Category Archives: Marketing

The transition year of 2014 – from developers to customer acquisition specialists #startups

Here’s a prediction for the year 2014 based on talking to over 1400 startup entrepreneurs in 2013.

2014 is going to be the every entrepreneur will start to focus on hiring a “customer acquisition” specialist. This could be someone who can be called a hustler, a growth hacker, a marketing developer or any other title.

What I have realized after looking at over 2800 applications at the Microsoft accelerator and interviewing over 300 entrepreneurs is that they have little idea about how to acquire customers that pay for their solution.

They can do the first 10 customers, but after that, it is a slog or a stall.

They dont have a way to scale their customer growth.

Many developers who stall in their careers will take up growth hacking courses and classes. The reason they will do well is because developers will make the best digital marketers in the next decade.

The #1, #2 and #3 questions I get from entrepreneurs, is trying to find a way to get paying customers.

The #1 question last 2 years was around funding.

That has dropped dramatically this year.

The years prior to 2011 I got most questions around hiring good quality engineers and finding and hiring good engineering talent for startups.

Maybe it is the maturity of the ecosystem, but this is the transition I am seeing.

Guest post: How I Used Setback as a Setup for (PR) Success

Ever hear that saying…

“when life gives you lemons, make lemonade?”

Now, what happens if the lemons you get are covered in poop and smell like rotten milk, AND you ran out of sugar?

What then? Drink muddy, bitter lemonade that smells like durian?

Exactly. Believe it or not, it might turn up better than you imagined.

2011 was a really crappy year

  • I started a pet website that wasn’t doing so hot. I already pivoted a couple of times, and they all tanked.

  • I was down to my last few dollars in term of my bootstrap fund

  • I broke up with my ex a couple of months ago.

If shit is how you describe how you feel when you’re down, down I was straight doo-doo.

Now to make things worse, i lost my dog. A bunch of people came into my house to fix a broken door without calling me. My dog spooked and he ran for his life.

As a bachelor living by himself in a loft with his own dog and with his family thousands of miles away on the other side of the country, this was like losing a child.

I mean.. a grown man, crying alone in the dark.. drinking two buck chuck, lamenting over his lost dog.

If you never lost a dog before, you’ll never know the feeling.  Especially for me because my dog was the one real “family” that I had (in California), cared for, and loved.

I read somewhere that if you lose a dog and don’t recover it in the next 24 hours, your chances of finding it are pretty slim..as in, never.

The odds were against me.

  1. I didn’t have family who’d help me look during the day (when he’s visible). I had to ask friends for their time after they get out of work.. which by then, was too late.

  2. My dog didn’t have a pet tag on because his collar was being washed, which means no one can ID him even if they found him.

  3. My dog is completely black, which means he’s quite hard to see at night.. especially for car drivers

Of course, as an entrepreneur, i was used to fighting the odds and hoping for miracles.

So in span of first 40 hours of losing my dog, I was superman. I managed to

  1. call every vet, animal shelter, pet businesses in 3 mile radius

  2. (with help from my ex and a friend) posted 250+ flyers, dropped off 150+ posters in people’s mailboxes

  3. place ads on every possible place you can possibly think of, including Facebook ads and Google display ad network ads.

…all this on no sleep.

I even tried hashed up a simple auto dialer software using Twilio and a database I bought off the web, and called everyone in 4-5 zip codes.

Yes, I was on a mission.

I must’ve had 2-3 leads every couple of hours with my ads and with my auto dialer, but they all turned up to be all junk leads.

Until.. I got a phone call from a lady nearby. She told me that she saw my flyer at a nearby park in Willow Glen (San Jose, CA).

At this point, I wasn’t even sure if my dog was still alive. So many false leads, and people were telling me different things as far as where they thought he was heading. On top of that, he probably hasn’t eaten or drank anything. Maybe worse.. he got hit by a car or got attacked by a big dog.. and he died.

Funny how your mind plays all these crazy movies in your head when you’re in dire need.

But I told myself I can feel depressed any time i want. Let’s see if this lead takes me anywhere.

And in fact, IT WAS MY dog that they found…thanks to this awesome couple:

If you don’t know who he is, he’s a NHL San Jose Sharks team player Joe Pavelski.

At the time, I didn’t even know who he was or what he did.

All I noticed was his insanely big house in the middle of Willow Glen (a very posh neighborhood).

So I casually asked him what he did… and he replied “oh i play hockey.”

My initial thought: “What? there’s a hockey team in San Jose? NO WAY. When was this?”

<insert clown music here>

Yes, he was a celebrity. But at the time, I didn’t really think much of it

I just was so grateful that he found my dog that i just wanted to kiss the man.

(But I settled for just a picture with him.)

When my dog and I were reunited back home, I gave him a bath and fed him two HUGE bowls of his favorite dog food. After that, both of us hibernated for 14 hours.

Seize the Moment

When I woke up, I started wondering how I can use this story for my pet website.

Of course, I could’ve just posted this and shared with my Facebook fans and email subscribers at the time.. but I felt I could’ve gotten more of a BANG, so to speak.

So? I decided to email journalists, hoping that it would get covered… and it DID.

If you Google “joe pavelski dog”, the story got covered on NBC sports, CSN Bay area, and BUNCH of other sports sites that have page rank 5+.

Then voila.. i had a HUGE surge of traffic to my site, and because of that surge,

  • my email list increased by factor of 95%

  • i had 50+ backlinks to my funny pet picture website PawshPal

  • i had all these new men Facebook fans for PawshPal (99.9% prior to that were women)

If this were a link bait tactic, it sure as hell worked well.

So did it save the PawshPal business? Nope. It didn’t.

The people that opted in were more interested in Joe and/or sports.. and opted out.. and all those backlinks didn’t help much at all in terms new traffic. Indeed, not all traffic is good traffic.

But I learned a WHOLE lot about PR.

Key Lesson in PR

1) “Rub Off” Popularity

If you are not famous, you can “get” famous just by being next to them.

This is the basis for celebrity endorsement ads.

People seeing your product or service next to a celebrity gives (instant trust.

2) Don’t fight, instead praise

There are SEO and marketing “gurus” that claim that you should pick fights with journalists and bloggers to get some attention.

If not, spam them in the comment section.

Ugh.. here’s a better way.

Instead of fighting popular people, praise them and their fans will praise you.

Negativity can only get so far. On top of that, news is inundated with bad news.

Why join them? Try being positive for once. (Heck, try meditating.)

3) Promote yourself.

Your efforts don’t mean diddly squat if no one knows

Fundamentals of marketing – no matter how great you (or your product) is, if no one knows about it, you might as well have never done it.

Stop staring at the screen.

Start connecting. Start sharing. Start teaching. Start giving.

Then the world will give back.

4) Copywriting matters

If you do any marketing whatsoever, you know about copywriting.

Copywriting is about selling with words, conveying who you are, what you do, and why they should read your stuff.

Copywriting is probably THE most important skill for any marketer these days.

If my copywriting sucked, I doubt anyone would’ve read my story, including the journalists.

Without an interesting email subject line, the email would’ve never gotten read.

Without an interesting email body, the link would’ve never gotten clicked.

Without an interesting story, the journalists would’ve never linked back.

Without the journalists linking back, I would not be here telling you this story.

5) When things are bad, there’s usually a reason.

Like Steve Jobs said, you can connect the dots only looking backward, never forward.

If something bad happens, as long as you don’t stay down and depressed, you can use that story as a way to set yourself back up for something great like all great entrepreneurs do.

You just won’t know unless you fail, dust yourself, get back up, and try something different.

But don’t forget step #1 – dust yourself off and get back up.

Without step #1, there is no step #2.

Most importantly…

If all your marketing fails, “accidentally” lose and find your dog at a celebrity’s house.

Take your dog to your nearest celebrity’s house.

Call him and ask him if he’s seen your dog.

Of course, your dog is magically there.. then you cry.. give him a big hug.. take lots of pictures.. and send them to the press.

And voila! Free PR!

<insert evil laughter here>

Hell, my dog teaches me about business everyday.

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TaeWoo Kim is an entrepreneur, a growth hacker, a speaker, and a blogger. You can follow him on Twitter (@TaeWooKim), Google+, and on his blog FreshSuperCool.com.

A/B testing your email messages

I have about 30,000 friends who follow my blog on email, and the open rate is about 8% (which according to Mailchimp is very low) on each blog post. Besides this I have another 9,500 friends and acquaintances that I send an email update to once a month on key blog posts I have written during that month. That has an open rate of 17%. Roughly about 5000 of my friends read a blog post, which gives me a fairly good sample size to do some serious A/B testing on my blog post titles.

My email friends are about 61% from India, and 25% from the US (largely the valley). This was inverse just 5 years ago in terms of %, but the number was about 3200. So a nearly 10 times growth in 5 years. 

Since wordpress does not allow me to segment the email by friends, everyone gets the same blog post and title as soon as it is published. But the email acquaintances is where I have a lot fun.

Here’s what I found last week in 3 sets of 2000+ subscribers.

I had the same body of the message but changed the Subject of the email.

First subject (Sent on a Thursday at 10:30 IST): Where is analytics headed in 2020? An insight gathered from 25 top #startups – 14% open rate

Second subject (Send on a Friday at 10:30 IST): The future of analytics is in offerings based on derived insights – 11% open rate

Third subject (Sent on a Saturdaya at 10:30 IST): How analytics companies are making 92% margins compared to software companies – 21% open rate

I am shocked that the Saturday message had best open rates, since weekends have been consistently low on my open rates.

The message though was one of margin – which I think appeals to Indian entrepreneurs a lot.

What do you think is the reason that the first subject got a better open rate than the second? Is it more specific?

The least action principle applied to the “call to action”

I met with an entrepreneur who has been looking to gain traction for his new SaaS application for payments. Having talked to a few of the top notch marketing and conversion experts in the Bay area to learn about drip marketing, which allows you to set a set of messages over time I was eager to help him figure out how to apply that to his problem.

The problem he had was that his “call to action” – what he wanted his prospects and customers to do was creating a “very high barrier” to prospects going to the next level with the website.

I find this often the case with many startups and SaaS applications in particular. The “barrier” for a prospect to become a customer is very high, so while you generate a lot of traffic and visits to your website, the number of conversions is abysmally low.

While you could offer better design, clear case studies, A/B test your pricing, there’s another technique that’s fast gaining traction among those that believe in a sales term called “lead nurturing“.

Its is the least action principle applied to prospect behavior. Before you “riff” me on this, yes, I believe physics gives the answers to most marketing problems.

The summary of this principle is

 “Nature is thrifty in all its actions”

So this principle applied to conversion marketing is to make users do the least amount of work to get to the “next logical step” in your progress to convert them to be a customer.

Instead of asking users in the first page to “Sign up”, which may well be your ultimate goal, ask them to view a video instead. Then sign up for a newsletter. Then send them 3 emails (over time, drip marketing, remember) to get them to review a case study, provide them with ROI analysis and finally ask them to sign up.

This entire set of steps can be done in days or in 2-3 minutes with a “guided” website interaction, instead of just a single call to action.

If you remember that most people want to do the least amount of work to get the maximum benefit, then you will appropriately break down your final call to action into multiple “Least User Interactions” each of which gets the user to commit some more (time, energy, etc.) to your application.

This is similar to the method FB for example applies to its interactions. You might just be a viewer of content, then your path to least action is a “like”, then you might comment, then set your status and finally upload a picture. There are more actions no doubt, but the path to least action is a like.

So when you look at your call you action, think about how you can break it down into multiple steps to get users to interact with your website without having to “commit” to marrying you before your first date.

How to do very bad marketing – an example

<Being rant>

The latest trend among US marketing folks is to put a blog post of 50 sentences into 50 slides. Not sure why a simple one page blog post wont cut it – actually wait, I do. Its to get “multiple outposts” which all say the same thing in “different ways”. Some viewers prefer SlideShare as the way to read stuff instead of text.

So what ends up happening is to read something in 2 minutes you will end up clicking 50 slides to read 50 sentences.

The part that makes no sense is that its just text in those slides. No images, no visuals, not storytelling.

Which makes it look like a Word document pasted into a PowerPoint deck.

Rather lame. Dont you think? Or am I missing something?

</End rant>

The 99-0.9-0.1 rule for Indian Startups

Jakob Nielsen is given credit for the 90-9-1 rule of Internet participation.

The “90–9–1″ version of this rule states that 1% of people create content, 9% edit or modify that content, and 90% view the content without contributing.

In the last 6 months, I have gotten 21 Indian web and mobile consumer applications data on visitors, engagement and contribution.

In India the numbers are closer to the 99%, 0.9% and 0.1% in terms of lurkers, participants and contributors of any consumer application.

This explains a lot of things, including the 2-speed nature of Indian market adoption.

Its not that we don’t have early adopters, its that most people (99%) are really laggard adopters.

The difference between 1% and 0.1% is dramatic for startups who need the early contributors to get the community going.

To give you an example. Lets take a mobile application which has 3 competitors in India. Each of the 3 products has been in the market for about 6 months and still they total about 140K total downloads.

In the 1% scenario they would total 1.4 Million downloads. This assumes 140M total Internet users for both mobile and web. In reality there are only about 50-80 Million real broadband users.

Is it cultural? I have heard many folks blame (yet again) our Indian culture & education system which values listening to others than voicing our opinions. I don’t quite agree with that though.

I don’t know why exactly we have only 0.1% of people contributing.

This however has dramatic implications for “traction” among startups.

If you are going to show traction and have between 20K to 50K users or downloads, then you should realize that the 99, 0.9 and 0.1 % rule applies again to your users.

Only 0.1% of those who download will actually be contributors (such as check-in to locations if you are Location based service).

So the engagement metrics will be consistent but woefully low compared to what our US counterparts are seeing.

Traction among Indian consumer startups is not really “traction” in other markets.

P.S. I am still trying to see if this is the same for ecommerce startups. I am hesitant to think it will be the same, but among new and smaller (lesser known) ecommerce companies, these numbers are in the range. However, among established companies, the US engagement (or purchase) numbers are probably more valid.

How to B2B is morphing into B2A, B2D, B2M

From the broadly 2 types of companies, those that focus on consumers (B2C) and those that focus on businesses / enterprises (B2B) there is an explosion of new types. While most of the new types are still a subset of B2B or B2C, the increasing sub segmentation of B2B is creating multiple niches among those trying to sell to the “enterprise”.

The problems with B2B are fairly well documented – Long & slow sales cycles, multiple decision makers with largely different agendas (procurement wants it cheap, CIO wants it to fit into their technology stack and end users want it to be usable).

There are a 2 very interesting articles over the weekend from Dave McClure and Christina Cordova  which document the changed landscape in B2C. What I am seeing among our startups in the Accelerator is consistent with what Christina mentions in addition to the initial problem with most mobile consumer startups – which is getting users.

Essentially the marketing mechanisms (ads, PR, email) create a lot more friction to getting users to try / download the mobile app versus the web app.

So you have to primarily use a combination of reviews, recommendations or in-app ads to get users.

What’s happening on the B2B front is even more interesting.

B2B is morphing into B2D (developers), B2A (Architects, as an example) or B2M (Marketers).

Thanks to SaaS and Cloud pay-as-you-go services, the products are inexpensive enough to get enterprise segments without the hassles of going through the entire Purchase order process for many products.

So most B2B companies are targeting a specific user who is also the person to approve, buy and select the product / service that works for them.

The implications are obviously dramatic and ones that change the landscape completely.

In a follow on post I’ll document the ways this changes the marketing and sales techniques.

Always be an individual contributor as well

Most of the entrepreneurs I meet and share thoughts with, tend not to be engineers. Or at least not practicing developers, marketers, sales people or business development individuals. This is consistent with the anatomy of the Indian technology entrepreneur, who is typically male, between the ages of 29 and 40, has about 2-10+ years of experience and had been an individual contributor “several years ago”.

I read the quotes by multiple folks in the piece shelf life of an engineer in technology . They consistent theme is one of constant learning, which most of us are probably aware of. Ignore the age bias that’s blatantly obvious in the piece for a few minutes, which is what most of the 250+ comments are focused on.

Two things stand out: (1) Ferose’s quote on “I can’t be just a manager, I have to be technically hands-on.” and

Ravi ” In the first five years, the employee is a technical contributor. In the next five, he or she moves on to become a team leader or an architect , understanding the P&L (profit & loss) requirements of the company. Subsequently , the employee takes on much stronger leadership responsibilities”.

From what I have learned, there’ no choice but for every level of individual to be “hands-on” and play the role of an individual contributor as well at a startup.

If you are an engineer, you cant just be focused on hiring and managing your engineering team (however small or large it is). You have to pick up a few pieces of the puzzle and solve them yourself. Which might mean deploying, developing and shipping parts of your software.

If you are a marketer, then not copy writing or doing your own SEO, or running your ad campaigns is a disaster in the making.

If you are a sales person, and if you are not doing cold calls or opening new doors to customers each week, you will find it extremely hard to direct and motivate the team.

Most founders who come from larger companies have not been been doing any individual contributor roles for several years. So the reorientation is very hard on them. They find it hard to do things they did a few years ago and since in most every area the specifics have changed so dramatically over the last few years, the adjustments are hard.

The best way to do this is to keep 30% of your time each week to have a personal accomplishment.

What I have found is the the FIRST thing I do each Monday on my weekly to-do list is to identify one deliverable that I will work on to complete without anyone else’s help.

Over the last few weeks  it was working on website copy and mockups for the new design. Over the next few weeks it is cold calling multiple prospects for making some inroads for a few of our startups. The weeks of Dec 15-30 is mostly going to be spent on writing new pieces of our Borg’s UI using Twitter bootstrap (which is surprisingly easy to pickup).

So on your quest to be a leader and entrepreneur dont forget to be a doer as well.

The liberating power of focus on the one thing for Marketing

Most startup founders who are looking to launch their product or are figuring out ways to grow their usage / customer traction come with a plan that includes “a little bit of everything”. The assumption is that since they dont know which technique works best, (or in other words – gets the most customers with the least amount of effort or money) so, they tend to spread their bets among many techniques.

Typically this means, do some SEO, some Google ads, some blogging, and some outreach to the press.

I used to tell folks to make a list and focus on the top 3 techniques to market their product.

I was wrong.

You need to be awesome at one, rather than good at three.

Here’s the simple math (the irony that the math is easier than reality is not lost on me) to get to 10,000+ B2B users (not all paying) in < 12 months (which is a great metric to focus on)  for a SaaS company.

You try to double your users each month. So if you start with 5 users at the end of the first month, you will get to 10,000+ at the end of the 12th month.

If I were marketing a SaaS product and I need to get users there are multiple mechanisms I can use to generate awareness for my company / product without any out-of-pocket costs for advertising.

1. Guest blogging

2. Content marketing with blog posts / infographics

3. Engaging potential users on twitter

4. Search engine optimization

5. PR outreach with bloggers and key websites

6. You tube videos

7. Presentations on Slideshare

etc.

Now, my recommendation is to NOT do the top 3, but pick just one and be the best at it.

For most entrepreneurial teams that are comprised more of engineers, than marketing professionals, this is a very liberating process.

They no longer need to track multiple techniques and try to optimize them all. Their focus should be on experimenting within the one technique and be the best at it alone.

While focusing on the one technique you will discover more things you need to do better and be great at.

Lets take an example of guest blogging.

To the outsider, guest blogging might just be make a list of 10-20 top blogs, then write posts that are relevant about your company and that blog, find the blog writer’s email address and submit your post.

There is a more nuanced process than that.

Coming up with unique and interesting posts is hard. Very hard. Especially hard if you are trying to learn SEO at the same time, or experimenting on Google adwords at the same time.

So, free your mind.

Focus on the one thing that you believe will add value to your potential customers.

I know its hard to know which is the “one thing”.

Truth is being awesome at any one of these things is very hard and I have seen enough examples of companies meeting their customer acquisition goals picking ANY ONE of these techniques, without trying to experiment on several.

So go ahead and focus on the ONE thing.

The best marketing conferences that I’d like to attend in 2013 (Marketing conference list)

Here is the list of the best digital marketing conferences that I’d like to attend in 2013. Practically I may attend 1 or 2 at the most as a speaker, but if you are looking to build your 2013 list of marketing conferences to attend, here’s a good place to start.

The format of this post is hard to get right on the blog, so here’s a handy Google doc of the 2013 Marketing Conference list.

There’s also a neat infographic from Marketo that is worth the eye-candy showing a smaller list by map of the United States.

# Conference URL Dates Location
1 Blogworld & NMX http://nmxlive.com/2013-lv/ Jan 6-8 :as Vegas
2 Ad Tech http://www.ad-tech.com/newdelhi/adtech_new_delhi.aspx Feb 2013 New Delhi
3 Email Summit http://blog.marketo.com/blog/2011/07/infographic-must-attend-marketing-events-a-guide-to-marketing-conferences-in-the-us.html Feb 19-22 Las Vegas
4 Mobile Marketing http://www.mmaglobal.com/events/forums/sanfrancisco2013/overview Jan 29-30 San Francisco
5 Adobe Digital Marketing Summit http://summit.adobe.com/digital-marketing-summit.html Mar 4-8 2013 Salt Lake City
6 SMX West http://searchmarketingexpo.com/west/ Mar 11-13 San Jose
7 Blogwell http://www.socialmedia.org/blogwell/ April 17 New York
8 Sirius Decisions http://www.siriusdecisions.com/live/home/document.php?dA=ConfAnnSummit2013 May 8-10 San Diego
9 Mirren Live (Agencies) http://newbusinessconference.com/home/ May 2013 New York
10 BMA http://www.marketing.org/i4a/pages/index.cfm?pageid=5681#.UJ6o-ofqkaw May 29-31 Chicago
11 Inbound Marketing http://www.inboundconference.com/ Aug 19-22 Boston
12 http://www.ad-tech.com/bangalore/adtech_bangalore.aspx# Sep 2013 Bangalore
13 SES http://sesconference.com/sanfrancisco/ Sep 10-13 San Francisco
14 Content Marketing World http://contentmarketingworld.com/ Sep 9-12 2013 Cleveland
15 Mobile Marketing http://www.mmaglobal.com/events/forums/india2012/overview Sep 2013 Delhi
16 SMX East http://searchmarketingexpo.com/east/ Oct 1-3 New York
17 Pubcon http://www.pubcon.com/ Oct 2013 Las Vegas
18 DMA 2013 http://www.dma13.org/ Oct 12-17 Chicago
19 Future M http://futurem.org/about.aspx Oct 2013 Boston
20 Marketing Profs http://events.marketingprofs.com/b2bsite/speakers-321CF-18808U.html Oct 2013 Boston
21 Distilled SEO http://www.distilled.net/events/searchlove-boston/ Nov 2013 Boston
22 Ad Tech http://www.ad-tech.com/ Nov 2013 Delhi
23 WOMMA http://womma.org/summit/agenda/ Nov 24-26 Las Vegas
24 SES http://sesconference.com/delhi/ Dec 2012 New Delhi