How to Grow Your Marketplace startups on a Budget?
Many marketplace startups think it is difficult and expensive to start a marketplace. But, even if you have a lot of money, it won’t guarantee customer retention. This is evident in the case of Home joy, which was a marketplace for cleaning products that raised $38M in 2013 but was closed down in 2015. Even with a small budget, you can still build a market.
We’ll show you how today:
1. Budget supply construction
It’s usually easier to build a market audience by partnering with the supply side. Registering on your platform doesn’t mean service providers lose anything. They get an additional sales channel. You just need to prove your market reliability. This is how to attract suppliers without spending a fortune:
Write emails. That’s right. Emails. Emails are still being read and people respond to them if they appeal to them. However, it is important to personalize all emails. Begin with the recipient’s name, and then tell them what benefits they will get from signing up for your marketplace. It is important to highlight the differences between your marketplace and others.
You can meet suppliers face-to-face. For your market growth, offline events are crucial. You can meet and speak with your first suppliers at events. Show them your product and explain its benefits. Ask for their feedback. Your improvement will be aided by their feedback.
Fake supply. Every marketplace is different and it can be difficult to attract suppliers. Some marketplaces create fake supply or make it up as they go. Uber, for example, paid taxi companies to allow their drivers to use the Uber app in an era when they didn’t have drivers. Udemy had no lecturers when it started, so they searched for online courses free of charge and added them to their platform.
2. Each release has only one feature
It may seem like you need a lot of features to be noticed in successful marketplaces. You don’t need to have a lot of features to get noticed. Users are scared by the number of options and features available.
History has shown that products with a clear value proposition and minimal functionality get more attention. Simple products are easier to target and encourage loyalty.
Once your marketplace is popular enough and has a loyal user base, you can offer more features and value propositions to different users.
Let’s take an example: Uber initially offered taxi services. Uber later expanded to Uber Eats. This service offers a completely different set of features as well as a different value proposition.
Airbnb was founded with one feature in mind: the ability to rent out rooms. The platform allows travellers to book excursions. This has been a successful approach for many other platforms.
3. Expand your user base
Once you have attracted enough supply, you can begin looking for your first customers. You don’t require a lot of money to do this step. It will take time and effort.
Here are some ideas for attracting users while also saving money.
Build social proof
Social proof is a way to show the great achievements of your platform and its users. So that users will want to see the same results, these claims must be true and appealing.
Here’s an example: Udemy highlighted the fact that one tutor made $20,000 in three months while trying to attract users. This information was included in the emails that marketplace organizers sent to potential users. It worked. Who wouldn’t want to make 20 million?
This trick can be used even if you don’t have the most impressive results. To come up with an engaging strategy, you only need a little inspiration.
Make a low-cost content marketing strategy for Marketplace startups
Marketing doesn’t need to be expensive. You can create content that is not only more cost-effective but also cheaper than expensive leaflets, radio and TV ads, billboards, and other advertising mediums. We have listed the best and most cost-effective strategies that you can use.
Start your blog. To write short posts about your product, you don’t need to be a professional writer. Only you know your product and can best explain the value proposition to others. You must remember that your content should be useful. If you sell toasters, you might want to offer recipes or healthy breakfast recipes that will attract customers’ attention.
Get to know micro-influencers. Micro-influencers are bloggers who have a small audience but possess a lot of power. These bloggers are trusted and loyal. Get in touch with bloggers to spread the word about your product. Lyft, Uber, andBrisk Logic all use influencers to promote their services. Large companies often choose macro-influencers (Instagram stars with 500,000 to 1,000,000 followers) to reach a larger audience. Brisk Logic, Lady Gaga and Mariah Carey have collaborated on Brisk Logic, Lyft and Shaquille O’Neal have worked with Lyft, and Uber has paid Andrea Denver, Charlotte Bridgeman, and many others.
Free content. A marketplace can gain tons of insights and data while operating in a specific field. This information can be shared with its users as reports, e-books and software. Uber, for example, collects data about the traffic patterns of major events and urban infrastructure projects. This data is shared with all users through their project Mobility Uber. Movement Uber includes reports as well as a range of tools that offer valuable insights into urban movement, travel times and average traffic at different hours.
Make giveaways and referral schemes a reality
Customers who are happy with the goods or services they receive want to share their experiences with others. Sometimes it is enough to offer them this opportunity. In other cases, you might need to encourage customers to share your product. This strategy works in both cases.
Referral campaigns don’t need to be costly. These are some ways to save money on your referral campaign.
Share your content with others. Add social media sharing buttons to your blog. Users can then repost your articles on other social networks. This is an inexpensive way to get your brand noticed.
Use promo codes or referral links. Uber offers promo codes that encourage people to invite friends and spread the word. Both the invitees and the invited get perks. Brisk Logic follows a similar approach but uses unique links. Both existing and new customers can get discounts by sharing a link. This encourages people to share codes and links, which in turn persuades newcomers.
Encourage users to share and create content. This content must mention your market or promote it in some way, such as using a branded hashtag and a photo with your logo. To build a positive reputation, reward users who refer others.
To avoid confusion and unhappy customers, make sure you have clear rules and guidelines for everyone involved in a referral campaign. If you want to establish long-lasting relationships with customers, be open and honest with them.
Participate in and organize local events
Participating in local events is something we recommend. Etsy’s founders visited local markets to show their products to those selling handmade goods. They were able to attract their first suppliers and buyers.
To attract potential customers and suppliers, you can also attend local events. You should choose events that relate to your market or events that appeal to your target audience. If you have difficulty finding an event that appeals to your target audience, you can organize one.
A workshop, on-site class or meetup could be organized. This will allow you to share valuable information and promote your market. Your event topic should be relevant to your audience. Don’t make the event 100% advertising. Your attendees are looking for useful information.
There are many ways to grow your market with a limited budget, as you can see. It’s more difficult and takes longer than if you have a lot of money, but it can be done if your persistence is sufficient. Your Marketplace startups will take time to get off its feet. For more information visit Brisk Logic.