Getting Your Startup's First Customers: Targeting Effectively
Written on
Chapter 1: Understanding Your Target Audience
When launching a startup, do you know who your ideal customers are from day one?
I recently spoke with an entrepreneur who was understandably frustrated. He felt that the guidance he had received about acquiring customers from various so-called experts was ineffective.
"I've been inundated with advice on creating 'ideal customer profiles' and similar concepts," he lamented. "I've conducted numerous interviews and engaged in all the usual 'customer discovery' practices. I genuinely believe I'm reaching out to customers who would benefit from my product. Yet, no one is purchasing. How can I tell if my sales skills are lacking, or if my product simply isn't viable?"
"I can’t provide a definitive answer," I replied, "but I might assist you in figuring it out."
"Please," he implored, "I would appreciate any help. Attracting customers feels like an insurmountable challenge."
Firstly, it’s essential to acknowledge that he was correct—acquiring customers is indeed a daunting task. The initial phase of customer acquisition is particularly challenging. Even if you have a vast market in mind, only a small fraction is likely to be your ideal "first customers."
Why Customer Acquisition is Challenging
Every entrepreneur and startup expert emphasizes the significance of customer discovery, which involves pinpointing your target demographic and grasping their needs, pain points, and aspirations.
While this expectation is reasonable, it often overlooks a crucial element: people tend to resist change.
This isn’t to imply that potential customers are inherently lazy or negative. Rather, they have established routines regarding the products and tools they use in their daily lives. They typically won’t alter these habits unless they see clear, undeniable value in doing so.
Due to this tendency, simply conducting "customer discovery" to identify your "ideal customers" is not sufficient. Founders need to locate a specific subset of ideal customers who are not hindered by this resistance to change.
Crossing the Chasm: A Key Concept
To grasp the distinction between "first customers" and "ideal customers," it’s useful to refer to Geoffrey Moore's concept of "crossing the chasm."
In his book, aptly titled Crossing the Chasm, Moore outlines the significant gap that innovative products must bridge to reach mainstream consumers. This gap separates "early adopters," who are enthusiastic about new technologies, from the "early majority," who focus more on practicality and proven benefits.
Understanding this concept is vital, as it illustrates that customers are not a uniform group, and the process of customer adoption is not one-size-fits-all. Thus, the idea of product-market fit, essential for entrepreneurs and investors alike, can be somewhat misleading—markets evolve alongside the adoption curve. In the early stages of a startup, recognizing this nuance is crucial for refining your customer acquisition strategy, shifting your focus from "ideal customers" to "first customers."
The Mini-Chasm: A Deeper Look
While Moore's framework effectively distinguishes between early adopters and subsequent customer groups, it doesn’t sufficiently analyze audiences in the crucial early days of customer acquisition.
The early adopters Moore describes are not a homogeneous group. They are individuals who appreciate the value of being the first to explore new tools and technologies but are also cautious about their choices. Therefore, not every early adopter qualifies as a "first customer." There exists a mini-chasm between "first customers" and the broader early adopter category, which is the demographic that founders should prioritize from the outset.
Identifying these vital first customers—whom we can refer to as "earliest adopters"—requires targeting those who are already seeking new solutions. These customers are generally motivated to find alternatives quickly so they can return to their usual routines.
There are two main scenarios where potential customers fit this description:
- The customer has identified a need for a better solution than what they are currently using and is actively searching for alternatives.
- The customer is facing a problem for the first time and lacks an existing solution.
Individuals who fall into either of these categories are ideal "first customers" since they don’t require persuasion regarding the inadequacy of their current options, making the initial customer acquisition process less daunting.
Eventually, all entrepreneurs must convince customers to break free from their habitual choices and try something new. However, this task becomes significantly easier once a foundational group of earliest adopters is established, whose positive experiences can be showcased.
Before achieving that momentum, you must initiate the customer acquisition journey by targeting this special subsegment. It can be a challenging endeavor that may lead to frustration. Remember that customer growth is not linear; it’s exponential. No one starts with thousands of customers. Instead, securing a few sales in the initial month can set the stage for a surge in sales down the line.
Want more insights into startups and entrepreneurship? Take advantage of my (FREE) mini-course right now!