Driving Marketing effectiveness in early stage companies

Startups that fail usually have a reasonably good product. What they typically don't have are loyal customers. Having a great product is not enough, customers also need to know it exists and that it is great. This is why marketing plays a very important role in early-stage companies. Why is marketing at early-stage startups, especially B2C companies, challenging? Typically, in the early stages, funds are limited, and a dizzying array of choices exist.

We wanted to address 4 key areas, which we believe might help founders drive marketing better especially in early stage of the companies:

A. PERFORMANCE MARKETING

1. Performance marketing vs. brand building: At early stages, over-indexing on performance marketing can yield measurable results, making optimizing and scaling efficiently easier. Developing strategies to target each part of the funnel within performance marketing is essential. However, over the long term, there needs to be a shift towards building the brand, such as investing in PR, influencer marketing, etc.
2. Platform selection: Consumer brands typically rely heavily on Meta, and within this, newer-age brands are more focused on Instagram, whereas brands targeting tier 2 and tier 3 cities may find Facebook more effective. YouTube might work best for brands that offer services, require tutorials, etc. Meta can be quite a black box in the early days, especially when experimenting with creatives.
3. Acquisition vs. retargeting: Driving acquisition is the primary objective of early-stage marketing. However, some resources must be allocated to retargeting efforts for a well-rounded strategy. Dynamically adjusting the allocation based on the returns and performance metrics allows for a more efficient distribution of resources.

B. CONTENT AUTHENTICITY

1. User-generated content (UGC) vs. ads: We are inundated with UGC on our feeds, but is it the correct format for everyone? One aspect is finding your customer persona and tailoring content to specific target audiences and their preferences. Creating a large testing base of ideas and creatives for quick iteration is helpful in such cases. The authenticity of content holds paramount importance, outweighing the significance of the format itself. A genuine message may resonate more profoundly with audiences, establishing a meaningful connection with the brand.
2. Speed vs. Quality: Striking the proper equilibrium between speed and quality is crucial, and it's common for individuals to gravitate towards extremes. Early-stage startups need to navigate the delicate balance between MVP and marketing quality. Enough experimentation early on becomes vital to identify the right kind of creatives. When certain creative archetypes show promise, it's usually the right time to double down and ramp up quality. ?
3. Influencers and celebrities:?In the early days, it may make more sense to experiment with influencers to find the right fit for your brand rather than double down?immediately. Influencers and celebrities have specific target demographics, and a thoughtful analysis is needed before committing to a long-term partnership.
4. Take inspiration but contextualize: The Meta ads library is an excellent resource for seeing what competitors do for marketing. One caveat: don't copy blindly; it is important to understand competitors' models and target markets to contextualize their creatives for your specific brand.

C. MARKETING MUSCLE

1. In-house vs. agency: When to shift? What is the core of your marketing strategy? We believe that should be contained within your in-house capabilities as external agencies may not do justice to the soul of your brand. However, building any marketing in-house takes time, so founders often start by outsourcing and eventually bring it in-house. Even further in the journey, specialized marketing pieces can be outsourced to complement the in-house team. Guild has a related entity, Houndstooth, which can work with companies to help them build their marketing strategy and muscle.
2. Talent:?Specialists or generalists? Early-stage startups find starting easier with generalists who can hustle across various business components. However, keep adding specialists, such as performance marketers, content creators, etc, as you scale.

D. RETENTION:?The marketing journey extends far beyond the initial acquisition phase. It's about attracting customers and cultivating lasting relationships through repeat engagements. Many tools help startups segment and target customers in groups to drive repeats. Loyalty programs/memberships are also a good way to drive retention.

Please do share your learning and experience in driving marketing for early stage companies.