Friday, March 23, 2012

Learn Quickly the Cost of Acquiring a Customer

One of the most common advice I give to aspiring entrepreneurs about their business plans is to Learn as fast as possible the true cost of acquiring a customer.  Why?  It tells you quickly how viable your business is AND helps you to focus your message.

One of the easiest ways to do this is to run a test ad campaign with several simple landing pages.  Can you convince some (hopefully targeted) web traffic to convert into interest? Can you convince them to become a buyer?  How much did it cost to get 10 customers?  (divide that cost by 10 and you have a rough idea how much it will cost to acquire customers in the future).  Too high?  Consider A/B Testing new landing pages, or being more targeted... or maybe even improving the offering (the product).

Get Busy!  Test. This book (which I thought was quite good, especially for engineer-type thinkers) may help:

Thursday, March 15, 2012

Make Sticky Products & Sticky Marketing

I'm fascinated by Marketing.  It's super hard.  That's why I love it.

Please, make my job easier... make products that stick!

This book is a good place to start:

Now, this is a marketing book, but it contains ideas that product people should know...   Since you product folks may not read it... here's an interpretation for you:

1. Products need to solve a problem people have, a need, or a desire for something not previously possible.
2. A clear vision is established that inspires the development team to reach for it!
3. It needs to deliver on any promises implied. (no buyers remorse)
4. Ideally it is "worthy" of people talking about it after they bought it.

Then, work with your favorite marketer to make sure:

1. Everyone really understands what the product is.
2. Stories are developed around the product that inspire people to buy it.
3. Credibility is built in to the product.

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