In every startup, success relies on attracting customers as a fundamental necessity. In this comprehensive guide, we delve into the art and science of customer acquisition, offering insights and strategies for entrepreneurs poised to make their mark in the competitive business landscape.
What is a Startup?
- A startup is a new company that’s just starting out.
- Founders often use their own money or try to get outside investors interested in their idea.
- Money can come from various sources, like family, friends, investors, people on crowdfunding platforms, or loans.
- Startups are like explorers trying out brand-new ideas. They’re testing things that haven’t been done before, like using new technology or creating unique products or services.
- Startups have the potential to grow really, really fast. It’s not a slow, steady climb; it’s more like a rocket taking off. This is possible because of technology, which makes it easier and cheaper to make more of their product or service.
- Startup is essentially a business experiment with potential. This means that real startups are, by definition, prone to failure.
Negative statistics
First, let’s start with the statistics. Unfortunately, they are not very optimistic.
- 9 out of 10 startups fail (source: Startup Genome – the 2019 report claims 11 out of 12 fail).
- 7.5 out of 10 venture-backed startups fail (source: Shikhar Ghosh).
- 2 out of 10 new businesses fail in the first year of operations (source: Bureau of Labor).
- Only 1% of startups become unicorn firms like Uber, Airbnb, Slack, Stripe, and Docker (source: CB Insights).
- The success percentage for first-time founders is 18% (source: Exploding Topics).
What are the reasons for startups to fail?
Source: https://www.failory.com/blog/startup-failure-rate
The statistics are not in favor of startups; it seems that very few of them have a real chance of “making it” and surviving in the competitive market.
How to make your startup work?
Unfortunately, there isn’t just one answer. For sure, first you should have a Proof of Concept. A POC is a way to test out a business idea or product before you invest any money into it. It can be a way to test the market or to test your idea before you take it any further.
For every industry, proof of concept will look different.
- FinTech
- Let’s consider a fintech startup that aims to revolutionize personal finance management through a mobile app. Their POC could involve developing a simplified version of the app to test its core functionality and market viability.
2. AI
- AI startup that aims to revolutionize customer service in the retail industry through the implementation of a chatbot-powered virtual assistant. Their POC could involve developing a simplified version of the chatbot to test its conversational capabilities and market acceptance.
3. Real Estate
- Imagine a real estate agency looking to innovate its property showcasing methods using virtual reality (VR) technology. Their POC could involve creating immersive virtual tours of selected properties to assess the effectiveness of VR in enhancing user engagement and decision-making processes.
4. E-commerce
- Another example can be an e-commerce startup aiming to redefine the online shopping experience through augmented reality (AR) technology. Their POC could involve integrating AR features into their mobile app to allow customers to virtually try on clothing and accessories before making a purchase.
Across these domains, the POC process involves research, testing, and documentation to assess whether an idea or concept is viable and worthy of further pursuit.
A well-executed proof of concept can attract investors by demonstrating the potential of your idea. It can take various forms, such as a prototype of an app, website, or product.
Minimum Viable Product
There is a famous quote by Reid Hoffman, the founder of LinkedIn, which really resonates with some entrepreneurs:
If You’re Not Embarrassed By The First Version Of Your Product, You’ve Launched Too Late
Reid Hoffmana
A minimum viable product, or MVP, is a product with enough features to attract early-adopter customers and validate a product idea early in the product development cycle. In industries such as software, the MVP can help the product team receive user feedback as quickly as possible to iterate and improve the product.
Example of the Minimum Viable Product – Airbnb
With no money to build a business, the founders of Airbnb leveraged their own apartment to validate their idea, pioneering a market for short-term, peer-to-peer rental housing online. They developed a simple website, showcased photos and pertinent details of their property, and swiftly attracted multiple paying guests.
In order to generate revenue and start making money from your startup, you need to have customers. So, how do you get them?
1. Develop a User-friendly Website
Building a user-friendly, appealing website will allow customers to discover everything there is to know about the company, products, and services. It is the first and most basic step in any marketing strategy.
A user-friendly website is a page that looks professional and is easy for anyone who visits your website to navigate — including those who require certain accessibility needs. The idea behind this process is called usability, which essentially means the website is simple to use and gets the visitor to the right information as effortlessly as possible.
https://rockcontent.com/blog/user-friendly-website/
A well-designed website not only provides essential information but also creates a positive impression, fostering trust and credibility with potential customers.
Additionally, an intuitive interface and seamless navigation enhance user experience, encouraging visitors to explore further and potentially convert into loyal customers.
2. Social Media Engagement
Studies show that more than three-quarters (75.4%) of internet users use social media for brand research. Engaging with your audience on social media platforms not only increases brand visibility but also fosters a sense of community around your startup. Consistent interaction, informative content, and prompt responses can help build trust and credibility among potential customers.
You can consider social media platforms such as Facebook, Twitter, LinkedIn, Instagram, YouTube, Reddit, and Medium.
When selecting social media platforms, it’s crucial to consider your audience. LinkedIn and Facebook are ideal for engaging with business clients. Twitter thrives in the fintech sector. Twitter’s concise format allows for quick messaging. Instagram or Pinterest are perfect for showcasing aesthetic products. Leverage the unique features of each platform to effectively reach your target audience.
3. Content Marketing Investment
Content marketing helps startups attract new customers by offering educational and informational material for their search queries. It also helps gain trust and build a reputation among existing clients by providing relevant materials such as “How-to-Guides” and “Best Tips” blogs.
Taking care of content marketing can also help you optimize the SEO of your website, making it more visible. Instead, startups should consider using long-tail keywords for their blogs and landing pages at the initial stage.
Creating backlinks, getting mentions on authority-relevant websites, and implementing community marketing will help startups rank highly on search engines for their respective keywords.
4. Paid Media Targeting
Paid media targeting involves investing in advertising channels to reach specific audiences and drive engagement for your startup. By targeting ads strategically, you can boost brand visibility and attract potential customers who may not have been reached organically.
A thoroughly planned paid advertising strategy should address these questions thoroughly before making significant investments:
- How much money will be allocated?
- Who are we trying to reach?
- Where does our target audience usually hang out?
- Which advertising platforms are most effective?
- What message should our ads convey?
Improving the Product
After your product has been launched for some time, gather feedback from your customers and consider implementing improvements to enhance its performance and user experience. You can find out their thoughts by conducting customer surveys, interviews, or focus groups.
Another way to develop new features is to examine your product closely and find where it falls short closely. It could be in design, functionality, quality, or anything else. Once you’ve identified a problem area, you can brainstorm ways to improve it.
Attracting Customers for a startup success
Starting a startup is a complex endeavor with numerous factors and challenges to consider before launching into the market. Attracting and retaining customers is crucial for startup success. If you need assistance with marketing for your budding startup, we’re here to help. Contact us now, and we’ll take care of the rest.
