Picture this: Your business is like a ship navigating the vast ocean of markets, with customer acquisition as your compass, guiding you to new shores, while customer retention acts as your anchor, keeping you steady amidst turbulent waves. Together, they form the dynamic duo that propels your business forward, driving revenue, fostering loyalty, and building a community of advocates.
But mastering this delicate balance is no small feat. It requires a deep understanding of your target audience, a steadfast commitment to delivering value, and a willingness to adapt and innovate in response to changing landscapes. Here are some insights I got from a recent session at WeStart Pre-Incubation program of Kerala startup Mission by Ms. Christina Sunny, Co-founder & CEO, Maw & Paw. Drawing from her extensive experience and proven track record, Christina illuminated the strategies and tactics that have propelled businesses to new heights in today’s competitive landscape.
Know Your Customer and Design a GTM Strategy
A well-crafted GTM strategy is inherently built upon a deep understanding of the customer. Before taking a product or service to market, businesses must intimately grasp their target audience’s pain points, preferences, and behaviors.
GTM Strategy is a step-by-step plan designed to bring a new product to market and enable a new revenue stream. For developing an effective marketing strategy you have e more careful at the research part below.
- Identify Key Stakeholders:
- Buyers: Identify the individuals or groups within target customer organizations responsible for purchasing decisions related to your product.
- Executives: Engage with executives who can provide strategic guidance, support, and buy-in for your initiative.
- Points of Contact: Establish relationships with key influencers, users, and champions who can advocate for your product internally and externally.
2. Identify Market Soft Spots:
- Conduct market research to identify underserved or overlooked segments within your target market.
- Look for pain points, unmet needs, or emerging trends where your product can provide a unique solution or value proposition.
3. Identify Companies to Collaborate With:
- Explore potential partnerships or collaborations with complementary businesses, distributors, or resellers that can help amplify your reach and distribution.
- Look for companies with established networks or expertise in your target market or adjacent industries.
A clarity on the above will help in determining which marketing and sales strategy will be a best fit for your business depending on the stage, market, type of business and opportunity.
Identify the Right GTM strategy
In today’s dynamic business landscape, choosing the right Go-To-Market (GTM) strategy is crucial for success.
- Inbound GTM Strategy: Attract prospects through valuable content and solutions.
- Product-Led GTM Strategy: Let your product drive growth with a self-serve model or freemium offering.
- Sales-Led GTM Strategy: Drive conversions and revenue through targeted outreach and personalized demos.
- Demand Generation GTM Strategy: Create market awareness and interest through targeted campaigns.
- Account-Based GTM Strategy: Personalize efforts for high-value accounts to win strategic deals.
- Channel-Specific GTM Strategy: Leverage specific distribution channels tailored to your business and market.
Christina pointed out that, while selecting the right channel at your initial stage, you have to prioritize segments that are most aligned with the value proposition that you are offering. Identify those channels that can reach your customers faster and easily and also cost effective and profitable.
Effectively Segment Your Customers
Segmenting customers based on common characteristics is a fundamental practice in marketing and sales. Here’s how you can effectively divide your customers:
Demographic Segmentation: Based on demographic factors such as age, gender, income, occupation, education, or marital status.
Behavioral Segmentation: Segment customers based on their behaviors, actions, or usage patterns. This could include purchasing behavior, frequency of purchases, brand loyalty, engagement with marketing materials, or preferred communication channels.
Psychographic Segmentation: Segment customers based on their attitudes, values, lifestyles, or personality traits. This could involve targeting customers with specific interests, hobbies, values, or aspirations.
Geographic Segmentation: Divide customers based on their geographic location, such as country, region, city, or zip code. This can be particularly relevant for businesses with physical locations or those offering region-specific products or services.
Technographic Segmentation: Segment customers based on their use of technology, software, or digital devices. This could involve targeting customers who use specific software platforms, operating systems, or mobile devices.
Conversion Funnel Optimization
Conversion funnel optimization refers to the process of improving the efficiency and effectiveness of each stage of the conversion funnel to maximize the number of visitors who complete a desired action, such as making a purchase, signing up for a newsletter, or requesting more information. The conversion funnel typically consists of multiple stages, starting from initial awareness and ending with the desired conversion action.
Conversion funnel optimization is particularly crucial when it comes to both lead generation and sales funnels. Let’s break down how it applies to each:
Lead Generation Funnel:
Defined Market: Identify and define the target market segments based on factors such as demographics, industry, interests, or pain points.
Contacts: Gather contact information of potential prospects within the defined market through various channels such as website forms, social media, events, or email subscriptions.
Suspects: Qualify contacts to determine if they fit the ideal customer profile (ICP) or exhibit potential interest in the product or service offered.
Leads: Convert qualified suspects into leads by engaging them with valuable content, offers, or incentives that encourage further interaction and move them closer to a purchasing decision.
Sales Funnel:
Desired Opportunity: Identify potential opportunities that align with the company’s sales objectives, target market, and revenue goals.
Shortlisted: Narrow down the list of potential opportunities based on factors such as budget, timeline, fit with the product or service offering, and likelihood of conversion.
Selected: Choose the most promising opportunities from the shortlist and allocate resources, such as sales reps or marketing campaigns, to pursue them further.
PO-WIP (Purchase Order — Work in Progress): Progress opportunities through the final stages of the sales process, including negotiation, contract finalization, and purchase order creation.
These stages represent the typical progression of prospects through the lead generation and sales funnels, from initial identification to conversion into paying customers. By effectively managing and optimizing each stage, businesses can streamline their processes, increase conversion rates, and drive revenue growth.
Learn To Build Community For Your Business
Community building can be a powerful strategy for customer acquisition, fostering loyalty, and driving long-term growth. You can go through the case studies of the following to understand how community building supported their startup.
- Sephora
- Harley Owners Group
- Lego
- Go Pro
- Live Tinted
Customer loyalty programs are key for Retaining Customers
Customer loyalty programs are an excellent way to engage with customers, encourage repeat purchases, and foster a sense of belonging. Here are some key elements you can incorporate into your loyalty program:
- Rewards/Points System: Offer rewards points for every purchase, which customers can accumulate and redeem for discounts, freebies, or exclusive products/services.
- Referral Program: Encourage existing customers to refer their friends and family by offering them rewards or discounts for successful referrals.
- Activate Evangelists/Brand Loyalists: Identify and engage with your most loyal customers, turning them into brand ambassadors who can advocate for your brand and attract new customers.
- Ambassador Program: Create a formal ambassador program where loyal customers can receive special perks, exclusive access, or rewards for promoting your brand.
- Gamification: Add elements of gamification to your loyalty program, such as badges, levels, or challenges, to make it more fun and engaging for customers. Examples include Starbucks Rewards and Nike Run Club.
- Personalization: Personalize the customer experience by recognizing special occasions like birthdays or anniversaries with personalized messages, offers, or discounts. For example, offering a discount reward on their birthday.
Feedback and surveys
Feedback and surveys are invaluable tools for understanding your customers’ needs, preferences, and experiences. Here’s how you can leverage them effectively:
- Opportunity for Conversation: View feedback and surveys as opportunities to start meaningful conversations with your customers. Encourage open-ended responses and invite customers to share their thoughts, suggestions, and concerns.
- Multiple Variations: Instead of relying on a single survey format, consider creating multiple variations tailored to different segments of your customer base or specific touchpoints in their journey. This allows you to gather more targeted insights and feedback.
- Life of the Customer Questions: Incorporate questions into your surveys that aim to understand the daily lives, challenges, and aspirations of your customers. This could include questions about their hobbies, interests, routines, or pain points related to your product or service.
- Diverse Survey Methods: Utilize a variety of survey methods to reach different segments of your audience. This could include online surveys via platforms like Google Forms, in-person interviews, phone interviews, or QR code surveys placed in physical locations.
By leveraging automation tools such as WhatsApp, Emails(Mailchimp) and chatbots effectively, businesses can streamline communication processes, enhance customer satisfaction, and drive efficiency across various touchpoints in the customer journey.
As you enter into the ever-changing seas of business, remember that customer acquisition and retention are not just strategies; they are the lifeblood of your success. By understanding your customers, designing a thoughtful GTM strategy, optimizing your conversion funnel, building a loyal community, and embracing automation, you are not just building a business — you are creating a legacy.
So, set sail with confidence, knowing that every effort you make to acquire and retain customers brings you closer to your goals. Embrace challenges as opportunities for growth, and remember that the journey may be long, but the rewards are immense.
The presentation of Christina Sunny is attached here for your quick reference.!