Ask HN: how to acquire customers which are small businesses via internet?
We are building a service to help small business manage data they have in the cloud. We got to point that we are profitable but growth is anemic.
We have the problem that somehow majority of people signing up to our service are not at all potential customers.
Majority of blogs and advices we got are actually about how to acquire customers in consumer segment.
There is very little blogs on how to acquire customers which are small businesses (real estate, etc.) via internet.
Any ideas?
28 comments
[ 3.4 ms ] story [ 49.7 ms ] threadIf it proves to be effective, you could invest more time and energy on using SEO to target those words.
Also, how are your competitors acquiring customers? That would be a good starting point.
Do you have a assistant program where independent agents can go and sell to small businesses and get a commission from you?
We are also building solutions for small retailers and (in our case being in India) we are doing direct sales.
Are you aware of any online service which can automate for us sending of sales letters and brochures? Something like sendgrid but for letters / brochures.
There's also a whole industry of fulfillment houses for direct mail, but in my experience they're pricey and very traditional in their approach (sales-people, couriered proofs, no/printed analytics reports etc).
If you're going to do this regularly you can save a ton of postage by signing up for a business account with the PO and pre-printing the envelopes in a special format (although I always wondered if hand-writing would boost the conversion rate).
Also, try postcards rather than letters as USPS postcard rates + biz account will let you get your rates down to < $0.20/mailing - but sales letters may have a far higher conversion rate depending on your product, making them worth the extra postage.
Blogging is a good thing. Try to get your blog syndicated. Try to make your web site useful enough that your target audience comes back for more stuff all the time (think Amazon reviews here as something which has this function).
Don't be shy about hiring a real marketing firm either. Tradeshows are good but be prepared and make sure you put in the time ahead of time to ensure your marketing material is tailored to the audience at the trade show.
Pursue PR at every opportunity. Think of PR as something that infects everything your business does. (EDIT: Tech support is PR in a different context, for example.)
Also pursue strategic partners, even if that is with the competition.
Once you have a bit of a name for yourself, start advertising.
Hope this helps.
It also depends on "how small". Are we taking store front shops or companies with 50+ people? Small to me is a company with under 25 employees. But You might have a different idea.
Ok some suggestions:
1. The local Chamber of Commerce (not the national group, but the local one). You probably have a few in your city. Pick the biggest. Join and start going to the networking groups. You'll need business cards, by the way. Oh and since you mentioned Real Estate - The Chamber always has lawyers and Real estate agents in attendence . :)
The Chamber also hosts leads groups and other events where you can showcase your services.
2. Another example, assuming you selling to the geeks that work at these business, the local tech meets. In FTL Microsoft hosts monthly meetings/parties. Doesn't matter if you run MS or not. Everyone trolls through it at one time or another. A great place to be networking. Again bring, lots of business cards.
There are various other events. But really.. you have to go where your customers are.
Also, fine turning your google search is a good idea. But if you selling to this market, don't expect them to find you on google. In fact, they probably don't know what you do. So you gotta train your potential customer. The Chamber events are great place for this; proving to your potential customers why they need you.
Also if you selling nationally your best bet is to setup sales people in those areas who can work off commissions. Sort of what the local carriers do.
I would add that you can't underestimate the non-traditional forms of marketing. Pick a sub-segment of your business. If you sell widgits, chances are some people specialize in dark green widgits from France. Find out if there is a French Dark Green Widgit Trade Journal, and see what their rates are. Find out if there is any specialized software which these people use, and see if you can talk to those vendors about advertising. In my experience, unless you're doing extremely specific Ad-Words targeting, most of the usual online "wisdom" is completely useless when it comes to targeting small businesses (which is tragic, since they're such a huge market).
I'm not sure official sales people are going to work, given that they're having trouble getting initial traction. I would think this would be more effective once they've gained some momentum.
Before you go crazy on channels online it might be a good idea to think through why they go online and what their intent is when they are there. Maybe its to socialize with friends/kids/family on Facebook, but more likely it is to do research or read the news.
Research = Search will probably play a huge role in your business getting discovered
News = PR is the way they're going to discover you without doing an explicit search
I would also go where the small business owners are - FORUMS! Find out where they are talking and get yourself and your company into the conversation. These forums and communities are usually segmented by industry: real estate, hospitality, restaurants, beauty, retail, etc. and then sometimes even sub-categories within that
My gut says you will probably have to combine online self-service sales with some amount of more direct sales to make this work. If you have something free that they can play with and give you their email for, then a followup email or phone call within 24 hours could go a long way toward winning them over (and you'll come to understand them better in the process)
After that, since small businesses don't think of themselves as "small businesses" but rather as "law firms", "hairdressers", "financial services", etc, you niche like crazy and target each of those with dedicated landing pages / etc. This, again, assumes that "law firm cloud data management" is something which anyone in the world is actually looking for.
IME your limited resources for targeting hair dressers / law firms / etc... is still the old fashioned way: footwork, cold calls, trade shows, etc...
Here's a small sample of the information you'll get:
* Business Name
* Address
* Contact Information
* Number of Employees
* Number of PCs
* Location Sales Volume (in dollars)
* Credit Rating Score
* Names of Management and their Titles
* $ spent on accounting
* $ spent on contract labor
* $ spent on advertising
And this information is all free to you thanks to your local public library. Here's how to get access to it:
1) Get the NAICS code for the industry you're selling to. This code is used by the government to classify businesses. http://www.census.gov/eos/www/naics/
2) Go to your local library to access the ReferenceUSA online database. You may even be able to do that through the library's website (I can through mine).
3) Click on U.S. Businesses under Available Databases
4) Customer Search
5) Enter the NAICS code in one of the boxes at the bottom of Business Type -> Keyword/SIC/NAICS.
1. LinkedIn Ads - Expensive but you can setup the targetting options to show them to, for example, only: 'CEOs/Managing Directors/Owners of companies with 10-50 employees'
2. Business networking events - Not internet based but perhaps you could set up some kind of affiliate scheme?
3. Referrals - LOADS of our sales come from referrals. Try incentivizing or just asking your happiest customers for referrals.
4. Free workshops and educational events - Perhaps run webinars on how the cloud can help small businesses or what a CRM system is? Include a short and non-pushy sales pitch on your services plus a special offer for attendees only in the last 5 mins of the talk. We run seminars on marketing metrics and planning - people love them.
Good Luck!
Here comes the non-shameless plug, BuiltWith TrendsPro might be a good tool to find these sorts of businesses.
http://www.ericward.com/ http://www.urlwire.com/#FAQ
They used to be Fwix, but saw this huge opportunity and shifted to saas.
The latter is closer to selling to consumers than businesses - you deal directly with the principals and they pay you directly. Some things I learned from selling IT services to these clients as a young entrepreneur:
1. They are frugal. $1000 is considerable sum of money to them (even if just psychologically). They are very wary of subscription services/increasing their fixed outgoings and prefer to just fix stuff when it breaks.
2. They care about saving money and saving time, in that order. Anything that does not contribute to the core business function is extraneous to requirements. They will spend money on things you can directly show will save them time/money. Selling backup services or preventative maintenance is difficult until they have a disaster and see how expensive it is to clean up.
Companies who have scaled this market successfully and should be studied are Vistaprint and GoDaddy. Hostgator, Hubspot and Wix/Weebly are also successful companies in this space who operate mostly online and with smaller budgets (ie. no superbowl ads, but scaling SMB marketing is still going to be expensive).
Any other good small biz web companies who have good marketing? I'm also interested in this space as it seems like there is a huge opportunity there, but after a few years of looking for the best way to target them I'm wondering if it's just a tempting mirage on the horizon - promises of untold riches, but you'll get dashed on the rocks trying to reach them.
I don't think this is true. For most businesses saving time is more important than saving money, but with a big caveat. Your service needs to actually save me time, not save me time "once I change my business processes and learn how to use your service." So if your service can save time right out of the box, businesses are not only more likely to pay for it, but they'll also probably pay more.
Of course, a necessary precondition is whatever your selling needs to solve a problem businesses believe they have. So if you're not solving a problem businesses believe they have, even if you're giving it away, few businesses will use it.
The flip side is if you're solving a problem businesses believe to be important, companies are more willing to invest a lot of time if they believe the end state will be substantially better than where they are now.
Once you have validated the idea the real work starts. Yet you already have a group of people that validated your idea by stating that they do indeed need what you offer. Great.
This is where your marketing campaign starts. I would start by sending them a free informational package (can be an email) regarding the stuff you both talked about. Then send them a monthly newsletter about how other businesses like theirs have brought your product (and how they love it and couldn't live without it). Call them every few weeks to say hello and to offer them some limited time promotion. Just be nice, and don't be sleazy. I would suggest that you also send them a newsletter that has nothing to do with your product, but everything to do with them ( as a person). I've sent out newsletters about positive news, and people still ask if I plan to send more (or when).
Now, read patio11's post. Realize that there is no such thing as a small business. Just people doing a type of business. Don't market yourself as a "small business product", but as a law firm information technology expert or as a beauty salon technology consultant. Give yourself the title of expert in their specific niche, and let them put you on a pedestal. After all, you know your stuff. Nothing wrong with bragging. Adapt this technique to what I said above. Instead of sending out one generic newsletter to everyone, send one newsletter to law firms, one to beauty salons, one to mechanics, etc. The same newsletter, but with a slightly different design. Hire a low cost graphic designer to do this for you. It doesnt need to be fancy, just easy to read. Oh, and keep it short. 3-4 pages is enough. Use 14point font for easy reading.
Since you are programmers, you can really automate most of this stuff. Now, I suggest you get some part-time help with the marketing side of things. Dont try to do it all, or you wont do shit.
Good luck.
PS. Email in profile if you have any (short) questions. =)
Once you have validated the idea the real work starts. Yet you already have a group of people that validated your idea by stating that they do indeed need what you offer. Great.
This is where your marketing campaign starts. I would start by sending them a free informational package (can be an email) regarding the stuff you both talked about. Then send them a monthly newsletter about how other businesses like theirs have brought your product (and how they love it and couldn't live without it). Call them every few weeks to say hello and to offer them some limited time promotion. Just be nice, and don't be sleazy. I would suggest that you also send them a newsletter that has nothing to do with your product, but everything to do with them ( as a person). I've sent out newsletters about positive news, and people still ask if I plan to send more (or when).
Now, read patio11's post. Realize that there is no such thing as a small business. Just people doing a type of business. Don't market yourself as a "small business product", but as a law firm information technology expert or as a beauty salon technology consultant. Give yourself the title of expert in their specific niche, and let them put you on a pedestal. After all, you know your stuff. Nothing wrong with bragging. Adapt this technique to what I said above. Instead of sending out one generic newsletter to everyone, send one newsletter to law firms, one to beauty salons, one to mechanics, etc. The same newsletter, but with a slightly different design. Hire a low cost graphic designer to do this for you. It doesnt need to be fancy, just easy to read. Oh, and keep it short. 3-4 pages is enough. Use 14point font for easy reading.
Since you are programmers, you can really automate most of this stuff. Now, I suggest you get some part-time help with the marketing side of things. Dont try to do it all, or you wont do shit.
Good luck.
PS. Email in profile if you have any (short) questions. =)