The Future of Marketing is Happening at Startups

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I remember a time when the best marketing examples I could point to came from marketing teams at big companies not startup marketers. When traditional media was one of the key ways to get the word out about an offering, big budgets and big teams were necessary to do successful marketing.

Oh how things have changed. And for startup marketers, the world has changed in their favor.

Today in many ways the deck is stacked against the way larger companies have traditionally marketed in the past.

  • Buyers are becoming blind to mass advertising as it becomes more and more pervasive.
  • Buyers don’t trust brands the way they used to and as a result, traditional “push” marketing doesn’t work the way it used to.
  • Buyers have access to more information than ever before so they can do their own research without talking to a vendor until very late in their purchase process.

On the other hand both buyer behavior and new marketing tools and techniques favor a more customer-focused, metrics-oriented, agile marketing operations approach. Working with both smaller and larger companies I see startup marketers adapting quickly while the bigger companies struggle to adjust their teams and processes.

Here are a few ways I see startups being smarter about their marketing operations and marketing team structure:

Marketing is eating sales: Buyers don’t want to be sold to and have access to more information than ever before. Increasingly by the time a buyer reaches your sales department, there isn’t much selling left to do. It’s now marketing’s job to get in front of those prospects by providing useful content that reaches these buyers where they go. Startup marketers are serious about tracking a pipeline and in many cases, managing and directing the inside sales teams themselves. From the earliest stages of a buying cycle through to product renewals, marketing is managing and optimizing the flow.

Getting Serious About Data: Part of managing this is taking a hard look at metrics that matter and understanding how those metrics translate to revenue. While big companies are still getting their arms around how to measure traditional media purchases, startups are hiring programmers and data folk as part of the marketing team to better understand how buyers buy. Big companies with larger investments in traditional media that is more difficult to track are trying to get their arms around the numbers but are not using them operationally to the extent that startups are.

Short Cycles, Fast Adjustments: Startups aren’t just tracking data they’re watching it in near real-time and making adjustments on the fly at a pace that makes the big guys look incredibly slow. Rather than looking at Weekly or Monthly reports, most smaller companies have dashboards tracking key metrics that are continuously available. Much like the way startups were quicker than their larger counterparts to shift from long waterfall development cycles to agile, smaller companies have been quick to adopt more agile, short, iterative marketing planning cycles that allow them to run experiments, analyze results, adjust and improve very quickly.

Marketing isn’t always a department (or even called “Marketing”): Sales isn’t the only department getting mixed up with marketing. Smaller companies that are seriously focused on customer acquisition are making it a priority across the company. The development teams at startups are looking at ways products can be designed that will help make the job of customer acquisition easier. Features that show off that a customer is using the product, features that make it easy to tap into and interact with a users’ existing social graph, features that produce automatic or user-created notifications have now become common among startup offerings. In more established companies we see less of this marketing mindset in development teams. Increasingly the line around the marketing department is blurry at small companies. As marketing becomes more product, sales and metrics oriented, we move further and further away from a traditional “creative” or “advertising” definition of “Marketing”. Startups in particular are rapidly moving away from using the word to help clarify what they want the outcome of marketing to be and we are seeing Chief Revenue Officers, Chief Customer Officers, Head of User Acquisition, and Growth Hacker being used to describe the head of marketing.

What do you think? Do you think startups are blazing a trail for marketing in terms of organization and operations?

 

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All about: Operations, Startups | 2 Comments
  • http://blog.marketo.com/ Jon Miller

    Spot-on post, April. The question I have is what makes the bigger companies less agile when it comes to marketing? The fact that they have the budget to spend on big, mass advertising is not what makes them unable to embrace the modern methods you describe. So what is it?

    Is it because start-ups need to be more innovative to stand-out and thrive with limited resources? Or is simply the age-old fact that smaller companies are always more nimble, and in today’s buyer-in-control world the value of agility is exceeding the value of a big budget?

    • http://www.rocketwatcher.com/ April Dunford

      Hey Jon,
      Good question (and thanks for the comment)! I think there are a bunch of reasons for it. One of the big ones is that change happens slowly at bigger companies – especially where you are changing tools, processes and the team structure. What happens instead is they try to make incremental changes – we’ll measure a few more things, we’ll add a data analyst to the team, we’ll try to squeeze more out of our tools – but when you get in the end just isn’t the same. A brand new company on the other hand doesn’t have the baggage of existing employees, tools, processes so they can re-invent the world. They can sit down and say – OK we are going to focus our energy on inbound so what are the right tools for that? Who should we hire to manage that? How should we be organized to make that work?

      That said, I agree that startups are forced to be more creative because they have more limited budgets and small teams can move quickly but I don’t think that explains all of it. A data-driven mindset is more of a cultural shift in my opinion. If you don’t have that culture to start with, it’s harder to change.
      April

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