How Startups Can Attract and Retain Early Customers

Finding an initial audience remains a brutal hurdle for early-stage companies, even as digital platforms promise frictionless reach. At the TechCrunch Disrupt conference last week, industry leaders gathered to share how startups can attract and retain early customers without relying solely on viral internet attention.

Targeting Use Cases Through Creators

While young artificial intelligence companies build large audiences through colorful online presences, social media requires strategic execution, according to Gamma founder and CEO Grant Lee. Gamma, which sells AI-powered presentation software, scaled exponentially by deploying influencers through its Ambassadors program before influencer marketing became a standard playbook for smaller firms, eventually reaching a multi-billion dollar valuation.

However, Lee cautioned that founders cannot treat creator marketing as a set-it-and-forget-it tactic. If you have a product that can serve many different segments or use cases, then you want to basically have creators that can target each one of those, Lee said. He added that founders must spend significant time with creators so they understand how to articulate the product’s value properly, warning that if they’re not able to understand how to articulate the value of your product, it doesn’t matter how much money you spend, it’s just going to fall flat.

Leveraging Traditional Sales and Offline Tactics

Other panelists demonstrated that traditional offline methods can prove just as powerful as digital strategies. Elia Wallen, founder and CEO of travel startup Engine, bootstrapped his company to $150 million in bookings before taking outside funding and operated without any visible social media strategy.

Instead, Engine relied on live events, phone outreach, and personal engagement. We did events and we smiled and dialed, Wallen said, noting that many companies miss out on a large offline client base because they refuse to pick up the phone. During its scrappy early days, Engine even hired a magician named David to perform tricks at events and draw prospective clients to the company’s booth.

Analyzing Usage Data and Building Evangelists

Focusing on retention after acquisition is equally vital for early-stage companies. Crystal Huang, general partner at Google Ventures, advised founders to analyze early usage metrics to understand customer behavior.

Startups don’t need to go viral to win customers
Photo: wireunwired.com

Can you look into usage data and figure out if it’s recurring, if it’s increasing, if they are referring their friends? Huang asked, emphasizing that insights can be derived from early usage and retention information. Startups should look for super fans who want to work at the company, promote the brand, and become truly passionate product evangelists.

How Do Early Stage Startups Get Their First 10 Customers?
Photo of author

Sophie Lin - Technology Editor

Sophie is a tech innovator and acclaimed tech writer recognized by the Online News Association. She translates the fast-paced world of technology, AI, and digital trends into compelling stories for readers of all backgrounds.

Wall Street Major Indexes Closed Lower to End Rocky Week