SaaS GTM in Japan: Path to Your First Customer in Japan

Introduction

Entering the Japanese market can be full of mysteries. Some go-to-market initiatives like SEM and SEO are similar to global markets but require optimization for the Japanese market. Others may be unique to Japan. This blog post is to demystify go-to-market in Japan, so you can bring on your first customer. Before getting your first customer, it’s important to evaluate the right timing for Japan market entry and understand that the first step is to gain the trust of the Japanese market. It’s also important to avoid common mistakes that companies make with entering the Japan market.

Getting Your First Customer

Getting your first customer in Japan should be celebrated. Some companies have the luxury of bringing on Japanese customers without any local GTM or localization. Most SaaS companies that enter Japan will have to go through the localization and GTM motions to bring on their first customer.

Is Localization Complete?

The first step in bringing on a customer is to complete localization, as it has a huge impact on the buyers’ decision-making. Not everything has to be complete, but identifying and localizing the key parts is necessary. Identifying what needs to be localized is usually case-by-case, but eventually, everything should be localized to build a long-term presence in Japan.

The website, documentation, and product are usually a must in the localization process. The website is the first thing that most people see when exploring the product. Not having a local website will reduce conversion rates, as potential buyers may drop off after seeing a different language. A non-localized website (or a website with bad translation) is like a bad first impression. There is uniqueness in Japanese websites, so hitting the right nuances is important to give the website a local feel. Though machine translation has made significant progress, but AI is still not able to address the local nuances.

The second piece is the documentation. Even if the product is in English, having documentation and onboarding instructions in Japanese may be enough for the end-user to use and implement the product. Users will usually not go out of their way to navigate a product if the documentation is in a different language. Essentially non-localized documentation increases the barrier to entry to use the product being offered.

Lastly, the product likely needs to be localized. Certain services can get away with English as long as the documentation is localized. Highly technical products and developer tools are examples that have some flexibility without a localized product, as the end-users tend to have some English understanding. Even if the product can get away with this in the short term, providing a fully localized product is a must in the long term. The purchasing process in Japan is usually through a committee with many stakeholders that may not be end users. A non-localized product can dissuade these stakeholders, as it could potentially give the wrong impression of limited support in Japan. For the most part, products should be fully localized, as English proficiency in Japan isn’t as high as you might expect.

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Understanding Where You Fall in the PLG vs. SLG Spectrum

After localization is complete or being worked on, the next step is deciding the GTM strategy. Product-led growth is the holy grail of growth. Even if PLG has had success in other markets, having a sales-led motion or a hybrid model is necessary to consider in Japan.

The purchasing process in Japan is done by a committee through the Ringisho process. This process includes many stakeholders that may not be end-users. As a result, pure PLG strategies are rare in the Japanese B2B space. Companies usually have two CTAs with one being “Downloads Documents.” Potential buyers are the first step in the sales-led process, as this deck is used for internal evaluations.

Assuming PLG will work in Japan is a common pitfall for companies entering Japan. A sales-led motion is more prevalent and necessary than you may initially think. This can impact the effectiveness of bringing on customers.

Go-To Strategies for Direct Sales

There are GTM strategies that are ubiquitous globally including SEO, SEM, and outbound sales. Like other markets, these are effective strategies in Japan. Some initiatives like tradeshows, events, and press releases are prevalent in global markets but have a Japanese twist. Understanding the buying patterns of B2B companies is essential when constructing the GTM strategy for Japan.

SEO

SEO is important in any country including Japan. It is one of the key pillars in putting together a online digital marketing strategy. Creating high-quality content that benefits the readers helps create traffic. The added benefit of SEO is awareness as a thought leader. If the published content is relevant to the reader, the company will start being recognized as a thought leader in the space.

One common mistake when entering the Japanese market is assuming US GTM will translate over to the Japanese market. Assuming keywords that have performed in the US will translate over to the Japanese market is a common misconception. There’s no need to reinvent the wheel, but some prior research and continued optimization for Japan can be a shortcut. The keywords that perform in Japan are likely to be different than those in the US.

SEM

SEM is also an effective way of getting exposure in Japan. Before researching keywords for the local market, it is important to understand the search engine market in Japan. The search engine market has Japan-specific nuances and understanding this can help with better targeting and overall performance.

Similar to SEO, finding and targeting the right keywords is essential for success, and keywords that perform in the US may not perform in Japan. Understanding the keywords that match the Japanese market is the first step. Directly translating the US keywords won’t usually cut it. The direct translation may miss the colloquial term. Japan also has three different types of characters, Hiragana, Katakana, and Kanji. The right term for the Japanese market may be a combination of different types of characters. Working with a native Japanese speaker in the space is the quickest way to put together a list of appropriate keywords.

Outbound Sales

Outbound sales is another option, but it’s usually not a common starting place for companies entering Japan. That being said, outbound sales can be effective for companies operating in a very specific niche. Getting in front of the niche audience may take longer with SEO, cold calls and emails could be an alternative. The success rate (demo booking) for cold calling in Japan is said to be about 2% in Japan.

Tradeshows and Events

Tradeshows and events are making a comeback post-Covid. This is true for Japan, as well. There are tradeshows with broader topics such as digital transformation. These tradeshows will have 400+ booths and 10,000+ attendees. There are events with more specific categories, but generally, these tradeshows and events are a good way to collect potential leads/prospects. Business cards are still prevalent in Japan and when it comes to tradeshows and events, they come in very handy. Trading business cards is an easy way of capturing leads. A common KPI of paying for a booth at a tradeshow or an event is the “number of business cards collected.”

Social Media

Press Releases

Press releases are also effective in increasing the awareness. They are not an alternative to SEO, but they help with generating one-time traffic. Companies that have the budget will use press release platforms quite often to make announcements. Press releases add a layer of formality and credibility which helps with social proof.

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Scaling After Bringing on Your First Customer

Once you’ve brought on your first customer in Japan and have early signs of product-market fit, the possible GTM initiatives expand.

Case Studies + Thought Leadership

Case studies are highly relevant in Japan, as there’s a stronger emphasis on social proof and market validation. Not only does the case study increase awareness, but it also impacts the purchasing process. The buying decision is usually made by a committee, which includes stakeholders that may not be end-users. Case studies provide the buyers with additional context that might not be provided in the service introduction deck. If the buyers are in the same vertical/sector, they’d be able to better visualize the impact of the product. Case studies also provide a layer of comfort and certainty for the buyers, especially if it’s with a large recognizable logo.

Building a strong relationship with your first customers is key to creating the case study. If the relationship is robust, the initiatives can go beyond case studies. Hosting joint thought leadership initiatives, such as webinars, becomes a real option. These initiatives add further social proof beyond the case study.

Resellers, Distributors, and Partners

Resellers, distributors, and partners work with companies that have some level of product-market fit. After bringing on a few customers, the possibility of working with resellers, distributors, and partners becomes a possibility. Not all companies are looking for new technologies but are in need of a tech stack revamp. Resellers, partners, and distributors are effective in getting in front of this audience. Not all engagements with resellers, distributors, and partners. To ensure the best results, working together to create a win-win relationship is important.

Conclusion

If you already have self-serve customers in Japan, you’re already way ahead. Innovators and early adopters in Japan sometimes buy without any localization. Most companies will have to go through the localization and GTM motions to bring of the early customers. There are global strategies that work in the Japanese market, but local optimizations are necessary. There are also strategies unique to Japan. If entering the Japanese market is something you’re considering, learn more by booking a free consultation here.

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