This is a cross post, republished with permission. Follow Eric Dunstan on Twitter (@ericdunstan) or through his blog at http://ericdunstan.com.
An e-commerce start-up asked for my thoughts on how the company should be thinking about marketing and what could be done with almost no marketing budget to drive acquisition and purchasing activity. I had to chuckle when I was asked for this input for yet again it demonstrates where in the priority list most business people perceive marketing to be... at the bottom. Most fintech start-ups build a product, get it up and running and have a rough idea of how it will generate money. Unfortunately, most business leaders look to marketing as the tool to help grow the business... after the product is launched.
I am using the term “marketing” very loosely here. Marketing is mostly understood as all the tangibles — online, website SEO, paid search, social media, etc. Little regard is given to the core marketing principals of the 4 Ps, for example. When most people hear the words “the 4Ps” they think about the O.P.P. song from the early 90s and NOT the critical marketing concepts of Product, Price, Place, Promotion. Clearly most people get stuck on the Promotion part, which is putting the cart before the horse.
I encourage all fintech start-ups who approach me for marketing help to stop, take a deep breath and evaluate their business and product through the lens of the 4 Ps within the context of a few additional guiding principals: defining the target customer segment(s), understanding why the customer segment wants to buy the product, and defining how the customer evaluates/buys the product. To the start-up leadership who feels time pressed, this sounds like a lot of work to do for marketing.
Working through this process and understanding the customer is CRITICAL to the success of the business. Leaders may find their product does not meet the right customer need or that a different customer segment should be targeted. This can be a tough nut to swallow for it means reworking the product that was just launched. Start-up leadership must get these marketing concepts right before any marketing plans or programs can be developed and launched with a successful outcome.
One of my mentors and managers at eBay developed a structured document called a Unified Marketing Brief that helps guide business units and companies through this form of critical thinking. The document requires debate and thinking around target audience (segmentation), marketing objectives, key success metrics, competitive industry analysis and market research. Once these elements are addressed, discussion is encouraged around brand and how to position and message the product and key benefits. I’ve guided business units in the e-commerce, identity protection and financial technology verticals through this process with very successful outcomes. Yes, it’s a lot of work and it takes time. However, once completed, business leaders now have a road map to guide marketing planning and tactical program development.
I found another great example of a structured approach to startup marketing by April Dunford on Rocket Watcher. She provides a great approach to mapping marketing tactics to the buying process of each target segment.
April also takes the concept one step further by discussing the importance of testing, improving and understanding the root cause of the tactical failure. Too often companies don’t get the immediate tactical response rates desired and make the wrong assumptions as to why it happened. Unfortunately these wrong assumptions follow to the next tactical program… that has the same poor results. April makes a great point in encouraging marketers to understand the WHY to improve tactics. Check out April’s recent presentation to learn more:
Now let’s assume that most of this strategic marketing work is in process and marketing tactics are launched. Is the marketer’s job done? Obviously no. The work has moved into a different phase of continuous improvement based on customer feedback. Start-ups must have a mechanism in place to capture and listen carefully to customer feedback. The mechanisms can be customer support teams accessible by email or online chat, twitter feeds or by call centers.
Listening to customer feedback is critical, but converting the feedback into actionable product improvements is also. This is a topic for another post! Does your start up have these mechanisms in place? I bet your competition does.