The $100 MBA Show: Episode MBA2471 Q&A Wednesday - "How Do I Get My First Few Customers for My New App?"

Release Date: May 22, 2024
Host: Omar Zenhom
Podcast Description: Awarded Best of Apple Podcasts, The $100 MBA Show delivers practical business lessons for the real world. These no-fluff episodes are packed with pure business-building training you need.

Introduction to Q&A Wednesday

[01:26] Omar Zenhom:
Omar kicks off the episode by introducing the format of Q&A Wednesday, where he addresses questions from listeners. Today's question comes from Clark, who is about to launch his first web app—a SaaS product that helps business owners integrate unique music into their media, such as videos and podcasts. Clark is confident in his product development but seeks guidance on acquiring his first few customers, acknowledging marketing as his weak point.

Understanding the Customer Acquisition Process

[02:15] Omar Zenhom:
Omar emphasizes that acquiring customers is where the success of a business truly begins. He draws from his 10-year experience running a SaaS company, Webinar Ninja, which eventually amassed 30,000 customers and was acquired successfully. He stresses the importance of understanding how people buy, highlighting that customers typically go through a multi-step process before making a purchase.

Notable Quote:
"People need to be aware of your business and what you do long before they actually want to buy." [05:10]

Building Awareness and Educating Your Audience

[05:15] Omar Zenhom:
Omar uses a personal anecdote about training for a 500k bike ride in Thailand to illustrate the customer journey. He explains that just as he had to educate himself about biking gear before purchasing, businesses must educate their audience about their products' value.

Key Strategies:

1. Email List Building:

   • Create a waiting list to collect email addresses.
   • Offer incentives such as demos, webinars, or exclusive content to encourage sign-ups.

2. Targeted Traffic Generation:

   • Drive traffic to your waiting list or mailing list through ads.
   • Clearly communicate the benefits of joining the list.

Notable Quote:
"Your first job is to get them on a mailing list." [08:30]

Identifying and Targeting the Right Audience

[10:45] Omar Zenhom:
Before investing in ads, Omar advises understanding your target audience in-depth—not just demographics but also interests, income levels, and spending habits. This ensures that marketing efforts reach individuals who are genuinely interested in the product.

Example:
For The $100 MBA Show, the target audience comprises individuals in their 30s to 40s transitioning into entrepreneurship, with disposable income for investing in business growth tools.

Notable Quote:
"Understand exactly who your audience is... interests, income, how they spend their time." [12:10]

Leveraging Paid Advertising and Content Marketing

[15:00] Omar Zenhom:
Omar outlines two primary methods to grow the mailing list and acquire customers:

1. Paid Advertising:

   • Utilize platforms like Facebook, Instagram, and TikTok.
   • Experiment with different ad budgets and strategies to find what works.
   • Consider education through courses or hiring agencies to optimize ad performance.

2. Content Marketing:

   • Create valuable content such as blog posts, podcasts, or YouTube videos.
   • Regularly publish content that addresses your audience's needs and drives them to join the mailing list.
   • Content marketing is a long-term strategy that builds trust and authority.

Notable Quote:
"Content marketing is essential, regardless of whether you're running ads." [17:30]

Nurturing Leads and Converting to Sales

[20:00] Omar Zenhom:
Once the mailing list is established, Omar highlights the importance of nurturing leads through a curated email sequence. This involves educating subscribers about the product’s benefits, sharing valuable insights, and gradually guiding them towards making a purchase.

Conversion Tactics:

• Free Trials and Discounts:
  Offer free trials with credit card sign-ups or limited-time discounts to encourage initial purchases.

• Personalized Communication:
  Use email marketing tools like ConvertKit or Mailchimp to automate and personalize email sequences.

Notable Quote:
"Nurture your audience, educate them, and they’ll be ready to buy when the time is right." [22:15]

Partnering and Leveraging Other Audiences

[25:00] Omar Zenhom:
To expand reach, Omar recommends partnering with other businesses or complementary service providers. For instance, partnering with a video editing app can create mutual benefits where both audiences gain more value, and referral commissions incentivize partnerships.

Example:
Webinar Ninja partnered with email service providers like Mailchimp and AWeber, conducting joint webinars to introduce each other to their respective audiences.

Notable Quote:
"Partnering allows you to leverage another person's audience in a win-win scenario." [27:45]

Collecting and Implementing Customer Feedback

[30:30] Omar Zenhom:
As the first customers start engaging with the product, gathering and acting on their feedback is crucial. Rapid iteration based on customer feedback not only improves the product but also enhances customer satisfaction and retention.

Best Practices:

• Direct Communication:
  Engage with customers through calls, emails, and surveys to understand their needs and pain points.

• Transparency:
  Inform customers about updates and how their feedback has been implemented to demonstrate responsiveness.

Notable Quote:
"Constantly improving based on feedback keeps your customers happy and reduces churn." [33:50]

Conclusion: Building Relationships at Scale

[38:00] Omar Zenhom:
Omar wraps up the episode by reiterating that marketing and sales are fundamentally about building and nurturing relationships at scale. By educating the audience, targeting the right customers, leveraging partnerships, and continually improving based on feedback, entrepreneurs can effectively acquire and retain their first few customers and beyond.

Final Thoughts:

• Marketing as Relationship Building:
  View every interaction as a step towards a deeper relationship with your customers.

• Value-Driven Approach:
  Focus on how your product adds value to the customer's life or business.

Notable Quote:
"Your job as an entrepreneur is to help other people add value to their lives through your product or service." [40:15]

Additional Notes

• Listener Engagement:
  Omar encourages listeners to submit their questions via email to be featured in future Q&A Wednesdays.

• Subscription Call-to-Action:
  He urges listeners to subscribe to the podcast on platforms like Apple Podcasts or Spotify to support the show and stay updated with new episodes.

For More Information:
Visit The $100 MBA Show to explore additional resources and subscribe to future episodes.