How to Test Go-to-Market for Startups

A frequent question I get asked is how to test different go-to-market models and figure out what's scalable and effective for an early-stage startup.

It came up on a panel I attended just the other day - and I realised that I hadn’t actually documented it, so here goes!

Of course the answer varies depending on where you are in your journey, but if you're pre-product market fit and unsure how to scale or find a repeatable go-to-market model, here's my suggestion on building a systematic approach to testing Go-To-Market  for early-stage startups.

Step 1: Review the ‘4 Fits’ Go-To-Market Model

The first thing you should do is review the four core components of a go-to-market model as created by Brian Balfour. This will help ensure that you have a logically cohesive plan in place. These components are:

1. Market Fit: Assess whether the market you're targeting or your ideal customer profile (ICP) matches the product experience you're offering and the price you can charge for it.

2. Product Fit: Consider the level of product complexity, time-to-value, and whether it aligns with the types of channels you plan to use to acquire new customers, the cost to serve them and their needs.

3. Acquisition Channels: Evaluate the cost (CPA and CAC) associated with these channels to ensure they are financially viable to reach your target market at a price you can afford based on your commercial.

4. Commercial Model: Determine if you can charge enough to your ICP for your product to cover your costs (particularly your CAC) and generate profit.

Often, one of these components may not align with the others, which can hinder your go-to-market effectiveness and efficiency.

Doing this initial review helps identify and resolve any misalignments early on, which can be super expensive later down the line.

Step 2: Real-World Testing Over Theory

After reviewing these components, focus on real-world testing rather than getting bogged down with strategies, playbooks, and theories. This stage is all about activity and learning.

Don’t listen to consultants and advisors who want you to draw up comprehensive GTM plans or share a detailed explanation of your ICP…

The priority here is to understand and test what messaging resonates before identifying the most effective channels to amplify the message and refine your focus on the best fit customers (your future ICP).

The aim here is to establish Language-Market Fit, a concept developed and popularised by Matt Lerner.

Why? Because your messaging's resonance is crucial. Even if your channels aren't perfect, the right message will still convert some sales. Conversely, the wrong message will result in wasted efforts, regardless of how many of your future prospects are in the channels you’re spending time and money on.

If you're at an early stage without extensive customer conversations to draw from (to understand their ‘Jobs to be Done’ language’,  then start cheap and easy at the top of the funnel to get faster feedback.

Use tools like email, organic social media (especially LinkedIn), calls (pick up the phone!), and leveraging your network for referrals.

This approach is both cost-effective and efficient for gathering qualitative and quantitative feedback at the top of your funnel, to establish which messaging and positioning resonates with potential customers. (Remember at this point you’re going broad, and haven't narrowed down your ICP).

Broad Initial Targeting

It feels counterintuitive given how much noise there is about the importance of establishing and focussing on a narrow ICP, but initially, go broad rather than narrow in your targeting.

Although focusing on your ICP is crucial for scaling effectively and without wasting a ton of money, at this early stage, you need to gather as much feedback as possible and you’d simply be guessing at your ICP. This is actually more harmful than helpful as you may miss out on some killer customer niche or use-case without being open to it.

Use the Three Whys Framework

When testing your messaging, consider the "Three Whys":

1. Why Change? - Can you clearly and succinctly articulate the pain point your product solves? Is it enough to encourage a potential customer to take some action towards the next step of the buyer journey? (For example, booking in a call with you)

2. Why Change Now? - Highlight the urgency and implications of not solving the problem. Do they land and trigger an even more definitive action towards purchase? (For example, agreeing to a trial or more in-depth demo)

3. Why You? - Can you differentiate your product from other alternatives and establish why your solution is 10x different or better than others (both direct and indirect competitors)?

Start with the first "why" and collect feedback. As you refine your message, gradually progress to the other "whys."

Step 3: Analysis

Analysing Data and Patterns

As you move conversation and prospects down the funnel, analyse data to identify where your messaging might be falling short, and refine accordingly.

If you can’t land on the top level pain, there’s no point refining your competitor positioning because nobody will get that far.

However if you find you’re getting prospects really excited, only to find out they decide to go with another solution you’ll know you have work to do on this stage (and potentially more product development too, until you find PMF).

Refine Your ICP and Channels

Look for patterns among closed deals to identify your best-fit customers (those who’ve enthusiastically adopted your product and started telling others about), and recognize common characteristics among them. These could be firmographic, technographic or behavioural traits they largely share in common.

Once you've gathered enough closed-won deals, then interview those best-fit customers to understand what triggered their interest in your solution, the friction that made them willing to change, and the channels they use to learn about solutions.

This information will help you refine your ICP and optimise your distribution channels for future scaling.

Leverage Tools like RevvedUp

RevvedUp can be instrumental in this process.

It enables you to quickly and easily create A-B tests across various channels, maintaining consistent and testable messages across your core value-proposition.

You can set up different seller profiles with varying value propositions and use frameworks like the Three Whys within RevvedUp. This allows for scalable, efficient campaigning, helping you hone in on your message market fit without spending excessive time tweaking hundreds of emails, calls scripts or landing pages.

In conclusion

By following this systematic approach, you can efficiently test and refine your go-to-market model, setting your startup up for scalable success.

If this resonates, we’d love to talk to you about how RevvedUp can assist in accelerating your journey towards PMF!