Charting a new course. The challenge of identifying a “compelling reason to buy.”
Our client was one of several dozen start-ups in a new wireless communication equipment category. While the category was receiving huge exposure in the IT and business press, actual customer adoption was not living up to expectations. Consequently, many of the well-funded venture-backed start-ups in the category were struggling to generate revenue. Our client did not want to experience the same type of struggle, believing that a strong go-to-market strategy could separate them from the pack.
Horizontal or vertical? Or both?
We reasoned along with our client that while the technology category was horizontal in nature, the customers’ compelling reasons to buy required a vertical focus to direct the corresponding whole product solutions. We also observed first-hand how other companies in the category were struggling because they were going to market in a horizontal fashion, without a compelling business case, or a complete solution attractive to any one customer segment. We collaborated with our client and one of their venture capital investors to assess approximately a dozen different vertical market opportunities. In the end, one vertical market opportunity met our evaluation criteria. Trumping the list most notably, our choice scored very high on “compelling reason to buy.” There were potentially catastrophic consequences if this target segment did not eliminate the business problem that our clients’ technology addressed.
Our recommendations also included whole product solution development; staffing requirements for completing the whole product; and a revised distribution strategy.
Focus Enables Contender
To Emerge As Leader
Our client closed its first $250K deal 3 months after launch; its first $400K deal 5 months after launch; its first $1M deal 7 months after launch; and its first $4M deal 9 months after launch. From a pool of several dozen contenders, our client emerged as the category leader.