One Size Does Not Fill All — how to manage multiple GTMs: Insights from Dave Boyce
Dave Boyce, heard of him? He runs Product-led GTM on substack, is pretty active on LinkedIn and is Executive Chairman at Winning by Design. If not don’t worry, after this episode you’ll know him – and his stance on going multi GTM.
In an increasingly competitive business landscape, understanding and implementing effective go-to-market (GTM) strategies can be the difference between success and failure. In this episode, Dave Boyce shares his insights on managing diverse GTM strategies.
Understanding GTM Motions
The term ‘GTM motions’ may sound complex, but Dave simplifies it:
“Go-To-Market motions can be thought of as the strategic sequence of actions that companies use to deliver their product or service to the marketplace. It is a system comprised of a set of processes that are then executed by either humans or machines” [13:21].
GTM strategies can vary from inbound marketing, outbound sales, to product-led growth (PLG), each with a different operational approach, key personnel involvement, and varying success across industries and company sizes.
When to Initiate New GTM Motions
The pressing question for GTM leaders is when is the optimal time to introduce additional GTM strategies? According to Dave:
“The natural point for companies to add a second GTM strategy is approximately when they hit the $10 million mark in their ARR (Annual Recurring Revenue)” [23:50].
However, he also reminds us that if your existing GTM is performing exceptionally well, there’s no need to rush into expanding your strategies.
Planning For GTM Integration
One common pitfall organizations encounter in their growth journey is attempting to build a completely separate GTM from their existing one. Dave cautions against this:
“We think we’re gonna build a separate GTM motion over there” [09:51].
He advises to build a complementary sales motion alongside the existing one. This synergy aids in leveraging the momentum the current motion has created.
Recognizing the Need to Realign GTM Strategies
Recognizing when your existing GTM strategy is derailing can be tricky, but the signs are inevitably there. Dave elaborates:
“Sometimes, the sales cycle becomes too long, hiring ramps up, costs increase and suddenly your unit economics are way out of line. If you find it’s becoming more expensive to acquire customers than you can recoup within a year, it’s time to reassess” [22:35].
Be patient and give yourself ample time to identify the issues, optimize the processes, and ensure your teams are onboard with new systems and processes.
Pay attention to unit economics
Dave Boyce emphasizes that go-to-market fit can be assessed through the lens of unit economics, specifically CAC payback of less than 12 months as a viable yardstick, depending on the market. He explains:
“What we are looking for in a go-to-market fit is unit economics. We want a scalable source of new customers that can be acquired efficiently. By my definition, CAC payback of less than 12 months.” [14:03]