With the world’s largest economy of 500 million consumers, the European Union offers exciting opportunities for companies to expand and grow their revenue and customer bases in these diverse and mostly wealthy countries.[i]
Europe is a popular expansion spot for SaaS software companies at the initial public offering ( in particular and for good reason, since they derive an average of 30 percent of their global revenue from the region.[ii]
The opportunity is here for technology companies looking to expand with a regulatory framework covering almost all countries. But there are some key practical steps to take when navigating new terrain to avoid costly mistakes.
But also, companies that are already based in Europe can massively increase their revenue if they decide to expand outside of their home countries. For instance, a French company should consider at least doubling its potential revenue streams just by simultaneously growing in Germany or other European countries without losing its focus on their core market. The opportunity is there for the taking.
At LaKlas, we help international technology and service providers market and sell B2B products and services in countries across Europe. We detect new opportunities beyond to grow businesses by leveraging our local expertise and market research to help tech companies succeed.
If you are considering expanding or growing your existing business in Europe, here are a few approaches we recommend you include in your consideration and planning. They are:
Determine Your Market Entry and Unique Selling Point (USP) Strategy to Enter the Market
It’s overly simplistic to think that what worked in one European market will translate and be successful in another. After all, you will be operating in one single, yet hugely diversified market.
Positioning yourself in a new market has its challenges and requires local market knowledge and determining your UPS strategy sets your brand up for success.
Conducting a competitive analysis in the country you plan to grow your business in will help your firm understand how different companies engage and communicate with the customers.
Set a Budget and Know Each New Before Entering
Is your leadership team ready to commit the resources it will take to enter the new market you are targeting successfully? Determining a budget and allocating adequate resources sets the tone for the commitment, feasibility, and viability of your growth plan.
Hire a Local Agency that Knows Your Market and is Already Connected
Working with professionals who bring local expertise to augment your team and prevent expensive mistakes is highly recommended. Agents acting on your behalf can tailor your content and channel strategies to the local landscape, talk to the right decision-makers of the right companies, sell your product and provide customer service until there’s enough traction for your internal teams to take over.
Execute Your Marketing Plan that Includes Localization of Content, Channels and Perhaps Even the Product Itself
Developing a go-to-market strategy that leverages your market research, USP and considers content localization will help develop intentional brand recognition in each new country you enter.
What works in one country may not transmute in a new European market.
For example, building a professional network in France and Germany does work via LinkedIn. But there are massive local professional networks like Viadeo (France) or Xing (Germany) that you may want to consider too, depending on which niche you are operating in.
We recommend localization of digital channels to accommodate cultural considerations such as:
- Social media
- Ads
- Website copy
- Local communities
- Media coverage
- Tradeshows
- Trade associations
- Local lead generation services
- Customer service
Plan for the right local channels as part of your go-to-market strategy. Get to know the right stakeholders to associate with, tap into the right channels, and learn the cultural landscape.
Engage in Strategic Outreach – Meet With the Right People and Sell Your Product
Qualifying your leads, talking to those who will influence the final buying decision, and preparing compelling offers that your targeted customers cannot refuse works best if you show local empathy, appreciate local customs, and know who you are up against at the negotiating table. Business relationship engagements differ in France vs Germany vs UK and so on..
We strongly advise our customers to connect with those influential companies that reciprocate and have enough influential local power to refer you to others simply by using your product.
When it comes to the final negotiation phase, sales are really more art than science; a local sales agent will give your company a local face that companies can relate to, and who will bridge your local customers’ expectations with what you are prepared to do to satisfy them.
Following Regulations and Protecting IP
Especially when you are normally operating from outside the EU, adapting to the local market may mean accommodating different rules and regulations in your growth plans that you are not used to accommodating. For example, GDPR compliance requires expressed consent or your company can face hefty fines. Working with the right agents can help you follow local guidelines.
Prepare for Different Ways of Doing Business
Attitudes, expectations, and ways of doing business may be completely different than what you are accustomed to; are you ready to change and accommodate new ways of conducting business so that you can capture new opportunities to expand your company? Understanding the needs and desires of your local target market requires adequate preparation and resources for market entry and openness to doing things in new ways.
If you are ready to take this journey and unlock new revenue streams with our one-stop-shop solutions without wasting your resources let’s connect! We know local European markets. Together, we can be successful anywhere.
Contact us to set up a consultation.
[i] https://exportertoday.co.nz/article/how-enter-european-market
[ii] https://hbr.org/2021/02/what-u-s-startups-get-wrong-about-expanding-into-europe
