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The Powerful 3 P's Of Go-To-Market in Construction Tech
Hacking go-to-market. Get this right and you can mess up a bunch of other things and still be ok.
Owen Drury
May 28, 2024 • Estimated Reading Time: 8 minutes
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Without further ado, let's dive into the latest developments shaping the future of construction technology.
INDUSTRY INSIGHTS
The Three Pillars of Construction Tech Growth: Product, Project, and Problem-Led Approaches
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Today, we explore “The Three PLGs” courtesy of our great friend, Scott Ellison, a seasoned Angel Investor, Mentor, CFO Consultant, and Advisor with a wealth of experience in helping construction tech startups thrive.
Problem Led Growth
Project Led Growth
Product Led Growth
These three strategies are crucial for growing construction tech companies. Unlike other industries, in construction, you cannot rely on just one. You need to consider all three.
“I think it's the most important thing that a startup can work on and figure out. I think if you get go to market right, you can mess up a bunch of other things and you'll still be okay.”
1. Product-Led Growth
Product-led growth is a strategy in which the product itself drives customer acquisition, expansion, and retention.
This approach has been central to the success of many software companies over the past decade, such as Snowflake, Figma, and Slack.
However, while aspects of product-led growth can be adapted to construction tech, they are insufficient due to the industry's unique project-driven nature. Construction companies need more than just a product to drive growth.
2. Project-Led Growth (PLG)
Project-led growth recognizes the construction industry's project-driven nature, treating each project as a distinct entity with its own needs and dynamics.
In construction, each project operates almost as a separate P&L centre, requiring a go-to-market approach that addresses the specific needs of individual projects.
Success in construction tech often spreads through word of mouth within regions and across different projects, making localized success critical.
An example is FieldWire, a company that successfully applied Project-Led Growth by integrating deeply into the workflow of individual construction projects and gaining traction through regional endorsements.
3. Problem-Led Growth (PLG)
Problem-led growth starts by identifying specific customer problems and developing solutions to address these issues.
This customer-centric approach focuses on understanding the construction industry's particular challenges and solving them rather than promoting a preexisting technology.
It requires a deep understanding of the construction sector's intricacies, which can be achieved either by coming from within the industry or having a strong passion for learning and empathizing with its unique challenges.
Implementing The Three P’s
To help visualize this, consider the three Ps as a Venn diagram rather than a hierarchical structure.
Each strategy offers techniques and solutions that can be selected based on a company or project's specific needs. This approach provides a comprehensive framework to address the multifaceted nature of the construction tech industry.
Product-Led Growth: Start with a robust product that directly addresses the core needs of your customers. Focus on creating intuitive, indispensable tools that construction professionals can’t live without. Ensure that your product can stand on its own and attract users through its sheer value.
Project-Led Growth: Recognize that construction is inherently project-driven. Tailor your solutions to the specific needs of individual projects, treating each one as a unique entity.
Leverage localized success—word of mouth within a region can significantly boost your credibility. For example, if your tool significantly improves efficiency on one project, professionals will talk, and soon others in the region will take notice.
Problem-Led Growth: Identify and solve specific problems faced by your customers. Rather than pushing a technology for its own sake, focus on the challenges that construction professionals encounter daily.
Empathy and deep industry understanding are crucial. Your technology should make their work easier, safer, and more efficient.
"Think of Product-Led, Project-Led, and Problem-Led Growth as three overlapping circles in a Venn diagram. It's not about choosing one over the others but selecting techniques and solutions from each to create a tailored playbook that meets the unique needs of the construction industry."
A Unified Growth Framework
Integrating the three P’s—Product-Led, Project-Led, and Problem-Led Growth—creates a powerful framework for success in the construction tech industry.
By addressing the unique dynamics of construction projects and focusing on solving real-world problems, your startup can achieve sustainable growth and a strong market presence. Embrace these strategies to build a comprehensive, adaptable playbook that propels your company forward.
If you’re interested in hearing more about the above, listen to our episode with Scott.
Interested in learning more? Check out the full episode with Scott Ellison 👇
WEEKLY MUSINGS
Crossing The Chasm (Twice), Europe or Not, NASDAQ Newbies
Project led-growth in action. Scale single success to multiple projects. Fast:
Europe. Opportunity or problem?
This is a trend I think we've all noticed in the industry. Contech seems to be thriving in Europe just as much in the US. Unfortunately for Europe, this is very rare.
Construction is inherently fragmented so the fragmented market of Europe isn't necessarily seen as a downside.
— AEC Technology Dashboard (@AEC_Tech_Dash)
9:34 PM • May 21, 2024
$8.5bn Ferrovial to the NASDAQ.
RESEARCH
Bricklaying Bots & EV Charging
Monumental - Autonomous Bricklaying Robots
Monumental is changing the construction industry with its autonomous bricklaying robots that utilise advanced machine vision technology to ensure millimetre accuracy.
Monumental's direct sales strategy focuses on general contractors and masonry subcontractors, providing them with the benefits of enhanced productivity, reduced expenses, and accelerated project timelines.
The company's in-house manufacturing and use of cost-effective components make its offering economically attractive.
With a strong project pipeline and growing market interest from major construction firms, Monumental aims to optimize construction processes and establish itself as a prominent player in the construction robotics industry.
To get early access to the full reports (coming soon) sign up here. Note, this waitlist will CLOSE at 25 members. Don’t miss out.
Camion - Electric Vehicle Infrastructure For Commercial
Camion streamlines the electrification of commercial fleet sites by offering a platform connecting landlords, tenants, chargepoint operators and utilities.
The experienced founding team, with backgrounds from Tesla, Nuvve, Arenko, and CBRE, creates standardised, automated EV charging projects through partnerships with large landlords. By establishing investable projects via SPVs, Camion attracts infrastructure financiers seeking green assets.
With the growing adoption of EVs, Camion is well-positioned to capitalize on the increasing demand for electrifying commercial fleet sites.
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