Marketing Strategy for Startups – Part 1
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Marketing Strategy for Startups – Part 1


Hello. What to expect to learn from this video: I will show, how to create a marketing strategy for your Startup business. You will learn: How to define your audience;
How to target your local market; How to set the marketing KPIs;
How to research the competition; What are the best channels for your Startup
business; I will talk about paid search, organic search,
content marketing, social media marketing, and how to track the performance. You will see, how I put together the digital
channels, to have the best media mix, so that all channels contribute to the overall online
growth. I will set the yearly marketing budget, and
our expectations, from the first year of running our marketing plan. Let’s start as we have a lot to discuss. Introduction to our Marketing Strategy. I am using a real digital marketing plan,
created for a Startup company. They are providing mobile marketing insights to mobile application developers, marketing agencies, and medium to large corporations, owning mobile apps. They offer segmented audiences for mobile
apps, app market data, and app stats. The scope of this marketing plan, is to plant
the first seeds for their online growth, and start augmenting their customer base. An integrated marketing plan could work in
this direction, so let’s see how we can get to that. Audience and Customer Segments I always like to start with the audience research. So we need to identify our target audiences,
or customers segments, so we can approach them with our business message. Since this business is in the mobile industry,
their potential customers could be application developers, marketing agencies, and medium to large corporations, that release mobile applications. So we have customer segments, with different interests, and we need the best approach. About the target markets, I suggest they start with the North American and European countries, as those advanced markets show business potential. There are a lot of applications developed
in the two regions, plus the number of agencies marketing apps, so it makes sense. More insights from my research suggest, that their website visitors are mostly college educated, with an equal split between the
sexes, and visiting from their workplace. Based on those insights, we can arrange the outreach in certain hours of the day, aligned to their education level and the networks
they join. That is only an example of what we can do. We always need to decide about our marketing actions, based on what makes sense for the business. We should always base our decisions, on the available data, and not our emotions or beliefs. So it makes sense, to research their audience, and then outreach to customers in places, and through the channels that I will show
next. We need to know what are the particular characteristics of our clients, their needs, and the places they are living online. Only then , we can find them, offer them our
best creatives, and spend our marketing budget efficiently. Setting the Marketing KPIs. I am now passing to the marketing KPIs. We need to define our KPIs before starting
the campaigns, and measure their performance based on those metrics. We need to make sure we track everything,
so we are not exhausting our budget into ineffective actions. The first KPI is the ,lead generation, and
the first touch of visitors with the business properties, website, video property, etc. By generating leads, we know that a percentage will convert by interacting with the site. To put it simply, we need targeted traffic,
with the audience properties we discussed earlier, that will visit our business landing
pages. When you generate traffic, you need to know what is the contribution, or performance of each traffic channel, so then you can work
exclusively with the channels that deliver the best results. The First Conversion, are the registrations
to the free trial service. Offering this free trial, to prospects that
would like to test the service, is a good way to attract visitors and generate more
leads. A segment of the registered to the free trial
users, can switch to the paid service, which is the business goal and our Second Conversion. Only the paid service will generate revenue,
so the order of actions makes sense. Find the audience, offer them a free trial
for a reasonable duration, one month or 14 days, during which you can persuade them to join as customers with a paid account. If the users like the service, they will convert
into customers. So we have two conversion steps here. These two conversions on the website, can
be inserted as Goals, in their analytics package. Then we have another KPI, which is hard to
measure, but I still like it, as for me this is the most important. Brand Awareness is a Top of the Funnel activity, and tops up our marketing results. Think of the big firms, when you see them
online, you recognize them on the spot. Get more visibility for the brand name. Make the business famous within its market. So the ultimate goal, for a marketer, is making this business so popular, that people go search for it, directly on their browser, or click
an ad, because they know the brand. Lead Generation. I have done enough research, to know more
about this Startup business, and I have prepared some screens. So let’s start seeing one by one the KPIs. Our first KPI is Lead Generation. It all begins here. What I have found, is that most of the traffic is coming from desktop devices. Now Google, has announced some important changes within 2017. They plan to shift their focus from desktop
to mobile devices. They will release a new mobile index, leaving
the desktop index, as we know it, not maintained. It will impact all search traffic, regardless
of the business size or industry. So it makes sense preparing for the mobile,
and increasing their traffic potential from mobile devices. Currently, they do not have that, so they
need to adjust. I do not have enough time here, to talk more
about the changes. Maybe in a future video, I will explain more. It will suffice to say, that we need to prepare
each marketing action, as if the desktop devices were not available. Conversions. Our first conversion step, are the Registrations to the free trial. Currently, they are receiving around 600 registrations per month, about twenty registrations per day. Since they are in the market for more than
two years, I would say that this metric is flat, and they need to increase it. Keep in mind that from the total of registrations, only a small percent will switch to a paid account (our second conversion). Currently, they have only ten subscribers
per month. That is a Conversion Rate of 1,7 percent. Talking with revenue terms, if they price
their paid service at 49 dollars, the monthly paid plans leave them with 490 dollars gross profit. A lower income, cannot sustain the business, as they have developers who built and maintain the services, administrative and marketing
costs. That is why they need to grow their customer base. Now let’s see what the other KPIs are. One could be the customers transitioning between paid packages. They have some pricing options, so tracking
what the customers prefer, and the reason behind upgrading or downgrading, is also important. For example, if groups of users start downgrading all of the sudden, it could be a pricing issue. Downgrading is the first step to leaving the
service. Another KPI could be, the Interactive Visits. Those are the visits where we see some action, commonly associated with our most important conversions, registrations, and paid accounts. There could be more actions that we would
like to monitor, for example when they fill in a form, or sign-up to the newsletter, click
an action button, etc. Another valuable KPI for the business, is
Customer Retention. Companies need to keep their customers; I
do too, so I plan medium to long-term with a client, because I want to augment my customer base. They do the same. Remember, if customers leave, they never return, and will probably join one of your competitors. So, it is best to keep the clients satisfied,
with premium services and excellent support. Competition Insights. It is critical to know what your competitors
are doing, so I have prepared here some stats, from my competition research. They are not advanced, just to give you some first insights. The first line below the table header, colored
with orange, is hiding the client, and you can see how many visits they currently receive. They are trending very low compared to their competition, and that explains the low registration and paid account metrics. If you do not get enough traffic, you cannot
compete, right? Regardless of their low traffic volumes, it
is a fact that they show some quality metrics, as in the case of pages per visit (almost
five pages), and time spent on site (above two minutes). So visitors are interested, and they look
to read more about the service. That is good. Now looking at the competitor right below
them, the comparison is leaving them behind. It is a good example of the competition they
face, and what market share their competitors take. Plus, it shows how successful their marketing is, and they can target to reaching those guys. Watch carefully. Those guys get four times the traffic of their
competition, they show low Bounce Rate (33%), and visitors browse the site for at least
six minutes. That means they must be offering engaging
content, and they have grown their brand name sufficiently. If you also check the other two competitors
that receive 50K and above visits, they do not do so well in the other metrics, as they
are losing visitors. To summarize, this marketing plan should provide the client with more traffic, so the Bounce Rate keeps low, and visitors convert one way or the other. Incoming Traffic Channels. A first goal is to increase their traffic,
and reduce the Bounce Rate by 15-20 percent. Then, they need to grow their traffic sources. Currently, the search channel delivers less
than half, of their 7K monthly traffic, and social is at 27%. It should be the opposite happening, and it
means that they have no traffic from paid, and organic search. The social channels do not deliver high amounts of traffic, and the direct channel is all about brand awareness. But it is a start-up, so nobody knows them,
and we will check how they do on social channels, where things are not well either. This table verifies the previous data, where
we saw little traffic, and other low performance. The big opportunity here, is to get more traffic from search. I estimate that both search channels could
scale quickly, from 48 to 80%, and when their performance consolidates, they could generate thousands of leads. But they miss that opportunity now, hence
the 7K visitors per month.

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