5 cost-conscious sales strategies for startups

Sales are the lifeline of a startup. Have you ever heard the saying: “Sales solves all problems?” It’s not entirely true, but there's a lot of truth to it. Sales can buy you time--time to improve your product or service, the process, and the customer and employee experience.

In today’s world of connected consumers, a common misconception is that social media, sales funnels, and AI can solve the challenge of generating new business. Although technology can help sales scale, it’s just one piece of a successful sales model.

Human interaction is still incredibly important. There is a timeless truth that people do business with people they know, like, and trust. This is critical, especially in a city like Buffalo, where many companies support local business.

The following are five strategies to help you make the connections that can lead to new business.

1. Get crystal clear on your ideal client and customer avatar. Start with just a handful of prospects and get to know them personally--their pain points, needs, and their industry. Get them to beta test and give feedback on your product/service.

Once you have buy-in and proof of concept, expand your target to similar companies in the same industry. Riches are in the niches, so start with a narrow audience and provide depth of expertise. Knowing your customer will help you optimize ad spend.

2. Use both online tools and offline tactics to connect with potential customers. Online tools like LinkedIn and DiscoverOrg can help you develop a list of prospects, which you can then convert into personal relationships through phone calls or video conference calls to better understand their needs.

Get active in industry associations so you can be where your customers gather. Attend conferences where you can meet dozens of prospects or, if you have a limited budget, walk an exhibitor floor at a local event.

And don’t forget to tap into your network of existing relationships, past employers, colleagues—they just might be your next customers.

3. Take the time to do outbound prospecting. While this level of commitment is an investment in time, it can help you uncover customer needs and facilitate discussions on how a proposed solution can solve challenges. Customer visits are the most effective, but phone calls and email marketing can also be successful. Dan Magnuszewski, CTO of ACV Auctions, said that meeting with potential customers led to a lot of his early sales. “It’s the best way to hear the raw feedback on what (customers) like and the reasons why they don’t want to use your product,” he said.

4. Use social proof to win sales and influence customers. The principle of social proof is connected to the principle of liking: Because we are social creatures, we tend to like things just because other people do, regardless of our personal knowledge of or experience with them. Therefore, anything that shows the popularity of your products can influence potential customers. Have you gotten good press? Mention it! Received loving emails from customers? Quote them!

Two major ways to increase opportunities for social proof are through personal branding and content marketing.
  • Personal branding: You could argue that personal branding is the foundation of social selling. Without a strong online brand, it’s simply more difficult to engage sales prospects. Even if you excel at growing relationships, every sales relationship starts with a successful engagement.

    Share your story, and not just the doctored-up version. Share your vulnerability while highlighting your why for founding the company and the problem you seek to solve. Use your brand to become a thought leader in your niche.

    Look for free press. It could be something as simple as submitting yourself to "People on the Move" in Buffalo Business First.
     
  • Content marketing: Content can be a good way to provide value to potential customers, but it doesn’t always have to be about boasting the benefits of your product/service. Effective branding tells the story of your customers’ pain points. It elicits emotion. Then it offers a pain killer (solution) for the pain. For example, if your product has a scientific secret sauce, display content from professionals with credentials, like a doctor or an industry influencer. This will position you as an authority, and people are hardwired to respond to authority, or the perception of it.

    Matt Pelkey, partner at Colligan Law, says, “Don’t overlook public relations through earned media and content marketing. Develop relationships with members of the media, deliberately create content relevant to your product, and leverage that content into exposure for your product or service. With very little cost and some sweat equity, companies can build on their own expertise.”

5. Solicit word of mouth referrals. When it comes to client acquisition, referrals can play a huge part in your success--or lack thereof. People make decisions based how you make them feel throughout the process, and the opinion of others, as it relates to your work, will impact these decisions. Be sure to ask your clients, and the companies you do business with (your accountant, lawyer, doctor, CRM provider, HVAC, etc.) to make a referral for you. When people who don’t know your product know someone whom they trust who uses it, they are more likely to buy from you. It is the easiest way to crack great deals.

Making sales is vital to startup success, and relationships are the key to making sales. Use these five strategies to help you win customers and nurture these new connections.

Read more articles by Michael Spence.

Michael Spence is a speaker, trainer, and business consultant focused on people, performance, and profits. He learned much of what he knows about business and technology by leading a young telecom sales organization to 400% growth and being listed on the Inc 500; everything else he picks up from interviews with business leaders and influencers. Sharing his lessons, Mike trains organizations on managing a multigenerational workforce, soft skills, and sales enablement. https://www.linkedin.com/in/mwspence
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