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Commercial Report

Go to market in slow markets

What changes, and what does not, about commercial execution when the category is compounding at single digits.

Most go to market advice is written for fast growing categories. Demand is pulling. Sales teams are adding logos. Marketing is optimising a funnel that is already full. The job is to keep up with the demand and not let it spill.

Most real businesses, most of the time, are not in fast growing categories. They are in categories that compound at single digits, where every win is also somebody else's loss, and where the commercial engine has to be built for patience and for share of mind rather than for volume.

What changes in slow markets

Three things change when a market slows down. First, the cost of acquiring the marginal customer goes up, because the marginal customer is no longer one who was planning to buy anyway. Second, retention quietly becomes the main driver of growth, because every customer lost has to be replaced by one taken from a competitor, and that is an expensive way to grow. Third, the value of a trusted brand goes up, because in a market with few new buyers, repeat purchase and referral become the main source of efficiency.

What does not change

The fundamentals do not change. The firm still has to understand its customer. It still has to decide what it is going to charge and why. It still has to align the sales operating model to the strategy. What changes is the order in which these things matter, and the patience required to let them work.

  • Retention becomes the first metric to track, not the last.
  • Account planning becomes a commercial exercise, not an administrative one.
  • Brand and reputation become commercial assets, not marketing assets.
  • Discount discipline becomes more important, not less, because margin lost in a slow market is hard to earn back.

The firms that thrive in slow markets are almost always the ones that stop treating growth as the only measure of success and start treating the quality of the book of business as the measure that matters. Growth is lovely when it arrives, but it is rarely the thing that saves a firm in a slow decade. A clean book of well served customers almost always is.

Next step for the reader

Where this report connects to our practice pages

Readers who want to see how the firm turns this thinking into an engagement can read the sales and marketing practice page, which sets out how a go to market motion is designed, costed, and measured in practice. A related report on the same theme is Pricing as a strategic instrument, not a last minute spreadsheet, because a go to market plan without a clear price is almost always a plan that quietly discounts itself.

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