Customer Acquisition - Part Two

Last week, we started to talk about early customer acquisition. Here, we’ll get into the nitty gritty of how to engage with them, and when. 

Working with new customers starts with finding the right ones.

The biggest transition for a new founder, a lot of whom come from larger companies, is the realization that they don’t have any business infrastructure around them. There’s no go-to-market strategy, a basic website, nothing. It’s an extremely daunting task. You’re doing something brave, and unnatural, but you need to know that your early customers understand this. As with everything, communication is key. It’s important to build a connection without overselling. How you speak to them should not be transactional, but about earning a vote of confidence and establishing open lines of honest communication. I spoke in my earlier article about a partnership mentality. This will be a central theme. Get into a frame of mind that is really focused on telling your story and creating positive human connection

Alignment is Key

The prerequisite for all of this, of course, is to identify truly great potential customers. The first part of this process is to ensure their use case is a good fit for your product. For example, if you’re an emerging SaaS vendor, an early implementation into a heavy on-premises environment or even one that has very few SaaS applications probably doesn’t make sense. Find customers that align with your ideal use case, who have the shape of the problem you’ve built to solve. 

Second, spend time on being able to refine the exact output of what you’re trying to produce and the problem you’re trying to solve. I refer this to an outcome based approach. Instead of simply saying, “We can solve this problem for you,” start by presenting the problem as you see it, how you have observed others face the same problem and then get the potential customers feedback. Be specific about what the solution does and what it does not do. Articulation of the problem is as important as the eventual solution, because it fosters early alignment with your customer. 

Third, aim to get a sense of those customers that have the culture for solving hard problems. What was the last major set of problems they have encountered and worked towards? Is the customer working on a transformative project? Is the team you are engaging with showing a sense of excitement towards working with you? Alignment is as much about team connection as it is about the problem being solved. 

Initially - Target Actual Users Of The Solution, Not Just Budget Owners

In the early days of a new startup, it’s also important to identify the right people to approach within an organization. Don’t just focus on C-level, big picture contacts right out of the gate, think about the set of users who can really help you shape and hone your solution into something more valuable. This group also tends to speak the same language as most startup founders when it comes to the actual problem statement, which removes a big obstacle from the initial conversation. Understanding the persona and targeting them in a curated fashion is critical. 

Finally, do the outreach and put in the work. Be specific about who you want to work with, and how you can best connect with them. Use your network strategically, but reach out directly, too. Attend industry-specific events where you can network. Work with investors who can connect you to ideal customers but be focused about doing so. Be monumentally creative at every turn, using as many methods as you can. 

The easiest way to do this is to keep it simple - ask for feedback. There’s no sell, you’re just asking for their time as you clarify the problem and shape out a solution. This is a great opportunity to plant a seed, provide your vantage point and ask to reconnect in six months. The process of relationship building and sound-testing your message with experts is invaluable.

Next Week

Now that you have the right customers, what does a good working partnership actually look like? As always if there are specific topics that you would like to hear more about please don’t hesitate to reach out.