Customer Acquisition - Choosing The Right Channels

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The most difficult task for a startup is not building the product but selling it. We will review a framework to determine which customer acquisition channels to choose depending on your vision, your product, your pricing strategy and your target group. We will also go through the most common acquisition channels and discuss do's and don'ts.

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Customer Acquisition - Choosing The Right Channels

  1. 1. Customer Acquisition:Choosing The Right Channels
  2. 2. ABOUT ME José Matías del Pino CEO at Ondango Industrial Engineer, MBA Graduate of The Founder Institute Mentor at the Berlin Startup Academy More than 3 years of experience in the German internet industry Previous industry experience in logistics (Procter & Gamble), marketing (Robert Bosch) and consulting (The Boston Consulting Group) www.internetandstuff.com @jmdelpinob
  3. 3. ABOUT ONDANGO Ondango enables companies to sell their products directly on their Facebook pagesFacebook-like user No annoying app Features to spread the interface requests word Our goal: To offer the world’s best shopping experience on Facebook
  4. 4. CHOOSING YOUR ACQUISITION CHANNELS There’s plenty of acquisition channels…Search Engine Marketing Trade Fairs Search Engine Optimization Social Media Marketing TV Commercials Resellers Business Development Newspapers Display AdsPublic Relations Direct Sales Affiliate Marketing …but startups need focus – you will have to choose
  5. 5. CHOOSING YOUR ACQUISITION CHANNELS Your acquisition channels depend on who you target Corporations Mid-sized companies Small companies People
  6. 6. CHOOSING YOUR ACQUISITION CHANNELS Corporations Mid-sized companies Small companies People N° of people involved in purchase decision Level of information / expertise of buyer Length of sales cycle Size of available budget
  7. 7. CHOOSING YOUR ACQUISITION CHANNELS Vision Product Pricing Target Acquisition Channel(s)
  8. 8. CHOOSING YOUR ACQUISITION CHANNELS Vision What do you want to build? Why?
  9. 9. CHOOSING YOUR ACQUISITION CHANNELS Product Is it easy or difficult to setup? Is it easy or difficult to manage? Is it highly customizable or not?
  10. 10. CHOOSING YOUR ACQUISITION CHANNELS PricingDo you get recurring revenue or not? What do your competitors charge? Remember: PV(CLTV) > CAC* *The present value of your customer lifetime value must be higher than your customer acquisition costs.
  11. 11. CHOOSING YOUR ACQUISITION CHANNELS!   Business Development! Direct Sales!   Trade Fairs!   SEO/SEM!   Social Media Marketing!   Display Ads / Affiliate Mktg.!   Public Relations Effective Less effective
  12. 12. POPULAR CHANNELS – DO’S & DON’TS Business DevelopmentClosing mutually benefitial deals with companies that target or have access to yoursame customers. Your target for this channel is not your customer but your partner Long sale cycle (3 to 6 months, sometimes even more), but after 2 months you usually know if the deal will close Access to the right person in the organization is worth gold; expand your industry network! Example: Spotify and Deutsche Telekom
  13. 13. POPULAR CHANNELS – DO’S & DON’TS Direct SalesTalking directly to potential customers to sell them your product. At the beginning, you will have to do it no matter what you sell, because it‘s the best learning It‘s an expensive channel; monitor your funnel metrics and your ROI constantly You might have to adapt your pricing for this channel Example: Groupon acquiring merchants
  14. 14. POPULAR CHANNELS – DO’S & DON’TS Trade FairsSetting up a stand on trade fairs to show and sell your product to visitors. “Direct sales on steroids“ – you reach many leads in a short time It‘s also an expensive channel (registration, travel, stand set up, employees) Do your homework: lookup the list of atendees and arrange meetings in advance Examples: Marketing agencies, development agencies, software vendors
  15. 15. POPULAR CHANNELS – DO’S & DON’TS Search Engine OptimizationImproving your position on search engine for specific keywords Two worlds – on-site and off-site optimization. Always do on-site More difficult that it seems – go for long-tail keywords, focus on a few If you do it, go all in – if you‘re not on the first page it won‘t help Example: All mayor online stores
  16. 16. POPULAR CHANNELS – DO’S & DON’TS Search Engine MarketingAdvertising on search engines for specific keywords Your performance depends on the right keyword choice, the quality of the ad copy and the quality of the landing page Very useful when testing demand for an MVP Know your numbers, monitor your ROI closely, be data-driven Example: All travel companies
  17. 17. POPULAR CHANNELS – DO’S & DON’TS Display Ads / Affiliate MarketingPlacing banner ads on other websites Campaign-driven: you need a high ad budget (4-digit U$ to get started), plus costs of ad design and campaign management Different models (from less to more attractive): CPM, CPC, CPA, CPS It’s important to optimize ad placement, ad copy and landing page Example: Online fashion stores
  18. 18. POPULAR CHANNELS – DO’S & DON’TS Public RelationsGet your company or product featured on different Media Do it only if you can afford it. It helps more with branding than bringing actual customers Use an agency to reach mainstream media, pitch to the tech press yourself Be prepared for inbound press requests – have all materials and contacts ready Example: Cumplo
  19. 19. Thank you!

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