Squeeze that lemon!
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Squeeze that lemon! Squeeze that lemon! Pallav Nadhani
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21-Oct-2014 -
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A simple guide on how to maximize returns from your existing technology business?
Transcript of Squeeze that lemon!
Squeeze that lemon!
Squeeze that lemon!
Pallav Nadhani
Squeeze that lemon!
It was the end of 2008…R-word was getting everybody nervous
Squeeze that lemon!
Startups can't do 2 things! Forget many!
Focus allows you to succeed without requiring an organization
of super-humans.
Squeeze that lemon!
If your niche is small enough, the customer need strong enough, your marketing targeted enough,
your product good enough, your customers happy enough,
they are going to buy, RECESSION OR NOT
Squeeze that lemon!
In a small but focused market:
You don’t need a very big marketing budget to get noticed
You can become an expert in that niche
You can deal with competitors, as they’re mostly small
You can delight customers one by one
Recessions do not hurt you bad, as you’ve not yet explored the majority of the market
Squeeze that lemon!
If life gives you lemons, make lemonade
If it deals you tomatoes, make Bloody Marys
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5 ways to increase earnings
Get more leads
Convert more leads into customers
Increase the number of times those customers buy
Increase the average price point of sales
Increase profit margins (cut costs)
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And that involved…
Cost effective marketing & branding
Re-defining sales strategies
Experimentation with pricing
Customer Development & Community Formation
Maintaining and Understanding Key Metrics
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branding = (what people think of) you
marketing = (how you get) sales
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Traditional Marketing Cycle – Costly and not optimalThey buy
media space and push product
information
Consumers are not
interested in that
information and ignore
Marketing dollar not
used optimally
Business need to reach
customers
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Re-defined Customer Interaction Process
Excite
Educate
Motivate
Convert
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Sell benefits, not featuresTalk results, not processes
New age mantra of Marketing
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What’s in it for them:What problem do you solve?
How are you unique?Why should they care?
New age mantra of Marketing
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Highlight your USPsIs it support, pricing, delivery…? Pitch it
appropriately and evaluate the connect.
New age mantra of Marketing
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Think new lead generation accelerators
New age mantra of Marketing
Squeeze that lemon!
Market your success
Source: US Government Website
New age mantra of Marketing
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Use Word of Mouth Effectively
Craft compelling stories that people can share with others. Incentivize them to
speak out.
New age mantra of Marketing
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Use Free PR – it’s effectiveSell a story that a layman
can relate to. Make it generic, not techy or
jargonized.
New age mantra of Marketing
Squeeze that lemon!
Build trust around your brand.
That lets you command better work, higher prices, increased credibility and
more respect.
New age mantra of Marketing
Squeeze that lemon!
Everything is a brand. Right from the way your website looks
to the way you write your emails. Consistency is very important.
New age mantra of Marketing
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Simple ways to build trust around the brand
Offer relevant and compelling information about offerings, tied to customer needs. If you can provide an evaluation, nothing better.
Make your communication simple and consistent, so that it does not distract from the key message.
Provide verifiable reviews, testimonials and feedback.
Reputation spreads like wild fire. Manage that well.
Encourage word of mouth. People trust friends more than experts. Encourage multi-directional conversation, rather than uni or bi.
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Social media is not just about creatingan account & having fans
Branding & Marketing on Social Media
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Social Media Strategy
Plan Build
Promot
e
Measure
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Leverage social media in different ways
Public relations
Market research
Brand Marketing
Promotions
Consumer Education
Sales
Customer Support & Relationship Management
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Social media objectiveBuild content worth sharing, brand worth talking about and sites that encourage
customer participation and dialog
New age mantra of Marketing
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Build your army of fans, evangelists & loyalists
Nurture them regularly.Get feedback from them.
Treat them as your partners.
New age mantra of Marketing
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When sellingBe interested, not interesting
Optimizing Sales
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Identify your relationship modelIs it one-to-one, or one-to-many?
Optimizing Sales
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Build user lock-in in your sales strategy
Once they’ve started using your product, they have an emotional connect and are more likely to
convert
Optimizing Sales
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Small changes can create a lot of difference when selling!
Optimizing Sales
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During tough times, be understanding with your
customer. Act as his partner.It pays off very well in the long
run.
Optimizing Sales
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Capture all leads religiously, categorize them methodically
and have a lead nurturing plan. Define stringent processes and
protocols.
Optimizing Sales
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Experiment with pricing
Your offering is not just the code that you’re giving out. It is much broader than that – it’s the entire experience.
Make sure your prices are in sync with your brand. Plus, include soft aspects when deciding pricing like switching costs, competitor pricing.
Products rarely win by pricing low.
The perceived value of a product may be higher than its objective value. Use marketing to increase it.
Use smart pricing strategies like pricing discrimination, good reference points, pricing threshold.
Inspired from Don’t Just Roll The Dice
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Example of User-lock in & Pricing Reference points
37signals.com
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Pricing Reference point
ManageEngine.com
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Experiment with dealsBundling of offerings (cross-selling),
discounted sales. Segregate by demographics.
Measure. Measure. Measure.
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Questions to ask when setting prices?
What’s your strategy? (High volume/High price)
What’s your product? (Not just code, but entire experience)
How will your customers judge the fairness of your pricing? (reference points)
Who are your customers? (What/Where/How)
Who are your competitors?
What does your brand say and how do you market?
Can you segment your customers and create versions?
Inspired from Don’t Just Roll The Dice
Squeeze that lemon!
Identify key metrics, analyze and reiterate
Cost per acquisition, cost per download
Gross profit margin, Profit per sale, Cost vs Revenue rise
Marketing: CTR of various sources, CPM, CPC, CPA, Visitor Demographics
Customer Satisfaction Index, Returning Customers %, Dropped Customers %
Top 5 sources of revenue – Where they came from, What they searched, What they liked about your offering?
Top 5 affiliates, Top 5 partners… their attributes.
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The paradox of growth:The smaller you are, the bigger you must lookThe bigger you look, the smaller you must get
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Thank you
