This article is based on Bryan Dsouza’s insightful talk at the Boston Product Marketing Summit. As a PMA member, you can enjoy the complete recording here.
Have you ever struggled to understand why your product’s incredible value isn’t resonating with your audience? The issue might lie in misaligned strategies. Go-to-market (GTM) and monetization aren’t separate efforts – they’re two sides of the same coin, and when they don’t work together, your message gets muddled.
When GTM and monetization align, magic happens: customers connect with your product, your value proposition becomes clear, and revenue growth follows naturally.
So, in this article, we’ll explore five truths that will help you simplify and align your GTM and monetization strategies, unlocking stronger connections with your customers and more predictable success.
Debunking common GTM and monetization myths
Before we get into our five fundamental truths, let’s clear up a few misconceptions.
First, monetization strategy isn’t just about pricing. Pricing is just one part of a broader monetization framework. When I advise startups, they often ask, “What should our pricing strategy be?” My response is always, “You don’t just need a pricing model; you need a full monetization strategy.” These are two very different things.
Second, go-to-market strategy isn’t one-size-fits-all. This might seem obvious, but it’s worth emphasizing. You can’t create a single GTM strategy and expect it to apply to every launch or campaign throughout the year. Markets are dynamic, and customers are constantly evolving. Each launch or campaign will have unique nuances, so you need to tailor your approach.
Finally, GTM and monetization strategies aren’t solely owned by sales or marketing. Yes, as a product marketer, you’ll likely lead these efforts, but success depends on co-ownership and collaboration with multiple stakeholders across the organization.
5 GTM and monetization truths
Now we’ve addressed those common GTM and monetization misconceptions, let’s dive into our five fundamental truths. For each one, I’ll share a core truth, a few insights, and an example to keep it simple and actionable.
1. Don’t just meet your customers where they’re at – meet them where they’ll be
The first truth is this: don’t just meet your customers where they are today; meet them where they’ll be tomorrow. It’s not just about solving a problem for the customer now – it’s about supporting them through their journey and being there as they progress.
Here’s the key: customers justify your price not just based on the value they receive today but also on how they’ll use your product and benefit from it in the future. This forward-looking value proposition is especially important for B2B companies, where buying decisions are carefully scrutinized.
You need to think of your go-to-market strategy as a continuous motion, not a one-time event. This means your strategy shouldn’t just focus on the immediate impact but on building longer-term customer lifetime value.
If your product is already in the market, that’s fine – treat any refresh or relaunch as an opportunity to re-engage and set the foundation for ongoing growth.
Example: Grammarly’s “emotional pricing model”
Let’s look at Grammarly as an example. Their pricing page illustrates a clear path for customer growth. They offer a free version, a Pro version (for individuals or “prosumers”), and an Enterprise version for teams and organizations.
If you visit the B2B sections of Grammarly’s website, you’ll notice messaging that emphasizes partnership: This messaging aligns perfectly with their pricing model. A customer might start with the free version, upgrade to Pro as their needs grow, and eventually expand to an Enterprise plan as their team adopts the product.
The pricing model reflects a journey – one that positions Grammarly as a partner in the customer’s evolving success.
Grammarly’s go-to-market strategy supports this pricing structure. When they launched their Enterprise offering, they faced objections like, “Why should I go Enterprise when I have the free version?” So, Grammarly highlighted the challenges of scaling and the value of staying connected as an organization. This approach helped them overcome objections while reinforcing their long-term value.
This is what’s called an “emotional pricing model.” It communicates value in a way that resonates with the customer’s future success, showing that Grammarly will grow with them. The result? A seamless alignment between the go-to-market strategy and the pricing model.
Takeaway
By anticipating where your customers are headed and aligning your strategies accordingly, you can create a GTM plan that builds trust, loyalty, and long-term value.
2. Communicate your value in terms of the customer’s currency
The second truth is to communicate your value in terms of the customer’s currency. Now, by "currency," I don’t mean dollars, pounds, or euros. Instead, it’s about how your customers measure value – what units or metrics they use to assess whether your product or service delivers what they need.
To get this right, you need to understand your customer’s “value language.” In other words, what criteria or metrics do they use to evaluate whether your price is justified? This might require focus groups, customer interviews, or broader market research.
If your pricing doesn’t align with their understanding of value, you risk two major issues:
- Confusion: Customers might not understand what they’re paying for.
- Misalignment: They may feel your product solves a problem for someone else, not for them.