Do you want to kick ass with your startup marketing?
It all starts with targeted traffic generation. And Google, Facebook, Twitter and LinkedIn, etc. are lining up to sell you that targeted traffic. But, before you launch your startup marketing system, you need to understand the following:
- Who will buy from you?
- How much is a Customer worth to your business?
- What is your revenue model that increases customer value?
1.. STARTUP MARKETING TIP 1: WHO WILL BUY FROM YOU?
Start by researching where your MOST passionate buyers are by using sites like Alexa.com, quantcast.com or Similarweb.com to understand your target audience as well as your top key competitors. These sites give you valuable data like interest, demographics, age and income to help you make actionable decisions. You can also use other websites and tools to discover your competitors’ specific advertising strategies, the terms they are ranking for in search engine and other best practises they are using.
Case Study of an ecommerce startup
Lets take a case study of an ecommerce startup, Jumia.com. On Alexa.com [a site that provides deep analytical insights to benchmark businesses on the web], we found out that:
- Jumia is the 6th most popular site in Nigeria. This is similar to an earlier report here
- There is more female audience than male; this helps you define your marketing messages to this audience group.
- Browsing time is during office hours, so adverts will work better at this time.
Another report from SimilarWeb’s analysis of Jumia reveals:
- The top performing advertising platform Jumia is using. [ Are you surprised to see LindaIkeji blog in the top 3]
- The several Ad networks with their level of performance for Jumia. If you want a more detailed look, check this tool. This is a detailed look at the technology profile of Jumia including the list of their ad network and management software.
- Also, I can use the additional information from this tool to know the keywords that Jumia is ranking for, their leading traffic sources and other important information.
Other tools like WhatRunsWhere.com, Spyfu.com and KeyWordSpy.com will show you specific advertising strategies of your competitors.
The potential of what you can do with this information is limitless.
This is because; it makes you ready to maximize your advertising returns; even before you spend your first kobo.
2. STARTUP MARKETING TIP 2: HOW MUCH IS A CUSTOMER WORTH TO YOUR BUSINESS?
What is your customer lifetime value?
That means how much money a typical customer can spend with your business. Big Brands know this concept about their customers, which is why no amount is too much to spend to attract customers to their businesses. For you to calculate this, the most important things to keep in mind are:
- Cost of acquiring customers and
- Revenues to be made from customers over their lifetime period.
A simple equation to explain this is:
For example, if the customer lifetime value is $20. How much can you spend to attract that user to your website at a profit, especially when you have competition? To calculate this, this guide will give you a good start.
Ultimately, the Company that is willing to spend the most to acquire a customer will win. That is why, for example…
MTN is spending so much money to acquire new users and why Google services are mostly FREE ….yet they are declaring massive profit.
You ask: so how are they making money? The third step will help you to put the puzzle together
3. STARTUP MARKETING TIP 3: DESIGN YOUR REVENUE MODEL TO INCREASES CUSTOMER VALUE
The third layer to kickass marketing is increasing customer value. You do this by building an optimized conversion funnel. An optimized conversion funnel is a system to maximize revenues from a single customer. This is done by building several layers of revenue opportunities.
Let me tell you a relatively unknown secret about McDonalds and Amazon. Both companies; starting with McDonalds in the 1970s and Amazon have an optimized system to increase the value of each customer segment in their business. McDonald waiters were trained to ask their customers; “Will you want fries with that?”
This question has been reported to put an additional millions of dollar to the McDonalds franchise. And you can do this too. Here is how. In fact, Jeff Bezos (founder of Amazon) is more ruthless with his strategy. This is a summary of his kick ass marketing approach:
As a global ecommerce outfit, Amazon has perfected a system of maximizing customer revenue. This way, they milk more revenue from every customer they make. And that is why they can afford to spend so much acquiring customers….even at a loss.
Now that you know these fundamentals: Go and kick ass with your marketing. Goodluck.