The first few years of a startup focus mainly on surviving in the market and establishing a dedicated clientele to keep up with the competitors. For that, startups need several resources such as proper business development, growth marketing, and digital marketing.
However, digital marketing is at the forefront of this because the rest of the things depend on customer data, and your setup won’t have any user data unless you market your services to them. This article will highlight why startups that don’t fully utilize digital marketing often fail.
Why Startups Are Prone To Failure?
Unlike established businesses, startups are volatile, meaning if growth efforts are hindered in any way, they will not survive the market. This isn’t an issue with established companies because they have enough funds to handle minor setbacks. But for startups, a small hurdle could mean death.
Moreover, startups don’t have enough customer loyalty to keep clients from switching, and their funds are limited, so they can’t afford expensive contingency plans. But that’s not all. Some startups overestimate their initial success and make future plans that aren’t realistic enough and often result in failures, making it difficult for startups to survive in a competitive market.
Common Reasons Why Startups Fail Because Of Digital Marketing?
Not Enough Customer Reach
Everyone’s online in today’s digital age, and if your business isn’t, it won’t go far enough. Most companies and startups rely on social media apps and internet searches to reach their customers and get them interested in their business.
Moreover, if the competitor offers reliable products or services, it’ll be harder to win back customers. So startups need to utilize all digital marketing options to make sure that they reach their target audience first.
Under Utilizing Marketing Channels
Most startups make the mistake of sticking to one form of digital marketing, be it SEO or social media while neglecting other channels. This makes it harder for them to reach people who might only use one type of digital channel and lose potential sales. A sound digital marketing strategy utilizes all the channels available for maximum reach.
Moreover, the more marketing channels your startup uses, the more popularity it will have. People who wouldn’t use your services normally might give your business a try if they’re ever in need of such services.
Not Availing Personalized Ads
Personalized ads are one of the best things to come out of social media from a business point of view. Your company can show ads to potential customers based on their user engagement data allowing you to reach people who might be searching for similar services.
With personal ads, you can market each of your services individually instead of as a group. That way, you can narrow down your target audience even further and find clients that might only be interested in highly specific services and would not interact with your ads otherwise.
Not Having A Strong Online Presence
Digital marketing isn’t limited to posting online and optimizing search engine rankings. This also involves having an organic online presence achieved when your company interacts with customers. These customer interactions can be in the form of blogs and articles that highlight your services and convey additional knowledge about their benefits and usage.
On the other hand, interaction can also be on social media in the form of comments. When your company responds to a customer’s query on a post. It makes them feel appreciated and more likely to convert. Moreover, they might talk about their interaction with others that would create goodwill about your startup among other people.
Not Ranking On Search Engine
A significant part of digital marketing is making sure your website ranks high on search engines. So when a potential client looks for such a service, their search engine can highlight your company. But many startups are focused on social media marketing that they overlook the benefits of SEO optimization.
Social media can help you run targeted ads. But with SEO, you can be sure that your services would rank higher than your competitors. This gives you a competitive advantage and better chances to capture the market.
Interested in optimizing your startup’s growth and increasing your customer base ? Take a look at Business Growth Managers. They are a top-notch growth marketing agency in Manhattan that uses data-driven techniques to optimize client conversion and increase your revenue. Besides growth marketing, the company also offers digital marketing, social media marketing, and business development services to startups. Their services can help you accelerate the growth of your business in no time. So check out their services and get in touch with them today.
About The Author
The author is a digital growth marketing consultant who runs his own company. He’s worked with several startups to optimize their growth in the first few years. He also runs a blog and is currently interested in writing a book on digital growth marketing.