It’s 2018 and by now people should have realised what the limiters to growth are. I say “people should” because ultimately people are the ones making the decisions that determine success and not AI, at least not yet. So what are people still doing that jeopardises their companies and their livelihoods? One of the most common themes is product morphing, making changes that developers believe is beneficial but with little interest from the core market. Here is tip number one:
Attracting the right customers
By nature, as humans we want to help out as many people as possible – so why does that not work well in business? The simple answer is Barrier to Entry. Mass market products/services have long been established and are designed for a generalist audience not as specialist one. Let’s see how this works in practice.
Imagine I am keen to buy some high-top shoes. Who would win my attention? Be objective here:
- A department store
- A shoe store
- A specialist high-top only shoe store
If everyone has opted for 3, that is the right answer. Taking price sensitivities temporarily out of the equation, you can attract the right audience type. Now remember 50% of the problem most businesses have is guiding buyers to your products. If the traffic is solid it then it is simply a matter of preparing the right sales funnels to convert. Which leads me nicely to tip two.
Looking for new customers
If your company is already established in one specific field there is no reason to change your vision, or your value proposition. Now using the above example, at this point someone from inside your management team might try to convince you the “smart” solution would be to start selling running shoes too. Don’t fall for it, it is easier to drive new traffic from an existing tribe than new traffic from other tribes. What scaling options would be possible here? Well, you could send your offer out in a different language. More than likely you will find there are similar people interested in buying high-top shoes in other countries too. This makes sense provided that logistics can be handled properly, otherwise your existing customers will not be happy. Talking of which, tip three.
Keeping your customers
In the early stages of growth, startups are told not to worry about losing customers as you are still looking for market fit. Just as new customers validate your product/service so too do leaving customers invalidate your product/service. We frequently calculate the CAC (cost of aquiring a customer) but we often neglect the CFC (cost of failing a customer) because with scaling comes speed and with everything changing it becomes hard to show your initial cohort the journey you are embarking on. Truth is in most cases they want to help you get there, so think about where they are and how they might be feeling. Your products/services need to continue solving their ongoing problems.
Selling SaaS (Software as a Service) solutions is ultra-competitive but the power to scale overshadows this fact. Make sure you carve out your landscape and start fortifying it against competition.