Connect with us

Marketing Tactics

3 Tricks To Marketing Unsexy Products: Tips From Industry leaders In SAAS

When it comes to marketing functional but not particularly exciting products, there is no point trying to pull the wool over people’s eyes with buzzwords and sparkle; rather share how it makes their life better.

Published

on

advertising-and-marketing-boring-product

When you are solving a “big” problem, or have developed a product which is trending – VR, AR or machine learning, to name a few – then creating a buzz around your company is easy. However, if you are part of the other 90 percent who are selling an “unsexy” product which solves “small but essential problems” for specific consumers, you will need to think outside the box about how to get people hot under the collar about what you have to offer.

Just because your product isn’t shiny and exciting doesn’t mean it isn’t valuable. A cashless payments portal, accounting software or ecommerce tool could help mom-and pop business owners dramatically boost sales, improve customer service and streamline day-to-day business. But while I wouldn’t go as far as calling these product “grudge purchases” – like getting new tires or re-roofing your house – people are unlikely to post a Facebook or Twitter comment boasting about their SaaS investment, as they might with a car, house or hoverboard.

Related: Milestones In Multi-Sensory Marketing

To help those businesses that have Saas products, I spoke to various experts about the best ways to market an unsexy product.

1Understand the problem you are solving

problem-solving

The first step in being able to convince consumers that you have created something important, is truly understanding why your product is important for different users.

Once you truly understand the problem you are solving, you can clearly express this to potential users in a language they understand.

Matt Hodges, senior director of marketing at Intercom, suggests leaning on the “jobs to be done” theory to clarify why consumers choose to use your product to solve a problem.

To really add value to consumers, you need to look at what jobs your company is completing for them, and get to the root of why they choose your product above others for that specific task. This will then provide the value proposition to express to them in marketing campaigns.

“Rather than building a better version of what already exists, take the time to truly understand the problem and then build a solution based on that. This will help you really resonate with buyers,” said Matt Hodges. “You have to unpack problem before you try to solve it. Really understanding the market and customer pain points first, will then help development and also market placement.”

This can be done by hiring researchers. Another means of gaining feedback from customers about product is through conducting interviews via phone or online.

“I personally conducted more than 200 interviews with potential consumers trying to understand the problem,” says Ardi Iranmanesh, co-founder of Affinio. “Rather than putting words into their mouths, we tried to figure out how customers explains their own problem. What keywords do they use to describe the pain points? We then use these exact words when we describe our company and how we can help them.”

By truly understanding the root problem you are solving for consumers, you can then use this information in all of your marketing and communication, speaking to them in real terms about real differences you can make to their lives.

Related: 6 Facebook Marketing Tips To Help Grow Your Small Businesses

2Speak to users in a language they understand

coding language

Once you understand who is using your product, and the difference it can make to users’ lives, you can then focus on conveying your message to these people in a clear and concise manner.

Instead of focusing on the technology which enables you to solve a problem, focus on the problem being solved.

“I am a big believer in no bull and no fluff. You shouldn’t try to dress your product to be better than it is,” says Hodges. “Use simple language to describe features, which is completely free of buzzwords. Explain to the user in simple terms which they understand the value which the product can bring to them.”

If your target audience are small business owners, the chances are that they are already constantly having to learn new skills to manage a business in the modern digital age. They shouldn’t have to read a dummies guide to programming to understand how your SaaS tool can make their lives easier.

Tobias Lütke, founder and CEO of Shopify argues, It is your job to take a ball of technology and make it accessible. SMB owners are incredibly smart and hard working, and people underestimate the amount of skills which they need nowadays. All of our founders used to be merchants. We acknowledge that it’s hard and don’t pretend it’s not. We just take a big amount of complexity and reduce it.”

Knowing your target user, having a real knowledge of their average day and the challenges and strains which they face, allows you to speak to them on a more personal level.

Mike McDerment CEO and founder of Freshbooks states: “It is important to explain value using units of measurements which really resonate with busy people. Instead of spinning their heads with industry buzzwords, explain to them how your tool could free up two extra hours per day of free time. That’s time to watch a movie with their partner, take their kids swimming, or sit down at the dinner table with their family.”

3Create a buzz around your whole company rather than just your product

coca-cola-company

Just because your product itself might not have the “wow’ factor,” doesn’t mean that you cannot make your company interesting to the general public. It is your product which users pay for, but it is your dream, mission and values that they are buying into.

Offer your community a behind-the-scenes look at the company. Rather than only sharing information related to your product, create stories which convey your aims and values, and share the journey which you and your team have taken to arrive at this point.

Related: Right Here. Right Now. How Marketing Is Evolving

“Human beings are hardwired to retain information through stories and pass it on. If you can tell a story, the retention rate will be higher and will be passed on faster and further,” says McDerment.

“You need to make yourself interesting at all costs. Create novel and quirky stories to grab eyeballs, and then share them with the media and on social channels.”

At FreshBooks, McDerment and his team have created a number of stories which portray their central values. From making every new employee spend their first month in customer service, sending employees on blind dates to improve communication, hanging hangover kits on doors after conference events, to running free shuttles from the airport to conferences just to make the experience easier for attendees, the company creates experiences which share the fact they hold customer service at the company’s core.

However, Jamie Petten, director of marketing for L-SPARK warns Flashy stunts create a good moment, but it’s just a moment. What will really be impactful and memorable is building a community and sharing quality stories about what your company is and has been doing on its journey.”

When it comes to gaining media coverage, you have a much better chance of being covered in a leading publication sharing business advice, founder stories, interesting insights about company culture or tips for how to improve processes and workflow, than you do if you focus on your product.

Instead of trying to wow a general audience with fluff and flair, experts state that it is best to hyper-target specific audiences with content which resonates with them. Ben Yoskovitz, co-founder of Highline Beta says: “It’s about finding the people who find your product sexy. Highlight who these people are and then sell your mission to them in a clear manner.”

When it comes to marketing functional but not particularly exciting products, there is no point trying to pull the wool over people’s eyes with buzzwords and sparkle; the trick lies in truly grasping the root of the problem you solve for different users, and then explaining the value to them in language they understand.

This article was originally posted here on Entrepreneur.com.

Marketing Tactics

Useful Marketing Tactics For Growing Businesses

Customer acquisition, customer experience and content marketing can be identified as the three most important marketing strategy areas to focus on.

Jandre de Beer

Published

on

marketing-tactics

Digital marketing offers the business world so many advantages, including the ability to communicate with their target markets quickly and easily. Unfortunately, digital marketing has also opened doors for companies to flood mail boxes, news feeds and ad spaces with junk mail and spam resulting in customers tuning out to anything irrelevant and suspicious.

Customers have become less likely to trust companies and less receptive to messages. The only way for valuable messaging to stand out from the noise is if a business knows how to market itself properly.

Over and above advertising, there are a lot of other aspects that contribute towards an effective marketing strategy, these include research, email, content creation, list curation, social media and even customer service. To be a successful marketer it isn’t necessary to become an expert in every single marketing tactic, but it is important to master the most important areas. Customer acquisition, customer experience and content marketing can be identified as the three most important marketing strategy areas to focus on.

1. Customer acquisition

Of course, not all customers are the same. Some customers are only interested in buying products on sale from a particular brand and then never interact with that brand again. Acquiring, and of course retaining customers with a high lifetime value should be the overall objective for businesses, but this requires more time and money being invested in better, more qualified leads. While the upfront costs might be higher, in the long-term this investment will pay off with continued business from these lifetime customers.

2. Customer experience

Competitive pricing can’t be the only aspect that businesses focus on in order to stand out against competitors. In the current digital era customers expect a good customer experience when they deal with brands so this should be an important focus area for all businesses. Customers expect fast and seamless experiences such as intuitive user interfaces and processes, fast websites and service response times, as well as accurate information about the problems they face.

Customers don’t want to waste their time on websites that require them to jump through hoops, and they definitely don’t want to feel misled by anything a business is communicating. Customers will quickly move on to other sites that offer better experiences as well as other businesses that are more trustworthy. Good customer experiences can go a long way.

Offering more personalised, interactive engagement tactics and improving the customer technology interface should be high priorities for businesses.

3. Content marketing

Marketing is no longer about telling customers that your brand is the best. With the movement towards content marketing, marketing has become about showing customers why you are the best. Content marketing is a legitimate, effective strategy that every business and brand should make use of. While content marketing is a lot more cost effective than outbound marketing, it also generates three times as many leads and offers many other benefits.

Content is a key feature for growing businesses who want to survive in an information rich environment. Customers are looking for brands that provide value beyond their products so creating high-quality content can help you grab your audience’s attention.

In conclusion

Although there are many other factors that are involved in an effective marketing strategy, seeking out customers with a high lifetime value, providing them with a great customer experience while also providing them with valuable content is a recipe for success.

Continue Reading

Marketing Tactics

An ‘Outside-the-Box’ Approach to the e-Commerce Unboxing Experience

Get started by keeping three elements in mind – recyclable/re-usable packaging, personalised thank-you notes and free samples.

Daniella Shapiro

Published

on

ecommerce-unboxing

With a predicted 24,79 million e-commerce users in South Africa by 2021, online shopping is here to stay, making it impossible to escape the predicament of perfecting the art of product packaging. It’s time to think outside the box when it comes to creating a meaningful unboxing experience. Get started by keeping three elements in mind – recyclable/re-usable packaging, personalised thank-you notes and free samples.

Recyclable/Re-Usable Packaging

Certain types of product packaging are having a tremendous negative impact on our environment, with 5.35 trillion pieces of plastic debris littering the world’s oceans, and with 269,000 tonnes of this amount floating on the surface – and plastic isn’t the only culprit. Did you know that it’s impossible for Styrofoam to ever be broken down completely? And that 1 million single-use coffee cups wind up in landfill every single minute of every day? These statistics make it obvious as to why it’s becoming so important for business owners to be more conscious about the type of packaging that they use.

Many business owners wonder if their customers really care whether their business is doing its part to protect the environment. According to Forbes and a 2017 Cone Communications CSR Study, the answer is a resounding ‘YES, they most certainly do!’.

87% of the consumers surveyed stated that they always have a more positive image of a company that supports social or environmental issues, and 88% claimed that they usually feel more loyal toward a company that they know supports social or environmental issues.

Thoughtful Thank-You Notes

The unboxing experience should be a unique and personal one, and it should be just as memorable as the experience of utilising the product itself! So, make it all the more special and build customer loyalty by including a personalised thank you note. Address the customer by their first name, thank them sincerely for their patronage and end off by giving them some helpful advice regarding the product, or share an interesting benefit of using it. Go the extra, extra mile by hand-writing the letter too.

Free Samples

Everyone loves getting free stuff. Why not bolster the unboxing experience by sending over a little bit more than expected? Not only will a free sample put a big smile on the face of the receiver, if they actually enjoy using it, there’s also a good chance that they’ll be coming back to order more. According to Shopify, free samples have the potential to boost sales by as much as 2,000%.

When it comes to packaging, make the right choice. Sustainable, thoughtful, memorable. Your customers, and the environment, will thank you for it.

 

Continue Reading

Marketing Tactics

The Facebook Ads Strategy That Can’t Lose

It’s a numbers game.

Entrepreneur

Published

on

facebook-ads-strategy

Running a profitable Facebook Ads campaign is simple. Not always easy, but simple.

There is a formula that can guarantee a profitable Facebook Ad campaign. Once you know the formula and the values to plug in, you’ll never sink money into a losing digital ad campaign again. I know it sounds too good to be true, but stick with me…

The Guaranteed Growth Formula

Here’s the entire formula: CPA < AP

Were you expecting coefficients, remainders and dividing by polynomials? Nope, there are only two values that matter when assessing your digital marketing funnel.

1. CPA – Cost Per Acquisition

2. AP – Average Profit Per Client

If your Cost Per Acquisition, the amount you pay to generate a paying customer using Facebook Ads, is less than the Average Profit you make from each new customer you’re guaranteed a profitable campaign.

Calculating Average Profit

To get average profit per client, sum your total revenue from new clients and subtract what you spent to serve them. Divide the result by the total new clients. For example, if you made $75,000 from 10 new clients over the past year and it cost you $40,000 to serve them, your average profit is:

 ($75,000 – $40,000) / 10 = $3500 Average Profit Per Client

If your average acquisition cost for similar future clients is less than $3500, your campaign will technically be profitable.

Of course most businesses won’t want to spend all of their profit on acquisition. An average business can expect to invest at least 7 percent but no more than 15 percent of revenue in sales and marketing. If Cost of Goods accounts for 60 percent or more of total revenue, your low profit margin may make it difficult to afford successful advertising. Decrease operating costs by increasing efficiency or adjust your margin by raising prices.

Don’t make the mistake of calculating Average Profit based on revenue only from the first sale. Use at least six months of revenue or your lifetime client value as the basis for your calculation, or you risk underfunding your marketing and sales budget.

Related: Here Is Why Your Facebook Ad Campaigns Aren’t Producing Results

Calculating Cost Per Acquisition

Let’s assume you’ve considered all of your marketing and sales costs and determined you can spend $350 per new client on Facebook Ads. Let’s reverse engineer your ad campaign to see if a $350 cost of acquisition is reasonable.

The simplest Facebook ads funnel includes four metrics that build upon each other to determine your acquisition cost. I’ve included standard benchmarks for use as a starting point, but your results may differ:

1. Click-Through Rate (CTR) – Percentage of people clicking on your ad. Your CTR should be near or above 1 percent.

2. Cost Per Click (CPC) – The cost of one website visit. CPC should generally be below $3.

3. Lead Conversion Rate – The percentage of site traffic that becomes qualified leads. This value should be 20 percent or above.

4. Sales Conversion Rate – The percentage of leads that convert to a sale. Aim for sales conversion at or above 5 percent. (E-commerce companies often skip the Lead Conversion stage and have a Sales Conversion Rate of 1 percent or greater.)

If 10,000 people view your ad at a 1 percent CTR, you’ll get about 100 website visits. At a $3 CPC, you’ve spent $300. Since 20 percent of your traffic will become leads and 5 percent of those leads become closed sales, we can calculate that you’ll generate approximately 60 leads and three new customers.

Your estimated acquisition cost using Facebook Ads is $100 per client, which is well within your budget of $350. This cost may rise as you scale and target less optimal prospects, but as long as your acquisition cost is less than $350 you’ll make an acceptable profit.

Complex funnels can include several ads and conversion points, but the Guaranteed Growth Formula of CPA < AP still applies. There’s no immediate reason for concern if your metrics differ from the benchmarks. You can and should split test ideas for improvement if your numbers are far from what you expect, but don’t mess up a good thing until you’ve got a better one.

Optimising Your Guaranteed Growth Funnel

If unhealthy metrics cause your acquisition to cost more than what you’ve budgeted, start with these adjustments:

Click-Through Rate Too Low or Cost Per Click Too High

If your CTR falls far under 1 percent Facebook may stop showing your ads or show them to second-rate audiences causing your traffic to tank and CPC to increase. To improve your click metrics, adjust your ad copy (headline and body text), ad creative (image or video) and highlight the benefits in your offer.

Refine your audience. Tailor your copy, images and call-to-action to the audience you’ve selected and ensure that your audience has the desire and means to act.

Lead Conversion Too Low

If leads aren’t converting at 20 percent or more, either the promise made by your ad isn’t congruent with your landing page, or the process of moving forward is too difficult. Try using the same image and headline in your ad and reduce the form fields in sign-up forms to the bare minimum. Also try retargeting visitors who don’t sign up with ads stating the benefits of acting now, or with a different offer.

Related: Staying Relevant In The Facebook Age Of Meaningful Social Interactions

Sales Conversion Too Low

If you’re an Ecommerce brand with sales conversion below 1 percent your shopping cart or sales process may have too much friction. Simplify the sales process to decrease clutter, or increase trust by adding testimonials and trust signals near important calls to action.

Your sales process may need improvement, but that is beyond this article. In the meantime, you can still increase revenue by cross-selling and upselling those who convert. You may also improve client retention with recurring contracts. Yes, that’s why many software companies are switching to cloud-based subscription models.

When used properly, The Guaranteed Growth Formula of CPA < AP makes Facebook Ad marketing an investment, not an expense. Using the formula, the most you should ever risk is a small initial budget to test whether your estimated calculations hold true in practice.

If your net profit is 3X your acquisition cost, your funnel returns $3 for every $1 you invest. Instead of asking “How much should I spend on marketing?” The question becomes, “How much do I want to make?” I’ve built a Facebook Ad Growth Calculator that incorporates the Guaranteed Growth Formula to help execute your growth strategy. Input your revenue goal and it will estimate the Facebook Ad impressions and traffic required to reach it.

This article was originally posted here on Entrepreneur.com.

Continue Reading

Trending