How to Build a Go-to-Market Strategy That Prevents Risk

With an ever-shifting digital landscape and the rise of AI, just how reliable are the strategies you use to grow? It's likely time to assess and possibly make changes.

With rising customer acquisition costs and the added challenges of a fast-evolving digital landscape, today's entrepreneurs require, more than ever, a go-to-market strategy that prevents and mitigates risk. And sure, that may seem a straightforward-enough need, but how? What's the best way to develop a strategy that withstands forces like shifts in paid advertising and the rise of AI-driven?marketing?tools?

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Assess the present moment

What does your current strategy look like? What's working? What needs to change? If, like many, you're relying almost exclusively on paid advertising, what would happen if that channel ceased to work? Potential customers, after all, are increasingly inundated with digital ads and other companies vying for their attention, and with AI-powered marketing tools, it's easier than ever to generate compelling content. As a result, the channel you rely on the most could quickly become overpopulated by competing voices that could drown out your own and drive customers away.

Combined with increasing customer acquisition costs, this competition can prove even more detrimental. In 2013,?according to SimplicityDX , business owners spent an average of $9 to acquire a new customer, compared to $29 in 2023. That's a 222% increase in just 10 years. So clearly, assessing your current strategy, while challenging, is vital, and will highlight areas to focus on in developing new approaches.

Embrace more varied solutions

Companies have a greater chance to thrive when they invest in?multiple marketing channels , ideally those that can weather varying economic conditions. These might include:

? Customer referrals

? Word-of-mouth

? Email marketing

? Customer testimonials

? Online newsletters

These strategies can also overlap and reinforce one another, creating a more resilient approach. Ideally, they'll also help access different customer segments. For example, you may not be able to reach a target audience on social media, but it may be influenced by online testimonials or via an email promotional campaign. This varied approach is especially important given the way customer communication styles and pathways tend to change over time (many, for example, might neglect to update their accounts after switching email addresses), and will also help ensure that you maintain quality contact with existing ones.

Develop a defensibility plan

One of the greatest challenges facing today's entrepreneurs is the proliferation of competing voices. Put simply, business owners have their work cut out for them when it comes to demonstrating unique value. This is what's known as "defensibility," and for competitive industries, it's mission-critical — the ability of a target market to understand what need(s) your business seeks to address and how you outperform other companies in doing so.

Not only can building a defensibility-centric marketing strategy help you outshine the competition, but it can also help you cater to evolving consumer preferences, especially during periods of economic volatility. For example, rising consumer prices pushed many to reconsider discretionary spending, but businesses that emphasized the "must-have" qualities of their goods and services were better able to develop resilience.

What are the best practices for building this kind of defensibility plan? In my experience, the most effective include four crucial components.

1. Select channels that become more valuable over time

Focusing on just one strategy is a recipe for obsolescence, especially in a shifting digital economy, but successful entrepreneurs can identify and leverage several. Some owners might focus on building a strong brand presence, for example, which involves more than just creating an eye-catching logo or drafting a new slogan.?Solidifying yours?helps a target audience connect with your brand voice and understand more about the customer journey even before they commit to your company.

Alternatively, the focus could be on nurturing an engaged community. You might already have a series of followers on social media channels, so it's vital to concentrate on engaging them by posting compelling content or by offering fast replies to user comments. Doing so boosts engagement and increases business visibility.

2. Incorporate customer-centric approaches to foster loyalty

No matter how much technology changes, customers remain the lifeblood of any business, so savvy entrepreneurs incorporate customer-centric approaches that nurture brand loyalty and generate organic growth.

Referral programs are the most obvious example. You can ask people to recommend your services to their friends and offer discounts or exclusive promotions in return.

Some businesses also focus on personalizing customer experiences. Retailers who operate in multiple locations might offer a unique promotion surrounding a community event. Others might deliver personal touches like birthday discounts or other offers that reflect a deeper knowledge of a buyer base, not just its purchase history.

3. Emphasize relationships

Never neglect the value of strong customer relationships. Developing a loyal base can go a long way to navigating increased competition and economic uncertainty. But doing so demands regular communication. The exact manner depends on your industry and customer preferences, but many are thriving by leveraging technology to send automated emails and text messages. (A customer relationship management [CRM] platform can strategically time these.)

And who could forget the value of good service? Business owners should work closely with their staff to ingrain strong service skills so that every customer feels like an MVP. And this practice doesn't just apply to brick-and-mortar establishments: Online businesses can likewise work toward greater service through fast responses, chat features and a swift and clear return policy.

4. Be ready to adapt to changing market dynamics

Of course, a business leader's work is never done. Once you create a defensible market strategy, you'll have to work hard to continually make improvements and adapt to evolving trends and economic conditions.

Customers can be your greatest asset in this effort, so don't be afraid to?solicit feedback?from them. They typically won't hesitate to let you know what worked well and what didn't, and such responses might prompt you to make changes to products, client service or the way you do business overall.

Similarly, competitors can also serve as a valuable resource. Learn what they are doing and why it's working. You don't have to be a copycat, but you might consider integrating similar ideas. Industry and marketing trends tend to be less predictable since these nationwide dynamics don't impact every market in quite the same way. That said, industry publications (I find business leadership articles especially helpful) can also go a long way in strengthening an understanding of the current business climate.

John Boitnott ?is a journalist and digital consultant who has worked at media companies for 25 years. He writes about startups, marketing and leadership at?Entrepreneur , the?Motley Fool ,?Readwrite.com ,?Jotform.com , and?his blog .

This?post ?appeared on Entrepreneur.com.