2023 was a good year for startups! The UK saw a remarkable surge in entrepreneurial activity over 12 months, with a record-breaking 900,000 new companies freshly incorporated. Thatâs an increase of 12% from the previous year!
This huge growth, noted by NatWest and Beauhurstâs New Startup Index, underscores the UKâs robust entrepreneurial spirit despite some extremely challenging economic conditions. Sectors such as online retail, property, and street food stalls have all seen significant expansion. Northern Ireland leads the regions with a staggering 59% increase in startups, followed swiftly by London and Scotland.
Amidst this backdrop of frenetic business activity, tech startups continue to thrive and evolve. However, many new ventures stumble by making critical marketing mistakes that can hold back their growth and sustainability.
Lack of a Defined Target Audience
Many startups are guilty of rushing into the market without a clearly defined target audience, often leading to scattered marketing efforts and wasted resources.
According to a CB Insights report, start-ups often fail to engage effectively with their potential customers, which can be attributed to a lack of understanding of their audience’s needs. Not addressing âmarketing needâ properly causes 42% of startups to fail.
Underestimating the Power of Branding for Startups
Branding is another area crucial for startups to establish trust and recognition in the marketplace. Neglecting this area can make it difficult to differentiate from competitors. Statistics, from a report by Lucidpress, indicate that consistent brand presentation across all platforms increases revenue by up to 23%â
Ignoring the Value of Content Marketing
Content marketing is often misunderstood too. Itâs not just about producing content – it’s about creating meaningful engagement with potential and existing customers. Despite its importance, few startups have a documented content marketing strategy.
Overlooking SEO and Organic Search
Search engine optimisation (SEO) has been proven to significantly increase a website’s visibility and organic search traffic, yet many startups overlook this powerful tool. Many will opt for splashing their cash on PPC programs before examining the long-term benefits of SEO.
Inadequate Use of Social Media
While social media can be a powerful channel for engagement and branding, many startups donât use it strategically or consistently. Whilst 77% of small businesses use social media for sales, marketing, or customer service, most donât plan out how theyâll use each social platform. Another mistake is using the wrong channel to reach their audience. Itâs worth taking time to speak to an expert agency about how to get the best value from social media marketing.
Failure to Measure and Analyse Data
âKnow your numbers is a fundamental precept of businessâ â Bill Gates
Without data, marketing remains pretty much guesswork. However, there are difficulties in calculating ROI in digital marketing due to specific activities not being tied directly to revenue i.e. brand awareness. Correct use of call-to-actions (CTAs), landing pages, trackable links, website traffic etc. can all be used to analyse marketing objectives – but you need to know what you’re looking for and why.
Neglecting Customer Feedback
Ignoring customer feedback can lead to products and services that do not meet market expectations. Almost all customers say customer service is important in their choice of loyalty to a brand, which reflects the importance of listening to feedback. Ignore customer feedback at your peril!
These points are just the beginning of understanding the importance of a comprehensive, data-driven marketing strategy. However, addressing these common mistakes can significantly improve a startup’s chance of success, market reach and longevity.
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