Startup Traction: Real-World Strategies & Lessons from the Best
- Value Proposition
As a startup, you would want to solve an ongoing problem in the society. Your startup’s success can depend on the population your solution addresses and how much value it adds to their life. So, focussing on the problem and the solution, and understanding how it benefits the market is critical. Are there any competitors offering similar solutions? Is your solution scalable? How well can you take your solution into public? Is it a marketable idea? These all factors define the value proposition of your startup. - User Acquisition
Initial users not only contribute to traction but also provide vital early-stage feedback about the product. Marketing teams and CEOs should devise strategies to engage as many early adopters (consumers) as possible to refine the product suitable to the market. Strategies can include but are not limited to social media marketing, influencer partnerships, content marketing, and attending commerce and industry events. - Metrics Mania
Understanding metrics and seeing them through the right lens is crucial when it comes to customer acquisition cost (CAC), customer lifetime value (CLTV), and churn rate. Navigating through the metrics demands of deeper understanding of the market dynamics than merely running through Excel sheets of data. Insights into identifying user behaviour, and consumer purchase patterns help the CEO and the C-suite to make data-driven decisions to drive growth, reduce costs, and improve and refine the product based on consumer feedback. - Iteration
MVP is the soul of a startup. CEOs and product development teams should embrace an iterative approach in incorporating consumer feedback and developing the product. Startups should see MVP as a living and breathing entity rather than as a mere static creation. The product should evolve to meet the ever-changing needs and expectations of the target market, and agility in product development helps in product evolution.
The factors listed are crucial to achieve traction. But as a startup, you don’t want any stone unturned. In the following sections, we shall discuss actionable traction strategies and case studies, equipping you with additional tools in your path towards successful traction.
Actionable Traction Strategies:
Every startup need not have deep pockets. That does not mean, startups can’t have enough traction.
Following is a simple, yet effective list of traction strategies a startup can adopt at any point of their journey. Keep in mind, that these strategies work best when properly find synergy with your team and aspirations.
- Content marketing – Infographics, blog posts, podcasts, videos, and whitepapers
- Freemium model – Offering consumers basic features for free, and asking them to upgrade to a paid plan
- Strategic partnerships – Find partners who align with your goals and strategies in taking your product to the masses
- Community building – A key aspect in developing a product by receiving continuous feed from existing and potential customers.
Entrepreneurs constantly need to update their library of emerging tools and techniques. Case studies provide excellent insights into the functioning of a startup. Here we discuss case studies of successful startups, that have made a mark on the global map when it came to traction.
Case Studies:
Startups across industries have implemented various strategies to achieve traction in the initial stages. With time and further refining of the business model, their strategies keep changing. Here are three case studies every startup can look up to when it comes to achieving traction.
Canva (Australia, Graphic Designing)
Back in the day when graphic designing would put most graphic designers into God mode for their customers, Canva broke the rules in 2013. With its intuitive drag-and drop interface and access to a vast library of images and templates, it was a revolutionary step forward. It empowered millions of global users to create professional looking graphic designs without any experience in graphic design. Its move to democratize graphic designing to nonprofessionals fueled its user base into millions. It offers a freemium model.
TikTok (China, Short-form Video App)
Youth and Z-millennials find new ways to express themselves. They explore every social media app to explore the world through their lens. Here comes TikTok in 2016, offering a short-form video app. The app was an instant hit that it had millions of users within a few months. It did not take long for other companies with huge user bases to compete. But TikTok’s ‘First mover advantage’ stuck clearly with the app, witnessing unparalleled growth. The company’s traction primarily includes advertising, and secondary streams include premium subscriptions and the sale of in-app features. Its tag “Don’t make ads, Make TikToks” is an eye-opener for many West-based tech giants.
PayTM (India, Digital Payments)
Undoubtedly, PayTM led the race for digital payments across the cash-driven economy of India. Where people were habituated to paying by cash, and at times by card in cosmopolitan, metropolitan, and Tier-I cities, PayTM changed the entire course. Launched in 2010 by its parent company One97 Communication, PayTM has revolutionized payment solutions from street vendors to high-end hotels. All you need is a smartphone that has a camera and a phone number linked to your bank account. By offering seamless experience in mobile phone recharges, bill payments, and other financial services, PayTM gained invaluable traction. PayTM truly gave rise to other digital payment giants like PhonePe, Google Pay, Amazon Pay, and others.
On an ending note, traction is crucial for a startup to stay afloat until a seasoned investor – who brings both capital and experience, can further fuel the growth. Until then, developing the MVP, taking the consumers’ feedback seriously, and adapting to ever-changing market needs and scenarios are critical in achieving sustainable and healthy traction.
