Squeeze that lemon!


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A simple guide on how to maximize returns from your existing technology business?

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Squeeze that lemon!

  1. 1. Squeeze that lemon!<br />PallavNadhani<br />
  2. 2. It was the end of 2008…<br />R-word was getting everybody nervous<br />
  3. 3. Startups can't do 2 things! Forget many!<br />Focus allows you to succeed without requiring an organization of super-humans.<br />
  4. 4. If your niche is small enough, <br />the customer need strong enough, <br />your marketing targeted enough, <br />your product good enough, <br />your customers happy enough, <br />they are going to buy,<br />RECESSION OR NOT<br />
  5. 5. In a small but focused market:<br />You don’t need a very big marketing budget to get noticed<br />You can become an expert in that niche<br />You can deal with competitors, as they’re mostly small<br />You can delight customers one by one<br />Recessions do not hurt you bad, as you’ve not yet explored the majority of the market<br />
  6. 6. If life gives you lemons, <br />make lemonade<br />If it deals you tomatoes, <br />make Bloody Marys<br />
  7. 7. 5 ways to increase earnings<br />Get more leads<br />Convert more leads into customers<br />Increase the number of times those customers buy<br />Increase the average price point of sales<br />Increase profit margins (cut costs)<br />
  8. 8. And that involved…<br />Cost effective marketing & branding<br />Re-defining sales strategies<br />Experimentation with pricing<br />Customer Development & Community Formation<br />Maintaining and Understanding Key Metrics<br />
  9. 9. branding = (what people think of) you<br />marketing = (how you get) sales<br />
  10. 10. Traditional Marketing Cycle – Costly and not optimal<br />
  11. 11. Re-defined Customer Interaction Process<br />
  12. 12. New age mantra of Marketing<br />Sell benefits, not features<br />Talk results, not processes<br />
  13. 13. New age mantra of Marketing<br />What’s in it for them:<br />What problem do you solve?<br />How are you unique?<br />Why should they care?<br />
  14. 14. New age mantra of Marketing<br />Highlight your USPs<br />Is it support, pricing, delivery…? Pitch it appropriately and evaluate the connect.<br />
  15. 15. New age mantra of Marketing<br />Think new lead generation accelerators<br />
  16. 16. New age mantra of Marketing<br />Market your success<br />Source: US Government Website<br />
  17. 17. New age mantra of Marketing<br />Use Word of Mouth Effectively<br />Craft compelling stories that people can share with others. Incentivize them to speak out.<br />
  18. 18. New age mantra of Marketing<br />Use Free PR – it’s effective<br />Sell a story that a layman can relate to. Make it generic, not techy or jargonized.<br />
  19. 19. New age mantra of Marketing<br />Build trust around your brand.<br />That lets you command better work, higher prices, increased credibility and more respect.<br />
  20. 20. New age mantra of Marketing<br />Everything is a brand.<br />Right from the way your website looks <br />to the way you write your emails. <br />Consistency is very important.<br />
  21. 21. Simple ways to build trust around the brand<br />Offer relevant and compelling information about offerings, tied to customer needs. If you can provide an evaluation, nothing better.<br />Make your communication simple and consistent, so that it does not distract from the key message.<br />Provide verifiable reviews, testimonials and feedback.<br />Reputation spreads like wild fire. Manage that well.<br />Encourage word of mouth. People trust friends more than experts. Encourage multi-directional conversation, rather than uni or bi.<br />
  22. 22. Branding & Marketing on Social Media<br />Social media is not just about creating<br />an account & having fans<br />
  23. 23. Social Media Strategy<br />
  24. 24. Leverage social media in different ways<br />Public relations<br />Market research<br />Brand Marketing<br />Promotions<br />Consumer Education<br />Sales<br />Customer Support & Relationship Management<br />
  25. 25. New age mantra of Marketing<br />Social media objective<br />Build content worth sharing, brand worth talking about and sites that encourage customer participation and dialog<br />
  26. 26. New age mantra of Marketing<br />Build your army of fans, evangelists & loyalists<br />Nurture them regularly.<br />Get feedback from them.<br />Treat them as your partners.<br />
  27. 27. Optimizing Sales<br />When selling<br />Be interested, not interesting<br />
  28. 28. Optimizing Sales<br />Identify your relationship model<br />Is it one-to-one, or one-to-many?<br />
  29. 29. Optimizing Sales<br />Build user lock-in in your sales strategy<br />Once they’ve started using your product, they have an emotional connect and are more likely to convert<br />
  30. 30. Optimizing Sales<br />Small changes can create a lot of difference when selling!<br />
  31. 31. Optimizing Sales<br />During tough times, be understanding with your customer. Act as his partner.<br />It pays off very well in the long run.<br />
  32. 32. Optimizing Sales<br />Capture all leads religiously, categorize them methodically and have a lead nurturing plan. Define stringent processes and protocols.<br />
  33. 33. Experiment with pricing<br />Your offering is not just the code that you’re giving out. It is much broader than that – it’s the entire experience. <br />Make sure your prices are in sync with your brand. Plus, include soft aspects when deciding pricing like switching costs, competitor pricing.<br />Products rarely win by pricing low.<br />The perceived value of a product may be higher than its objective value. Use marketing to increase it.<br />Use smart pricing strategies like pricing discrimination, good reference points, pricing threshold.<br />Inspired from Don’t Just Roll The Dice<br />
  34. 34. Example of User-lock in & Pricing Reference points<br />37signals.com<br />
  35. 35. Pricing Reference point<br />ManageEngine.com<br />
  36. 36. Experiment with deals<br />Bundling of offerings (cross-selling), discounted sales. Segregate by demographics.<br />Measure. Measure. Measure.<br />
  37. 37. Questions to ask when setting prices?<br />What’s your strategy? (High volume/High price)<br />What’s your product? (Not just code, but entire experience)<br />How will your customers judge the fairness of your pricing? (reference points)<br />Who are your customers? (What/Where/How)<br />Who are your competitors?<br />What does your brand say and how do you market?<br />Can you segment your customers and create versions?<br />Inspired from Don’t Just Roll The Dice<br />
  38. 38. Identify key metrics, analyze and reiterate<br />Cost per acquisition, cost per download<br />Gross profit margin, Profit per sale, Cost vs Revenue rise<br />Marketing: CTR of various sources, CPM, CPC, CPA, Visitor Demographics<br />Customer Satisfaction Index, Returning Customers %, Dropped Customers %<br />Top 5 sources of revenue – Where they came from, What they searched, What they liked about your offering?<br />Top 5 affiliates, Top 5 partners… their attributes.<br />
  39. 39. The paradox of growth:<br />The smaller you are, the bigger you must look<br />The bigger you look, the smaller you must get<br />
  40. 40. Thank you<br />