3.2 – Launching a Beta Product

Validation has been a common theme in this startup journey. This stage isn’t any
different. After the MVP has been built, the next step allows customers to use it and give feedback on the product or service. This module covers:
Techniques for testing marketing and distribution channels
Building an early user base

At the end of this module, you will:

  • Recall various channels to acquire a customer base
  • Identify relevant channels of the business idea

Section A: 19 Channels of Traction

Gabriel Weinberg, the Founder and CEO of DuckDuckGo, Inc., a privacy search engine and Google competitor, wrote a book called Traction: How Any Startup Can Achieve Explosive Customer Growth[2].

In this book, Weinberg defines 19 channels startups can use to market and acquire customers:

  1. Targeting Blogs – Getting featured on existing blogs
  2. Publicity – Getting featured in publications
  3. Unconventional PR – Contests and PR stunts
  4. Search Engine Marketing – Paid search ads
  5. Social and Display Ads – Paid social media ads
  6. Offline Ads – Billboards
  7. Search Engine Optimization – Organic search engine optimization through keywords
  8. Content Marketing – Writing your own blog
  9. Email Marketing – Direct emailing potential customers
  10. Viral Marketing – Generating a viral piece of content
  11. Engineering as Marketing – Building a calculator or widget
  12. Business Development – Building relationships to support sales
  13. Sales – Direct sales, often to businesses
  14. Affiliate Programs – Compensating other businesses for selling for you
  15. Existing Platforms – Promoting on existing platforms like Reddit
  16. Trade Shows
  17. Offline Events – Hosting your own events
  18. Speaking Engagements – Speaking at conferences
  19. Community Building – Building your own customer and user community.

 


Section B: Experimenting with Channels – The Bullseye Method

In Traction: How Any Startup Can Achieve Explosive Customer Growth, Gabriel Weinberg also lays out a method for running experiments and testing each one of these channels to see which channels are most effective. Weinberg refers to this method as “The Bullseye Method.” Review the resource.

Step 1 – Brainstorm All Possible Channel Strategies

For each of the 19 channels, brainstorm a strategy for how your startup can use that channel. For example, if your customer profile targets millennials, for the Social and Display Ads channel you would most likely brainstorm buying ads on Instagram or on Snapchat. If your customer profile targets an older generation, for the Social and Display Ads you would most likely brainstorm buying ads on Facebook.

Plan

What are all the possible channels you can use?

 

Step 2 – Narrow Down to Probable Channel Strategies

Of the 19 channel strategies you identified in the step before, which are the best ideas? Not all channels have a natural fit as marketing channels for all types of businesses. For example, if you are selling directly to consumers, “Sales” is not a normal fit for your startup, but “Community Building” might be.

Plan

Of the 19 channel strategies, pick three channels to move forward with. Use the following criteria to narrow your decisions:

  • Which channels have a natural fit with your business?
  • How much will it cost to run this experiment?
  • How many customers can you reach with this channel strategy?
  • How much will it cost to acquire a customer through this channel strategy?
  • Are these the right types of customers you want to acquire right now? For example,have you selected “early adopters” who demand to solve the problem and buy your solution, or have you chosen “early majority” customers, who get engaged later in the technology adoption cycle?

Step 3 – Set Budget & Run Experiments

Before actually running the experiments on your three top channels, you need to set budgets and design the experiments.

  1. How much will each experiment cost?
  2. How large an audience can you access?
  3. How long will the experiment run? For example, three days or two weeks?
  4. How will you know if the experiment is successful? For example, acquire X customers for Y cost per customer in Z weeks?

Pause

After considering these elements, what channel(s) might work best?

Plan

List the channels you will use.

Quiz

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Brilliant Online: Introduction to Entrepreneurial Changemaking Copyright © 2022 by Connor Loughlean and Karen Zavitz is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License, except where otherwise noted.

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