Reward Customers Earlier

rewards just ahead

Customers should be rewarded earlier and more often in the relationship they establish with vendors.

This is true of any type of customer and any type of business. Keurig does a nice job of providing members with 10% off purchases. That’s not a ton of money when you’re buying coffee, but it’s something. More importantly, it’s an instantaneous and ongoing reward for being a member. On the flip side, Aeroplan is such a ridiculous program that you never feel like you’ll get anything (on top of which the experience with most airlines is painful.)

Discounts are an obvious way of rewarding customers, but there are other creative ways too. Everyone likes receiving presents. Hand-written thank you notes work too. Surprise ‘em and they’ll pay you.

If you build a reward program into your strategy, make the early rewards achievable and addictive. This is where a bit of smart gamification comes in handy. Some companies reward loyalty (or try to), but very few reward customers earlier on, after one or two purchases, before loyalty is proven. And I think that’s a mistake.

The reward sign picture is courtesy of Shutterstock.


Interrupt Users to Increase their Adoption and Engagement

You want someone to use your product, then get in their face and force them to. I’ve made this argument before. One of the biggest challenges for any startup is engagement – acquiring users is hard, keeping them is usually much harder. And even when users say they love your product or think it adds value, it doesn’t always translate into significant usage and engagement. Why is that?

Generally people are enthusiastic and interested in trying new things, but they’re also lazy, comfortable, scared of change, and unmotivated. You can increase motivation by charging people – generally people will stay more engaged (at least for a bit longer) when they’ve increased their level of commitment. But for a lot of web startups charging out of the gate is unlikely.

Try interrupting users.

It’s something we’ve been talking about a lot at Year One Labs with our startups. How do you interrupt the daily activities of users in such a way that you become useful (and grow into a necessity) right at the very moment when the users actually need you?

Put another way: Your web application is going to require either a change of behavior or the creation of an entirely new behavior. Both are hard to do, and it’s foolhardy to assume people will change their behaviors easily. That kills a lot of startups. So how can you interrupt a user during a chain of behaviors they’re comfortable executing to slot yourself into that chain at the right place and right time?

There are some feedback loops that are effective. Social pressure is one. The more I see people using a certain product and/or talking about a certain product (this includes media, close friends, acquaintances, and others) the more likely I’ll try something a few more times at least. Email is another potential way of trying to increase engagement. But if you go deeper than that and inject yourself right into what people are already doing and interrupt them … it won’t really feel like an interruption, and it won’t feel like a bother … it will feel like you’re creating value at the exact moment when they need it, and you’re embedding yourself into users’ existing behaviors. Suddenly the change required, the leap of faith a person has to make in order to get value and stay engaged is greatly reduced.

Drill down into the use cases you think are right for your application. Write those down. Understand (or at least hypothesize) who is the right user who fits the use cases you’ve defined. Think: personas. Then figure out what those people are doing right now in and around the use cases you’ve defined. How are they solving or semi-solving the problems you’ve identified? What are they doing immediately before and after your relevant use cases? As you explore these ideas you may find opportunities to integrate with other applications and piggyback on their traction. You may find “sneaky” tactics for injecting yourself into people’s routines, which can greatly clarify your value proposition and minimize the demands you’re making on users.


Understand the Difference Between Marketing Tools, Tactics and Strategies

When it comes to marketing, you need to understand the difference between tools, tactics and strategies. A blog is a tool. Writing blog posts is a tactic. Google AdWords is a tool. Publishing ads across multiple keywords is a tactic. Combine a number of tools and tactics together and you’ve got the makings of a strategy.

A strategy is driven by the goals you’re trying to accomplish. You need to identify your goals and understand them clearly. Quantify them. “We want to increase revenue” is clearly a goal. “We want to increase revenue by 25% in 6 months through increased sales of products A and B” is much better. Attach specific, measurable targets to your goals as often as you can so you’re more equipped to make rational, fact-driven decisions.

Don’t get hung up on the tools. Should you use Twitter, Quora, Facebook or blogging? Use the tools that are right for the goals you’re trying to accomplish. Chasing the newest shiny tool and scrambling to use it as quickly as you can is a fool’s errand if you don’t understand the benefits upfront. Experimentation is one thing; there are lots of advantages to experimenting, but rushing to implement a “shiny tool strategy” is silly. Worse, ignoring “older” tools because they’re no longer as shiny is shortsighted and tells me very clearly that you don’t understand marketing.

Take a look at this Twitterverse diagram produced by Brian Solis and JESS3. If you ever needed a clear indication of the glut of tools available and just how confusing they can be, this is it. How can you just pick a tool and think, “We need a strategy for that tool!” Wrong. Match goals to tools and tactics to design a proper strategy. Don’t assume you need a strategy for a specific tool because it’s shiny.

Twitterverse

Using a tool well means understanding the tactics by which to maximize the use of said tool. Without an understanding of tactics, for all you know you could be using the wrong end of the hammer. Might still work, at least part of the time, or partially, but once you really know how to use a tool properly, with the right tactics, you can make real progress (or discover more quickly that the tool is the wrong one, not achieving your specific goals, and move on.)

When exploring how to improve marketing in your company, start at the very top with your goals. Define them. Write them down. Then investigate your marketing strategy, the tactics, and tools being used, and identify the problems. If you can’t figure this out, you’re in trouble. You won’t know what to change! Start by talking to customers, prospects and employees. Dig into how your company is perceived online. Take a look at the competition. A bit of analysis is a good thing. Get some analytics in place and start measuring what’s happening.

Jump down at this point and get right into the tools. List them all, with pros and cons, and do some research into what people are doing with them. So you’ve gone from the top (your goals and a 20,000 foot view of your current situation) to the tools of the trade. Pick the ones that you think are the best, and then get into the tactics you’ll use to maximize their value.

  1. Define Goals
  2. Identify Problems
  3. Pick Tools
  4. Implement Tactics
  5. Measure & Analyze
  6. Achieve Goals (or not)

Think of it more like a circle. Doing things in order doesn’t guarantee success but it significantly increases your odds. It gives you the opportunity to learn more quickly about what’s working and what’s not working, and adjust accordingly. Doing things out of order is absolutely like gambling; you may win occasionally, but your odds suck, and unless you’re one of the very few super-lucky ones, you’ll lose. And try not to mindlessly and rabidly chase the “shiny” tools for the sake of it. Tools are just tools. You need tactics and strategies for tools to be of any use.


Ben Yoskovitz
I'm VP Product at GoInstant.

I'm also a Founding Partner at Year One Labs, an early stage accelerator in Montreal. Previously I founded Standout Jobs (and sold it).

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