How to Launch a Startup (viii) - Marketing Tools

A good marketer should always be thinking about how to help customers through the sales funnel

So lets go through the tools available:

The Acquisition Channel which helps people to find you

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You need to design as many ways as possible for customers to recognise that they have a problem and become aware that you offer a potential solution.

Some examples of the tools and channels available are articles placed through PR, blogs, affiliate marketing, social media, search engine management + paid advertising.

Do not just use these tools randomly, it is essential that the tools you use match the information habits of your target market.

For example, if you are targeting customers above 80, social media would be a total waste of money. Ask yourself, where do my customers get their information? Don’t forget that referrals are one of the most effective tools for creating awareness. Once you have repeat customers, how are you going to encourage and reward them to recommend your product to others?

The Selling Tactic which converts prospects into paying customers

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How are you going to persuade your customers to order and pay? You need to help them evaluate or try your product, and provide an easy mechanism for them to commit and pay.

Some traditional techniques are still appropriate. For example, when customers first consider or try a product, they are likely to have objections (reasons to hesitate). You need to anticipate these objections so that you can handle them. Even if you are not doing face to face selling, you can anticipate objections through FAQs on your website.

Some another tools you can use at this stage are thirty-day trials, or freemium models where they only pay if they upgrade to features after trying the service.

Remember to make it easy for the customer to click and order. Always include a call to action which brings them closer to revenue in all marketing materials and initiatives.

The Revenue Model which describes how you get paid

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This area offers significant opportunity for creativity as well as differentiation. The traditional revenue model is a one-time transaction. But you may want to consider other models which encourage repeat revenue and/or reduce the size of the buyer’s initial outlay.

Some examples are:
• Subscription
• Commission (for connecting people)
• Usage charges
• Feature charges and in-app purchases
• Sell Advertising space
• Resale of user data (while respecting privacy)
• Donations

Pricing

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As part of your revenue model design, you need to determine pricing. It’s usually not a good idea to differentiate yourself by pricing. You should charge for the value of the benefits you provide in comparison to the competition.

Some questions to ask:
• How much is the customer already spending on this problem?
• What is the customer’s monthly budget?
• How much do alternatives and or comparable products and services cost?
• How much am I saving my customers?
• How much does it cost me to produce and deliver the product?
• Consider the relationship between the Customer’s Lifetime Value and the Cost of Customer Acquisition.

What does the customer get in exchange for paying you?

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Some examples of product types might be:
• A physical product
• Software or App
• Access to content
• A course
• A service

Remember to consider what legal rights the buyer is acquiring. Will they own the product or are you merely licensing them to use it?

The Delivery Model is how you get the product/service to the customer

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How will your customers actually receive your product or service? Even in the case of a digital product or service this is not always straight forward.

Think through the customer’s experience in detail. How will they install it, what training will they require? What support will you provide on an ongoing basis.

The same questions apply even if you are providing a service. Customers will still benefit from being briefed ahead of the delivery of the service for example. You may also consider supplying them with supplementary materials.

More to come soon - stay tuned!


Check out previous parts:

Part 1 - Intro

Part 2 - Minimum Viable Segment

Part 3 - Job Story

Part 4 - Market Size

Part 5 - Value Proposition

Part 6 - MVP

Part 7 - Customer Adoption Journey

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