{"id":39031,"date":"2017-11-20T04:20:54","date_gmt":"2017-11-20T04:20:54","guid":{"rendered":"http:\/\/localhost:8888\/cregital\/disha\/2017\/11\/20\/3-simple-steps-for-solving-your-start-ups-customer-acquisition-headache\/"},"modified":"2022-06-14T09:57:13","modified_gmt":"2022-06-14T09:57:13","slug":"simple-steps-for-solving-your-start-ups-customer-acquisition-headache","status":"publish","type":"post","link":"https:\/\/msmehub.org\/staging\/6671\/simple-steps-for-solving-your-start-ups-customer-acquisition-headache\/","title":{"rendered":"3 Simple Steps for solving your Start-up&#8217;s Customer Acquisition Headache"},"content":{"rendered":"<ul>\n<li>In my work experience with startups across Nigeria, Kenya, and Ghana, I find that a lot of startups, particularly those in the &#8216;tech&#8217; space ask me more or less the same question; &#8220;how do i get my first line of users for my platform?&#8221; &#8220;Should I focus on building the demand side first or the supply side<br \/>\nfirst?&#8221; These questions prompted me to do some research and pen this article which draws on my findings and personal observations from<br \/>\nmy years of consulting. Hopefully, this write-up will help you develop the frame of mind and strategic<br \/>\nthinking necessary for finding first users and consolidating on them, as<br \/>\nwell deciding on who is important to your business first.<\/li>\n<\/ul>\n<p><!--more--><\/p>\n<p>For clarity sake, I have chosen 5 popular and successful startups \u2014 Konga,<br \/>\nJumia, Uber, Airbnb, and Jobberman as focus points for this write-up. You may be familiar<br \/>\nwith Konga, Uber, Jobberman, and Jumia, how about Airbnb? Well,<br \/>\nAirbnb is an online community marketplace that connects people<br \/>\nlooking to rent their homes with people who are looking for<br \/>\naccommodation. Airbnb users include hosts and travelers: hosts list<br \/>\nand rent out their unused spaces within their homes, and travelers<br \/>\nsearch for and book affordable accommodation, rather than hotels.<\/p>\n<p>In the next paragraphs, I will share how some of these start-ups moved from having just one customer to having thousands and millions of customers, and why some are lagging behind. I will discuss three of four points under this<br \/>\ntitle, and discuss the last point in my next write-up for the the MSME hub platform.<\/p>\n<ol>\n<li><strong>Think<br \/>\nlike your user<\/strong><\/li>\n<\/ol>\n<p>One way to improve your customer reach is by thinking like the user and like your potential market.<br \/>\nSteven Covey in his book &#8220;7 Habits of Highly Effective people&#8221;, says &#8216;seek first to understand, then be understood&#8221; or like I put it<br \/>\nin my Design and Disruptive thinking classes for start-ups &#8211; think<br \/>\nthe problem, not the solution first. For instance, from the beginning, it was clear<br \/>\nto the founders of Airbnb that they would need to find users willing<br \/>\nto list their homes before finding those interested in staying in<br \/>\nthem. Being a start-up, and knowing the possible resistance of people<br \/>\nto new things, the magnitude of the competitors, and the odds against<br \/>\nthem, Brian Chesky and Joe Gebbia, founders of Airbnb, thought like<br \/>\ncustomers themselves and tried to figure out where they would go if<br \/>\nAirbnb did not exist. It did not take them long to figure out the<br \/>\nanswer: Craigslist, an online classified advertising site listing jobs, apartments, services etc. The entrepreneurs figured they could do a better<br \/>\njob of making apartments appealing than the online classified site,<br \/>\nbut first, they had to siphon away its customers. To do that, Chesky<br \/>\nand Gebbia created software to hack Craigslist to extract the contact<br \/>\ninfo of property owners, then sent them a pitch to list on Airbnb as<br \/>\nwell. The strategy worked. With nothing to lose, property owners<br \/>\ndoubled their chances of finding a potential renter, and Airbnb had a<br \/>\nready supply of homes with which it could consolidate and attract<br \/>\ncustomers.<\/p>\n<p>For<br \/>\nJobberman, they knew their potential market well. These were mostly<br \/>\nthe young and mobile population, who hardly read newspapers but<br \/>\nneeded jobs. So Jobberman started with getting together job opening<br \/>\nfrom newspapers and pasting online for free to attract this initial<br \/>\nset of users, before scaling.<\/p>\n<p><strong>2. Create<br \/>\na compelling User Experience<\/strong><\/p>\n<p>Recently,<br \/>\nI used <u><a href=\"http:\/\/www.similar.com\/\">www.similar.com<\/a><\/u><br \/>\nto compare the bounce rate on Jumia as against Konga, and I<br \/>\ndiscovered that in addition to the lower ranking of Jumia as against<br \/>\nKonga, the bounce rate on Jumia is higher than that of Konga &#8211; thanks to Clive Ayonye and other members of the Konga design team.<br \/>\nNow, for clarification, a high bounce rate is not a positive thing as bounce rate is the percentage of<br \/>\nvisitors that have visit a particular website but navigate away from the site<br \/>\nafter viewing only one page. A rising bounce rate is a sure sign that you need to pay attention to the simple things that make viewing your page inviting. On asking one<br \/>\nof my classes what they liked about Konga or Jumia and why they would<br \/>\nsurf more as against the other, I discovered that 90% of the<br \/>\nclass prefered to navigate Konga for a longer time, because of<br \/>\nthe user experience and the virtual interface that Konga provides.<\/p>\n<p>When the founders of Airbnb started, they hired professional photographers to go to property owners&#8217;<br \/>\nhomes to take inviting pictures. The gambit worked, making the site<br \/>\nmuch more attractive than the competition, and setting a standard for<br \/>\nphotography that later property owners rose to match in order to<br \/>\ncompete against other homes.<\/p>\n<p>Uber<br \/>\npursued a similar strategy. Rather than starting out with Uber Pool<br \/>\nor Uber X, in which drivers use their own cars, the company started<br \/>\nwith their own black cars driven by professional drivers. That way,<br \/>\nthey could ensure that customers would have a great experience<br \/>\nvirtually every time they used the service &#8211; and they could then<br \/>\nrely on customers to spread the news of that experience by word of<br \/>\nmouth.<\/p>\n<p><strong>3. Don&#8217;t be<br \/>\ntimid, be timely<\/strong><\/p>\n<p>Looking at Uber<br \/>\nand Airbnb, you can say that they were smart about how they chose to expand, picking<br \/>\nthe right cities at the right time to maximize their success. They focused first on getting the supply side settled and then sorted the drivers.<\/p>\n<p>Since<br \/>\nUber&#8217;s main competition was taxi cab companies, the start-up<br \/>\nresearched which cities had the biggest discrepancy between supply<br \/>\nand demand for taxis. They then launched during times when that<br \/>\ndemand was likely to be the highest, for example during the holidays<br \/>\nwhen the tendency to stay out late partying was higher. It also ran promotions<br \/>\nduring large concerts or sporting events, when big crowds of people would need cabs at the same time.<\/p>\n<p>Airbnb<br \/>\nfollowed a similar strategy with its rollout, launching in Denver in<br \/>\n2008 to coincide with the lack of hotel space during the Democratic<br \/>\nNational Convention and adding new cities at times when they had<br \/>\nmajor conventions or other events.<\/p>\n<p>Leveraging<br \/>\non the circumstance of high demand and low supply helps your startup<br \/>\nacquire the right type of users &#8211; those early adopters who might be<br \/>\nmore forgiving of your business, while you work things out and perfect your model.<\/p>\n<p><em>I will like to hear from you. Please send feedback to\u00a0<a href=\"mailto:timithelaw@gmail.com\">timithelaw@gmail.com<\/a><br \/>\nor reach me via\u00a0<a href=\"http:\/\/www.twitter.com\/timithelaw\">www.twitter.com\/timithelaw<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>3 Simple Steps for solving 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