Startups don’t need to go viral to win customers
At TechCrunch Disrupt last week, two founders and a VC discussed how to not just gain an early following but keep one.
Key points
- Gamma's Grant Lee said creator marketing works only when creators understand how to articulate a product's value.
- Engine's Elia Wallen said his company reached $150 million in bookings without a visible social media strategy.
- Google Ventures' Crystal Huang said usage data and super fans can show whether customers will stick around.
At TechCrunch Disrupt last week, three startup leaders shared advice on attracting and keeping early customers: Elia Wallen, founder and CEO of travel startup Engine; Grant Lee, founder and CEO of Gamma; and Crystal Huang, general partner at Google Ventures.
The panel addressed whether social media is the best route to early customers, a question raised by young AI companies whose founders build large audiences online.
Gamma's creator strategy
Gamma, which sells AI-powered presentation software, grew through an influencer program it called its Ambassadors, or Gambassador, effort, and later reached a multi-billion dollar valuation, according to the article.
Lee said giving influencers a platform does not by itself produce sales. He said companies serving many segments should work with creators who can target each one, and that founders should spend real time with creators. "If they're not able to understand how to articulate the value of your product, it doesn't matter how much money you spend," Lee said.
The phone still works.
— Elia Wallen
Engine's offline approach
Wallen said Engine, which manages lodging and travel bookings for midsize businesses, bootstrapped its way to $150 million in bookings before taking outside funding and had no visible social media strategy. He described traditional tactics such as events and phone outreach, saying "The phone still works."
He also described hiring a magician named David to perform for prospective clients at events and draw them to Engine's booth.
Huang said founders should study how customers use a product, including whether usage is recurring or increasing and whether customers refer friends, and should find ways to create passionate evangelists.
