The Power of Free - For Entrepreneurs: How Curated Content Supports the Customer Lifecycle

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Sep 15, 2023
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The Power of Free - For Entrepreneurs: How Curated Content Supports the Customer Lifecycle
In the world of entrepreneurship and business, customer acquisition is a crucial aspect. One of the most effective techniques for acquiring customers is the concept of giving away a free product or service. This strategy, known as the "power of free," has proven to be incredibly powerful in attracting customers and driving business growth.
The key to implementing a successful free or freemium business model is to ensure that the product or service being offered for free is of high value to the customer. By providing something that customers truly find valuable, businesses can achieve high customer satisfaction and increase the likelihood of customer referrals, leading to viral effects.
Unfortunately, many entrepreneurs and executives fall into the trap of not fully grasping the power of offering something of value for free. They often remove the features that make the product interesting and valuable, missing out on the opportunity to create a large customer base and gain market leadership.
However, the smart entrepreneurs and executives understand the importance of the power of free. They recognize that in a traditional business model, sales and marketing expenses are typically the largest expense. By offering a free product or service, they can acquire customers at a low cost and then monetize them in other ways.
A notable example of the power of free is the acquisition of SpringSource by VMWare. Although VMWare may have overpaid for SpringSource based solely on revenue multiples, the true value of SpringSource was its large base of developers committed to the free Open Source framework, Spring. This large customer base and market leadership made SpringSource an attractive acquisition target.
The importance of market leadership and a large customer base cannot be understated. Even if a company achieves market leadership by giving away a product or service for free, it is still recognized as a valuable asset by financial markets and potential acquirers. Market leadership often commands a premium over niche players, even if the latter may have higher revenue.
Unfortunately, some entrepreneurs and executives become too focused on extracting maximum revenue from every customer. This narrow perspective leads to slow and expensive customer acquisition and ultimately results in a small market share. The power of free shifts the expense of customer acquisition to the product development group, allowing for a larger customer base and increased market share.
Another strategy that supports the customer lifecycle and complements the power of free is curated content. Curated content refers to the practice of providing your audience with content that is tailored to their niche and saves them time. It is an essential part of a digital marketing strategy aimed at a specific audience.
The primary purpose of curated content is to build and nurture relationships with customers by demonstrating an understanding of their needs. It can take various forms, such as blog posts, social media posts, and email marketing. By sharing curated content, businesses can reach potential customers, engage with them, and position themselves as thought leaders in their industry.
Curated content plays a role in each stage of the customer lifecycle. In the reach stage, curated content helps businesses build relationships with potential customers and establish themselves as thought leaders. By staying visible and engaged with their target audience, brands can ensure that they are top of mind when customers are ready to make a purchase.
In the acquisition stage, curated content helps customers choose a particular brand or product. By providing valuable and relevant content, businesses can solidify the purchase decision and differentiate themselves from competitors. Curated content also plays a crucial role in retaining customers and ensuring that the company remains top of mind and relevant.
By sharing relevant content on social media and other platforms, businesses can incentivize customers to follow them, providing opportunities for upselling or cross-selling in the future. Additionally, sharing empathetic and helpful content helps build strong relationships with customers, fostering loyalty and making them feel like part of a community.
To leverage the power of free and curated content effectively, here are three actionable pieces of advice:
- 1. Focus on providing high-value free products or services: Ensure that the free offering is something customers find valuable and are likely to share with others. This will drive customer satisfaction and increase the chances of viral effects.
- 2. Embrace market leadership and a large customer base: Recognize the importance of market share and market leadership. Even if acquired through a free strategy, market leadership commands a premium and attracts potential acquirers.
- 3. Prioritize curated content in your digital marketing strategy: Invest in creating and sharing curated content that resonates with your target audience. By demonstrating an understanding of their needs and providing valuable insights, you can build strong relationships and foster loyalty.
In conclusion, the power of free and curated content are two powerful techniques that entrepreneurs and businesses can leverage to drive customer acquisition, retention, and loyalty. By offering high-value free products or services, businesses can acquire customers at a low cost and monetize them in different ways. Additionally, curated content helps businesses build relationships with customers, establish thought leadership, and stay top of mind. By incorporating these strategies into their business models, entrepreneurs can position themselves for success in today's competitive market.
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