posted03/03/10
So you’ve built a killer web application (lets call it “Killer App A”) and you’re ready to take over the world with it. Now what?
How exactly do you get the rest of this planet excited or even aware of your new whizz-bang Killer App A? How do you get it out there and build an audience for your product with a bootstrapped startup’s budget?
Just like conventional offline marketing, every startup marketer needs to understand the basic marketing tenets of Segmentation, Targeting and Positioning if you’re to succeed. Once you’ve identified your target segment and customer - you’ll need to find the best way to reach these target customers.
Unfortunately, simply knowing who your target customer is - isn’t going to be good enough because you don’t have the budget to hire marketing suits to help you reach these customers. Fortunately for all of us, the Internet today offers a host of options to get Killer App A out to the people who matter - it just takes a little work and a healthy dose of creativity to succeed.
3 Questions to ask about your target Customers?
Once you’ve identified your target customer - you’ll need to know where to find your target customer, or more specifically, where on the Internet your potential customers are spending their time and attention - so you can get “Killer App A” in front of them.
Typically you need to be able to answer the following questions about your target customers:
1) Which websites or blogs does a typical customer visit?
2) Who are the influencers or mover and shakers that your target customers are paying attention to?
3) Are there online Communities, Forums or Social Networks that your customers congregate at?
Answering these basic questions will help you formulate the most cost effective strategy for customer acquisition - allowing you to channel your limited resources towards the most relevant customer sources.
Start Here… Google Alerts
The first thing I’d recommend for anyone trying to reach their customers is to create a set of Google Alerts. Google Alerts are a great way to keep up to date with the latest on any topic on the Internet, and thats exactly what you want to do for the keywords (topics) that matter to you and your customers. You can set it up to receive daily alerts and once you’ve found a site thats relevant - you’ll want to Engage, Engage, Engage.
Here at Creately.com - we’re interested in customers who draw technical and business diagrams - so we’ve set up Google Alerts which point us to sites, blogs and online conversations where these are being discussed.
Then we engage in the blogs and forums that discuss these topics - initially by offering to help and providing useful information and resources to gain credibility in the community. And finally introducing your product/service where appropriate (Note: Posting about your product without engagement can be counter-productive). This is a great way to reach out! Once you’re known within the community, you can also send out direct emails to bloggers requesting them to review your startup - this sure beats a standardized email from an unknown startup.
Where are your competitors reaching customers?
Another nifty trick is to set up Google Alerts for you competitor’s product or brand. If someone’s talking about your competitor on a website or blog - that probably means there’s a keen interest from the Blog’s author and readers in your particular space or product. As long as your product can add value to the discussion, there is no reason why you shouldn’t engage with this blog/site to put forward Killer App A.
Start-up Blogs
Another great source for potential customers is getting featured on one of the leading Technology blogs like TechCrunch, ReadWriteWeb or Mashable. These sites can drive a lot of traffic to your website but simply relying on these tech blogs is not good enough to grow your startup’s web-presence (Read more about the Techcrunch bump here).
Here are some good tips to help you get featured.
Besides these high traffic blogs there are a host of very useful niche blogs that may be relevant to your target customer base. But, how will you find these niche blogs? Marshall Kirkpatrick (from RWW fame) has a good post on finding the right sites on his blog.
Directories (Google Loves them)
Now, just as how review sites are paramount to any startup it is equally important to get listed in Directories. DMOZ is one such prestigious directory, and so is MakeUseOf.com, and KillerStartups.com. Bookmark these URLs and read these posts for useful tips for getting Killer App A listed on them:
Good backlinks from these reputable Tech Blogs and Directories help build your business’s reach and gain credibility in a very competitive startup environment. Besides being a great way of acquiring initial traffic, these listings improve your site’s Google Page Rank by increasing the number of high-quality sites that link to your pages.
Content is King
Reviews and listings will drive good traffic, but to convert the traffic into customers there’s a lot more work to be done - we’ll discuss some strategies for conversion in another post. In the meantime, you need to be constantly engaging with the communities that will drive customers your way. Write blog posts that appeal to your target customer, always using appropriate titles to capture the attention of readers. The goals of your blog posts should be to educate, inform and to generate comments.
Social Media is your Friend
You’ve written your posts and published them - now its time to make sure you get the maximum leverage from your effort. Social media plays a key role here, so make sure you have profiles on popular sites like Facebook, Twitter, Digg and loads more. Submit your blog posts with a back link to your blog or site. Remember to make your interactions with members on social networks a 2-way dialogue by answering their questions and helping the community where possible.
And Yes, at Cinergix we do a lot of hardwork to create a buzz about Creately! We aim at having as many reviews, listings and social media presence as possible. These tips may not work all the time, but keep at it and I assure you it will pay off.
Here’s a simple diagram featuring Creately’s Reviews from 10 review sites.
We hope you’ve found this post useful for your own Killer App - we’d love to hear of other innovative things you do to get your product out to the world.
@Charan & @Indu
posted20/01/10
Last week, the entire Creately Team (except Graham - we missed you mate) gathered in our new office in Colombo for a week long strategy and planning session. We reflected on the past year, our successes and learnings, evaluated the market and primed ourselves for an exciting year ahead in 2010. We talked a bit and drew quite a lot during the week. We’re firm believers of visual thinking and communication and ended up capturing most of our thoughts and findings in mind-maps, concept diagrams and the like. Over the coming weeks, we’ll share some of these diagrams that we feel can help other young startups like ourselves do better in 2010.
Today, I’d like to share a Concept Map that Chandika put together - Critical Success Factors for a Web Startup. It captures key elements of a Startup’s operations that need the Entrepreneur’s attention and how these elements impact your success as a web startup. With so little time and so much to do - anything that helps keep an entrepreneur focused is very useful. So if you’re like me, you’ll want to print it out and pin it someplace you’ll see it everyday. Click image to enlarge 
What else do you think should go into the diagram? Did we miss something crucial that you’d like to add? @charan
posted16/01/10
Setting up your own web product company? Start following the founders of Creately on Twitter to see a mix of interesting and insightful tweets!! And, yeah one such tweet is what made me contribute today! I found an really useful blog post on Mashable - ‘10 of the Best Social Media Tools for Entrepreneurs‘. This was tweeted by Creately’s co-founder Charan. This post grabbed my attention cos I wasn’t aware of some of the tools listed here.
To help me remember, I thought it would be worth it all into a diagram that would capture the essence of each of these services visually. I created this diagram on Creately. With Creately’s slick Upload Image feature, I managed to pull through all the icons of the Social Media Tools in the list, added a short description and it was ready to be published.
So here’s a simple chart to help you remember 10 of the Best Social Media Tools for Entrepreneurs and Startups!
If you enjoyed this - remember to check out how easily you can create visual maps like this with Creately - Online Diagramming.
@induja
posted10/01/10
The great thing about working in an Internet start-up is the learning we get to do every single day of our lives. We don’t always know the right answers to every question we face, but the very nature of the Web lets us try out new ideas and quickly adapt them to achieve the best results for our online businesses.
The Big Kahuna Question
The Cinergix team faced this ‘hard’ question 3 months ago when we launched our online diagramming service, Creately, to the public. After being in beta for almost a year, where we spent a lot of time and effort in engineering, we were faced with the question of how much to charge for our service. Of course we had tons of ideas and projections in our business plan, but now that it was finally time to start generating an income, we weren’t exactly sure how much our customers should be paying for our collaborative diagramming application.
Our customers’ feedback and reviews told us we had a service that was loved and valued by users, but we struggled to quantify this value. Creately was being used in small businesses, software and design companies, startups as well as by students from all around the globe. We felt Creately would be valued differently by each group - depending on what they used it for.
A web design agency using Creately to work collaboratively on a Web Site project with their clients receives immediate economic value by shortening the turnaround time of designs and raising customer satistfaction. This would make Creately a valued tool - in essence allowing us to charge a “Premium” to this customer. But a student using Creately may not see such immediate economic returns, and hence would not be willing or able to pay the same price.
Faced with this dichotomy of users and our desire to ensure Creately remained accessible to everyone who needed it, we devised a simple Pricing Experiment that would help us better understand Creately’s perceived value to our customers.
The Experiment
We set up a new Creately Plus plan and decided we would let our customers choose how much they would pay for Creately each month. We called it the “Pay What You Want” offer and set about putting the plan into action.
We set up a simple Upgrade page (see screenshot below) with sample prices of similar diagramming applications, and launched it with a Press Release and a newsletter to all our beta users. The experiment would run for 2 weeks and we hoped to get a better sense of our customers and how much each of them valued Creately.
Marketing Sequeway
This also proved to be a bit of a marketing coup. I thought we had an interesting story with our PWYW plan, so instead of putting out a Press Release announcing the launch of Creately - we pitched the unique “PWYW” pricing angle. This lead to stories on TechCrunch, TheInquirer.com and a host of other blogs. We didn’t realise this at the time, but not many people (besides Radiohead) have tried this before.
The Results
I would be lying if I said we were not pleasantly surprised by the initial results of our experiment. This along with the publicity we received convinced us to continue to run the pricing experiment for 2 months instead of the planned 2 weeks.
We received a wide range of offers from $1 (the minimum allowed) to $100, with the mean ranging between $4-$5 and a median of $3.
- Customers who paid $1 were mostly new users who’d heard about the PWYW plan and signed up on the first day. This group of customers was also the most likely to cancel their accounts over a period of time. Many of them did not use the application intensively and would have been fine with a Free plan.
- Customers who paid the Mean Price of $4-5, have made good use of their Creately accounts, including creating multiples diagrams and publishing them. These customers come from a diverse range of industries including small businesses owners, marketers, teachers and students. These users have shown less propensity to cancel their accounts as they were extracting good value from their accts.
- Customers who paid more than the Mean Price provided the most valuable insights. These customers incorporated Creately into their work and business processes and derived significant value from Creately’s collaboration capabilities. Customers in this group included tech-savvy small businesses, software teams, design companies, Webmasters and business consultancies. This group made the most use of Creately to collaborate with co-workers and clients, valuing our visual collaboration platform to communicate and solve real business problems across cross-functional teams, instead of simply using Creately as a diagramming tool.
Another very interesting point that stood out from our experiment is the difficulties that so many of our users faced with completing their subscriptions with PayPal. The complaint emails as well as large percentage of abandoned transactions - forced us to work on alternate payment methods.
Lessons Learnt
Understand your users
We’ve learnt that its very important to understand who your customer is and why someone’s your customer. No two customers are the same so it’s important to learn what each type of customer gets out of your product. This is important if you want to stay relevant to your most valuable customers and helps you focus your marketing and development investment to maximise your returns.
Give Customers What they Need (or To each his Own)
We are even more committed to the idea that Creately delivers differing levels of value to our customer. We don’t want to forgo any customers and will need to continually work to ensure Creately is available where its needed.
Sustainable?
The PWYW scheme did a good job in helping us gather invaluable data on our customers, but may not be sustainable over a long run. This is due in part to the fact that although we ask people to be Fair, not everyone is. Also, for a startup with limited resources, it becomes very hard to do any real business planning & projections when you add variable pricing to the mix.
Action Plan
We’ve been working on a set of actionable activities that we worked out as a result of our experiment.
- Make it easier for teams to work together on our visual collaboration platform, by introducing Team Projects.
- Introduce Pro Plans that deliver greater value to customers who use Creately intensively.
- Focus on developing a clear market position that resonates with our high value customers.
- Put in place a new payment infrastructure to replace Paypal. This will be announced shortly.
- Institute a Creately Scholarship programme to give access to charities, schools and colleges at deeply discounted prices.
Conclusion
We may not have fixed every concern we had, but this experiment has definitely helped us identify our strengths and understand the market response to Creately. Even though we gave out quite a few Creately Plus accounts for $1, we believe the data we collected over the 2 months has more than paid for itself in terms of lost revenue.
Tell us what you think of our findings. Would you have conducted this experiment in a different way? We’d love to hear from any online service that’s faced this question before.
Some Good References on Pricing Strategies for Startups
posted21/08/09
We’re really happy and honoured to be nominated for the best Rich Internet Applications of 2009 over at O’Reilly media’s InsideRIA.com site. It’s come as a real surprise and we’re definitely very excited to be honoured amongst some of our favourite RIAs on the web.
There will be 2 rounds of Voting - the first round of online polling is going on now and we’d love for you to click here to vote for Creately. There’s no registration or signup required. Just click and Vote. We hope to be able to make it through to the final round with your support.
The Finals will be held Live at Adobe’s Max 2009 event in LA in October 2009. We’d love to be there - so vote for us and we’ll see you at Max.
@charanjit
