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.
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.
