March 2, 2014
Online marketing is one of the most profitable channels to invest in during 2014 and beyond. Startup founders can be lured into spending huge amounts on ads and other website promotion strategies. The reason is obvious: many people can be reached for a few hundred dollars, which is nearly impossible in other forms of traditional advertisement strategies. However, the urge to earn more within a short period of time makes the business owner commit certain unknown mistakes that they should try to avoid instead.
For a large business, cost isn’t as much of a make-or-break scenario. But, for startups, it can ruin a newly established business if things get out of control. Therefore, it is important for new businesses to choose marketing channels according to their service and test the ROI before they make the complete investment.
Let us discuss the top 5 mistakes every startup must avoid while investing in online marketing.
1. Don’t Start Investing Unless You Have Your KPI Set
The very first step every business must take is the identification of KPI, a.k.a. Key Performance Indicators. KPI’s are really effective in determining the actual benefits of any marketing activities which may or may not be based on monetary terms.
Oftentimes startups make the mistake of early investment without actually finding what their business needs in order to succeed.
2. Don’t Put All Your Eggs in One Basket
Here’s one of the famous proverbs which simply means, don’t invest all your money on a single marketing channel in the context of online marketing. Internet marketing conists of a variety of channels like search engine optimization (SEO), social media optimization (SMO), email marketing, search engine marketing (SEM), affiliate marketing, etc. Every channel plays a separate role based on the KPI’s generated as a first step. One channel may promote the brand while the other might generate the lead. So, a proper coordination between the different channels is required before profits starts flowing in. One of the best tools you can use for finding the role of each channel in a conversion is by configuring Google Analytics and tracking attribution modeling. An analysis of attribution modeling will identify the exact percentage of contribution that each channel is generating in a successful conversion.
3. Getting Excited From Early Conversions
I have seen brands getting super excited from early conversions. Conversions are always good, but the secret lies in continuous conversions and not heavy conversions. Startups should carefully plan a strategy that can aid in providing a continuous flow of conversions as opposed to bouncy ones.
If your startup gets too many early conversions, then instead of getting excited, quickly plan a strategy to retain the flow of conversions.
4. Neglecting the Communication Gap and Concentrating on Less Important Issues
There must be a proper form of communication between the junior-, middle-, and senior-level management. Also, there should’t be a communication gap between the business and the customer. One of the biggest mistakes startups make is not coordinating properly with the junior level management who might not know what the senior level is expecting from them.
In terms of online marketing, the executives must know about the KPI’s and the optimum channels of conversions. There should be coordination regarding the time they must spend in each and every channel in order to get the maximum return on investment (ROI).
5. Losing Patience or Expecting Too Much, Too Early
The biggest issue that almost every startup faces is losing patience. They start expecting too much at an early stage and ultimately start to tumble when they could have succeeded in the long run. Patience is the key in online marketing. Once you have a proper strategy in place, have patience and let the strategy be completed in stages. Implementing the strategy in stages has many benefits. Rather than expecting instant conversions, set your sights on achieving smaller successes over time.
Startups are the future; who knows where they might stand in the ranks of Google, Facebook, Twitter, Skype, WhatsApp, etc. Let me know your comments regarding this article, or if you know about some other mistakes that startups often make, please share them in comments below.
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