoughtfully develop and execute any of them. Below are five basic strategies for you to consider that will help you think about which potential customers you should be focusing on. Your mission is to figure out which ones are best for you and how to execute them.
If you’re a startup, you might be more concerned with your day-to-day than developing your go-to-market strategy for the long haul. But as OpenView founder Scott Maxwell explains, designing your strategy now will go a long way towards helping you win the war for customers and one-upping your competition.
Editor’s Note: This is OpenView founder Scott Maxwell’s fourth post in a multi-part series about go-to-market strategy design. Read his previous posts to learn the key to market clarity, why focus is everything, and how you can apply the tools of design to your market strategy.
If you think about the best strategies — the ones that have allowed nations to win wars, small businesses to develop into multi-billion dollar corporations, and sports teams to win elusive championships — you will realize that those strategies were never static. Instead, they were highly adaptable, evolving over time to adjust to changing circumstances, capabilities, and objectives.
Your buyers are living, breathing people with individual pain points, interests, and goals. Understanding those people and the paths they take to purchasing your product is crucial to running a successful business. Achieving that level of understanding, however, takes more than just critical thinking. It requires systematic research. Buyer Insights Research: How to Understand Your Buyers So You can Eliminate the Guesswork outlines a step-by-step approach to conducting the kind of research your company needs to: Introduce a more customer-centric way of thinking across the organization Improve customer acquisition effectiveness Focus on the decision-makers within a target company and their…
Do you really understand your target market? Learn how to conduct an honest assessment and set your company on a course to achieve true market clarity.
Editor’s note: This is the third post in a multi-part series about go-to-market strategy design. Read the previous posts in the series to learn why focus is everything when it comes to designing a go-to-market strategy, and how you can use the tools of design for a more successful approach.
In its most conceptual form, a go-to-market strategy encompasses the ways in which a business approaches, engages, and attacks its key market targets. It is a focused, organized process for identifying the people, channels, and factors that have the most influence on buying decisions, and formulating a plan of action to promote specific behaviors.
Naturally, doing that without knowing exactly who those people are, what they care about, and which channels they tune into most is virtually impossible.
In this second post in a series on go-to-market strategy, OpenView Senior Managing Director and Founder Scott Maxwell explains how an aimless go-to-market strategy design can lead your company into product disaster.
Over the course of the last decade, a handful of successful tech companies have brought products to market that virtually sold themselves.
Google, for instance, didn’t need to do much to explain the value of its service or what its customer base was (i.e., any person with access to a computer). Similarly, businesses like Apple, Groupon, Nest, and Amazon Web Services have released products that were so new and compelling that the process of acquiring large batches of new customers was relatively simple.
For most tech companies, however, driving high growth is not that easy.
In the first post in a multi-part series about go-to-market strategy, OpenView founder and Senior Managing Director Scott Maxwell explores two go-to-market approaches, and explains why one is much better at helping expansion-stage software companies create truly sustainable, scalable growth.
Let’s imagine for a moment that you were a fisherman, instead of the founder of a technology company. How would you approach your job?
Would you fire up your boat, navigate it out to a random spot in the ocean, cast your line, and wait, hoping blindly for a bite, until you caught some fish?
Or would you be a bit more strategic about how, when, where, and why you fished — researching the types of fish that would net you the largest profit, identifying the fishing holes that were most likely to house those fish, using bait that you were sure attracted those fish, and casting your line only when those fish were most likely to be looking for food?
Blogger and entrepreneur Andrew Chen offers a simple test to help you face the facts and get honest about your market size.
Every entrepreneur wants to believe their product is taking on a big market. Sometimes they’re kidding themselves.
Get market insight from the analytics and feedback found on crowdfunding sites.
Jeremy Quittner of Inc. writes that crowdfunding sites like Kickstarter provide valuable market insight.