But I've been quiet since November. Why the radio silence?

As AI tools like ChatGPT continued to improve and our feeds flooded with AI-generated content, I started questioning the value of sharing content online. How can I differentiate myself if we can't tell the difference between human-generated and AI-generated content? Will my audience notice and appreciate the effort I put into my content, or will they think AI just effortlessly generated it?

I haven't quite figured it out yet, but a recent conversation with Tom Critchlow and his concept of riffs inspired me to return to my blog. Tom describes a riff as content that “exposes your thinking and deliberately leaves some rough edges, some threads that the reader can pull on, inviting the reader into the conversation.”

That's my goal here. Maybe the best way to get out of my writing slump is to share these questions and, hopefully, get perspectives from people smarter than me.

The thought leadership trifecta

In typical consulting fashion, I was looking for a framework to explore this topic.

So, I turned to an old interview with Seth Godin, where he talked about thought leadership, and I made a quick sketch to illustrate the key ingredients he described.

The quote goes like this:

I think that the currencies of anybody who wants to make change happen right now are attention and trust. And they're in a virtuous cycle. You don't get attention unless you're trusted. You don't get trusted unless you get attention. There are other kinds of attention. You can light yourself on fire in the street, but you don't earn trust doing that. So, this attention trust cycle goes around. The question then is, how do you get there? I think you do it by being generous. I think that people tend to trust folks who step up before they have to. They trust people who keep their promises, especially when it's not convenient. They trust people who tell them the truth. And if you do those things, they're probably gonna tell someone else. And then you'll get more attention and more chances to be generous. And the cycle then goes and goes and goes.

Now that we've isolated some key thought leadership drivers, let's explore how Generative AI could affect each of them.

1. Generosity

In thought leadership, generosity usually appears in the form of content.

Regardless of the medium (a social media post, a blog article, a podcast, a video, a book, or a research paper...), content is often viewed as an act of generosity, in part because of the time, effort, and expertise required to create it.

For example, this blog post may only take 5 minutes to read, but behind it are days of reflection, hours of research, and several deleted drafts.

Content is hard! That's why most online content is created by a minority of users. According to the 1% rule, only 1% of users are responsible for creating new content, while the remaining 99% are passive. Wikipedia is a prime illustration of this concept.

But this dynamic is likely to change with Generative AI.

Dylan Field, CEO of Figma, puts it well in this interview: “AI has this opportunity of lowering the floor but raising the ceiling.”

This means existing content creators can produce and distribute more work more efficiently while lower barriers to entry invite a wave of new creators into the space.

Will content continue to be seen as a generous contribution or a commodity? What new expressions of generosity are likely to emerge over time?

2. Trust

AI definitely has its share of trust challenges, from deepfakes to copyright issues. But for now, let's just look at trust in the context of thought leadership.

Trust is the belief that the person you rely on will do what is expected.

In thought leadership, this means relying on a person or organization to provide ideas and opinions to inspire or support decision-making.

Trust is also a function of the options that are available to you.

This calls for another gem from Seth Godin:

A lifeguard doesn't have to spend much time pitching to the drowning person. When you show up with a lifebuoy, if the drowning person understands what's at stake, you don't have to run ads to get them to hold on to it.

For a long time, our main option for advice was those closest to us. Then, the Internet revolutionized access to knowledge, opening up a global pool of expertise. Now, hundreds of millions of people have access to super-smart AI assistants!

Already, 73% of consumers trust content generated by AI tools, according to a Capgemini Research Institute study.

One could argue that AI models are currently unreliable for critical questions and tasks, given their tendency towards hallucinations and biases. But for how long?

Anthropic's latest benchmark report states that their most advanced model, Claude 3 Opus, achieves near-human levels of comprehension and fluency on complex tasks, demonstrating a more nuanced understanding of requests.

AGI debate aside, it may only be a matter of months before human-generated content is considered inferior and therefore less reliable for many use cases.

If we increasingly rely on AI assistants for knowledge and advice, why and when will we still gravitate towards and trust human-generated content?

Maybe not for answers, but for what's worth being curious about? This tweet resonated with me, and it's another reason I was drawn to the concept of riffs.

3. Attention

Attention helps us filter the signal from the noise.

We all know that attention is scarce and precious.

But somehow, we lost control.

Online, the algorithms of ad-supported platforms often dictate where we focus our attention. It has turned into a popularity contest, a rush for engagement and monetization, where the most relevant information doesn't necessarily rise to the top.

Information overload is probably one of the main reasons for the rapid adoption of AI chatbots. A recent report from Gartner even predicts that by 2026, search engine volume will drop by 25% in favor of AI chatbots and other virtual agents. While the specific percentage may be speculative, it certainly indicates a shift in consumer preferences.

The key question for thought leaders is not how to stand out but rather where attention will shift.

There are already some interesting examples of creators adding AI add-ons to help users engage with their work. is offering exclusive GPTs to help readers interact with his upcoming book and has his own AI bot trained on his newsletter and podcast content.

What choice will you make?

When photography emerged in the 19th century, artists had three choices: stick with realistic art, move away from realism, which led to new styles like Impressionism, or integrate photography techniques into their artwork.

Generative AI has the potential to disrupt the way people create and consume content. Thought leaders face similar choices: maintain the status quo, reinvent themselves, or integrate these new tools.

This article doesn't offer any answers, but I hope it's given you some food for thought. If nothing else, it got me excited about sharing content online again.

If you have any thoughts on this topic, please comment here on LinkedIn or book a call with me to explore how this can impact your business.

Talk soon, and happy Easter!

@Odepar
Written by me, edited for clarity with GPT-4 and DeepL Write

PS: I may have been quiet on my blog lately, but I have published several Miro templates for startup and marketing teams, which were also featured on Miro’s blog.

If AI were a basketball player, it would be Victor Wembanyama: massive potential but also huge expectations. ChatGPT may only turn one on November 30, but it feels like we've talked about it forever.

In 2023, tech investors mainly put their money into AI-related startups.

Google, Notion, Hubspot, Miro, Canva...most tech products have added AI features.

Some fear the consequences of AI, while others are (techno) optimistic about its ability to save the world.

Now that these tools are everywhere, do they actually make it easier to market your startup? Or are they just another potential distraction for founders?

Feels like magic

Using AI tools for the first time feels like magic.

Tasks that used to take hours can now be done in minutes.

On paper, AI tools are perfect for resource-constrained startups.

• Need to create content for a landing page, blog, or social post? Ask ChatGPT or Jasper. Why not add a unique illustration to it with DALL-E 3, Midjourney, or Canvas Magic Studio?

• Need to create an onboarding series for your product? Ask ChatGPT to create a script and deliver it by an AI avatar from Synthesia or HeyGen.

• Need to summarize or visualize data? Just drop it into Advanced Data Analysis (prev. Code Interpreter), and it will highlight the most important findings for you.

Abracadabra, there is an AI tool for all your marketing needs.

With that in mind, it may be tempting to let AI tools run your marketing on autopilot and postpone or even avoid altogether your first marketing hire.

Hold on!

Where are the success stories?

Given that AI tools have been mainstream for about a year, we should have heard plenty of success stories from startups using them to go to market successfully.

I recently shared this question on LinkedIn.

AI will hopefully help me create better memes in the future btw ;)

Despite nearly 10,000 views, no one strongly disagreed or provided specific examples. More established companies have successfully used AI in their marketing strategy, such as LinkedIn. But what about startups?

Blurred lines

A common pitfall for startups is to confuse strategy with tactics.

I often share this image that perfectly illustrates this issue.

My hypothesis is that AI tools, by making it easier than ever to create marketing materials, blur the line between strategy and tactics even further. As a result, startups may be putting the cart before the horse.

Packy McCormick warns about the dangers of mixing up strategy and tactics for startups in his article "In Defense of Strategy."

Execution without strategy is wasteful and tragic. Just as “Companies that have the best products, most talented people, and fastest growth are precisely the ones for which moats are most important,” companies that are the best at execution are precisely the ones for which strategy is most important. They’re the only ones that have a shot. The better you are at execution, the faster you can run in any direction. A good strategy helps you run fast in the right direction. 

So, yes, AI tools can speed up execution, but without a solid strategy, they're just going to help you hit the wall much faster.

A better assistant than a creator

I couldn't agree more with Hiten's tweet here.

Initially, like everyone else, what impressed me most about AI tools was their ability to create content. But as impressive as that is, the content is often mediocre.

But as a solopreneur who doesn't always have the luxury of having someone at my side, the ability to bounce ideas off AI can be super valuable.

Starting a business can be a lonely and psychologically challenging experience, even with co-founders. This is where I believe AI tools can add significant value to startups.

A compass, not a magic wand

Let's go back to the illustration shared above (the one with the skulls) of the different paths a startup can take. Founders with limited marketing experience can usually fall into two traps: overconfidence, also known as the Dunning-Kruger effect, which leads them too far down the wrong path, or analysis paralysis, which leaves them too indecisive to start at all.

Startup teams need to think of AI tools not as a magic wand that can teleport them from point A to point B (their strategic goal), be it their first users or achieving product-market fit, but rather as a compass that can guide them along the way.

But how? Let's take a look at some concrete examples with chatGPT.

How to use ChatGPT to make better marketing decisions

1. Custom instructions

The first step is to provide more context about your business and challenges in the custom instructions to avoid generic results. To learn more about custom instructions, I highly recommend this guide from Dan Shipper on the topic.

To show you the difference, here's what ChatGPT recommends when asked how to find your Ideal Customer Profile (ICP), a common marketing challenge for startups, without any custom instructions.

Now, I've added these custom instructions based on a fictional startup example.

And here are the results I get for the same question, already much better.

2. Questions>Answers

If I've learned anything from my years advising startups, it's that questions, not ready-made answers, can unlock things. I wrote more about it here.

The problem with ChatGPT is that it has an answer for everything. Sometimes, it can feel like you're in front of a slot machine. Maybe if you try one more time, you'll hit the jackpot... It can quickly become time-consuming and counterproductive.

Going back to our example, let's explicitly ask ChatGPT not to use ready-made answers but to respond with questions to guide me.

Wow! We've gone from the equivalent of a generic blog post to an email with concrete recommendations, similar to what you might get from one of your advisors.

3. Frameworks

It goes without saying that frameworks are essential tools for shaping a strategy.

Now that ChatGPT has added the ability to upload images and restored Bing access, you can use the frameworks of your choice to help you think through your strategy, whether from a blog article, a book, or even some drawings of yours.

Back to our example, one of my favorite frameworks for defining your ICP is this positioning framework by April Dunford.

Let's see what happens when we ask ChatGPT to use it.

Pretty impressive, right? Of course, the results would have been even better if the market research questions suggested earlier had been answered.

You can now turn this into a table and have the material ready for a presentation.

I don't know about you, but if I were a founder who wasn't sure where to start or how to define my ICP, this could point me in the right direction or at least help me get started.

Not a shortcut

As impressive as AI tools are at simplifying complex tasks, they're not a shortcut to making your startup stand out. A collection of tactics isn't a marketing strategy, and it won't give you a competitive advantage.

The opportunity lies in recognizing these tools as valuable companions that can help you navigate the strategic decisions you face every day as an entrepreneur.

I suggest you try the above and let me know how it goes. I'd be happy to review and discuss the results with you in a call or DM.

Now, you may ask yourself if there is a future for marketing advisors like me. I will probably share my thoughts on this in another article :)

Until next time,

@Odepar

PS: Following my last article on product-market fit, I was invited to discuss the topic on the Datadrivet podcast. You can listen to the full episode on Spotify or wherever you get your podcasts.

I am thrilled to welcome Clara Armand-Delille, Founder and MD of ThirdEyeMedia, to discuss the often misunderstood (and underrated) realm of startup PR.

With a background at industry powerhouses such as Google and Accel Partners and more than 15 years in communications, Clara knows her stuff.

Having worked together at iZettle, I can attest to her ability to transform brand stories.

In this discussion, we'll explore practical tips tailored for startups. We’ll also host a hands-on workshop for those who want to take their PR game to the next level.

E: To kick things off, was there a specific 'aha' moment that made you go, "Yep, PR is definitely my thing?”

C: I have aha moments every week! I love what I do. Whether it’s offering up the perfect content in the nick of time to a reporter, or helping an Italian startup secure headlines in English, or putting the finishing touches on an opinion piece about the future of AI, I’ve found that the sentiment of passion and drive grows over the years.

E: In your own words, what's PR? Do you feel it plays a different role in startups than in established companies?

C: What I love about working with startups is that the work I do has a real impact. It’s truly game-changing for a startup to create a media footprint, it signals authoritativeness in a way that owned channels like a company’s website, blog or Twitter handle just can't. 

In my several years running my PR consultancy, I have had countless stories of early-stage startups that went on to raise big rounds, or close a major partnership after working with us to get a bit of coverage in the right media outlets.

E: You're standing in a coffee line beside a startup founder. You've got 30 seconds to turn them into a PR believer. What's your pitch?

C: If you doubt the power of PR, imagine you are a VC. Now think of the said VC receiving 10 company decks from AI-related startups. And then the 11th deck is yours, and when the investor Googles your company, they see a profile interview in EU-Startups. Which one do you think stands a better chance to get a call back from the investor?

It’s not just about PR, of course the firm will look at your growth numbers, the team, etc., but if all factors are roughly equal, the media coverage can be a tipping point in your favor. It definitely contributes to your proof of concept.

Years ago, I worked for a company called Goodlord. They hired us to announce a £450k seed funding. I managed to get them a profile piece in Startups.co.uk. Months later, they were discovered by LocalGlobe, who invested in their next round. Look at them today.

E: I've seen how PR can improve the effectiveness of other marketing channels, but founders often see it as an either/or option. Given your experience helping startups with PR, can you provide examples of how it can complement and enhance other marketing efforts?

C: What's unique about PR is that it’s not your voice. Instead, it’s a credible 3rd party endorsement that's publicly recognized as legitimate and credible, fake news aside of course!

No amount of you talking on your own channels can beat that. Using your own channels to amplify media coverage is a great use of social media. In fact, we do that a lot ourselves, on our Instagram (see story highlights), as well as on the client page of our website. We are very transparent about the coverage we secure for our clients and have nothing to hide, and our company channels and website are a great place to showcase that. 

E: For cash-constrained startups, when should they go the DIY route, and when is it worth working with a pro like you?

C: For early-stage startups, the most important thing is to have a general sense of how the media works, what makes a story, and when to reach out for support. I’ve given countless media trainings about these topics, and time and again, I'm surprised at how much of a knowledge gap there seems to be for founders when it comes to the basics of how a newsroom works, what is newsworthy, etc.

We’re trying to bridge the gap by offering frequent trainings to venture capital firms, accelerator cohorts, incubator programs and individual founders.
In the earlier stages, if a founder has a rough sense of when to pitch a story, their investors can be a good first resource to secure some PR support. Oftentimes, a VC will facilitate their internal PR resources or point you to a reliable agency or freelancer.

E: What are the not-so-obvious metrics or indicators that startups should track to know if their PR efforts are working?

C: The big drama of PR is that it's not measurable. I have no way to tell you how many people have read your article on tech.eu, nor can I link the customer lead you scored to the article we generated. 

Circulation, the number of monthly visits, is a good indicator. But SEO is actually far more important over time. If a publication does not have good SEO, the discoverability factor for a given article is very short-lived. We recently did a pre-seed announcement for Glyphic.ai. They secured coverage in Bloomberg, among other outlets. That piece alone will ensure months of optimal visibility for them in search engines.

E: Can you recommend a few must-have tools or resources that startups should consider for their PR activities?

C: Google Alerts are essential. They are a great way to survey the media and get a sense of what publications are covering your industry, competitors, etc. I recommend setting Google Alerts with the name of the company founder, the name of your company and the names of competitors. 

E: What are your thoughts on AI's role in PR? Should startups be optimistic, cautious, or perhaps a mix of both?

C: AI is going to enhance what humans do really well. For PRs, it’s great news at many levels, from story ideation to market research to fine-tuning a draft. It just helps me do what I do much faster! For example, I can work with a client to brainstorm and refine topics (not something AI can do today) and pull some info to work with from OpenAI once I’ve decided what argument we’d like to make. 

E: To wrap things up, you've got one do, and one don't for startups in PR. What's your best advice, and what pitfall should they avoid?

C: I literally wrote an entire article about this a couple of months ago! But, like with everything, don't overdo it. Try to be helpful (reporters love it when you can help them with content for an article rather than try to shove a topic at them!).

E: Last but not least, we're co-hosting a workshop in a few days to help startups fine-tune their PR efforts with hands-on guidance. Why should founders attend, and what can they expect?

C: It’s honestly a great use of a founder's time. They’ll be allocated 60mins to do a full brush-up on PR: how a newsroom works, how a reporter thinks, what makes a good story, tips for pitching myself/my business, premium media training tips, and examples from other startups who nailed their next level of growth from scoring a bit of coverage with ThirdEyeMedia!

A huge thank you to Clara for taking the time to share her valuable insights. You can connect with Clara on LinkedIn and learn more about her services at ThirdEyeMedia.

For those who want to dive deeper into the topic and take their PR initiatives to the next level, don't miss our upcoming free, hands-on workshop on October 10.

Register

Until next time,

@Odepar

In the startup world, everyone talks about getting to "Product-Market Fit" (PMF).

Essentially, PMF is the validation that you’ve made something people want.

But here's a secret that most founders won't admit: they're never quite sure when they've reached it.

I gotta feeling

The conventional wisdom is: "You'll feel it.”

In his highly referenced blog post "The Only Thing That Matters," Marc Andreessen describes PMF as follows:

You can always feel when product/market fit isn’t happening. The customers aren’t quite getting value out of the product, word of mouth isn’t spreading, usage isn’t growing that fast, press reviews are kind of “blah”, the sales cycle takes too long, and lots of deals never close.

You can always feel product/market fit when it’s happening. The customers are buying the product just as fast as you can make it—or usage is growing just as fast as you can add more servers. Money from customers is piling up in your company checking account. You’re hiring sales and customer support staff as fast as you can. Reporters are calling because they’ve heard about your hot new thing and they want to talk to you about it. You start getting entrepreneur of the year awards from Harvard Business School. Investment bankers are staking out your house. You could eat free for a year at Buck’s.

But feelings aren't always the most reliable compass, especially when founders are naturally overly optimistic about their startups.

According to the Harvard Business Review, there's a nine-fold gap between what founders think consumers want and what consumers really want.

When you factor in the emotional ups and downs of the entrepreneurial journey and the peer pressure to broadcast success, you have fertile ground for false positives.

Maybe it's an award nomination, a flattering TechCrunch article, or a popularity vote. As great as they are, these signals don't necessarily reflect market demand.

Numbers don’t lie?

For many startups, metrics are the guiding light.

They promise the certainty that subjective "feelings" cannot.

Retention rates, PMF surveys, and NPS scores are considered the gold standards for measuring PMF.

But these numbers (especially when they come from early adopters) can be misleading, too. Your high retention rate, stellar PMF survey results, or impressive NPS scores may only capture the enthusiasm of a small group, not the sentiment of the broader market.

Building on Geoffrey Moore's "Crossing the Chasm," Seth Godin points out a common misconception: we often think that innovations win over early adopters and then spread organically to everyone else.

But, as Godin notes, there is a chasm between the early adopters and the rest. Early adopters are thrill-seekers drawn to novelty. The majority, however, are risk-averse, prioritizing reliability, ease of use, and social acceptance.

Look, I'm not advocating that you get rid of these KPIs, far from it.

But here's the thing: there is no single, definitive metric for measuring PMF.

While data can provide some clarity, it's important to remember that gaining traction with early adopters doesn't guarantee broader market adoption.

Are you truly experiencing PMF or an optical illusion fueled by what you hope to see? Every number tells a story, often more nuanced than we expect.

Ephemeral equilibrium

The product-market fit many successful startup founders claim to have experienced seems unpredictable.

It's not only intangible, but it can vanish without warning.

Ben Horowitz alerts founders in his blog post "The Revenge of the Fat Guy":

Product market fit isn’t a one-time, discrete point in time that announces itself with trumpet fanfares. Competitors arrive, markets segment and evolve, and stuff happens—all of which often make it hard to know you’re headed in the right direction before jamming down on the accelerator.

Maybe we've been approaching it from the wrong perspective. Given its unpredictable nature, achieving PMF may not be a destination you “get to.”

Ultimately, striving for PMF is like chasing a mirage: you might see it but never truly grasp it. Founders, remember that the journey matters, not just the destination.

Until next time,

@Odepar

PS: I’m hosting a group discussion in two weeks to chat about product-market fit and exchange insights and experiences. To make sure everyone gets a chance to participate actively, I'm limiting it to 10 seats. You can register here. Hope to see you!

Update 24/10:

Following this article, I was invited to discuss this topic on the Datadrivet podcast. You can listen to the full episode on Spotify or wherever you get your podcasts.

You've built a fantastic product, but no one seems to pay attention.

You’ve met investors, but they won’t commit until you can show some traction.

Without funding, you can’t hire your first marketer just yet.

The problem? You hate marketing — always have, always will.

But you need to figure out how and where to distribute your product.

The issue with most templates you’ll find online

You open your laptop and start searching for go-to-market strategy templates.

That’s what you find:

Unconvinced, you open the three first results and decide to give it a try.

GTM, TAM, SAM, SOM, ICP, TOFU, MOFU, BOFU, CAC, WOM, SEO, PPC, KPI…

“Is there a Duolingo for marketing terms?” you wonder.

After ten long minutes (that felt like days), you give up.

You convince yourself that “if you build it, they will come” and open Figma.

Look, I get it. Most templates that you’ll find online aren’t made for you.

• They’re made for marketers at later stage companies who need to convince executives (therefore the excessive complexity and jargon).

• They’re made for search engines so these websites can rank on Google and attract visitors (therefore the lengthy and repetitive content).

• They’re made for lead generation so that these companies can capture potential customers (therefore the annoying email pop-ups and magnets).

What’s a good go-to-market strategy?

There’s no such thing as a “good go-to-market strategy.”

Every company is unique, making it impossible to have a one-size-fits-all blueprint. Instead, a good go-to-market strategy is the one that best fits with your company resources and will help you to achieve the goals you want to achieve.

Articulating your go-to-market strategy will help you:

1. To create clarity: establishing the context of your market (reason for being of your business, the alternatives, your customers, and their needs…).

2. To focus: narrowing down the opportunities and removing distractions.

3. Put your plan in motion: by turning your strategy into actionable initiatives.

When I work with founders that aren’t fond of marketing, I usually send them this podcast, in which Daniel Ek talks about how he approaches new problems:

“My mental image is that of a city when I approach a problem. And a city from 40,000 feet above on an airplane looking down. And when you do that, you don’t see the contours, you just see a city. You have no idea what aspects of the city, like what’s the topography, you don’t understand where it’s dense, where it’s not dense, it just looks like a blob. And so the important part for me is I don’t know what I don’t know. So I always start by allocating enough time. So if something is important, I start allocating time towards it. And then I quickly try to spend enough time where I can get to what I call level two, which is when I’m more like 20,000 feet perspective, where I can start seeing the contours of the city. I can kind of work out that here are the rough branches of the tree, so to speak. I can see the leaves. I can see the details. I can see all of those things, but I kind of have an idea of blocks to start diving into.”

A good strategy is a journey from seeing a blurry blob to seeing crisp blocks.

So why another template?

Throughout my years as a consultant, I've compiled a list of questions that can be used to develop a go-to-market plan that resonated with many founders.

These questions are derived or inspired from books I've read, newsletters I've subscribed to, and workshops I've held. Because the content is dispersed over multiple documents, sharing it usually requires a list of links and screenshots, which is inconvenient. I wanted to make the format more cohesive and accessible.

I’m realistic; I know that this template won't turn you into an enthusiast if you don't enjoy marketing in the first place. But I genuinely hope it can make the process more bearable for you. If you're into marketing, you'll probably stick to the more advanced alternatives, but it might be handy for someone you know.

So without further ado, here’s the template.

Get the template

A go-to-market example: Substack

The template is a simple Notion doc that you can duplicate and customize.

I estimate that it will take you between 10 and 20 minutes to complete.

I tried to keep it as self-explanatory as possible. For inspiration, I also created an example describing how Substack brought their product to market (based on my own interpretation of origin stories that their team shared).

Read the example

Best books on go-to-market strategy

If you want to dive further into this topic, here’s a list of books I can recommend.

• Competing Against Luck by Clayton Christensen

• Crossing the Chasm by Geoffrey Moore

• Good Strategy Bad Strategy by Richard Rumelt

• Hooked by Nir Eyal

• Influence by Robert Cialdini

• Obviously Awesome by April Dunford

• The Cold Start Problem by Andrew Chen

• Thinking in Bets by Annie Duke

• This is Marketing by Seth Godin

I hope it helps. Best of luck to you and your startup on the road to market!

@Erwan

Hello, everyone! I hope you all had a joyful Christmas and a great start to 2022.

This time of the year, we tend to reflect on the past and make plans for the future.

We are often naive to the notion that growth comes at a cost, whether it's personal resolutions or strategic planning. But growth is always a delicate balancing act full of compromises, trade-offs, and collaterals. So, for my first post of the year, I'd like to discuss an aspect of growth that is all too frequently overlooked: mental health.

Since I'm not an expert, I invited a licensed psychologist to answer some questions. We covered mental health issues affecting startup founders, as well as how to build a healthy culture and new year resolutions, myths, and trends.

Victoria Trepp is a clinical psychologist who works as the Chief Psychologist at Mindler. Mindler is an online psychologist service with more than 300 psychologists in Sweden, the UK, France, and the Netherlands.

E: Several studies have shown that entrepreneurs are more likely to suffer from mental health issues than the general population. In your experience, what are the main factors that make startup founders more vulnerable to these problems?

V: It is probably a question of both personality/traits, but also the stressful context and situations that entrepreneurs constantly have to operate in.

1. Entrepreneurs are often high in energy, creative, restless, and driven both by extreme willpower and to some extent - frustration. These traits, together with the responsibility of building a company from nothing to success, are hard. Many don't make it. Many entrepreneurs are working around the clock (at least mentally) and have difficulties winding down and getting the recovery which is crucial for both physical and mental well-being. Being creative, having lots of energy and willpower are great traits to have in order to make it as an entrepreneur. But they are also traits that can wear a person down if you let it gallop at full speed without rest and time for recreation. In order to function optimally and stay healthy in the long run, it is crucial to pause and do something else (than work) on a regular basis. To a higher degree than others, this might be something that entrepreneurs postpone to later. 

2. The responsibility that comes with being an entrepreneur, towards staff but also towards investors, are usually a high-stress factor - making realistic roadmaps, keeping deadlines, house holding the economy, showing growth...just to name a few. Sometimes commitments to staff and investors go on a collision course, which contributes to increased stress.

3. As an entrepreneur, you need to have a huge tolerance for uncertainty. As humans, we seek to predict, understand and seek control. In the loss of control, we feel anxious and afraid and start worrying. Feelings of not being able to cope with uncertainty can eventually lead to feeling depressed. 

4. Entrepreneurs at times have to work with people who are not as passionate and wholeheartedly dedicated to the business as themselves. That can be a factor of irritation that lead to frustration and tension. Early on in a start-up, I think it is especially crucial to have passionate people who really believe in the business in order to help build the company. 

E: Building a startup is definitely a rollercoaster experience for all involved. As leaders, what indicators should founders look for to ensure team members are well? What tools can be used to measure emotional well-being?

V: In my opinion, the best tools we have are our eyes and ears.

As a leader, make it a daily habit to observe those around you (this should be part of the leader's job description). Do your coworkers come to eat lunch? Do they seek eye contact and smile? What does the coffee machine talk sound like? Is someone working more often from home than usual, and what could that be a symptom of? Is someone changing their usual behavior, what might be the reason for that?

If you suspect that someone is not feeling well, don´t wait and see! Ask for a 5-minute talk and bring up your concerns. The person in question will almost certainly appreciate you asking. If something is bothering the person in question, make time as soon as possible to talk it through more thoroughly, don´t wait until the next performance review. But also respect the person who does not want to talk, maybe he or she is just not ready. Make sure you give an open invitation to talk in case the person changes his/her mind.

E: I couldn't agree with you more, proactivity is crucial. And for the anecdote, I often say that the best tools for marketers are their eyes and ears as well.

Historically, the so-called “hustle culture” (a workaholic lifestyle) has been prevalent in the tech industry, though it has proven to be counterproductive. How can startup founders instill a positive mental health culture from day one? As companies finalize their budgets for 2022, is mental health something they should budget for?

V: Yes, mental health is something they should budget for! It will save people and money. At Mindler we have the possibility to use a so-called "Mental Health Day" once every quarter. It’s a paid day that employees can use when feeling tired or a bit worn out. The day can involve activities like spending time in nature, watching old movies, yoga, doing sports, reading...

Also budget for kick-offs and other fun activities. When people laugh and have fun together they bond, and when people feel a bond with others they work better together and they dare to be sincere with each other. This will affect the overall mental health of the whole company.

Founders can instill a positive mental health culture from day one by talking about and acknowledging mental health issues. Sharing personal stories about one's own mental health issues (past or present) are very appreciated and creates an open and safe work environment (at least in Sweden with our flat organization structures). What you are showing is "it's human and ok to sometimes not feel your best". By talking about, and acknowledging mental health issues we will gradually destigmatize them. 

Not being too rigid about working hours is also something I think will relieve employees of stress. As long as you as a founder/leader are sure that the employees’ duties and actions are in line with the company's best you can allow more freedom. If people have the possibility to do everyday chores, pick up children from school, go to the hairdresser on a weekday, etc, they will for sure work those extra hours in the evening or on the weekend to get the job done.

Promote and arrange physical activities at the workplace! It is common knowledge that physical activity improves mental wellbeing. This can be done in many different ways - arranging lunch yoga/running with a professional, sponsoring gym cards, and of course...buying a ping-pong table ;) (raises heartbeat and guarantees laughs).

E: I can totally relate to that. That’s something I personally struggled with when I started consulting and found myself on the verge of burnout. It's easy to get caught up in something you're passionate about, to be always on, and to say yes to too many things. Even as a “company of one” I’m now very careful to schedule time to unwind and am very selective about what I accept.

The new year is synonymous with resolutions. What are some simple but sustainable actions individuals can take in 2022 to prevent mental health issues?

V: Sleep more. Research shows that since the introduction of smartphones we sleep less. Sleep is a basic need and essential for our well-being (both physical and mental). It is individual how much sleep we need so I won´t say a number, but instead - sleep one more hour/night in 2022 than you did in 2021. There is tons of research on the benefits of sleep.

Do something good for someone else every day. When we give to others we release a powerful brain chemical called oxytocin which makes us feel good. It activates regions of the brain associated with pleasure, social connection, and trust, creating a “warm glow” effect. It doesn't have to be big stuff. It can be things like helping an elderly person cross the street, paying for someone's coffee whose credit card is not working, or writing a sweet note to a colleague. When you make someone else happy you are taking care of your own mental well-being!

E: I really enjoyed the book Why We Sleep on the topic. And I love that you mention genuine acts of kindness as a stimulant, fascinating! As a psychologist, you probably hear tons of myths and bad advice. What should people ignore?

V: Some bad advice:

"Pull yourself together" (when feeling down). The person has most likely tried this. Instead, ask questions so that the person feels seen and understood, e.g. "how long have you been feeling like this?", "have you spoken to anyone else about it?", "what do you feel that you need?", "how can I help you?"

"It's gonna be fine, don´t worry!" (when someone is worrying). Instead, you could ask "what are you most worried about?"

"Time heals all wounds" (when in grief). No, time does not always heal all wounds, but one can learn how to live a meaningful life WITH the wound. 

And some common myths: 

That our memories are a reflection of an actual event. Our memories actually represent a distorted version of what happened, and they change over time.

Talking about your problems will always help. In some cases, it can make the person feel worse, for example in some cases of trauma.

E: I have definitely said "It's gonna be fine, don´t worry!" way too often in the past and I will start changing that straight away, thank you. For the last question, let’s look ahead. In the next five to ten years, what trends do you see emerging that might have a positive or negative impact on mental health?

V: I think mental health could benefit of a decrease of social media usage - it is just not as fun anymore and many people are starting to realize that they spend many hours a day just watching photos and reading nonsense (in most cases). The reduction of the use of social media, especially media that portrays a glorified reality, would free time for us to do stuff in real life

In part because of the pandemic, the world is now talking about mental health issues. To bring issues like mental health to the table for debate will do us all good. Nobody lives a life without mental health issues at some point. Allowing more stately funded means for mental health issues, and for companies to take these matters seriously are necessary. 

E: Indeed, no one is immune to mental illness, and it needs to be discussed and supported more openly. Interesting take on social media. Deleting my private Instagram a few years ago is actually one of the best things I have done. But with so many discussions about the Metaverse and Web3, I believe that people will be spending more and more time online. That excites and worries me in equal measure. Time will tell.

Thank you so much for taking the time to share your expertise, Victoria. This discussion taught me a lot, and I hope it was a worthwhile read for all of you.

You can connect with Victoria on LinkedIn and learn more about Mindler here.

Wishing you a happy and healthy start to 2022!

@Erwan

What if a hitmaker like Max Martin produced your next pitch deck?

That’s an odd question I started asking myself after watching the Netflix documentary This is Pop: Stockholm Syndrome and this interview at the Polar Music Prize 2016.

Let me add some context.

According to metrics from DocSend, VCs spend on average less than 3 minutes to review pitch decks, a figure consistently decreasing since 2018.

That’s roughly the duration of a song. And when it comes to hitmaking, the Swedish producer might have the formula. Since 1998, Max Martin has written or co-written 25 Billboard Hot 100 number-one hit songs. He is the songwriter with the third-most number-one singles on the charts, behind only Paul McCartney and John Lennon.

Here are some of his biggest hits to refresh your memory.

Even though songs and pitch decks seem diametrically opposed, I believe that there are techniques that startup founders can borrow to catch investors’ attention.

Let’s explore some of them.

Aim for memorability

It's incredibly important to me that you remember a song right after the first or second time you hear it. That something sticks to you, something that makes you feel, 'I need to hear that song again.' That's fundamental.

Max Martin

The same applies to your pitch; first impressions matter. Your goal isn’t to get an instant term sheet but trigger the interest for more views. DocSend data confirms that investors spend more time on subsequent visits to decks they end up funding.

Narrative hook

…Baby One More Time is a song about obsession, and it takes all of two seconds to hook you, not once but twice, first with the swung triplet “Da nah nah” and then with that alluring growl-purr that Spears emits with her first line “Oh, baby, bay-bee.”

Max Martin

Most songwriters start with the lyrics. But Max Martin usually begins with the melody instead, where vocals are meant to serve the melody. Thus, the hook acts as an anchor to intrigue listeners early in the song.

In a pitch, the hook is your story.

People remember stories better than facts alone; it’s called the narrative effect. So don’t start designing your slides before you have absolute clarity on your story.

If you feel stuck, Lenny Rachitsky shares an excellent framework in this post.

He recommends articulating any story around this structure:

1. Situation. What is the state of affairs today?

2. Complication. What has changed that requires action? What's wrong with the status quo? What is the problem?

3. Resolution. How will you fix it? What do you recommend/need to resolve this complication? Answer-first followed by supporting arguments.

A great pitch is not hitting the right buzzwords or showing the right credentials. A great pitch is a strong conclusion that is supported by uncontroversial, logical, achievable statements that require no magical thinking.

Gary Tan

Get to the chorus

In most of Max Martin's hits, the chorus hits before you’re 50 seconds into the song.

In a pitch, the chorus is your product.

Data collected by DocSend validate that companies that successfully raised from investors tend to highlight their product near the beginning of their deck.

Create a sense of familiarity

One theory of songwriting is that you can also sing the chorus melody as a verse. For instance, take ‘I Wanna Be Your Lover’ with Prince. The verse and chorus of that song are exactly the same. But as a listener, you don’t really notice since the energy of the chorus is completely different compared to the verse. Once the chorus comes, you feel like you’ve heard it before. And you have! You’ve heard it in the verse. It automatically creates a sense of familiarity. Prince does this a lot. ‘Let’s Go Crazy,’ same thing. I’ve used this trick a few times myself.

Max Martin

What Max Martin describes is called the familiarity bias in psychology; people have an innate desire for things they're already familiar with.

And there are several ways to include familiarity in your pitch deck:

• the concepts you use (MVP, GTM, TAM…)

• how you describe your business model (SaaS, DTC, Marketplace…)

• how you introduce and define key metrics (CAC, LTV, MRR…)

• the users/customers you highlight (known profiles, influencers, and brands…)

• how you visualize information and data (2x2 matrix, timelines, cohorts…)

Using these common patterns will help investors to understand your business and save them some precious effort to retain critical information.

Less is more

Add one thing at a time, like in a movie. You cannot present 10 characters in the first scene! You need a balance at all times. If the verse is a bit messy, you need it to be less messy right after. It needs to vary. It's all about getting the listener to keep his or her concentration.

Max Martin

He describes yet another psychological principle: cognitive load. Cognitive load is the amount of working memory resources required by someone to process information.

Whether it’s a song or a presentation, a common pitfall is to overdo. That’s why many producers often describe themselves as reducers.

In this guide, the team at Y Combinator shares 3 rules for clarity in pitch decks:

1. Make it legible. Think about how people might consume your presentation. Whether it’s at an event or on mobile, they should be able to read it.

2. Make it simple. One idea per slide, that’s it.

3. Make it obvious. Remove the guesswork by being explicit.

For inspiration, this Crunchbase article is full of good (and bad) examples.

Live experiment

This one is not directly connected to Max Martin but his mentor Denniz Pop.

In 1992, he discovered a young band: Ace of Base. One of their members recalls the process behind launching their breakout song.

As we were nearing the final version of All That She Wants every day we experimented with rhythms and then we went to a club, played it, and checked how many people started to dance with it. If it was some part where people didn’t dance as much, then we knew we had to change it.

Ulf Ekberg, Ace of Base

No, I’m not recommending you to hit the club with your pitch deck, lol.

But there are several ways you could test what resonates or not in your pitch:

• Send different versions to investors you’re not targeting for feedback.

• Tweet (or share on social media) bits of your deck and find what sticks.

• Try a message testing tool like Wynter.

With millions on the line, it could be worth the extra effort.

Takeaways

Hitmakers like Max Martin use proven storytelling tools and psychological principles to capture attention and keep listeners engaged. These techniques apply to designing pitch decks too and, generally speaking, to any form of communication, whether you’re working on a presentation, a landing page, or ad copy for your startup.

While there’s an unlimited supply of pitch deck templates available online, these are not the best starting point. Instead, spend more time on crafting a compelling and memorable story to introduce your product and strive for clarity by removing any elements that don’t contribute to the latter. And obviously, test and practice!

I think Max Martin would agree that there is no golden rule or magical hack.

A great song won't make an average singer sound like Adele.

And a great pitch deck won't turn a mediocre product into a unicorn.

If you’re in the process of raising capital, good luck! I hope this article was valuable. If you need feedback on your pitch deck or strategy, don’t hesitate to reach out 👋

See you next time for an article about international expansion.

@Erwan

You’ve finally launched your product off the ground, but the results aren’t as expected. You need to figure out why.

Fellow founders, advisors, and experts all tell you the same thing: “talk to customers.”

“Thanks! Sounds simple. I’ll talk to them and let you know how it goes,” you say.

But as you get closer to it, doubts start to creep in: “It’s a bit scary. It’s the first time I’ll talk to them. Am I supposed to talk to all of them? What should I ask them? What if they ignore us? Worse, what if they trash the product we worked so hard to build?

There’s a lot of nuance in talking to your customers. Here are some actionable pointers and a few essential things to keep in mind to help you get started.

Clearly define the purpose of the interaction

If you want to make a great first impression, you need to be prepared. Too often, when startup teams are trying to connect with customers, they forget why they are doing it.

What are you trying to learn? What will you do with these insights?

Customer interviews are most effective when they are designed for diving deep into a specific topic. The goal is not to gain general knowledge about your average customer but to understand their needs, problems, motivations, fears, and behaviors.

The clearer your purpose, the easier it will be to determine who to talk to, how to structure your questions, and analyze the results.

All it takes is one

I often hear, “Let’s send this survey to our whole list: the more feedback, the better.”

Wrong! Contrary to quantitative research, your sample size doesn’t matter at all when gathering qualitative data. What you are looking for is depth.

Selecting your audience is as important (if not more) than the questions you ask.

Avoid “mixed bags.” One good feedback could change the trajectory of your company.

Many poor ones could lead to a slow and painful death.

Keep it short and convenient

Would you invite someone to a seven days road trip for a first date? Probably not.

I know it's tempting to ask a lot of questions to understand your customers better. “You can't ask enough.” But asking too many questions is a bad idea.

• Customers aren't going to take the time to answer all your questions.

• Even if they do, you won’t be able to follow up and act upon all the answers.

Every question you ask is expensive. So don't ask unless you genuinely care about the answer. And it’s not because Apple or Nike can send 20+ questions that you should do it too.

Don’t put pressure on respondents. Make them feel comfortable.

Most questions should be optional and there’s no point for stressful deadlines.

Here below is a good example: “even a two-word answer is appreciated.”

Don’t dictate the conversation

Talking to customers is a conversation, not a sales pitch. Your goal is to hear what customers have to say, not force them into saying what you want to hear. Prioritize open-ended questions and avoid leading questions that will influence answers.

If you ask someone if they like your product, they will tell you yes or no (most probably yes, to be nice). That's not that helpful. What action will you take based on that? If you ask them what they like about it, what frustrates them, or what problems they're having using it, you can get actionable information that will help improve your product. Here are some of my favorite questions to ask:

• Before [your product], how did you [action related to the problem you solve]?

• In your own words, what are the differences between [incumbent solution] and [your product]? What's the one thing you're able to do that you weren’t before?

• What made you realize that you needed something like [your product]?

• How did you find out about [your product]?

• What might have prevented you from choosing [your product]?

• When using [your product], what are you ultimately trying to accomplish?

• What, if anything, holds you back from using [your product] more?

• How would you describe [your product] to a friend or colleague?

Understanding other people's experiences requires empathy. And that’s not something you develop with a simple "yes" or "no" (even in a swipe left/right world).

And they lived happily ever after?

There are only two possible outcomes after a first date. The two individuals may agree to a second date or decide to stop there because of compatibility issues.

The outcome of talking to your customers is less binary.

Now that you gathered some insights, what should you do next?

Here’s a process I can recommend, but that’s not the only way:

• Review and organize the data (for example in a spreadsheet).

• Categorize and tag answers around recurring themes.

• Translate the feedback into actionable hypotheses.

• Prioritize and plan experiments.

• Summarize it and follow up with respondents.

The idea of talking to customers sounds simple. It's convenient advice to give, but in practice, it’s complex. Like a first date, it can be nerve-wracking, the formats and outcomes may vary, but it’s a crucial step towards building a long-lasting relationship.

Now, go talk to them. Good luck!

@Erwan

⚠️ Use the above to gather marketing insights, not only new features :)

It's been another wild week for non-fungible tokens (NFTs) and the crypto market:

• Dapper Labs Inc, the company behind the popular NBA Top Shot platform, raised $250 million in its latest funding, valuing the company at $7.6 billion

• Soccer-focused NFT platform Sorare raised a $680 million Series B round, which values the company at $4.3 billion

• All cryptocurrency-related transactions are now illegal in China

• Twitter says it’s planning to “soon” explore support for NFT authentication

To some, the NFT craze is just another bubble “some kids trading jpegs.” Others believe it’s the early transition to the next stage of the web evolution (web3) that will disrupt the way content creators distribute and monetize their content. While that’s an interesting debate, it's not what I will discuss in this post.

Instead, I've spent some time trying to understand the tactics NFT projects use to gain traction. Like early-stage startups, they also have limited resources with core teams ranging from 1 to 5 people. What surprised me is that most projects use a similar approach in their marketing, and I think there's a lot to learn from it. Could their go-to-market strategy become a new playbook for more traditional startups?

Let’s dive in!

Roadmaps: the new pitch decks

Most NFT projects raise money directly from users through the minting process, the act of publishing artwork on the blockchain, and issuing a token to guarantee its authenticity. To motivate people to mint their artworks, NFT projects often publish a roadmap (or whitepaper) to describe future product developments.

Many projects promise the moon to get people to invest, but most of them can't deliver. On the other hand, successful projects tend to present more realistic goals.

So what can traditional startups learn from this?

Product roadmaps are often just one of several slides that startups use to pitch their ideas to potential investors. But making these roadmaps available to the public can help startups to:

• Create excitement and set the right expectations with early adopters

• Motivate early adopters to spread the word (to unlock new milestones)

• Gather product feedback before launch instead of post-launch

More and more companies are now “building in public.” Here are some examples of public roadmaps for inspiration: Github, Front, or Buffer. While those are great, I suggest going further and include an illustrated version directly on your homepage.

Community-led growth

In my opinion, the most impressive thing about NFTs is their communities. This tweet below summarizes well the growth loop behind every successful NFT project.

NFT projects are able to bootstrap early demand without spending any money on marketing because owners are directly incentivized to spread the word to others. The more they talk about their NFTs, the more likely their value will increase.

Limited supply → increasing demand → prices go up

In short, community-led growth is about turning your followers into leaders. The Loot project is probably one of the best examples of a community-led initiative.

Because the public could interpret it in any way they wanted, many people found a home for it. After a month, it has been converted into hundreds of projects, from games to songs. For those looking to buy, the cheapest one on sale as of this writing goes for $18,639! Yes, for a jpeg with random words on a black background :)

For traditional startups, community-led growth is the new grail (read buzzword):

But while the concept of community is simple.

A tribe is a group of people connected to one another, connected to a leader, and connected to an idea. For millions of years, human beings have been part of one tribe or another. A group needs only two things to be a tribe: a shared interest and a way to communicate.

— Seth Godin, Tribes: We Need You to Lead Us (2008)

Very few startups manage to align incentives/interests, and even fewer dare to let their community self-organize. One of the few successes that come to mind is Notion:

Brand universe

Today, there are 20,378,228 NFTs on sale on OpenSea (the leading secondary market for NFTs) for 216K active users. For new projects, it’s stand out or die trying.

A great example of a project that stood out is BAYC (Bored Ape Yacht Club).

In an interview for the New Yorker, the BAYC creators describe how they thought about differentiation early on:

Both of those projects (CryptoPunks and Hashmasks) were closed systems; their developers didn’t promise any expansion beyond the initial, limited release. We were seeing the opportunities to make something with a larger story arc. Avatar projects up to that point tended to employ low-resolution, often pixelated imagery, in the style of eight-bit video games. Bored Ape Yacht Club, by comparison, created rich and detailed iconography. Why apes? In crypto parlance, buying into a new currency or N.F.T. with abandon, risking a significant amount of money, is called “aping in”. (…) To execute the project’s graphics, they hired professional illustrators, which accounted for most of their upfront costs (around forty thousand dollars).

To stand out, the BAYC creators borrowed from the Disney recipe and created a rich and culturally relevant universe around their avatars. While I wouldn’t advise a startup to spend $40K upfront on branding, it can’t be an afterthought. In a crowded global marketplace, positioning matters more than ever.

So what would this map look like for your startup? And what’s your brand IP?

Early adopter rewards

A common practice in crypto and NFT is airdrops. In simple terms, it’s like gifting.

The main difference with most gifts is that their value can increase significantly over time. For example, the creators of BAYC gifted early members a dog NFT (Bored Ape Kennel Club). This “cute gift” turned out to be quite lucrative. A bundle of 101 Bored Ape Kennel Club NFTs recently sold for $1.8 million!

Gifting is also a common practice among traditional startups, but these gifts have generally low perceived (and depreciating) value like branded swag and stickers.

If you want to rally early users, don't give them an item that will quickly lose its value.

A few ideas:

• Lifetime deals at discounted prices for subscription-based startups

• Limited edition products for DTC brands

• Premium placements for X weeks/months for marketplaces

• A sense of ownership with exclusive access

Loyalty incentives #hodl

Retention is the single most important thing for growth. Yet, most startups create more incentives for new users (discount and trial offer…) than for existing ones.

To solve this issue, NBA Top Shot came up with an innovative solution:

Collector Score is a game-changing feature for the NBA Top Shot experience. As packs remain in extremely high demand, Collector Score has become the most reliable mechanic to ensure our most active collectors have access to the most exclusive pack drops, while incentivizing newer collectors to grow their collections as a path to gaining access to exclusive pack drops. 

Access to new products isn’t only on a first-come, first-served basis but also weighted based on the customers’ previous platform usage.

Other projects like World of Women incentivize simultaneously new and existing users with benefits attached to specific NFTs: some providing royalties on future transactions and others giving exclusive access to new collections.

Loyalty programs are nothing new but “stay to earn” dynamics are. The closest thing I can think about coming from a traditional startup is when Airbnb set aside 7% of their IPO shares to hosts. As customer acquisition costs keep climbing, more startups will explore creative ways like this to reward their most valuable customers.

Customer obsession

This CNBC interview from 1999 shows that Jeff Bezos wasn’t trying to build just another Internet startup but leverage what the Internet had to offer to provide a better customer experience. 

The web is still an infant technology. Basically, right now, if you can do things using the more traditional method, you probably should do them using the more traditional method. It doesn’t matter to me whether we’re a pure Internet play. What matters to me is do we provide the best customer service. Internet shminternet, you know, that doesn’t matter.

Like Amazon did with the Internet, the most successful NFT projects do not focus on technology in a vacuum but on their customers’ needs. For example, Sorare never mentions NFTs on their homepage and allows users to checkout with more traditional payment methods than cryptocurrencies. They built a customer experience that removes frictions and jargon focusing on what users are already familiar with.

A common mistake for startups is to brag about the technology powering their products, whether it’s machine learning, blockchain, or others. But it’s often at the expense of the customer experience. So keep it simple!

Takeaways

Studying how the most successful NFT projects go to market and gain traction shown me that there was nothing magical or groundbreaking about their marketing.

They leverage tactics that have been around for a long time and that can apply to more traditional startups too. Here are five key takeaways:

1. Be transparent about future product updates for fast feedback loops

2. Align interests with your community and trust them to deliver the message

3. Be strategic about positioning and branding early on

4. Reward your true fans (early and most active users) with appreciative benefits

5. Obsess over customer experience to remove unnecessary frictions

If you’re in the process of going to market, I hope that this post was valuable. If you have any questions or need help with anything, feel free to reach out 👋

Until next time,

@Erwan

PS: A good NFT-related meme for the road

A friend of mine recently landed a job at a startup as the first marketer and reached out for advice. I often get this question, so I’m turning my answer into a public post.

Being the first marketer at a startup is an extremely challenging yet rewarding opportunity. On the one hand, you often wear multiple hats: project manager, researcher, designer, copywriter, advertiser, analyst, PR, meme dealer; the list goes on. But, on the other hand, you also get to collaborate closely with the founding team and have an influential role in the overall company's culture and strategy.

The following is based on a compilation of advice from my network and personal experience. I hope it can help some of you navigate this formative adventure.

1. Think like an investor

Let’s be honest: joining as the first marketer at a startup is a risky bet. At the end of the day, most startups fail. Borrow from VCs to inform your decision. Before joining, make a complete due diligence on the market, product, and the team.

Here are some questions to ponder:

• Is there a path to a big market? Who are your first users going to be, and how do you know they want this?

• Does/will the product delight its customers? Can it scale?

• How determined are the founders, and what’s their primary motivation? Are they resilient enough to keep going when things go wrong? What’s their track record?

• Would you bet your own money on this? Why might your belief not be true? 

It’s not a perfect science (even professional investors make bad bets), but that could help you spot the most obvious red flags.

What makes a decision great is not that it has a great outcome. A great decision is the result of a good process, and that process must include an attempt to accurately represent our own state of knowledge. That state of knowledge, in turn, is some variation of “I’m not sure”.

Annie Duke, Thinking in Bets

2. You’re not alone

Being the first marketer doesn’t mean that there haven’t been any marketing initiatives before. Insights are probably not well documented and spread out in the organization. So spend some time talking to everyone in the team, listen and learn.

Here’s what Sophia Bendz did when she joined Spotify:

When I joined, what I actually did, was that I held a workshop with everyone in the company and at the time we were just 11 people; I bribed them with popcorn. We had like a 2-hour workshop where we talked about: Who are we? Why do we matter? Why do we believe that we will succeed and no one else will? That set some of the core values of Spotify and laid the foundation of the brand positioning.

Katarina, Rémy, and Stefan echo similar advice:

Find allies in all other departments. Start with sales and customer success to identify the stories/messages from customers and prospects that resonates with your target audience.

Katarina Nilsson, CMO at Occtoo

Communicate as much as you can with your team: let them know what you are working on, ask for their feedback and wishes.

Rémy Bertoli, Growth Manager at RecRight

I am by no means a generalist marketing person, but from my experience as a product person, the importance of product marketing & collaboration between product work and marketing work is huge in those early days when everything needs to shift continuously to find the right fit. No point in trying to do growth or build a brand out of a product that just doesn’t fit its audience.

Stefan Lindbohm, Product Leader and Coach

Not only will doing this help you gather ideas, but it will also set the right expectations while educating the team on why marketing matters and how they can contribute.

3. Don't assume, validate

Talking to your team is great, but there’s a major downside: they are probably biased!

Get out of the office and form your own opinions by talking to customers and potential ones. Just make sure to take another approach than Jared 😂

Desirée and Dave recommend:

Take time to sit down and understand the target audience(s) for the product/service/offering. Makes it so much easier to create and to start communicating.

Desirée Hylander, Site Manager at Vården.se

Work the hardest at defining the customer's profile and needs, then find some and listen carefully to them . . . best time investment you can make, as it will inform everything going forward.

Dave Poulos, Senior Director of Marketing at Pinnacle

4. Focus, focus, focus

If there is one thing you need to be good at as the first marketer: it’s prioritizing. Prioritize ruthlessly! Deciding what not to do is as important as choosing what to do.

Catherine, Katarina, and Arnaud add:

You can't excel across all marketing functions.

Catherine Kyule, Co-Founder and Marketing Manager at Bantaba

Focus your efforts and execute a few things really well and see them compound over time instead of trying to do everything at once.

Katarina

Focus on understanding your audience (speak with your customers!), start building your strategy BUT get some external expertise to execute. The more hats you put on, the less valuable the outcome will be.

Arnaud Caillot, Organic Marketing Manager at Mentimeter

So drop some hats! If you have difficulty defining a clear scope, I shared a framework for getting started with customer acquisition here. If you struggle with getting things done, I would recommend going analog and ditch your laptop from time to time. You’ll be more creative and effective when faced with fewer options and distractions.

5. Get comfortable with failure

Don’t overthink stuff, dare to just try! Do small tests and measure. Then increase budgets. Learn from mistakes, don't take them personally.

Amalie Marie Angelskår, CMO at Mindler

Don't be afraid to fail! You'll learn MOST by failed campaigns.

Rémy

Be ready and prepared to learn, fail and get back up. It can get stressful, a bit lonely and a bit frustrating at times but it's worth it in the end.

Anna Font, Content Marketing Specialist at Yayloh

Failing sucks. But at the same time, it’s the best way to learn. Failure is something you can’t avoid when you’re in startup mode. It’s going to happen: you will fail. So why not embrace it? Who said, “You miss 100% of the shots you don’t take”?

6. Embrace being small

In the early days, many startups try to look bigger than they actually are.

They want so much to seem big that they imitate even the flaws of big companies, like indifference to individual users. This seems to them more "professional." Actually it's better to embrace the fact that you're small and use whatever advantages that brings. Their standards for customer service have been set by the companies they've been customers of, which are mostly big ones. Tim Cook doesn't send you a hand-written note after you buy a laptop. He can't. But you can. That's one advantage of being small: you can provide a level of service no big company can.

Paul Graham, Y Combinator (Do Things That Don’t Scale)

Forget about chatbots and automated email campaigns for now. Instead, be personal and go the extra mile to delight your early customers for as long as you possibly can sustain. There will be plenty of room to think about automation when you scale operations.

7. Ask for help

Being a marketing team of one can be lonely, so loooonely.

It helps to have someone you can bounce ideas off of — someone who understands the specifics of the job and has experienced what you are going through.

If you look around you, I bet that there’s plenty of support available in your ecosystem.

Amalie suggests:

Ask for help (mentors, network, peers, colleagues) if there are areas you're unsure of. You're often alone for a while.

But beware of bad deals, warns Felix Lundevall, Head of Growth at Mindler:

From my experience, you will get contacted by 1000 different people trying to sell different services and types of media as soon as you start advertising. Some things are good and some people are trying to rip you off. If you are uncertain of what a deal actually contains, then you should wait with buying it. People trying to sell media will often bundle different packages to make you confused and make things seem a lot better then it actually is. Remember that there will always be plenty of media to buy so you never need to rush into a deal. Don’t let other people decide what you should buy but instead do your own research. Compare different options and when you then find a deal that you find priceworthy be fast on buying it.

8. Document your journey

Documenting will help you keeping track of your progress. It will also be a treasure trove of learnings for the next marketing resource (whenever that might be) and save you some precious time in the onboarding process.

It’ll also be some great material when you look back at your journey years from now.

Start doing monthly reports (if only for yourself) really early, it's really cool to look back at and see the development. It's kind of a growth diary!

Amalie

Sometimes when I think about the Spotify years, it’s like a big green fog because we were so busy. I wish I had taken more notes while at it.

Sophia

9. Enjoy the ride

I’ve been there. Joining an early-stage startup is an emotional rollercoaster. Sometimes you’ll feel amazing. Other, you’ll feel like giving up. It’s easy to forget when things move fast, but it’s not the destination; it’s the journey that matters.

Katarina, Anna, and Rémy conclude with words of encouragement:

Enjoy this time, being the only marketer means you get to interact with many different departements and get a broad understanding of the business in addition to using a wide range of the marketing toolbox. It is super rewarding and makes you develop your skill set and business acumen at rapid speed.

Katarina

I've had the chance to join big marketing team at one startup and be the first marketer for another startup and, if I had to choose, learning wise, I would choose the latter. By doing a bit of everything one gets the chance to truly experience a bit of everything and shape the future they want in marketing.

Anna

YOU ROCK! Everything you are doing will be invaluable for the company and will serve as the basis of all future marketing ops! Congrats

Rémy

If you’re joining a startup as the first marketer, I hope the insights above help. If you have any questions or need help with anything, feel free to reach out 👋

@Erwan

While the benefits of a solid data strategy are universal (better insights lead to better products, which leads to more growth opportunities for your business), it’s crucial to understand how the execution will vary depending on the stage of your company.

One of the main challenges for early-stage startups is that there is so much to do and so little time, money, and expertise. Yet, if data provides a valuable framework for thinking through priorities efficiently, it’s not immune from this same constraint. Hence, data strategy is usually an undertaking reserved for “after we've launched.”

To give some pointers, I asked a few questions to my former colleague Jacob Gustafsson, who built and led the analytics team at iZettle (now Zettle by PayPal).

On his journey

ED: According to this LinkedIn report, data-related jobs are some of the most in-demand right now. What led you to choose this career path "before it was cool"?

JG: I've always felt problem-solving and analysis to be stimulating. To figure things out through reasoning and logic has been fun for as long as I can remember.

However, joining the Growth Analytics team at a startup was more of a coincidence, I would say. I did not know of iZettle before joining, it appeared on a list of fast-growing startups and I saw an interesting job ad. Looking back, I did not completely know what I was getting into. But, it became clear pretty early that it was a good fit for me; I was very fortunate to be part of the journey at iZettle and learned a lot.

Data analytics will only increase in importance for tech companies going forward; it will be interesting to see how the space develops. I'm happy to be part of it.

On data, or lack thereof

ED: In your profile introduction, you write "helping startups become data-led and grow through user insights.” Can you expand on that? What are the main problems startups have when it comes to data and analytics?

JG: Startups have many challenges. On the one hand, they need to iterate on the product to find a good fit in the market. They also need to evaluate the distribution channels and find a sustainable way of acquiring new customers. On the other hand, since they are at an early stage, they don't yet have much data at hand. So it's harder to make data-led decisions. This is a crucial problem to solve; you need to be creative in the ways you gather data and systematic in the way you use it.

Early on, you sometimes need to "hack" your way to get the insights you need before getting more structured about data pipelines, instrumentation, and BI-tooling. I help companies with tools and techniques that they can use to get those insights and ultimately grow their product. Some hacks can be:

• Generate insights through micro surveys within your product, or actively reach out to customers and do interviews that yield valuable qualitative insight. The Superhuman case is a famous example of reaching P/M fit through insights early on). So the point here is, if you don’t get the data through product usage events, ask your customers smart questions.

• Use the scientific method without doing controlled experiments. Work with hypotheses, and think about observations that can reject your hypotheses, and iterate. A low volume of data is no excuse for being unscientific about how you build knowledge.

• Store or save the learnings and make it accessible across your team, that knowledge base will compound in value over time.

On strategy and structure

ED: Technical debt is a common challenge in software development. The same concept applies to analytics. How can startups avoid "data debt"?

JG: Early on, you should do two things:

1. Get insights using data that you have to drive decisions.

2. Think strategically about how your data stack should look like given the applications you foresee 3-5 years ahead, and build it in parallel.

Data debt can be mitigated by (2) above. I believe designing a robust pipeline, data warehouse, transformations, and BI-tooling is necessary to get to a point where data-led decision-making can really scale in the organization.

In addition to the data stack, tracking and instrumentation are key. I've learned to never underestimate the importance of structured naming conventions and KPI definitions. It will save a lot of time and money to do this consistently from day 1. It does not have to be complex at all, but there needs to be a way of naming events and one source of truth for the main KPIs; you will have to do it sooner or later.

One example from previous experience was that, during a project to generate insight about how a particular metric developed over time, while the analysis was done and results shared, the stakeholders involved realized that they had two different ideas about what the KPI itself meant. Leading to confusion and more work. I’ve also seen cases where KPIs started to emerge organically in different teams that contradicted each other in their definition, leading to that any meeting where these KPIs were discussed had to start with a lengthy “how do you define that” discussion. It’s a good sign that teams want to define meaningful KPIs, but a central way of defining, aligning, and storing these definitions is needed.

On the abundance of tools

ED: As famously illustrated here, the MarTech landscape keeps on growing, and choosing the right analytics tools can quickly become a rabbit hole for startup teams. What stack do you generally recommend for early-stage startups?

JG: The number of tools is increasing, and the quality of those tools as well.

The most important thing to consider when choosing tools is to make sure you understand what problems you are solving. Pipelining, Warehousing, Transforming, Visualizing are examples of problems, and there are various providers within each of those with specific nuances that could be a good fit.

Within the transformation step, I think getdbt from Fishtown Analytics is an exciting concept. It makes data analysts and data scientists work more like developers in that they use code and version control to do the transformations and build models. With this, analysts get more influence and autonomy on the data structure. I think this trend will accelerate, and companies, where analysts build tools in addition to consuming and analyzing data, will be successful.

Some of the most used tools, ordered by category, are:

Pipelining: Fivetran, Segment

Data warehousing: Snowflake, Google BigQuery, AWS Redshift

Transforming: getdbt (as mentioned above)

Visualisation: Looker, Tableau, Amplitude

On building a data-led culture

ED: Most startups don't have the luxury to have a data analyst early on. So when do you think is a good time to hire your first data analyst and build a team?

JG: In the beginning, everyone is an analyst.

Companies should use insights for decision-making from day 1. But you don't need to have "Analyst" in your title to do that. The first PM of a company probably needs to take on an analyst’s hat at times to evaluate a launch, prepare for new markets, etc. The first dedicated analyst probably comes when it's clear that the data has the potential to drive significant added value through insights. And this person should probably be more of a generalist who can support both commercial and product teams and be a "full-stack analyst" with some engineering skills. I've seen companies wait until Series C for hiring an analyst, and some are doing it at the Seed stage; it depends on the nature of the business. The one clear thing, though, is that every company should make an active decision on whether to prioritize the analytics/insights investments or not at any given stage.

On career advice

ED: What tips would you give to future data analysts?

JG: Learn broadly in the beginning – some data engineering, some analysis/scripting, some dashboarding, and communication. Getting a feel for all of these areas will make it easier to decide what to specialize in (unless you want to stay full-stack). Don't forget the communication part; a good analyst can have much more impact if insights are communicated in a clear way that decision-makers understand. I've seen cases where communication did not work or was not focused on, and the result was simply that those insights were not used.

Secondly, prepare to work on culture as well. Stakeholders within a company need to be educated around how to be data-led, and the culture is a deciding factor if companies will leverage analytics or not.

You are an analyst but also a driver of the data-led culture.

I hope this post was helpful and valuable. If you have any questions or would like to talk data and analytics with Jacob, you can connect with him on LinkedIn.

Thank you for reading! Wishing you all a fantastic summer ⛱

@Erwan

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In this context, customer acquisition is arguably more challenging than ever.

If you’re a startup founder currently facing this challenge, you maybe feel:

• Paralyzed: “Where to even start?”

• Overwhelmed: “I’ve tried everything, but nothing is working.”

  

• A bit lost: “Am I doing this right?”

If you feel that way, I hope this post can help you and bring some clarity.

Common pitfalls to avoid

In my experience, here are the main pitfalls you should try to avoid:

1. A strategy that you can’t afford: these days, more often than not, startups kickstart customer acquisition with Facebook and Google Ads. While those channels are almost inevitable when scaling, they’re not the best to start with when you have a limited budget and runway. Be mindful of your burn rate.

2. Reinventing the wheel: many startups try to copy tactics used by more established companies. These companies have more resources and can afford to think long-term. Choose a strategy that you can realistically execute upon with your current resources, and that could pay dividends immediately.

3. Compromising: saying no is hard, and it can be tempting to onboard any customer that would like to test your product. But will they get it? Will they stick around? The most important for growth is retention and as a startup, it’s critical to zero in on the customers who care the most about the problem you solve.

The sweet spot is to find customer acquisition initiatives at the intersection:

Where to start?

Well, it depends! :)

When founders ask me this question, I tell them to forget about the lengthy process of personas, funnels, and marketing mix and draw this simple 2x2 matrix instead:

Why? If we simplify, there are only two types of potential customers for your product:

• people actively looking for a solution

• those who aren’t

And there are only two ways to get in touch with them:

• leveraging touchpoints that already exist

• building new ones

How to use this framework?

Here are some prompts and examples to help you fill in the matrix:

Quadrant 1

• When potential customers search for ——— (keywords related to the problem you solve) they usually find ——— (list of websites ranking for these terms). Among them, we could partner with ——— (selected website) by ——— (your initiative).

• When potential customers ask questions about ——— (questions related to the problem you solve) they usually do it on ——— (popular group or forum in your niche). We could join the conversation by ——— (your initiative).

• When they compare or review ——— (alternatives) they usually find ——— (list of review sites and comparators). We could be included by ——— (your initiative).

Example of initiatives: partnerships with affiliates, requests for article updates, joining and participating in an active community, listing your company on review sites….

Quadrant 2

• We could help potential customers searching for ——— (keywords related to the problem you solve) by building ——— (your initiative).

• We could help potential customers having questions about ——— (questions related to the problem you solve) by building ——— (your initiative).

• We could help potential customers to compare and make a decision by comparing ——— (alternatives) with our product by building ——— (your initiative).

Example of initiatives: landing pages for SEO, FAQ, guides and blog posts, user-generated content (forums, community…), reviews, and comparison pages…

Tips: I wrote earlier about SEO for early-stage startups and comparison marketing.

Quadrant 3

• Most of our potential customers also care about ——— (related topics relevant for your audience). Their go-to is ——— (leading publications in that space). We could partner with ——— (selected publication) by ——— (your initiative).

• Most of our potential customers follow and trust ——— (influential profiles in your industry). We could partner with ——— (selected profile) by ——— (your initiative).

• Most of our potential customers also use ——— (adjacent products and services). We could partner with ——— (selected partner) by ——— (your initiative).

Example of initiatives: native advertising and PR, guest content, influencer marketing, strategic partnerships…

Quadrant 4

• We could inspire our potential customers who also care about ——— (related topics relevant for your audience) by building ——— (your initiative).

• We could raise the interest of our potential customers who follow and trust ——— (influential profiles in your industry) by featuring ——— (selected profile) in our ——— (your initiative).

• We could provide additional value for our potential customers also using ——— (adjacent products and services) by building ——— (your initiative).

Example of initiatives: content hubs, interviews, ambassador program, collabs, integrations, product directory, marketplace…

Notes

• This is just a framework; results will differ based on your creative inputs.

• The prompts are suggestions only; use other questions if you like.

• You don’t need to follow this order (quadrants) but it can help with prioritizing.

Tools that can help for market research

If you’re looking for some data and fresh ideas, I can recommend these tools:

• SEMrush: for competitive analysis and keyword research.

• AnswerThePublic: for finding relevant questions in your space.

• Sparktoro: for identifying sources of influence for your audience.

• SimilarWeb: for estimating traffic volumes (competitors, partners…).

Wrapping it up

If you felt paralyzed, overwhelmed, or lost about getting started with customer acquisition, I hope this post brought some inspiration and clarity to your journey.

Whether you use this framework or not, here are some key steps to keep in mind:

• Start with market research: map customer intents and touchpoints, focus on the places they already know and trust before building your own channels.

• Experiment and iterate: all initiatives won’t be a hit. Document your learnings and move on to the next one. Start small and stay consistent; it’ll pay off!

• Add layers over time: scaling user acquisition is all about adding layers and building repeatable systems, but it’s only possible with solid foundations.

If you found this framework valuable and would like to try it for a brainstorming session with your team you can get my template for free. Just let me know if you need help.

Have fun baking!

Get the template

Thank you for reading,

@Erwan 👋

Illustrations by Gustav Bodin

Last year, I wrote a post that addresses when to hire your first growth marketer, but a question I get even more often from startup founders is where to find relevant profiles.

The short version: to find a talented growth marketer for your startup, you must take a different approach to the traditional recruitment process. It's not enough to rely on your network alone and hiring a talent acquisition agency is often too pricey. You'll need to be proactive.

For more details and actionable steps, keep reading.

Why is it so hard to find relevant profiles?

1. Exploding demand, short supply

The VC funding boom in the last decade led to rising demand for growth marketers, not only in Silicon Valley but all around the world. Growth marketers with a proven track record are highly sought-after.

2. Difficult to evaluate

Growth marketing is a relatively new function. It lacks industry standards and recognized certifications. Pretty much anyone can call themselves a growth marketer these days, but the quality of work varies a lot. For startup founders, it can be challenging to differentiate between good and bad profiles before hiring them.

3. Early-stage isn’t for everyone

Being a GM1 at an early-stage startup is a different ball game than being a GM at a scale-up. As a startup founder, you need to look for profiles that can be autonomous, hands-on, and strive with limited resources. The job description from Levels below is a good example of how to tackle this early in the recruitment process.

Well, so where to find them?

1. Try LinkedIn Sales Navigator but avoid generic InMails

LinkedIn Sales Navigator allows you to apply advanced search filters. Define your ideal candidate profile and apply some matching filters. Select relevant ones and reach out but avoid generic InMails (leave those to bigger companies using uninspiring recruiting methods). Instead, craft a short, friendly, personalized message or find a way to get introduced. If they’re not interested or not available they might point you in the right direction.

2. Be where they hang out

As mentioned in the introduction, the best GMs are highly sought-after which means that they’re not actively looking for a new job. So the best way to catch their attention is to be where they hang out to discuss growth with like-minded professionals.

For example, a few communities I’m part of:

• Lenny’s newsletter

• Reforge

• Demand Curve

• Mobile Dev Memo

• 2PM

• Indie Hackers

• Makerpad

• Growth Hackers

• Growth Hackers Sweden

Instead of just sharing a link without context, start a conversation about a growth challenge you're currently facing. Not only will that generate more engagement and provide immediate value, but it could also lead to a genuine discussion with someone well-suited for the role.

3. Promote your opening on industry-specific job boards

If you didn't succeed in getting any leads using the above tips or don't have time, consider promoting your job listing on some job boards dedicated to growth professionals and startups. For example, Demand Curve. These boards attract a more specific audience than LinkedIn and are still less costly than hiring a recruitment firm.

Other examples include:

• Product Hunt

• Super Path

• Angel.co

• The Hub

• Startup Jobs

• Hyper Island

4. Talk with career accelerator programs

Programs like Reforge and Growth Tribe help hundreds of professionals to upskill in growth every year. It’s in their interest to help alumni so why not reach out to their team and ask if they know someone currently searching for a growth position?

5. The growth marketer you’re looking for might already be on your team

I totally agree with Jeff. I've seen several people successfully transition from customer success, engineering, or finance roles to growth leaders.

Early-stage GMs are generalists with a good understanding of marketing, product, and data. Strategies and frameworks can be taught. But you can't really teach cultural fit.

Finding a growth marketer that will be a good fit for your startup isn't an easy task. But by being proactive, using the right touchpoints, and creating a growth culture, you can increase your chances. If you're hiring, I hope this post was helpful!

@Erwan

If you’ve any questions, feel free to reply directly to this email or leave a comment.

I've been posting very infrequently in the past months, so you might not even remember subscribing to my newsletter. If you don't want to receive more emails, just unsubscribe at the bottom; no hard feelings. If someone forwarded you this email, you can subscribe here to get my posts in your inbox a few times a month.

My next article will focus on effective go-to-market strategies for startups.

Rule 1:

If your customer does not mention the competition then neither should you. Never discuss the competition in any way unless you have to. Just carry on with your sales presentation as if they do not exist.

Above is the number 1 rule you’ll find in most sales playbook but also the general implicit guideline about competitors in marketing.

For startups, it’s the norm for founders to use competition slides in their pitch decks when meeting with investors. But elements of these analyses are rarely found outside of the boardroom.

If this information is so essential for investors couldn’t it also help potential customers to make a more informed decision? Why hiding the alternatives when they represent the only point of reference?

In this essay, I will not encourage you to start an advertising war à la McDonald’s and Burger King. Instead, I will describe how some successful startups like Figma, Ghost, or Notion intelligently mention their competitors in their communication and how you could do it too.

The psychology and behavioral bias behind new product adoption

When Steve Jobs introduced the iPhone in 2007, he spent more time talking about the incumbents than touting the benefits of Apple’s new product.

In fact, he used the same approach when launching the iMac and the iPad. Why would he do that? Weren’t these products so much better than the competition anyway? Well, Jobs was a genius salesman and a master at understanding consumer psychology. He was well aware of the often-overlooked psychological costs associated with behavior change.

Many products fail because of a universal, but largely ignored, psychological bias: People irrationally overvalue benefits they currently possess relative to those they don’t. The bias leads consumers to value the advantages of products they own more than the benefits of new ones. It also leads executives to value the benefits of innovations they’ve developed over the advantages of incumbent products.

John T. Gourville (Harvard Business Review, 2006)

Consumers evaluate new products based on a reference point. Your startup is only as good or as bad as what the user is comparing it to.

Take Figma for example, the first browser-based and real-time collaborative tool for design professionals, and arguably a much better solution than anything else currently available.

Problem? Their target audience developed long-time habits using tools like InVision, Sketch, or Framer throughout their careers.

To win them over, Figma created a compare section on their website in order to educate them about the product's key differentiators.

Mission accomplished! Figma is the fastest-growing tool in that category.

The upside of capturing comparison searches for user acquisition

As described in my previous post SEO for early-stage startups, ranking on Google for comparison and alternative search terms within your industry can be a very valuable user acquisition channel compounding over time.

Because it’s taboo for most companies to mention their competitors, these search terms are generally dominated by affiliates, comparison sites like Capterra, and review bloggers. While being listed or mentioned by “neutral” websites can be a precious trust factor for your brand, it can also be very pricey. As an early-stage startup, you might not have the necessary funds to compete with other players on that front.

So why not creating this content on your own website instead?

That’s exactly what Podia did, and the results are nothing but impressive.

Between research, design, and copywriting, I can’t imagine how much time it took for the team at Podia to create all these comparison pages.

But was it worth it?

According to data from SEMrush, a single landing page comparing their product with the more established player ‘Kajabi’ generates an estimated $18.7K worth of organic traffic every month in the US.

With 30+ similar landing pages, Podia now ranks on Google for keywords like “Patreon alternative”, “Gumroad”, or “Udemy alternative”.

A more effective (and ethical) strategy than aggressively bidding on competitors’ brand names via Google Adwords in my humble opinion.

In just 2 years, Podia gained significant market share in a very competitive industry with “only” $2.6M in funding (source: Crunchbase).

You’re not Starbucks

Most SaaS startups’ pricing pages read like a Starbucks menu.

Instead of the tall, grande, and venti options, we can choose between basic, standard, and premium or starter, professional, and enterprise.

Namings might change but it’s always the same tactic: the decoy effect.

In marketing, the decoy effect (or attraction effect or asymmetric dominance effect) is the phenomenon whereby consumers will tend to have a specific change in preference between two options when also presented with a third option that is asymmetrically dominated.

Huber, Joel; Payne, John W.; Puto, Christopher (1982)

As a startup, it’s tempting to take inspiration from successful companies like Starbucks and Netflix and decide to apply the decoy effect too.

But as mentioned earlier in this article, buyers tend to overvalue products they already have and use. So the best way to market your innovation is not to emphasize your product benefits but to highlight what they’ll lose by not using it (avoiding pain, a hassle, a cost..).

Basecamp, a project management software, isn’t really a startup (founded in 1999) but applies this approach to perfection:

Instead of choosing between another basic/pro/enterprise package, users are put in front of their alternative stack—far more painful and costly to maintain. Nudging done well! Your pricing page should be written from the perspective of your users, not your profits.

The painful transition from old to new, an opportunity for onboarding

Email services are generally free (except Superhuman) but we usually stick to the same one for years because of the switching cost.

It takes a lot of time and effort to change: exporting data and contacts, migrating, redirecting, updating subscriptions, marketing material…

Switching costs are the building blocks of the competitive advantage and the pricing power of companies. Firms strive to make switching costs as high as possible for their customers, which lets them lock customers in their products

Investopedia

For example, I’ve been using Evernote daily for almost 10 years. But in 2019, I found Notion. It looked better, had more features, and it was cheaper. But it also meant having to learn a new tool, reorganizing 1,000+ notes, reconnecting devices. You name it: first world problems…

But somewhere during the signup process, I was given the choice to automatically import my data from Evernote (and get credits for it). Boom! Problem solved, aha moment.

Note: Notion now has a dedicated landing page and signup flow for Evernote users (2nd screenshot below).

Like Notion, think about how you can flip the expectations relative to switching costs for your users and simplify the transition from old to new.

It’s not because you control the narrative that you can oversell

If you’re still reading, you might be convinced (or outraged) that I’m recommending you to mention your competitors in your communication.

But here comes Bowser, the final boss: your self-perception.

According to Harvard Business Review, startups overvalue the new benefits of their innovation over the advantages of incumbent products by a factor of three. In other words, it’s going to be very difficult for you to present an unbiased comparison of your own product vs alternatives.

When you control the narrative, it can be tempting to trash the competition or magnify your own features. But talk about your incumbents with humility (they paved the way for your company) and set the right expectations for your product. In the words of Ron Burgundy: “You stay classy”!

For inspiration, study how Ghost subtly does it:

This reminds me of one of my favorite marketing quotes:

It’s really scary to turn down most (the average) of what comes your way and hold out for the remarkable opportunities. Scary to go way out on an edge and intentionally make what you do unattractive to some. Which is why it’s such a great opportunity.

Seth Godin, No to average

Including competitors and alternatives in your communication is counterintuitive. It goes against everything you learned before, but in fact, it could be the most effective way to introduce an innovation.

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Search Engine Optimization (SEO), the practice of improving your rankings for relevant search terms on search engines, remains predominantly negatively perceived by startups despite its proven effectiveness to drive traffic and leads.

Growth marketing expert Andrew Chen, ex-Uber and now General Partner at Andreessen Horowitz, recently tweeted:

I agree with Andrew, SEO takes time and shouldn't be the focus channel early-on. However, I believe that startups can use the SEO methodology to inform their go-to-market strategy, improve their product, and survive longer.

Here below are 8 ways SEO can help early-stage startups.

1. SEO can help startups to verify market needs

According to data from CB Insights, tackling problems that are interesting to solve rather than those that serve a market need, is the No. 1 reason startups fail.

Keyword research, the process of understanding what people are searching for online, is one of the starting points of any SEO strategy. With the help of tools like Google Keyword Planner, Google Trends, or SEMrush you can easily gather data that will help you to identify clear market needs.

Throughout this blog post, I will use the example of a fictive "note-taking" startup going against industry incumbents like Evernote and Onenote. To verify market needs, volumes, and current behaviors, this startup could use SEMrush.

2. SEO can help startups to identify a viable go-to-market strategy

Lack of focus is another big reason why startups fail. Even if you identify a big market for your product, it's crucial to choose a good starting point so you don't dilute your efforts.

In SEO, we distinguish between generic keywords and long-tail keywords that are more specific topics (generally with lower search volume and competition). Going for the long-tail is a smart approach for startups with limited resources.

From the example above, our fictive notetaking startup could decide to focus on college students first as there seems to be a demand for "how to take notes in college".

They could then refine their search around this query using a tool like Ubersuggest and look for more similar terms. Note that this will also help you to understand seasonality in your market. Here obviously, the "back to school" season is key.

3. SEO can help startups to build a compelling value proposition

Great, now you know if there is a market for your product. But what features should you prioritize for your MVP?

Sure, you could ask questions to a few beta testers. But will they be objective? Is the group representative?

Instead (or in combination), you could use SEO tools like Answer The Public to list and analyze the most asked questions within your niche. This can help you to gain empathy with your target audience and prioritize key features that the market is already asking for.

4. SEO can help startups to win market share against incumbents

Regardless of your industry, competing with incumbents will be a challenge. And as an early-stage startup, you will lack the resources to go head-to-head with them.

But you could win some strategic battles thanks to SEO.

a. Alternatives

It's a basic human trait: people love to have many options.

A simple Google search with "alternative to (competitor)" for your niche will list the options people are already looking for.

In our example, people are actively looking for alternatives to replace Evernote or Onenote—the current market leaders.

From there, you could either try to convert them with your own website (Notion example below) or try to be featured on comparison websites (often affiliates), blogs, or directories.

b. Pareto principle

In a David versus Goliath scenario, startups should hurt the core of their incumbents' visibility. In other words, targeting 20% of their activities accounting for 80% of the results.

It can be challenging to identify how much competitors spend on Facebook ads (you can find their assets but not their budget with Ads Library) but you can easily analyze their organic and paid visibility on Google with SEMrush. Look for keywords or backlinks that have a disproportionate impact on their traffic.

In our example, Onenote gets more than 25% of their organic traffic from the single keyword "notebook".

Trying to rank for a very competitive keyword with a newly launched website would be mission impossible and would totally go against what I recommended above.

However, you could spend some time looking at the type of results featured for that search query. Could you be one of the Google Image results? Are there any YouTube videos or podcasts? Are there any Answer boxes, Tweets, or news? Are there any affiliate sites or blogs you could win over?

Search for small wins with a large potential impact.

c. Gaps

The Internet is fragmented and your competitors are probably not winning on all channels. With tools like SimilarWeb, you can identify gaps in their marketing mix.

These insights could help you make strategic decisions on the right markets and digital channels to focus on.

For example, here is Evernote's traffic by country and source. Do you see any gaps?

5. SEO can help startups to build a user-friendly experience

CB Insights' data reveals that the #6 reason why startups fail is because of user un-friendliness.

User experience is critical to SEO. All major search engines use factors like load time, responsiveness, architecture, reviews, and engagement to judge one's website or app.

Google offers free tools like PageSpeed Insights, Google Search Console, and Mobile-Friendly Test to help you there.

6. SEO can help startups to establish their brand online

As your brand takes off, more and more people (from potential users to potential investors) will Google your brand.

If you chose a domain that isn't too generic or doesn't mean something else (movie, personality, slang...) it should only take a few days or weeks to rank for your brand name.

But what most startups ignore is that they can work actively to secure more real estate on their brand results thanks to Google's structured data and some common sense.

Here is a non-exhaustive list of results that generally rank well on Google (for branded queries) that you can leverage.

• Google My Business listing (add images and posts)

• YouTube videos (use your brand name in the title)

• Images (use your brand name in alt tags)

• Social profiles (match domain and handles)

• Wikipedia (if eligible)

• Corporate contact and logo

• FAQ and reviews

• App or podcast

• Press and Tweets

7. SEO can help startups to build relationships within their industry

Since the late 1990s, search engines have treated links as votes for popularity and importance on the web (Moz).

Link building, the process of getting other websites to link back to your website is, therefore, one of the most important tasks in SEO. It requires a combination of various marketing and sales skills and can be a great exercise for startup founders who are looking to build and nurture long-lasting relationships within their industry.

With tools like Ahrefs, SEMrush, Buzzsumo, or Sparktoro, you can identify link-worthy domains, topics, or industry influencers around a specific keyword or competitor.

Back to our example, we could research the links pointing to Evernote, or journalists and influencers mentioning them and explore opportunities for partnerships and inclusions.

Done well, link building can bring a large amount of traffic and sales but also quickly increase your industry authority.

8. SEO can help startups to limit burn rate and extend their runway

CB Insights list "running out of cash" as the killer for 29% of startups (#2). Most startups in the early stages, spend more than they make. Even if raising capital allows to operate at loss for some time, the runway doesn't last forever.

According to data from Brex, 20% of startups' burn rate goes towards advertising with the main cost being Facebook ads accounting for 62% of these expenses.

Relying on paid channels to grow when the cost of digital advertising is rising at rates close to 5x inflation (Adobe) isn't sustainable. It needs to be offset by growth coming from organic channels like SEO, social, brand building activities, but also integrations, product-baked viral referral loops, and supported by strong retention and activation cohorts.

It's crucial for startups to harvest the organic traffic they can get through SEO in order to avoid paid marketing addiction.

Results from SEO can take months, especially for new sites, and early-stage startups often don't have the luxury to wait.

But understanding SEO can be remarkably insightful, provide some initial traction with the right approach, and help to avoid some of the most common startup pitfalls.

I think it's important to see SEO as an investment, not a cost. Like compound interest—the earlier you start, the better!

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