Startups don’t need to go viral to win customers

Starting a business and securing initial customers can be a daunting task. Even after securing some attention, there is no assurance that those customers will remain loyal. At the recent TechCrunch Disrupt event, Elia Wallen, founder of travel startup Engine, Grant Lee, founder of Gamma, and Crystal Huang, general partner at Google Ventures, discussed strategies to acquire and maintain customers.

In today's climate, where AI companies like Cluely and Instinct gain substantial audiences through their founders' online personas, social media may appear as a miracle fix for reaching early customers. However, experts caution against relying solely on social media for business growth. Grant Lee, CEO of Gamma, which provides AI-powered presentation software, achieved significant business expansion through a social media approach that utilized influencers via the Ambassadors (or "Gambassador") program.

This strategy, implemented before influencer-based marketing was accepted as a reliable approach for smaller companies, led Gamma to a multi-billion dollar valuation. Despite this success, Lee emphasizes that simply providing influencers with a platform and instructing them to promote a brand online does not guarantee sales. For businesses with products catering to various segments or use cases, it is crucial to engage creators who can target each segment effectively.

Additionally, Lee notes that founders often view creator marketing or influencer marketing as a "set it and forget it" approach. He advises investing significant time in these creators, as ineffective communication of the product's value can render even substantial investments ineffective. Elia Wallen, founder of Engine, which manages lodging and travel bookings for midsize businesses, discovered that traditional sales methods can be more effective than social media campaigns.

Engine managed to secure $150 million in bookings without any outside investment and employed no visible social media strategy. Wallen emphasizes the continued importance of traditional sales tactics, stating that "the phone still works." He also highlights the effectiveness of personal engagement tactics, such as hiring a magician to perform tricks for potential clients at events to encourage visits to Engine's booth.

Crystal Huang, general partner at Google Ventures, advises businesses to analyze customer usage data to determine factors like recurring use and referrals. Identifying super fans who are passionate about the product can also lead to valuable partnerships and brand promotion.