In a recent newsletter from Lenny Rachitsky (it's paid, so can't link to the full article), he analyzed the GTM motions of 30 B2B SaaS companies.
I really want to share them with you, because I get this question so often and taking well-informed decisions on how to go to market impacts the success of a business to a great degree. So here we go:
The Three Go-To-Market Criteria
In the article he goes into detail between three major decisions that every B2B SaaS company has to make when they strategize how they want to go to market:
What market segment to go after
- Very Small Business (VSB)
- Small and Midsize Businesses (SMB)
- Mid-market (10M - 1B in revenue)
- Enterprise (1B+ revenue)
Who to go after within the organization
- Top-down: Founders, VP of x, Head of y, etc.
- Bottom-up: Internal tools engineers, IC designers, etc.
How to get to them
- Product-led: A self-serve product that users discover through SEO, ads, or referrals
- Sales-led: A gated product that users discover through outbound sales
5 Takeaways of Lenny's GTM Analysis
When you look at the table in the image below, you see Lenny went into quite some effort to analyze these 30 companies along all of the five criteria outlined above. The main findings and surprising facts I found are the following:
- 100% of product-led companies end up adding a sales team, if not going sales-led completely
- Everyone moves upmarket—few go the other direction
- Almost everyone starts by going after VSBs or SMBs (aka startups)
- Everyone targets one (and max three) personas within an organization
- Sales-led companies often add a bottom-up self-serve product, primarily to drive lead gen
And here is the graphic that he put together for us (click on the image to make it larger):
I know that these questions come a lot for most marketing leaders and it is sometimes hard to distinguish what the right move is. Just by knowing the criteria outlined above you will at least have a framework of how to think about your future GTM decisions.
And again, if you want to get more in-depth articles like this from Lenny, you can subscribe here.