Amidst economic uncertainties and vulnerabilities with rising inflation, geopolitical conflicts, and supply chain concerns in 2022 and beyond, monetisation and customer retention have become critical for startups. As a result, they need to adapt to this new normal, pay their bills, retain talent, and capitalise on opportunities for growth.
Indeed, the need for self-sufficiency through monetisation has been growing, considering the limited availability of other types of seed funding for startups. For example, according to a CrunchBase report, in the third quarter of 2022, total global venture funding dropped to $81 billion, a 53 per cent decrease on a year-over-year basis, and a 33 per cent decrease on a quarter-over-quarter basis, indicating more competition for funding between aspiring entrepreneurs. Additionally, due to interest rate hikes in many countries around the globe, the cost of borrowing loans for growth has become exorbitant.
The importance of monetisation for startups
Apart from the above-mentioned, there are various other reasons for startups to consider speeding up their monetisation scheme. In the first place, with the current gloomy global stock market situation, startups will find it even more challenging to acquire capital through an initial public offering or by promising equity to cash-strapped investors.
This does not signal the end of venture capital; it’s just that investors’ tastes have changed. They tend to favour companies that can break even or are profitable even if they have a slower growth rate instead of startups that feature a high growth rate but are burning cash to maintain their value propositions.
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As a result, while monetisation has been largely ignored by many startups in pursuit of their mission to develop disruptive solutions to complex, real-world problems, it has now become important for them to be self-sufficient and capable of funding their own growth.
In addition, the notion of an inevitable trade-off between monetisation and growth has proven to be a myth, as both customer acquisition and retention are vital for startups. This validates the business model and reinforces the genuine value of the product or service. Eventually, the price customers are willing to pay is among the most objective indicators of the value of the product or service and its contribution to improving people’s lives.
Also, retention is key to a successful monetisation strategy as loyal customers are willing to pay a premium to retain the product or service. Moreover, tracking and analysing behaviours of frequent users also provides valuable insights for a brand’s conversion strategies.
Opportunities for startups to capitalise on new mobile and omnichannel trends
Despite the volatile macro-market environment, aspiring entrepreneurs continue to find ways to manage impending crises and navigate the current turbulent business landscape by uncovering new customer trends and responding to these evolving demands.
During the height of COVID-19 lockdowns, consumers became more used to online shopping and digital interaction, a trend that had been in the making for decades but was further accelerated by the pandemic.
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Accordingly, the customer journey has expanded to include more digital touchpoints, which are now often facilitated by an app on a user’s mobile device as they find information about different products online or on social media, look for purchase inspiration, and share feedback with their friends. Therefore, retaining customers across omni-channel platforms requires businesses to reduce friction when customers move across various channels and platforms both online and offline.
A research conducted by Harvard Business School assistant professor Jeremy Yang shows that with the rise of social media and the constant influence of these platforms, customers have turned into “social consumers” making impulsive and hedonic consumption decisions as they feel well-synched to the influencers’ adverts. Impulsive purchasing behaviours have also been on the rise during the COVID-19 pandemic and now in the new normal, due to the pandemic-induced stress, anxiety, and perceived loss of control over life events.
CleverTap’s ‘The Big Leap’ Roadshow Coming to Singapore
Titled “The Big Leap: Bringing Retention Best Practices Across SEA,” this will be a collaborative, in-person event organised by e27 and CleverTap in Singapore. The line-up will include a panel discussion and networking opportunities along with other activities. The programme will bring together industry experts, investors, business leaders, and entrepreneurs to discuss solutions to the essential business challenges in the post-pandemic world — challenges such as monetisation, emerging consumer trends, and customer retention across omni-channels.
The event will help participants gain deeper insights into the current marketing landscape, key trends to watch out for in 2023, and how best to prepare for new opportunities and challenges. Some of the planned topics include consumer behaviours in the post-pandemic era, the dominance of mobile devices, and how to harness the full customer experience potential of an omnichannel.
Based on this knowledge, participating marketers and entrepreneurs can revisit their 2023 business strategies for growing their customer base and maximising returns. A significant portion of the discussion will focus on the importance of monetisation for startups and the best monetisation strategies in a downsized market.
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The panel discussion will be conducted with business leaders and venture capitalists who have successfully navigated the challenges posed by the pandemic and learned to thrive in the new normal. These will include key individuals from Grab, NinjaVan, and Funding Societies. As a result, you can be assured that all of the advice is well-tested and supplemented with real-world success stories!
Want to find out about new customer trends in the industry and learn how to optimise your monetisation and customer retention strategies, while also networking with over 100 like-minded entrepreneurs and investors? Join us at the The Big Leap Roadshow on November 24th, 2022 in Singapore.
To sign up for the event, click here.
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Photo by Helena Lopes via Pexels
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This article is produced by the e27 team, sponsored by CleverTap
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