August 2011
4 things you can learn from startups
How would you approach marketing if the very existence of your company depended on it? Would you do anything differently? Would you stop doing some things altogether? Too often, brands' marketing plans are "whatever we did before plus whatever we can afford that's new" or "we have to spend the same as last year or we'll lose our budget." Not often enough are they looked at with fresh eyes. Lately, we've been working with some entrepreneurs as they start up brand new companies. No budgets, no precedents, nothing. What lessons do these bootstrappers have for established brands? Here are four.
1. Prioritize ruthlessly.
First of all, obviously, having little to no budget forces you to make choices very quickly. For instance, where an established brand might automatically assume that printed collateral is a baseline necessity, startups are loath to allocate precious resources to relatively expensive printing and paper. Not to mention that it's dated as soon as it's printed, so some of it will certainly be waste. How much of it could be laser printed on demand, decreasing cost and waste? Or better yet, how we can distribute the information digitally for virtually no cost and still allow for unlimited updating?
In prioritizing, the only factor that counts is: will a given marketing tactic demonstrably advance my objectives? Notice we didn't say "immediately." Because it's also important to recognize that foundational branding elements are critical, although they may not produce a tangible result this month. Startups that are not marketing savvy may be in a hurry to get to market and generate revenue without duly considering the effect of massively important factors such as naming, brand identity, the customer experience or even the product itself, all of which can contribute to failure if lacking. Similarly, established brands often take such things for granted.
No, it's not practical for many to change their name or identity, but is there something fundamental about your brand that needs addressing? Given the new ways that consumers now research, decide and purchase, it's critical to reassess the basics. It's like airline advertising. The CMOs and agencies of airlines are not dumb. But no amount of advertising can overcome the fact that flying sucks and everybody knows it. The successful airlines like JetBlue and Southwest invested as much in changing the flying experience as in vapid ad messages such as "we love to fly" or other nonsense. So, make sure the big, fundamental things are right before you start considering tactics. Work from the product out.
2. Maximize every low-cost or no-cost channel.
Startups usually don't have money for paid media, so traditional advertising on a large scale is out. (If it's even a good idea at all—remember all the failed dot coms that blew millions on Super Bowl spots?) Instead, start with tactics that get the word out for minimal cost. These days, that's social media (or owned media). While most established brands are now invested in social media (to varying degrees of success), it's still mostly an add-on to more traditional, mass efforts. For startups, it's first and often foremost. On the PR side, the equivalent is bloggers vs. big media (although due to the news nature of PR, it's still possible to get oversized coverage for a unique small company).
The overall objective is positive word of mouth among the most influential members of your audience for the least cost. Word of mouth has always been one of the most powerful channels for any brand, even before social media. And the good news is that today's grassroots online and social channels have a more direct effect on word of mouth than traditional tactics ever did. So instead of leading with a conventional tactical plan, start with, "How can we generate word of mouth?"
3. Multiply your exposure and your budget.
When you have no budget, you're forced to outsmart rather than outspend. Again, avoiding the conventional approaches, ask, "Where can I place my message that is more unexpected?" Nontraditional placements that are relevant to the message are more interruptive than traditional ads. One of our favorite examples of this is an intimate apparel company that wanted to advertise to buyers at a large apparel trade show. With no money for a large booth presence or even an ad in the show program, they chose to put their message outside the show, on the sidewalk, written in chalk. It said, "From down here, it looks like you could use some new underwear." Brilliant, memorable—and virtually free.
The same applies to publicity or, as it's now being called, earned media. What can your brand do to "earn" space in the media versus buying it? Instead of trying to persuade an editor through a press release that your "news" is worthy (while a thousand other brands are trying to do exactly the same thing), why not make news (in a good way) and end up on the front page? It could be an innovation in your category that warrants business coverage, a promotion so different it grabs attention or just a dramatic (and relevant) brand stunt that merits a photo. A great example here (from a huge brand, no less) is the Tide Loads of Hope program, where crews arrive with a mobile laundromat at disaster-stricken areas and offer displaced or temporarily homeless consumers a way to wash their clothes. That's newsworthy and relevant.
4. Test.
Entrepreneurs who are developing new products and services are used to trying something, seeing if it works and refining it. It's second nature. Same goes for marketing. No matter the tactic, devise a way to test it and do more of what works. Sounds obvious, but it's not so common. Root out inefficient or non-performing tactics and replace them. Strive for constant improvement.
Working with startups exercises our objectivity and reminds us to focus on fundamentals. If you have the luxury of greater resources, that's no excuse for not being just as diligent. The exhilarating experience of making life-or-death business decisions on a daily basis can shock us out of marketing complacency. Put yourself in those shoes and see what happens.
