Securing early customers poses a significant hurdle for startups, and even when initial interest is piqued, there’s no assurance those customers will remain loyal.
During the recent TechCrunch Disrupt event, Elia Wallen, the CEO of travel startup Engine, alongside Grant Lee, founder and CEO of Gamma, and Crystal Huang, a general partner at Google Ventures, discussed strategies for attracting and keeping customers.
In today’s landscape, where emerging AI companies such as Cluely and Instinct garner large audiences through both their offerings and the dynamic online personalities of their founders, social media appears to be a powerful tool for connecting with early customers. However, according to Lee, those seeking to enhance their business strategies with modern marketing must approach it with care.
Gamma, which produces AI-driven presentation software, successfully expanded its business using a social media approach that involved influencer engagement through its “Gambassador” program. This initiative was implemented prior to the widespread acceptance of influencer marketing among small businesses, leading Gamma toward a valuation in the billions.
Nevertheless, merely providing influencers with a platform and expecting them to promote a brand does not guarantee sales success, as Lee pointed out. It’s a more intricate process.
“If your product caters to various segments or applications, you should work with creators who can target each of those effectively,” Lee noted. “Different audiences, such as consultants versus those who handle all marketing for their companies, present unique segments that can be pursued.”
Lee observed that some founders seem to think of influencer marketing as a simple, one-off solution.
“Investing time with these creators is crucial,” Lee emphasized. “If they cannot effectively convey your product’s value, no amount of funding will make a difference; the efforts will fall flat.”
The success of social media strategies can vary significantly depending on the nature of the business. Alternative methods for engaging customers might also yield equal or greater results.
Wallen has firsthand experience in this regard. His company, Engine, which specializes in managing travel and lodging bookings for medium-sized enterprises, achieved $150 million in bookings through self-funding without any visible social media presence. For Wallen, using traditional sales techniques can often prove more advantageous than a viral social media post.
“We focused on events and direct outreach,” Wallen explained. “Many still rely on phone calls. Some view this method as outdated or ineffective, but that’s not the case. It is indeed challenging, and many companies hesitate to try it or lack the skills. However, they are overlooking a substantial offline clientele.” He remarked, “The phone is still a valuable tool.”
Wallen also recounted a creative in-person strategy from his company’s early days: hiring a magician named David to perform tricks for potential clients at events, promoting visits to Engine’s booth. This highlights that traditional personal interactions can be just as effective, if not more so, than contemporary social media strategies.
Huang, with her extensive experience guiding startups to success, asserted that once a customer is onboarded, valuable insights can be gained from analyzing their product usage.
“Can you examine usage patterns to determine if they are consistent, increasing, or if they are referring new customers?” Huang asked. “Initial usage and retention metrics can reveal these insights. Additionally, do you identify any enthusiastic supporters who want to work for the company, promote it, or associate with the brand?” She concluded, “It’s crucial to cultivate advocates who are genuinely passionate about your product.”
