8 Marketing Mistakes for Startups to Avoid – and What to Do Instead - Part 2

Startups don´t fail because the idea is poor, but because the marketing strategy is not optimal, a report from Failory shows that marketing-related mistakes account for over 50% of the reason why companies fail. Building a brand and growing at the same time is a difficult balancing act, but there are patterns in what goes wrong. Here are the last four of the eight common marketing mistakes startups make, and how to move forward and build a kick-ass company.

5. Don't just be where everyone else is - prioritize the right channels and tactics

Worst-case scenario: You're present in the same channels, but don't reach out widely enough or with new angles - and crash-land as quickly as you took off.

Do this instead:

• Choose channels based on learning from market and target audience analyses

  
  

• Prioritize a few channels that provide the highest value (own, purchased, and earned)

  
  

• Dare to stand out where everyone else is fighting for attention

  
  

• Find alternative ways to reach customers, can you capture attention in surprising and new ways? Maybe you should think traditionally like partnerships, events, and communities and not just fight in the same digital channels?

  
  

• Build SEO and GEO/AIO strategy so you are found in search and AI tools when the need arises

  
  

6. Don't chase short-term sales - find the right balance between branding and sales activation

Of course, revenue and growth are about survival for startups as measured by revenue, ARR and pipeline growth. But it is proven that brand building activities drive more sales in the long term than short-term sales activation initiatives and it is important to focus on this from the start. ( IPA - The long and short of it ) .

Worst-case scenario: You constantly have to chase short-term results and work against the flow, but your customers don't prefer you - and you crash-land as quickly as you took off.

Do this instead:

• Find the right balance for branding and sales enablement activities. For established companies, the 60/40 model for branding/sales enablement ( IPA - The long and short of it ) often works , but for startups it can be 30/70 at the start and adjusted upwards over time. Unfortunately, it is most often 5/95 because the focus is solely on product benefits and rational communication.

  
  

• Your brand and unique (and meaningful) position can be your biggest growth-hack, so make sure you have a clear branding strategy.

  
  

• Find your unique way to communicate the brand, is it your vision and values, your unique edge or your expertise and thought leadership that will lead the brand activation?

This is extremely important, because strong brands:

• Lower CAC (Customer Acquisition Cost) over time as customers remember them and seek them out

• Increase loyalty and reduces churn

• Attract key talent and partners

• Can charge higher prices than competitors (According to Kantar , 94% of a company's "pricing power" is determined by the brand parameters uniqueness and relevance)

• Are far more resilient in tougher times

  
  

7. Don't give in to the temptation to rush to the next activity - prioritize measurement, evaluation and continuous optimization

Worst-case scenario: You jump to the next activity before you've learned anything from the previous one and made the necessary adjustments that could yield better results - and crash-land just as quickly as you took off.

Do this instead:

• Set clear goals and KPIs for both hard values (revenue, volume, growth) and soft values (awareness, liking, preference)

  
  

• Measure marketing's contribution to the business: leads generated, pipeline contribution, CAC payback, etc.

  
  

• Have a clear hierarchy that shows how vision, business goals, market goals, communication goals and channel goals are interconnected and contribute to each other

  
  

• Make sure your goals and KPIs are SMART (Specific, Measurable, Attainable and Time-bound)

  
  

• Set up reports and analyses that show target achievement on the most important KPIs without digging into unimportant data

  
  

• Remember that data and reporting are not the same as learning and evaluation

  
  

• Test, learn and adjust continuously

  
  

8. Don't hire senior marketing too early - think carefully about what skills you need for implementation

Worst-case scenario: You find and hire a really good CMO before there are enough strategic tasks to tackle, this resource then has to spend most of their time on operational tasks. A too senior role early can lead to false expectations, loss of motivation, and contribute to you crash-landing as quickly as you took off.

Do this instead:

• In the initial phase, you primarily need operational resources to get things done, such as setting up campaigns, email campaigns, posting content on SoMe, standing at a stand, etc.

  
  

• Hire a senior advisor for periods for strategy, training and support who can also assist with hiring and training junior operational resources

  
  

• Gradually build a team that matches the need, often you don't need a senior CMO until you have reached enough growth and are starting to approach the scale-up phase.