Project Description
Increased Revenue and Better Communication with Customers
Who:
A startup tech company that created a cloud-based tool to monitor and maintain beehives. Its clients include beekeepers, ranging from backyard hobbyists to full-scale honey farmers, who rely on this tool to keep their bees healthy, productive, and happy.
The Problem:
Like many other startup tech companies, it originally launched its marketing efforts with broad-based email tactics (“spray and pray” digital marketing) and used a freemium-based model to sell its product. Though the company achieved some initial success with these methods, it soon found itself with 16,000 unsegmented contacts and low rates of conversion from free to paid accounts. As a result, this startup tech company engaged a full-service marketing company to get their business back on track.
How the Problem Was Solved:
The company developed a marketing automation plan with a straightforward goal: Reach the right person, with the right message, at the right time. This included developing a segmentation strategy and implementing workflows and email drip campaigns to nudge the startup’s customers down the sales pipeline.
They segmented their users into three categories based on the size of their beekeeping operations: backyard beekeepers, sideliners, and commercial apiaries. This allowed them to send their customers only the most relevant information, nurturing them further down the pipeline.
While most companies make their customers fill out a form, the startup tech company decided to collect high-value information in increments to build their list of segmented customers. The company then emails the customers on those lists with content that is relevant to their indicated goals and preferences only. The startup tech company also created personalized communications that are action-oriented through a series of automation tasks, workflows, and emails designed to further segment its subscribers and cater to their particular interests and challenges.
The final step was to move unresponsive leads down the sales pipeline by adding a separate mailing list of unresponsive or inactive leads to receive tutorial emails about the next steps to getting their hive tracking set up (a demo, or features of an upgraded account). This dramatically improved the company’s conversion rates from free trials to paid accounts.
Here's Why They're Happy Today:
After implementing marketing automation this company created robust profiles for all of its customers for improved target marketing, increased engagement rates from 5% to 40%, and generated a tenfold increase in conversions from free trials to paid accounts.
It has been able to not only inform its clients and increase revenue, but also gain valuable insights into how the company can improve.
Additionally, this startup tech company discovered that most of its customers were from larger businesses, so it developed a club edition of its application to better target that segment. The company also learned that 70% of its leads use iOS operating systems on their cell phones, and has begun creating an iPhone app to further reach customers.
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