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2 minute read
SaaS founders often face a common challenge: the go-to-market (GTM) strategy that works for enterprise customers doesn’t always work for small and medium-sized businesses (SMBs). For Yaron Rosen, CEO of Fuse Autotech, this realization led to a pivotal transformation in how his team approached their market.
In this episode of SaaS Founder Stories, hosted by David Brennan, CEO and Co-Founder of Arkeo AI, Yaron shared how they tackled the challenge of selling to two very different customer groups: large dealer groups and single-rooftop dealerships. His insights on segmentation, storytelling, and adapting the sales process provide valuable lessons for SaaS founders navigating diverse markets.
The Challenge: A One-Size-Fits-All Strategy
Fuse Autotech serves franchise car dealerships, a diverse market spanning large dealer groups with hundreds of rooftops to single-location dealerships. Initially, their GTM strategy aimed to sell a comprehensive solution, or as Yaron puts it, a “whale.”
"For enterprise customers, selling a whale worked. But for single-rooftop dealers, it was like trying to shove a whale down their throat. They couldn’t digest it."
The challenge became clear: Fuse Autotech needed a different approach to engage and sell to smaller dealerships without overwhelming them.
The Solution: Breaking the Whale into Dolphins and Sardines
Yaron and his team redefined their GTM strategy by segmenting their total addressable market and tailoring their storytelling for each customer type:
- Enterprise Sales: For large dealer groups, they continued using an account-based marketing (ABM) approach, emphasizing the sophistication and breadth of their solution.
- SMB Sales: For single-rooftop dealerships, they simplified their messaging, breaking their comprehensive solution into smaller, digestible offerings.
"We stopped selling a whale and started selling dolphins and sardines—focusing on solving one or two key problems at a time."
This approach allowed Fuse Autotech to land smaller deals quickly, gain trust, and expand their footprint over time.
Key Lessons for SaaS Founders
1. Segment Your Market with Precision
Understanding your customers isn’t just about their size; it’s about their decision-making processes and pain points. Enterprise customers have multi-threaded sales cycles, while SMBs typically have a single decision-maker with budget constraints.
Takeaway: Tailor your GTM strategy to match the unique needs of each customer segment.
2. Simplify Your Storytelling
Enterprise customers may appreciate the complexity of a comprehensive solution, but SMBs often need simplicity. Fuse Autotech adapted their messaging to focus on solving one immediate problem for SMBs rather than pitching a multi-faceted solution.
Takeaway: Focus your pitch on the one problem that matters most to your customer right now.
3. Understand Budget Authority
For SMBs, budget authority often lies with a single person who makes decisions quickly—but only within their financial limits. Fuse Autotech adjusted their pricing to fall within these limits, making it easier for SMBs to say “yes.”
"We learned that a price point under $1,000 made the decision easier for single-rooftop dealers."
Takeaway: Align your pricing with the budget authority of your target customer.
4. Ask the Right Questions
Fuse Autotech’s aha moment came when they realized they already had the answers—they just weren’t asking the right questions.
"We hit a wall trying to sell the whale. When we asked who we were selling to and what their budget authority was, everything changed."
Takeaway: Regularly revisit your assumptions and dig deeper into customer needs.
Conclusion
Yaron Rosen’s story is a powerful reminder that SaaS founders need to adapt their GTM strategies to meet the needs of different customer segments. By breaking their solution into smaller offerings, tailoring their messaging, and aligning with customer budgets, Fuse Autotech transformed their sales approach and unlocked new growth opportunities.
If you’re a SaaS founder struggling with GTM challenges, ask yourself:
- Are you segmenting your market effectively?
- Is your messaging tailored to each segment’s priorities?
- Are you aligning your pricing and sales process with your customer’s decision-making structure?
🎧 Listen to the full episode to hear more about Fuse Autotech’s journey and learn how to refine your GTM strategy:
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