On the back of a recently completed A-round at a valuation of 300 million, Claus from the HR tool Eloomi talked about the fact that just making “a cool product” is not enough.
Customer acquisition cost is key to drive a successful growth business and Eloomi managed to shortcut the classic B2B enterprise sales cycle, so 70% of revenues now come from inbound leads. However, a product can be sold without showing the product if you target the right people with the right message. And this is the dream of most founders—to have a signed deal on the product before investing in product development.
So, the number one thing according to Claus is to solve your clients’ pains. Claus calls this “reverse marketing”—talk to your customers and find the right go-to-market strategy. Eloomi surveyed a lot of clients and found that there was a difference in what C-level required, what the HR folks experienced, and what their operational reality was. If you don’t address their reality, then the “cool” of your product is not so cool. So Eloomi’s main hack is talking about solving pains rather than showing a cool product at a competitive price.
Claus gives his own recipe. Talk to your clients’ hearts. Tell them how you solve their pain with modern technology. Customers want to hear more if you can touch something they resonate with. You can do that online with content—and get inbound leads. Then find out their no. 1 pain—and then demo to them focusing on solving that pain. That leads to an increased conversion rate. For more details and a vivid talk, watch Claus talking in the video above.