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Communications

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IDENTITY INSPIRES PURPOSE. Communications converge between the messenger and the receiver who decides whether or not to trust your voice. Your brand begins with you: your identity, history, values, and mission. Really know yourself and your business to communicate your essence and unique purpose.

 

OPPORTUNITIES FOR SOLUTIONS. Know your market, audiences, and their problems. What is their emotional core? Understand their goals, perspectives and what makes them tick. Focus on what customers could gain, learn and do to improve or feel better. Create a fan base and know where they hang out. Build positive associations that your customers can identify and connect with to achieve their goals and aspirations.

 

EMPATHY BUILDS EQUITY. Distill your message and deliver the dialogue with your customers in mind: their thoughts, emotions, and needs. Gain insight, and understand what matters most and what they really care about. Create heartfelt engagement - qualities that can increase substance and the market value to compel action.

Value Proposition


WHY SHOULD CUSTOMERS BUY FROM YOU?  A value proposition builds your brand and should be the starting point of a road map to create your business plan. It describes a compelling reason for purchase and promises to deliver certain benefits. What is the product's purpose and what are the problems you're solving? What are the key benefits and sustainable qualities over time?

 

How can your product create positive change in someone's life? How long would it take customers to achieve their goals? How do you resolve their objections? Review customer needs.  Know who the customers and stakeholders are and why they should care.

 

Your proposition might be based on values such as cost reduction, risk reduction, convenience, accessibility, and status enhancement. It can be qualitative and quantitative, e.g. it saves customers money, time, and turnover; it improves efficiency, accelerates results, and increases sales.


A CASE FOR CHANGE.  Who is unhappy with current alternatives? For whom can you solve a particular problem well?  What are the pain and cost to customers? Imagine the before and after snapshots: in the past, the old ways haven't worked, and there are problems or discomfort customers experience. Now and in the future, your product delivers improvements and new solutions. Your product or service gets the job done, and performs better than other options to help customers achieve their goals and solve their problems.


EXAMPLES:

 

  • For people who want a safe place to live and work, AlarmFog offers instant protection against break-in, theft, and other dangers. Unlike traditional alarm systems, AlarmFog offers a combination of quality, value, and top security everyone could afford.

 

  • We work with startups to increase conversion rates on landing pages by 40%, based on 10 years of research and A/B testing.

 

  • We leverage social media with content marketing and mobile networks to help businesses instantly increase engagement and brand loyalty that affect their performance.

 

  • With a network of luminaries in reach, our services transform ordinaries into extraordinary experiences. Unlike any other enterprise, we empower companies to be different and make a difference through charitable contributions.

 

Unique selling proposition

 

HOW TO INCREASE SALES?  A unique selling proposition conveys a unique idea, highlighting your core strength or area of excellence that differentiates you from competitors. It's not about your product or what you sell, but rather a focus on how the customer benefits from using your product or service. It is a brief, memorable elevator speech. Sometimes it is a bold statement that guarantees results. A USP connects with the receiver immediately and attracts new customers who are ready to make a purchase. Consumers can't get the product elsewhere or you're the best option around.

 

OVERCOME CHALLENGE. A USP recognizes customers' problems, challenges or lack of skills. Despite the situation, your product/service helps customers achieve their goals.

 

REPOSITIONING. How you convey your message repositions your offering. For instance, rather than urging consumers to buy your toothpaste, your USP may state: a penny a day keeps the decay away. Instead of urging families to buy life insurance, you might say "financial security for single mothers."

 

DIFFERENT FROM VALUE PROPOSITION. A USP conveys customers get more bang for a buck and it's a great deal. A value prop, on the other hand, imparts you get what you pay for and the results are tangible e.g. cost reduction, increased sales, faster delivery. A USP aims at the business-to-consumer market while a value proposition is more effective with B2B sales. A USP is short and catchy.  A value prop is more descriptive of your work, demonstrates your proficiency and it's often expressed in quantitative results with numbers and percentages.

 

MORE EXAMPLES OF USP

 

  • We beat any price any time   

  • 100% customer satisfaction or your money back   

  • We specialize in SaaS and work with startups to drive repeat sales   

  • We help first-time homebuyers who have difficulties with credit access

 

Combine A/B Testing with

Traditional Market research

 

Many startups use the lean method and don't bother with traditional market research. But combining both strategies could add market depth and more insights for smarter decisions before launch. You might have a good product—but if there is no market, there is no business. Market research is a feasibility study that analyzes your industry, competition, customers and market potential. Market research helps you make business decisions, such as to: 

 

  • come up with a viable product and business model to grow

  • understand the industry and competitive dynamics to differentiate your product and develop new strategies

  • pinpoint customers who want your product or service

  • calculate your market size and know where to reach your target customers

  • anticipate and fulfill customers' needs

  • understand consumers' behavior and motivation: what, when, where and why they buy

  • determine how customers pay, and the prices they're willing to invest in your product in any given month or season

  • plan and forecast monthly and annual sales

  • maintain your customers and competitive edge

 

 

How to Conduct Market Research

Begin with a clear picture of what the problem or issue is; research helps solve that problem and answer particular questions. Look at both qualitative and quantitative research. Qualitative research might include narratives e.g. social media conversations, brand preferences, interviews, people's perceptions and decision making, and ethnographic techniques to observe customers' experiences. Quantitative research could include surveys, random sampling, demographics, and situation analysis, backed by facts and statistics.  

 

      

Primary Research

 

  • Demographics and Psychographics. Draw information from interviews, surveys, focus groups, meet-ups, observations and experiences to test and validate your assumptions. Get in front of customers to uncover what they truly value and need. Interview people and find out their hobbies, interests, opinions, values, and attitudes. What drives your customers and makes them unique?  For more data on psychographics, look at Claritas, www.claritas.com (Nielsen) and VALS Survey, strategicbusinessinsights.com/vals.

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  • Get Customer Feedback. Find out customers' pain points, problems, and needs. Get their input on what would make your product great and how you can improve. Listen to their feedback and make the essential changes customers want and need. You may have to pivot and reposition your market.

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  • Test Your Market. Beta testing and crowdfunding platforms, such as Kickstarter and Indiegogo are free channels for market testing and validation as you seek from the crowd input and ideas to improve your product. Their responses help you gauge consumers’ desire for your product.

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Secondary Research

 

Secondary research could help reframe the issue and questions to clarify the true nature of the problem you're addressing. 

 

  • Desk and Trade Research.  You can gather information from existing sources such as periodicals, books, government publications, search engines, chambers of commerce, middlemen, industry/trade associations, reports from research firms such as Gartner, Forrester, and Emarketer, and academic databases such as EBSCOhost, ProQuest, and LexisNexis. Many consumer marketers use the Local Market Audience Analyst database.

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  • Government Data is Reliable. Additional data can be found in libraries, universities or technical schools, business centers, such as the US Small Business Administration, Small Business Development Center. Check out the U.S. Census Bureau, www.census.gov, which reports data by Metropolitan Statistical Area (MSA). The Census Bureau also provides analysis on world population and useful information on individual countries.

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  • Monitor Social Media. Listen, monitor and track customers' and prospects' input, needs, wants, likes and dislikes they reveal online, e.g. forums, social media sites.

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The bottom-up strategies from primary research are valuable, and you can supplement the findings with secondary research. You want a product-market fit where the target customers are excited enough to pay for your goods and services.

 

Don’t rely on a single source when you conduct market research. Triangulate your data, that is, investigate and validate your findings rom various perspectives. This should include using online tools such as Google Analytics, Keyword Planner, Google Trends and Facebook tools to synthesize and interpret your findings. 

Market Research to Analyze Your Industry

 

Based on your market research, how big is your industry and what is it worth? Do you know where you’re heading? A situation analysis for entry or exit matters.

 

Changes likely occur when market forces interact. New entrants are a threat because of their resources, differentiated offerings or ability to grow their market share. If the industry matures or declines, companies struggle to acquire customers from their rivals, and high exit barriers make it difficult to abandon the market. Lack of differentiation can trigger consumers to choose on prices alone when they perceive products as commodities. Buyers influence purchases through word of mouth referrals and online reviews. They can choose substitute offerings, bypass suppliers, and drive profit down by demanding higher quality, more service, and lower pricing. Suppliers may not concede on prices and dictate terms.

 

  • Drivers. What is your industry, what is the situation now and where is it heading?  How big is the industry and what is it worth?  Is the industry growing? What is the rate of its growth and what is accelerating it? Or is the industry declining? What is slowing down or impeding the growth? How does the industry's situation impact your business? Is your customer base expanding and what are the upward trends? Or should you look into a different industry where there is more potential for growth?

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  • Inhibitors. Is the market too crowded? How intensive is the competition? How many competitors occupy your space and what is their size? Are there too many buyers or too few suppliers who drive the price? Are there too many options and the market is saturated with your type of product? If you're a new business, you need the barriers of entry to be low: the capital expenditures or financial resources invested should be reasonable; cost advantages can be replicated - such as technology, access to raw materials, access to distribution channels, favorable locations, the willingness of customers to switch brands and the low cost for them to do so.


 

Know Your Market Environment

 

Intensive competition, along with micro and macro factors impacts the marketplace with inflation rates, exchange rates, labor wages, unemployment levels, and the supply and demand of resources. Scan the environment and pay attention to the political, economic, social, and technological situations. There may be circumstances you can't control that could be a barrier to your business. At the same time, risks could also be opportunities that stimulate ideas to create value and solutions for your customers. Finding better ways to operate and innovate requires strategies to deal with changes in the environment.

 

Note changes or emerging trends affecting the marketplace, and see if you could tap into new opportunities. Identify your industry’s size, market niche, trends, challenges and its responses to the market conditions.
 

The political, legal, and economic environment might deal with NAFTA, WTO, EU, international trade, FDA regulations, interstate commerce, IP rights, state and local laws, product liability, antitrust, Snowden / privacy controversy, and health care reforms. The social and cultural environment could include food, fashion, language, religious belief, attitudes, shifting demographics, and movements such as localism, online communities, and face-to-face meetups. The technological environment might encompass trends such as 3-D printing, big data, Internet of Things, wearable technology, automation through robotics, social and mobile computing.

 

 

How To Calculate Your Market Size

 

Market sizing is useful for determining whether or not to enter and exit markets, affecting various scenarios: market share, sales forecast, market segments, adoption rates, life cycle, market investment, market trends, distribution channels. To calculate your potential for success, examine the demand for your product or service.  The total available market (TAM) is the total possible demand for a product - it's the whole pie where businesses compete to get a slice of the market. The leads in this group have the interest and the means to purchase the product or service. The segmented addressable market (SAM) is a percentage or chunk of the TAM you're targeting and wish to reach.

 

The service obtainable market (SOM) is a portion of the SAM, the target segment you can realistically reach and serve in the first few years in business. The target segment might be music students, working moms, or business travelers for instance. The SOM also consists of qualified leads who meet the requirements for purchase -- they are of legal age with money and interest in the product. Estimate your target market based on your SOM.

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Top-Down Market Sizing. Start with the population or the size of the general market e.g. total US population, the total number of homes in the US,  the total cost of healthcare in the US. Calculate the demand by multiplying factors to narrow down the market. 

Bottom-Up  Market Sizing is useful for calculating niche markets or markets with limited segments.  Start with the individual segments, then build them up to create a total market. Example of a bottom-up approach: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Also think about customer archetypes. How many Jack's and Jill's personas are out there? Don't rely on a single source. Interpret and average data from a variety of sources, including predictions from Google keyword planner, Google trends and Facebook Ad tools to determine the future TAM. Combine your findings from primary and other sources of secondary research to get a holistic view. Based on your research, do you have an attractive market and how many people will buy from you? Do the numbers make sense for you to pursue the business? Since data often overlaps, map out the best and worst-case scenarios.

 

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Assess Your Competition

 

  • Determine who are your true competitors and who are not. Study your competition by researching various resources: online research, forums, trade journals, suppliers, job postings, annual reports, press releases. Look at their websites, social media threads, SEO, page rankings, and google alerts. Assess the competitors’ products, pricing, promotion, positioning, and their customers. Find out their annual sales, market share, the number of customers served. To grasp more insight, become a customer by trying out your competitors' goods and services.

 

  • Look at Google analytics and Alexa rank for website traffic and Quantcast for user demographics. Check out Compete.com, an analytics service that benchmarks data such as traffic patterns, demographics, displayed campaigns, and keywords that drive users to your site and competitors’ sites. For brick and mortar businesses that interact with customers face-to-face, the SBA's Sizeup is a useful tool that helps you benchmark your business against competitors, locate the best places to advertise, and map the locations of your customers, suppliers, and competitors.

 

  • What are your competitors' strengths and weaknesses? What problems are they solving? Look at their advantages, problems, user experience, and customers’ responses. Why do some companies thrive while others struggle or have gone out of business? Who are the customers and why do they buy from competitors? 

 

  • What are the points of parity and points of difference between your product and that of your competition? What qualities can you match and what can you do better? What can you do that competitors are not doing? What market segments and opportunities are competitors ignoring? What unmet needs can you tap into?

 

 

  • How can you be different and where can you excel?  What is your competitive advantage?

 

  • Is it your product innovation, value proposition or disruptive business model that sets you apart? Do you operate more efficiently and can produce products at a lower cost? Do you customize solutions for customers and offer the best service that wins loyalty and new referrals? Are your marketing and sales strategies more effective at cultivating brand awareness and maintaining user engagement? Do you have key resources, a better distribution system and exclusive partnerships that competitors don't have? Can you go after an underserved market overlooked by competitors?

 

  • Do a SWOT analysis to identify your strengths, weakness and competitive advantage. Look at your company’s internal characteristics where you have some control to help you achieve business objectives. These assets might be your brand loyalty, committed workforce, intellectual property, cost advantage, and key partnerships. How can you use your strengths?

 

  • Identify internal characteristics that harm your objectives and make you vulnerable to competitors. Examples: ineffective processes, insufficient training, poor quality, low sales, unreliable vendors, high employee turnover. How can you stop each weakness and liability?

 

  • What is happening in the external environment that might be advantageous for your objectives? Perhaps it may involve changes in consumer preferences, shifting demographics, new technology, removal of trade barriers and ease of regulations.

 

  • What threats in the external environment could damage your business? Examples: changing consumer preferences, new technology, new competitors, new tax codes, disruptive business models, impending regulations. What strategies can you deploy to defend your objectives?

Customer Equity

 

Your customers are your greatest assets. On average, 20% of customers generate 80% of sales. 91% of unhappy customers will never buy from you again, and the value of each lost customer is $289 in the U.S. It is five-time more costly to attract a new customer as it does to keep an existing one (SCORE, Kissmetrics). All things considered, you must provide superior service to stay in business. If possible, conduct an exit interview when you lose a customer. Building and maintaining relations with your customers, over time, create customer loyalty and repeat purchases. How could you create value, offer superior service, and bring customers into a deeper relationship with your business? Where do your customers hang out and how do you reach them?

 

Top customers may become your marketing agents and brand advocates. They provide social proof. Retaining them reduces defection and increases customer lifetime value. Five percent increase in retention can increase profit by 25% to 95% (Kissmetrics). Incentivize customers with rewards such as gift certificates, coupons, or special offers when they refer a friend. Make it easy for them to refer you by sharing on social media or providing emails from their contact list.

 

Customers acquired through referrals are more loyal and valuable, as they're willing to pay and require less marketing efforts than non referred new customers. Referred customers are 18% more likely than others to stay. Referred customers generate 16% more in profits in the first 2.5 years (Harvard Business Review, 2011). Word of mouth referrals increased signups by 60% for Dropbox and accounted for 15,000 new customers for Diapers.com.

 


 

Map out the Customer Journey

 

Map out the customer journey, starting from awareness and interest to understanding, engagement, trial, purchase, retention, and loyalty. How helpful is the information you communicate and how is it compatible with customers' needs?  If they want to learn more about your product, what is the level of complexity involved? Do they need to study brochures, watch a 10-minute interactive tutorial, or attend a 2-hour seminar? Can people try your product before committing to purchase?

 

  • Eliminate friction and barrier to usage. Make the adoption process simple and implement different strategies to get your messages across. Develop content marketing and messaging targeted at various stages; speak differently to people as they move at different paces while interacting with your brand. Move them along each step with incentives. e.g. points, freebies, and other rewards. Think of why they wouldn’t buy and address their fears and concerns. Understand the triggers for purchase. E.g. fear of failure or the drive for success may motivate entrepreneurs to seek advice on Xberts.com.

 

  • How do consumers seek out information to resolve problems and what are their options? Who has solved these problems before? What would stop them from buying your product? What information do they need before buying from you? How could your product solve problems and make their life better? What is the change that will occur?

 

  • Where do your customers hang out? How do you reach them? What are all the different channels where they come in contact with you? How would they interact with your brand and how do they want to be engaged?

 

Buzzbeed Digital

Cost of Acquisition (CAC) is the expenditures of activities you implement to convince a purchase. Examples: labor, production, bandwidth, server, shipping, advertising, discounts, trials. Knowing the CAC helps you plan your marketing budget and allocate resources. Some ways to recover costs and reduce the CAC: leverage customer referrals, upselling, cross-selling, and inbound strategies to get found e.g. improve content marketing, social media chats, engage influencers, guest blog for other sites, host contests, crowdsourcing, SEO, PR, automated emails and alerts.

 

Customer Lifetime Value (CLV) forecasts profitability from your lifetime relationship with customers. Knowing this value helps determine the amount you’re willing to invest in the cost of acquiring each customer.  If you know your CLV is $100 for instance, you might be ok paying $50 per acquisition. Not all customers are equal; segment and pinpoint the most valuable customers who stay with you the longest, who make repeat purchases and refer other consumers. Ideally, you want the CLV to be three to five times the cost of acquisition.

 

Several methods to calculate the CLV:   

 

  • The average revenue per customer * gross margin divided by annual churn rate

  • The average revenue per customer * retention time in months or years * renewal rate * gross margin   

  • The average value of sale * number of repeat purchases per year * retention time in months or years

 

Example of CLV: $30.00 transaction per customer * retention of 5 years *80% renewed subscriptions * 60% gross margin. Hence, the customer lifetime value for each customer in this example is $72.00.

 

Churn is the percentage of customers who end their business relations with you. Gross margin is the total sales revenue minuses COGS (costs to acquire goods, e.g. materials, labor, freight), divided by sales revenue. A 60% gross margin means you make 60 cents on every dollar.

 



 

Guide to Buyer Persona

 

Create a buyer persona and user narrative to hear the customers' voice and see the story through their eyes - their needs, aspirations, goals, challenges. This is essentially demographics + psychographics in a narrative form. What triggers them to buy and how do they decide on the purchase? How could your solutions fulfill their needs?

 

  • First, determine who are not your customers and sketch out negative traits that would be costly to deal with. Refer these folks to competitors and focus on your ideal customers. Next, qualify your leads by targeting those with income, authority, desire, and pressing needs to buy your product.

 

  • Through research, interviews, and surveys, create an archetype of your ideal customers. Create a storyboard of characters, mapping out three to five personas who might buy from you. Give them names, and note their age and occupation. Describe their personalities, preferences, and values. What do they really care about and why? What are their social and emotional needs? What's going on in their lives and where are they coming from? Who and what influence them? Where do they hang out?

 

  • You can also segment around a minimal viable market with common needs. Examples: target paralegals instead of law firms, back-to-school moms vs. college students, newborns vs. toddlers.

 

  • Look at Maslow's hierarchy of needs for insight and see where their unmet needs fit in. What are your customers' activities, interests, opinions, and attitudes? What do they read, watch and listen to? What and who influences them? Get int their heads and put yourself in their shoes. What does their typical day look like at home and at work? What issues and challenges do they deal with? What do they fear or worry about?

 

 

 

 

 

  • What are your customers' intrinsic needs, motivations, aspirations, goals - and why? What do they want to achieve, what drives them and makes them tick?  Is it an aspirational need, a small hassle, or an urgent matter? What problems do customers experience and how big are the problems?

 

  • Are the problems unavoidable, e.g. terminal illness, taxes are due, going out of business? Are the problems unrecoverable, e.g. imminent bankruptcy, a server is down, losing a smartphone? Are the problems not even addressed for the underserved market? How urgent is the situation? Look at the pain-gain ratio. The solutions you create should ideally be 10x greater than the pain. When the problem is not critical or the desire to change is not there, people are content to do nothing.
     

  • Understanding the motives, problems and root causes helps you to not only communicate solutions but gives valuable insight to create products that customers love, need, and want. It is also important to anticipate future needs. What might customers want next month or two years from now? Your product or service should solve problems, create value, and increase customer welfare over time.

 

  • The buyer persona further helps us create compelling content and optimize marketing by identifying keywords for SEO. Having a holistic view of the customer not only gives us rich insights but builds engagement and trust that improves the customer experience. As such, the experience cultivates brand resonance with consumers and could increase leads and conversion.

 

 

 

Why Content Marketing Matters

 

Rather than renting media or buying keywords through ads, you own all the assets you create through content marketing. Instead of pitching and pushing your product, you pull and attract customers by curating and delivering content that influences consumer behavior. Content marketing creates buzz, builds credibility, and earns trust. All these help you reach a captive audience, generate leads, drive sales, and inspire loyalty.

 

Develop and share a variety of relevant content to educate, entertain, and engage potential customers. Start with long-form content, such as a case study or annual report. Slice and dice this piece of content into videos, photos, vlogs (video blogs), infographics, Slideshare, podcasts, webinars, blogs, e-books, e-newsletters, press releases, how-to-guides, wiki materials. Of all these formats, videos, infographics, and Slideshare attract most people for their visual and condensed content.

 

By re-purposing the content in different formats, you create derivative assets on the same topic or theme that builds a story and amplifies your messaging. This approach helps accomplish several things: increase engagement by attracting consistent readership or viewership, and drive SEO for search and higher ranking long-term.


Influencer Marketing. You can guest blog for various sites with an audience and mention your business. You might register with Publiseek, a free platform for getting promoted by popular publications and attracting accomplished guest bloggers.  Contact influencers and thought leaders to request their permission to publish their articles on your site. Or request to interview them on a subject you like for your video, print, or podcast; reference their work and certain articles you admire. As you build relations and trust, invite them to guest blog on your site. Their status and popularity can influence and indirectly promote your business to their mass following.


One in three articles goes viral, reaching 10,000 sites (Biznet Internet Solutions). Relevant content improves your site's reputation and credibility with a search engine, generating thousands of links from credible sites back to your product and website; this makes your pages appear non-promotional. When combined with SEO and social media strategies, content marketing increases impressions, conversions, and the likelihood of click-through rates.

 

Plot out the touchpoints, and align the content with the different stages in the customer journey. Set a goal for each piece of the content, and deliver an experience for each step in the journey. Here is an example applied to social media that Ikea is not doing. The content is distributed each day of the week.

The Russo Group's Razor Branding ™

SEO Marketing Tips

 

About 94% click on the organic search. Yet, companies invest 88% of their SEM budget on pay-for-click to attract just 6% of click-through rates while allocating only 12% of their budget on SEO to attract 94% of click-through rates (GroupM, Nielsen Research, Forrester, 2011-2016).

 

Invest in organic search. Use Wordtracker, Google Trends, and Google Keyword Planner to identify top keywords people search for.  Analyze keywords competitors are using that rank on the first page of search and integrate them into your content.  Create quality content using relevant keywords in the body, title and meta descriptions. Add descriptions to all the images on your site. Search engines crawl for descriptions to index your images and your site. Optimize one keyword or topic per page to answer questions people search for. Consistent production of quality content is key.

 

Use LinkedIn, Craigslist, free business listing, and other ad sites to post relevant info about your services, which may drive traffic to their sites and promote you. Submit your site to various search engine directories, e.g. Google, Yahoo, Bing, Altavista, Ask, Msn. Increasing your listing in search engines maximizes results in search over time.

 

Social Sharing. Google altered its algorithms to focus on social sharing. Features such as "share" and "like" rise to the top of Google search - even ahead of keyword optimization and link building (Wishpond). Providing sharing options for your content - especially visual content, combined with social interactions, comments and followers will increase the search rank for your site.

 

 

Social Media.  Search 7-10 keywords related to your business on Google and leave useful comments on those pages that solve problems. Select a number of social media sites and visit various blogs related to your target market. Visit forums where your target market hangs out. Post discussions with your useful responses. If appropriate, post your quality content in related groups or communities. The helpful responses you offer may increase your site traffic immediately.

 

Rich Content. Your descriptions advertise content and let searchers know what is on your page. To optimize traffic, produce rich, high-quality content in descriptions. Go to Settings, and fill in as much information as possible to categorize your site or business. Have descriptive titles, headers, meta tags, image tags, site map, and a compelling ad copy with keywords and call to action that solves problems and answers questions people search for.

 

Caveat: don't rely on SEO alone since Google continues to change its algorithms and this could result in loss of traffic. Instead, combine SEO with other marketing strategies, e.g. pay-for-click, social media, analytics program, and content marketing to produce high-quality information on web pages that attract, engage, and persuade visitors. Combining great content with ads could drive click-through rates up to 34% according to a Google study in 2012. 

 

 

 

 

Start up Strategies

Growth hack your way to market. Build marketing into the product from the get-go and aim for a viral loop. Expand referrals, get social proof, and maximize inbound marketing. Promote user-generated content, and drive engagement with gamification.

Metrics

Quantitative / Hard Metrics:

 

  • Customer lifetime value - conversion, retention, products per customer

  • Cost of acquisition - E.g. cost per action, number of visitors you attract

  • Velocity - the time it takes the prospect to convert to a lead

  • Revenue - cycle time, average selling price, lead generation v. targets

  • Profit - gross and net

  • ROI: from the audience you touch, prospects, leads, opportunities, wins, sales, pipeline

  • Web analytics - website ranking, page depth, average order value, search engines' impact on traffic


Qualitative / Soft Metrics

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  • Behavioral / - why do people visit your site or store?  Did they complete their tasks and if not, why?

  • Loyalty and commitment: percentage of people who see your videos, net promoter score, number of people who visit your site several times per week

  • Customer satisfaction

  • The message, brand awareness, and online brand mentions

  • Marketing channels, and breadth of content and distribution

  • Brand preference in relation to competing brands

  • Public relations - measure views and impact of corporate communications initiatives

  • Market reach: estimated number of potential customers reached through advertising channel or promotional campaign

  • Impressions - the number of times the online ad is displayed whether clicked or not; each time an ad is displayed is one impression.

  • Gross rating point to measure exposures. Example: 200 GRP; advertise to 40% of the target market and give them five exposures.


Reverse engineer the process. When you know the CAC and conversion rate, e.g. 20 customers per 200 leads, plan ahead to generate that pipeline in your marketing-sales funnel.

 

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Ways to Implement Organizational Change

How can you rapidly transition from several co-founders to 20 employees in a startup? Try the McKinsey 7S model to analyze and harmonize key internal elements: shared values, strategy, structure, systems, style, skills, and staff. The framework is used for organizational change, restructuring, merger, acquisition, and project management as well. The 7 elements are interdependent, aligning and reinforcing each other to increase organizational performance. First, map out the 7 elements starting with the shared values.

 

SHARED VALUES are at the heart of the organization that remind everyone why you’re in business and what you stand for. To sustain a strong culture, make sure all team members are fully engaged and committed to your startup’s DNA, mission, and vision. What principles guide the behavior and culture of your enterprise? How should customers and employees be treated? Your shared values might include respect, passion, integrity, creativity, transparency, simplicity i.e. the KISS principle.

 

STRATEGY. Define clear strategies, and effectively communicate them to your team to ensure key activities move the company in the right direction where you can successfully compete in the marketplace. Perhaps you want to dominate a certain sector or be in the top 10% of your field in five years. How will you get there? Set SMART objectives - specific, measurable, attainable, realistic and timebound. E.g. increase sales in Q4 by 25%; build your brand personality, reputation and brand awareness to generate 60,000 leads in Y1.

 

Figure out how your company can be unique and where you can excel in your business model to build a competitive advantage. What can you do best to increase the barriers to entry and make it harder for competitors to replicate? Areas of excellence could be in the product, revenue generation, operations, customer service, and marketing. Review your competitive analysis.

 

For instance, is it your product innovation/technology, value prop or disruptive biz model that sets you apart? Do you operate more efficiently and can produce products at a lower cost? Do you customize solutions for customers and offer the best service that wins loyalty and new referrals? Are your marketing and sales strategies more effective at cultivating brand awareness and maintaining user engagement? Do you have key resources, a better distribution system, and exclusive partnerships that competitors don't have? Can you go after an underserved market overlooked by competitors?

 

STRUCTURE is the framework and guidelines for managing business operations, i.e. organized by business units and divisions. What is the hierarchy and who reports to whom? Map out an organizational chart with roles and responsibilities. How do team members align themselves and how do different departments coordinate activities? Is it a collaborative structure with cross-functional teams? Are decisions centralized or decentralized? In a startup, decentralization is better to empower your staff and get the job done faster. Eliminate bureaucracy by not having multiple layers of management there to control and approve simple decisions.

 

 

SYSTEMS are processes and procedures for decision making and conducting the day-to-day activities that team members engage in to get the job done. Consider the systems for HR, financials, customer service, and communications. For example, develop a communications plan, including crisis management and risk management strategies. Make sure everyone has signed a nondisclosure agreement, entailing the terms for employment; the work and inventions staff members produce should be work for hire, so that the company owns the intellectual property.

 

What other rules are in place to stay on track, and to monitor and evaluate performance? Are there checkpoints in different phases of various projects to control quality? Are you trying to avoid duplicating unnecessary work?

 

To improve clarity, get your staff to create standard operating procedures and develop best practices and lessons learned as they gain mastery in specific functions. The SOPs could be a simple document shared on Google doc and updated on an ongoing basis to streamline processes and procedures. The SOPs could be useful for cross-training, functioning as a template for current or future reference when employees leave the company; once they’re gone, you lose their network, along with important insight, lessons learned, and best practices for success.

 

STYLE. What is the leadership style of the organization? Are you democratic and collaborative with an open door policy or with a coaching and mentorship approach? Micromanagement is mismanagement. Don’t be autocratic and bureaucratic. Eliminate the culture of fear.  Never raise your voice or lose control. To lead, you must serve others--otherwise, no one will follow you. Lifting others up and increasing their self-esteem cultivate happiness, which makes people more productive at work. Management is about getting work done through other people, and to do that you need to foster high morale and make it enjoyable for staff to come to work each day. Foster growth in your employees, and empower them to contribute their ideas and talent.

 

Are your team members competitive or cooperative? High IQ is insufficient and egomania creates obstacles. In a startup, personality fit is crucial and teamwork requires collaboration, cooperation, flexibility, and a positive attitude where people get along. Employees with emotional intelligence are valuable. They’re often the best people who can nurture relationships, win customers, influence stakeholders, and figure out how to make everyone successful on the team.

 

SKILLS. What are the core competencies in the company, and how do you monitor and evaluate them? What are the strongest skills in the team and what do they do best? Do current employees have the ability to perform well?  What are the skills gap, what can be improved, and what new knowledge is needed?  What skills does the company need to reinforce?

 

STAFF addresses the recruitment, training, and retention of employees. It assesses the type and number of employees required in the organization based on the gaps in competencies. What specializations already exist in the teams and what positions need to be filled?

Once you finished compiling the information, decide where and what necessary changes you need to make by asking and answering whether each element aligns. Create a table with the 7 elements, YES, NO, and Align. E.g. staff is passionate and committed to excellence - NO; the structure is bureaucratic - YES; systems for HR and customer service in place - NO and so on. Look for the gaps and develop an action plan with new goals, strategies, and a timeline to close the gaps.

 

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