This episode of Fractal Marketing features Andrew Miller, Startup Marketing Advisor & Coach at AndrewStartups. He discusses Numa, an AI that answers calls for businesses and the strategies they use to pitch to retail SMB’s. Gerard and Andrew take a closer look at their website and the ways Numa creates trust in their ideal customers.
Andrew details the way companies can utilize concepts like loss aversion and split testing to really figure out who they should be marketing to. He also provides actionable tips on outreach to provide real value in their messaging because the desire to help allows businesses to be aggressive in their marketing.
01:01 Introduction to Numa: Andrew’s experience
06:35 Capitalizing on loss aversion and utilizing split testing
10:26 Examining Numa’s on-site tools and strategies
20:32 Outreach strategies: How to catching attention with value propositions
25:44 A desire to help enables aggressive marketing
06:22 “Numa’s a hundred bucks a month. It’s an incredible way for any business to get a couple more sales a month guaranteed for just a hundred bucks. It’s an easier pitch than you think now.”
12:55 “The bottom line is, if you’re a bootstrapped company, use every single opportunity to not pay for something.”
17:24 “Social proof is the reason why influencer marketing exists and sometimes beats paid advertising. We are social creatures. Even if it’s fake, we believe it. And we believe it more than if we just saw the company talk about it on their own.”
23:46 “I’m focused on what am I saying, how am I saying it, and is there a lot of value in my message. And if there is, I know it’s going to be received well enough. The same has been true with hundreds of companies I’ve run automated campaigns for.”
28:29 “When you really feel like you’re spending this time and this effort in your life trying to solve this problem, then you can be aggressive in the marketing. You’re always focused on helping this segment.”
25:44 A desire to help enables aggressive marketing
Numa’s website: https://numa.com
Andrew’s website: https://andrewstartups.com
Andrew’s email: [email protected]
Andrew’s Book https://publishizer.com/0-growth/
25% off my course link and write up for the episode: https://andrewstartups.mykajabi.com/offers/LEyiwCGp?coupon_code=FRACTAL25
Today, Jason and Gerard pick apart the brand’s omnichannel approach to marketing to see which are effective in a shrinking market.
They discuss Click & Collect in an apparent bid to upsell their other inventory with higher profit margins. They also discuss the decision to pass up on zipPay and Afterpay, the purpose of maintaining physical stores, and a possible long term strategy to pivot the brand and stand out.
02:21 Click & Collect: A hybrid e-commerce model that tailors the user experience
14:17 Avoiding zipPay and Afterpay, a strategic profitability decision?
16:32 Physical stores: Fostering trust and brand recall
22:55 Jobkeeper reduction and discretionary purchasing will hurt retail
27:09 Adding a face to the brand to build customer loyalty
02:33 “The other option is Click & Collect which is where they have to purchase something online but they come in store where they have to pick it up and then they get upsold all these different items.”
15:21 “If you offered Afterpay on JB Hi-Fi products or zipPay or something like that for a thousand dollar, two thousand dollar laptops, your sales would probably go through the roof. However, in terms of your bottom line, I don’t know how beneficial that would actually be.”
21:45 “Maybe the physical stores would serve a different purpose, more like showrooms like you mentioned, educating people on what they can buy and maybe anchoring people through value-adding.”
25:41 “Payments are going to be winding back. People probably aren’t going to be as willing to spend money. They really need to find out a way to either maintain that spending with a lot of value to customer or figure out how to incentivize those large purchases.”
29:08 “You need to build that loyalty to the customer. Whether it’s getting influencers in or having more of a face to the brand, showing what you stand for, I think that’s probably where I’d look at.”
This episode of Fractal Marketing with Gerard Doyle is called “How to launch a product with a latent need” with Maree Beare, the CEO and Founder of consumer health app Wanngi. Maree explains that Wanngi functions like a digital wallet and that its primary use is to manage difficult-to-access health records.
Maree also shares the marketing journey of Wanngi and the obstacles of brand awareness for a product for a latent need. However, she shares their great success with blog content and the value of being recognized by Forbes and CNET in their quest to go global and penetrate the US market.
17:43 “The government has announced a grant for researching into the impacts of the bushfire smoke, not only bushfire smoke but people’s mental situation after the bushfires. So we propose that people could use our app and monitor their symptoms then track what’s happening to them over that period of time and share that information.”
19:56 “We are placing a focus on the US. They have a significant problem. It’s worse than in Australia. They don’t have essential government record as an option, which we do. They don’t really have a medicare that’s like our public system.”
26:13 “Instead of bringing your folder with you, you’re going to start accumulating this information electronically, safely, in a secure place in cloud so that no matter where you are, you can show this to the doctor, no matter where you are. And in whatever language.”
33:52 “One of the problems is that it’s actually very difficult to get a hold of your health records and your medical documents in the US. And in Australia, by the way, you don’t seem to have ownership on often very easily or you may have to pay for them. So we’ve written some articles on how to do this.”
36:41 “If I could go back in time, I would think that we could have acted sooner to start understanding the market straight after that because a week from launching, the government decided it was too early and they closed the mobile API gateway down.”
02:24 Introduction to Wanngi
12:45 Caregivers as a potential app user pool
19:23 Going global & using Wanngi overseas
28:25 Marketing Wanngi & creating content
35:34 Maree’s advice & working with the government
This episode of Fractal Marketing with Gerard Doyle is called “Should You Build Distribution Channels or Sell Products Directly?” and today’s guest is Damien Stone, Founder of Water3. Today, Damien shares the journey of his company and how direct sales to a niche market created early success for Water3.
He then shares the expansion of the business in recent times and the role of technology in the business model in their bid to scale up and go global. It is noteworthy that one of upsides to Water3 is the nature of their product allows them to have a greater negotiation position with business partners. At present, the company has no real competitors and is in a prime spot for massive growth.
03:53 Branding: Water3’s unique product
06:54 Market timing
09:11 Referral marketing with a remarkable product
16:18 Expansion and technology over the past 18 months
20:39 Water3’s global trajectory
25:39 Reducing risk and convincing business partners
33:16 Damien’s advice
11:44 “You’ve got to be remarkable. And being remarkable doesn’t mean having a bright shiny glitter-covered shirt. It means having something that’s shareable that everyone wants to talk about. So it’s what’s remarking about. And they kind of love stories like that, show you this care in the likes of the brand. And this is such an interesting little aside that will actually stick inside someone’s mind.”
17:01 “We thought long and hard about talking to the beverage companies and then we encountered a path of what are we going to do? The hot points for these guys, a niche market, well, it’s going to make them go, yeah okay, we want more tech. And there’s a huge amount of… software that they built around just being operators ourselves that we’ve had to go through and make a lot of changes on.”
25:38 “And I guess what your story is telling me is, oh, get out there and prove that people will actually buy it, people will use it. Okay, maybe you haven’t done it to the scale that Walmart or someone could take you to but if you’ve proven it yourself, you remove the risk for them. And if you remove the risk for them, they’re more likely to do it and I’m guessing the other upside to it is it puts you on a stronger negotiation position, right? Because you’ve got some idea how profitable it could be.”
30:54 “Who on earth is using that machine at 2 am? Now it turned out, some of our best customers are security guards and the cleaners because they can’t get water anywhere. Nothing’s open at 2 am when they’re walking around. Isn’t that funny how just you often don’t know what your market’s going to be?”
34:22 “Everyone loves it, but no one wants to fund it. What the hell’s going on? So I probably would’ve gone down a couple of other projects if I’d known 8 years ago it was going to take 3 years for us to get started. Or if we do get stuck into another business ambush, made us enough money to get started in the end, but I would’ve probably done some of this stuff a bit sooner.”
In Nuclear Physics, the minimum amount of physical material needed to create a self-sustaining nuclear chain reaction is known as critical mass. The idea is that in a complex system, moving the honour threshold can suddenly unleash powerful self-sustaining change. In my experience, this is the same thing with Startup companies.
Enter a market too early, no matter how strong the Founding team, and you can be stuck waiting for days, months, years for a time that never comes and too late and you’re fighting an uphill battle against incumbents with the greatest scale.
In Startups, market timing is everything. In this podcast, I’m chatting with James Fuller, the founder of Hnry and I think James has timed his market entry perfectly. Hnry is a bookkeeping and accounting service solution that appeals to solopreneurs, the freelancers, the consultants who are working for themselves, I see this market rapidly expanding at the moment and I can see the tax system and the obligation that’s being put on these people increasing all the time.
Way back in 2016, whilst working as independent contractors, we realised that far too much of our time was spent reconciling transactions, using online calculator apps and making manual payments. We weren’t ‘running a small business’ – so why were we being treated as though we were? We had an accountant and accounting software, but that still required us to have to do a load of work ourselves! We decided to create a service that brought everything into one place, making self-employment as simple as having a permanent or salary job somewhere.
During 2017 we designed the Hnry service, working with tax experts from Big 4 accountancy firms (nice suits), legal experts from the top law firms (even nicer suits), and technology experts from some of New Zealand’s funkiest startups (nice beards/Star Wars t-shirts). We collaborated with government agencies to refine our service, and soon became an accredited tax agent of IRD and ACC. We ran trials with a handful of customers, adapting our service and learning what they needed. Towards the end of 2017, we were accepted into KiwiBank FinTech Accelerator, an amazing 3-month programme designed to help refine and scale NZ technology startups.
In early 2018, we finished our trial period, and released Hnry to the New Zealand market. We started scaling very rapidly, bringing on customers at a fast pace. To help us support this scale, we raised funding through investment from the Banking and Financial Services industry, as well as from Angel Investors and private individuals. This allowed us to bring on a great team of experts, to help support our rapidly expanding customer base.
You had to click that link?
Even after you clearly read that it said “don’t click this link”
So you clicked the link, did you do it because you were tempted or because you were curious? Is there a way we can use this in our marketing?
Brands, of course, are masters of temptation. If marketing is defined as, “the process of communicating the value of a product or service to customers,” then implicit in this practice is accentuating the positive aspects of what’s being sold. This technique is used not only in hawking goods but is also found in nature. Animals have been tricking each other by accentuating desirable traits for millennia. The process is called “super-normal stimuli” and it is a key to enticing action by creating the stress of desire.
Marketers tasked with increasing consumption of their company’s products have a difficult job; they are often charged with manufacturing desire. To do that, they need to find the customer’s problem, their pain, in order to alleviate it. Without a biological basis spurring our desire, there would be no sales. So marketers must at least accentuate, if not induce, a level of discomfort to make us crave their wares.
The products and services that provide immediate relief are those we come to depend upon most.
I suspect however that you really clicked the lin out of curiosity and not the temptation to, not do, as I requested.
George Loewenstein explains that curiosity arises when attention becomes focused on a gap in one’s knowledge. These information gaps produce a feeling of deprivation, which is an aversive psychological state (we don’t like feeling deprived!). We’re motivated to resolve this state by obtaining the missing information.
So you see, once you become aware of a link you became aware that there might be something on the other side of that link that you didn’t know about, and so you clicked.
This is the same way ‘clickbait’ titles are written, you let someone know that they don’t know something, and therefore you generate a better click-through rate because people have to ‘fill the gap’ in their knowledge.
So go on, armed with the theory of gap analysis, go and write a title that will tempt someone into clicking on one of your social media posts and reap the psychological marketing rewards.
on a final note, don’t click this link as it just links to the end of the internet
If you’re going to build a startup, and you want it to be successful, you need to solve a problem. And if you’re solving a problem, you’re solving it for a person, and what better person to solve a problem for than yourself. So many great Startups start by solving problems for the founder and this is exactly what Lachlan Palmer is doing with Kashy.
Lachlan saw a problem in the mechanic market, servicing cars and he went about fixing that problem for himself, and now he’s rolling it out to his mechanic friends.
After dropping out of school, Lachlan followed his love and passion for cars into a job as an apprentice mechanic earning a mere $300 a week. With few family and friends having a car or needing work done he didn’t have the same access to extra jobs as his fellow mechanics. This was when the first idea of Kashy came to fruition.
After working in the industry for 4.5 years and becoming a fully qualified mechanic Lachlan became disillusioned by the way the current system works. In his experience, he found the current operation of the industry to be a rip off for both the customers and mechanics alike – with vehicle owners paying exorbitant prices for services, while the mechanics were paid as little as a tenth of what the dealers charge per hour.
Since then he has put his effort into building Kashy, a business that shines a light on the current industry issues and fixes them by creating an ethical and fair trade for all.
Kashy coupon code: FRACTAL
So we’ve all seen positioning map in a standard Startup pitch, you know the ones where every company is to the top right-hand corner of the map. So a positioning map is a diagram drawn to illustrate the customers perception of the business offering based on price or quality of some other benefits, and how the perception compares against the competitors. In today’s episode, I’m going to dive into my ideas around positioning maps, and how you can use them with your Startup.
Do you suffer from Obscurity?
Most businesses just exist. Hiding in plain sight as the “best-kept secret” in their market.
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