The basic idea of generating customers is- attract, convert, and retain. So to begin with, attracting your target audience is the most crucial part of the entire marketing process. Converting and retaining are going to follow once the customer is satisfied with your product or service. Retaining your customers is a better and cost effective way compared to generating new leads. Nevertheless, with different companies in varied fields of business, attracting and retaining customers is a challenge. Here are a few reasons to highlight the difficulties that start-ups face for any business:
1. Product Market Misfit
Every product or service in the market is designed to fulfill customer’s needs and wants. Not understanding the market needs correctly is the biggest reason why products fail. Also not catering according to your customer’s needs and expectations does not necessarily generate demand for something new all the time. It is necessary for your customers to believe that if they purchase your product or service, one or more of their needs are satisfied. Here, the marketing team could help their customers educate the needs for the product or service.
The question here is- would your target audience purchase your product if you have a monopoly in the market? If yes, then the pricing is according to the value the consumers perceive in their minds about the product or service. But if the answer to that question is no, re-evaluating the pricing strategy becomes the priority. Consumers always perceive certain value of the product, and the pricing must be according to that or else you could end up losing customer base.
3. Marketing plans
After you have identified the target market and audience correctly, an outlook on how to reach to them is important. Now a days, there are different mediums used for marketing your product or service, but to choose the right medium that would acquaint your target audience to your product is imperative. So before investing a huge chunk of your budget on marketing, it’s better to have a better understanding of your target market and plan accordingly.
4. Customer service
The customers come in direct contact with the company personnel via providing service or support. To turn your target lead into a recurring customer, it is vital to provide satisfactory customer service. There are so many startups that rely on word-of-mouth publicity, so a contented customer is likely to generate more customers in the future. And all of this depends on how the customer service or support works.
5. Brand positioning
Every customer has a preconceived notion when they think about a product. So if the startup fails to create the right image of its brand; in terms of the uniqueness of the product, the value it brings along, the suitability with the needs and the brand image, it would ultimately lead to loss of customers.