SVASE Startup-U: Landing your First Customers
March 27th, 2009
Notes and thoughts from Startup-U SV: Landing your First Customers with CEO’s Scott Dunlap, Mike Maciag (Electric Cloud) & Dan Steere on Jan 27th, 2009:
- Customers often tell you a thing or two that you don’t know( customers are smarter than you think)
- It’s a brutal reality that people/companies are only willing to pay for must-have products
- Products that help people cut off cost, expense, operation cost and optimize on resources will excel
- Everyone should be a product manager. Everyone should be in a customer call every month to understand customer’s pain-points and problems( this is so true, but few companies are doing it. Many startups are very engineering-driven that there is a big disconnect between engineers and customers)
- Scott from NearbyNow shared how he solved the problems of getting the first retail customers on board with his location-aware shopping system( his lesson deserves a separate blog post from me).
Enterprise Sale
- For enterprise products, don’t give free pilot(or trial). You force customers to consider pricing in the conversation. It will also force higher-level management people to look at the product when it involves money transaction
- If you do give out free trial(100% discount), don’t tell any one
- Publicize the ROI if it’s met. Case study is important
- Always ask people how it’s going(eg: proper account management, don’t just let it run on auto-pilot)
- Your first few customers may force you to change your business if you customize too much for their needs
- You should try to find out what initiative your customer is having. Then try to attach your service to their initiative.
This was one great panel discussion.
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