2025-04-01 13:05:22
AI opens doors for startups to scale operations, streamline processes, and unleash innovation in ways that were previously unimaginable. AI equips startups with the resources needed to excel in today’s fast-paced market, from automating repetitive tasks to uncovering transformative insights from complex data.
Yet, responsibilities come with these benefits. Startups adopting AI must prioritize ethical practices to avoid issues such as bias, misuse, or loss of trust among stakeholders.
Responsible AI isn’t just a moral obligation — it’s a strategic advantage. Transparent, fair, and inclusive AI strategies encourage sustainable growth, build trust with customers and partners, and position startups as leaders in a competitive market. Ethical AI practices pave the way for lasting success in a world driven by innovation.
AI transforms the startup landscape, offering tools to scale, improve efficiency, and foster innovation. Automating mundane tasks and gaining insights from data enables startups to stay competitive.
However, successfully integrating AI also requires addressing challenges like maintaining trust and ensuring ethical practices. Responsible AI usage is crucial for sustainable growth and building lasting trust with stakeholders.
In brief, responsible AI usage matters because:
AI strategies that synthesize innovation with ethics strengthen growth potential and ensure alignment with stakeholder expectations.
Transparency builds trust with customers, partners, and investors. When startups communicate openly about their use of AI, they gain a competitive edge by strengthening relationships. Explaining AI’s role in decision-making instills confidence and accountability while enhancing loyalty.
Startups should follow these steps to establish transparency with their use of AI.
Transparency starts with understanding AI systems and sharing details about data collection and decision-making. Addressing concerns about privacy and bias fosters informed and confident users. Integrating ethical AI into business practices ensures startups remain aligned with broader societal values.
Enhancing market reach and brand reputation starts with addressing biases that limit access to specific customer groups. Minimizing bias in AI allows startups to serve diverse markets effectively, ensuring the creation of reliable systems that not only meet ethical and legal standards but also drive growth by enhancing a company’s appeal to a broader audience.
Reducing risks of algorithmic discrimination requires identifying and correcting biases early in development. These actions safeguard users from harm while protecting startups from potential liabilities.
Further, inclusive AI provides fair access to products and services, eliminating barriers that might exclude certain groups. Promoting equal opportunities for underserved demographics focuses on creating AI systems that serve everyone effectively.
Using diverse datasets during model training and performing rigorous testing ensures fairness. Tools like algorithmic audits maintain equity as startups grow. Such efforts establish a brand as socially conscious and forward-thinking, appealing to a broader customer base.
Agile development methods help startups refine AI solutions quickly while addressing new challenges. Iterative processes and customer feedback make it easier to identify and resolve biases. Agile development empowers startups committed to responsible innovation.
In simple terms, Agile is an approach to developing projects that focuses on teamwork and making improvements as the project is underway. To better understand the usefulness of Agile, here’s a brief comparison with other notable development methodologies:
Agile, as opposed to waterfall, emphasizes flexibility and iterative progress rather than a rigid, linear approach. This methodology allows startups to adapt quickly to changes and incorporate feedback at every stage of development.
Teams work in smaller cycles, called sprints, enabling them to test, refine, and improve AI solutions more efficiently.
For startups navigating fast-paced markets, agile allows them to innovate responsibly while meeting user needs through adaptable, customer-focused solutions. Regular feedback cycles ensure evolving demands are addressed effectively, improving satisfaction and alignment with user expectations.
Agile also empowers teams to fine-tune AI models continuously, delivering enhanced performance with each iteration.
Agile offers many advantages for startups that leverage this versatile development framework:
The Agile model’s iterative nature ensures fast adaptability, enabling teams to refine systems continuously. When paired with ethical principles, startups can confidently create solutions that meet customer expectations while minimizing risks.
AI revolutionizes customer relationship management (CRM) by providing insights, personalization, and improved interactions. These tools drive loyalty and long-term growth by creating better customer experiences.
AI and CRM are a perfect pair. Using them together can provide these benefits:
AI helps startups predict trends and deliver personalized experiences through tools like recommendation engines and chatbots. These features strengthen customer engagement and satisfaction.
Empowering employees with AI-driven skills helps startups unlock the potential of advanced technologies. Teams proficient in AI tools integrate them seamlessly into operations, fostering innovation and boosting productivity. Skill-building initiatives go beyond technical training by emphasizing the ethical dimensions of AI adoption.
Hands-on workshops let employees explore practical applications of AI, building confidence and competence. Flexible online training platforms cater to diverse schedules, making it easier for team members to enhance their abilities. Additionally, collaborative efforts across departments encourage innovative problem-solving and strengthen team dynamics.
Such initiatives turn employees into informed contributors capable of managing AI-driven tools responsibly. Investing in upskilling programs fosters a culture of innovation that drives sustainable growth and ethical AI integration.
Embracing ethical AI opens the door to innovation and stronger relationships with customers, partners, and investors. Far from being a hurdle, responsible AI catalyzes trust-building and establishes a sustainable foundation for long-term success.
Startups that prioritize fairness, transparency, and inclusion in their AI strategies stand out as industry leaders. These values fuel growth and enable businesses to create meaningful, lasting impact. Ethical AI isn’t just about compliance — it’s about building a future where innovation and responsibility go hand in hand.
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2025-03-31 15:45:21
Navigating the complex landscape of equity financing for startups requires not just knowledge, but also wisdom. Who better to provide that wisdom than those who’ve successfully walked the path? This article distills pivotal lessons from industry experts, providing a roadmap through the intricacies of ownership, investment alignment and strategic partnerships. Armed with expert insights, entrepreneurs can make informed decisions to steer their ventures towards sustainable growth.
One important lesson I learned from choosing equity financing for my startup is to understand ownership dilution and all its long-term implications. Equity financing has the excellent advantage of not having to be repaid, offering invaluable expertise and connections from investors. However, it also means giving away a part of ownership in the company, which can compromise decision-making power and future profit-sharing.
For example, in our seed rounds, angel investors provided capital and strategic guidance. However, I learned that my ownership stake was significantly diluted with each funding round. This taught me to be very careful about the amount of equity I was willing to give up and to seek investors who shared our long-term vision.
Ultimately, this lesson has shaped our approach to future funding, emphasizing the need for a balanced strategy that considers both immediate capital needs and the preservation of ownership control. Understanding these dynamics has positively influenced our planning and relationships with investors as we continue to grow.
Eamonn Turley, Personal Finance and Insurance Expert, Multi Quote Time
One critical lesson I learned from choosing equity financing for my startup is the importance of aligning your investors with your long-term vision. When you accept equity financing, you’re not just gaining funding; you’re also inviting investors into your decision-making process. They effectively become co-pilots, influencing key strategic directions.
In one instance, I faced a pivotal decision about scaling operations. My investors had deep industry expertise and provided insights and connections that propelled us forward faster than I could have achieved alone. However, their involvement also meant that I had to navigate differing opinions and compromise on certain creative aspects of the business.
Think of equity financing as a strategic partnership, not just a financial transaction. Choose investors who:
Equity financing can be a powerful accelerator, but only if you bring on board the right partners who share your values and goals. It’s not just about the capital; it’s about collaboration.
Ahmed Yousuf, Financial Author & SEO Expert Manager, CoinTime
Build your network of investors before you need investors. This is critical for an effective fundraising process.
Get to know them and understand what they are looking for.
Show that you already have a solid foundation and traction before reaching out to them.
A quick fundraising process happens when it has been planned and strategized months in advance.
And it starts with building your network with investors.
Raja Skogland, Serial Entrepreneur, Investor in 100+ startups
One key lesson I learned was the power of having a clear exit strategy. Investors want to understand how they’ll see a return on their investment, whether through an acquisition, IPO, or another method. Having a well-defined exit plan provided investors with confidence and helped guide the direction of the business. It allowed us to set clear milestones and align our efforts with long-term goals. This focus on the exit strategy was key in shaping our growth and decision-making.
Nick Esposito, Founder, NYCServers
A key lesson when choosing equity financing for a startup is the importance of understanding how it impacts control and ownership. By selling equity, you are effectively bringing new partners into your business who will have a say in significant decisions. This can influence the strategic direction of your company and often requires a delicate balance between the interests of new investors and the existing leadership team.
Additionally, equity financing implies that, while you receive capital without the need to repay it as debt, it usually comes with expectations of growth and returns for the investors, which can drive a focus on scaling the business. Equity financing can also help in enhancing the credibility of the startup when reputable investors are involved, which might open more doors to business opportunities.
Finally, considering the tax implications and the potential for future rounds of funding is crucial; initial equity investment can significantly set the framework for future financial architecture.
John Richards, Managing Partner, Startup Ignition Ventures
Be brutally honest about your industry’s challenges during investor discussions—the right partners will see opportunities where others see obstacles.
Through our equity financing rounds, I learned that transparency with potential investors about industry-specific challenges is crucial. We were upfront about the complexities of managing a large workforce of cleaning professionals. We also openly discussed our seasonal demand fluctuations and customer retention strategies. This honesty built trust with our potential investors. It also helped us attract investors who were prepared to support us through these challenges. They became valuable partners in developing solutions. Together, we improved both workforce management and service quality consistency.
The transparent approach proved particularly valuable during our rapid expansion phase. We faced significant workforce scaling challenges during this time. Our investors, already fully aware of the operational complexities, quickly stepped in with resources and connections. They helped improve our training programs and implement more efficient scheduling systems. This level of support would not have been possible without our open dialogue from the beginning.
Joseph Passalacqua, Owner & CEO, Maid Sailors
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One big lesson I’ve learned about equity financing is how important timing is. If you raise money too early, you might end up giving away more ownership than you need to because your business isn’t valued as high yet. But if you wait too long, you could miss out on growth opportunities or be forced to accept bad terms because you’re running out of options.
What really worked for me was breaking funding into stages. For example, raising a small seed round to build a minimum viable product and then going for a Series A once the business showed real potential. Each round came with a better valuation, which meant less dilution and smarter use of the money. Find a balance between fueling growth and protecting your stake in the business.
Sharat Potharaju, Co-founder & CEO, Uniqode
From selecting equity financing for my startup, I learned a lesson about how critically important it is in your agreements not to box yourself in. As much as financing is a necessity, I came to recognize that inflexible terms could begin to restrict and hamper your capacity to pivot or react swiftly to shifting market dynamics.
For example, during a critical growth stage, I discovered that some early equity agreements had terms that inhibited our ability to negotiate strategic partnerships. It was a drag on momentum having to deal with these restrictions.
The bottom line is when negotiating equity deals, ask for flexible terms that provide agility. This flexibility allows you to take advantage of opportunities or respond to changes without feeling trapped by prior commitments. It’s an investment in the future agility of your company.
Ashot Nanayan, CEO and Founder I Digital Marketing Expert, DWI
My biggest lesson about equity financing came from an unexpected place—it wasn’t about the money at all but about choosing the right strategic partners.
Early on, we received two investment offers. The larger one came from a general tech fund, while a smaller offer came from an investor with deep SEO industry connections.
I chose the smaller investment, which surprised many people around me.
This decision completely transformed our growth trajectory. Our investor connected us with five major WordPress agencies in our first month.
These introductions led to partnership deals that generated 40% of our first six months’ revenue. The industry insights we gained helped us refine our internal linking tool faster than competitors.
The numbers proved this right.
We reached our 18-month growth targets in just 7 months because of these strategic connections.
Our customer acquisition costs stayed 60% lower than projected because of warm introductions through our investor’s network.
Smart money beats big money every time. The right strategic investor can open doors that would take years to unlock on your own.
Vukasin Ilic, SEO Consultant & CEO, Linkter
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From my experience helping numerous startups secure funding, I’ve learned that choosing the right investor is just as crucial as securing the money itself. During my time at BMW Startup Garage, I watched founders rush into equity deals simply because the money was available, only to face challenges later due to misaligned expectations and visions. One instance that really shaped my perspective was when I worked with a promising startup that turned down a larger investment offer in favor of a smaller one from an investor who brought valuable industry connections and operational experience.
That decision initially seemed risky, but it ended up accelerating their growth far more than the extra capital would have. This lines up with what we see regularly: companies that focus on finding strategic investors who understand their industry and can provide meaningful guidance tend to perform better in the long run. Remember, when you take on equity financing, you’re not just getting money—you’re choosing a business partner who will be with you for the long haul.
Niclas Schlopsna, Managing Consultant and CEO, spectup
Having raised equity funding, the single biggest eye-opener for me was the risk of “mission drift.” It’s so tempting to let your new cash influx guide your roadmap—especially when enthusiastic investors propose bold new ideas or growth hacks. But here’s what I learned:
Investor alignment is everything. If the people who back you don’t share your core vision, you can easily end up building features that excite your funders but leave your users cold. It’s not that investors are “wrong,” but their priorities might focus on certain metrics or growth curves that don’t truly serve your market in the long run. This misalignment can slowly steer your ship off course, even when everyone has good intentions.
The real magic is finding investor partners who help refine your vision, not rewrite it. That synergy keeps you from falling into the “mission drift” trap—a subtle shift where the startup chases easy funding metrics rather than meaningful user value. Yes, the money matters, but it’s the strategic and philosophical fit that can make or break your trajectory.
Derek Pankaew, CEO & Founder, Listening.com
For 160 years, Fifth Third Bank has worked hard to provide better banking solutions to our customers. We are committed to providing a world-class customer experience, and our vision is to be the one bank people most value and trust.
I have always been fascinated by the various ways businesses can raise capital. When I started my own startup, I knew that securing funding would be crucial for its success and growth. After exploring different financing options, I decided to go with equity financing. This involved selling ownership shares of my company in exchange for investment from venture capitalists or angel investors.
Choosing equity financing taught me an important lesson—the importance of building a strong and compelling business plan. In order to attract potential investors, I had to clearly showcase the potential of my business and convince them that it was worth investing in. This required thorough market research, financial projections, and a solid understanding of my target audience and competitors.
Through this process, I learned the importance of being able to effectively communicate my business idea and vision to others, and how a well-crafted business plan can be a powerful tool in securing investment.
Patrick McDermott, Executive Vice President, Max Cash
I learned from equity financing that making decisions takes a lot longer than I had expected. Finding the appropriate course of action can take some time because every possible investor has different requirements, timelines, and due diligence. I had to be patient and adaptable as I made my way through these conflicting expectations. Finding the proper investors who shared our vision was just as important as quickly raising money. Knowing this allowed me to control my expectations and get ready for a more deliberate, systematic process. Eventually, it was worthwhile to invest the time necessary to establish the proper connections.
Conrad Wang, Managing Director, EnableU
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The due diligence process during equity financing taught me the importance of having a solid foundation in place. Investors will thoroughly examine every aspect of the business, which makes being well-prepared crucial. This process pushed me to become more disciplined, organized, and transparent in our operations. It highlighted the value of strong internal systems and clear communication, which built investor confidence and strengthened the business. The scrutiny we faced helped uncover areas that needed improvement and prompted necessary changes. This experience provided us with better structure and boosted our potential for long-term growth.
John Grant, Founder and CEO, Premier Bidets
Equity financing taught me the importance of transparent communication with investors. In the beginning, I didn’t realize how much investors value regular updates and honesty about challenges. We implemented quarterly updates to keep stakeholders informed. During one update, we shared a bottleneck in our operations, and an investor offered a solution that increased our efficiency by 25%. This experience reinforced that equity investors aren’t just backers—they’re partners who can help you navigate tough decisions. My advice? Choose investors who share your vision and actively contribute to your success. Openness builds trust and creates long-term value.
Tornike Asatiani, CEO, Edumentors
One overlooked lesson I learned from choosing equity financing is how critical it is to structure agreements that account for potential misalignment as your business evolves. When we brought on early equity investors, we didn’t fully anticipate how different phases of growth would reveal competing priorities. For example, one investor was heavily focused on pushing profitability, while others were more patient, prioritizing long-term brand development. While both goals were valid, the tension created decision-making bottlenecks and stalled certain initiatives.
To navigate this, we learned the importance of including clear governance and conflict-resolution mechanisms in our agreements. Clauses that outlined decision-making processes for pivotal moments like funding allocation or exit strategies helped mitigate these challenges later. This approach saved us from deeper conflicts and preserved key relationships.
Reilly James Renwick, Chief Marketing Officer, Pragmatic Mortgage Lending
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2025-03-28 13:47:11
You might have the best product in the world — one that could solve mission critical problems for a company, is unquestionably brilliant, and will completely change the game. But whatever your innovation, here’s the truth: market traction trumps all.
I’ve been known to shout those words in strategy meetings, because I’ve always believed that sales is the engine of the company. I get a lot of heat for that stance — mainly from inventors and technologists who believe that without them, there would be nothing to sell. There’s a perpetual conflict between inventors and salespeople: the inventor argues that the biggest challenge is in creating the product, while the salesperson argues that selling it is the true hurdle.
As someone who’s been involved in a lot of startups and has learned the hard way, it’s my job to remind you that innovation has to happen on the sales side too. Many of us entrepreneurs simplify sales into one neat formula: product + compelling reason to buy + ROI + customer reach. But customers are unpredictable. They can be fickle, skeptical, and just plain lazy. If you want to help your sales team actually sell, follow these five simple rules:
1. Beware the 9x effect
First introduced in Harvard Business Review, the 9x equation illustrates a fundamental gap between innovator and consumer thinking. Innovators overweigh their new products’ benefits by a factor of three, while consumers overweigh their existing products’ benefits by a factor of three. (3 x 3 = 9). But innovators can’t ask their future customers precisely what they want, because how can they know what they want if a product doesn’t yet exist? To change people’s habits, even when we present them with clear personal benefits and financial value, is no easy task. You need to strike a balance between consumers’ demand for innovation and their simultaneous desire for familiarity, consistency, and convenience.
2. Innovate for the lazy
The most successful innovators innovate for the lazy. They bring forth groundbreaking customer benefits without necessitating substantial changes to the user experience. For instance, in 2005, Toyota sold 100,000 Prius cars by offering over 45 mpg while keeping its combustion engine. To the user, it was simply a car with exceptional gas mileage. In 2007, Netflix introduced the concept of streaming movies and television shows: viewers could seamlessly use their TV remote controls the same as before — requiring no shifts in their established behaviors. By 2023 Netflix had nearly 250 million subscribers. Google understood both the 9x effect and customer behavior brilliantly. In 1999, when the nascent firm moved from their humble garage to a small Palo Alto office on University Avenue, there were over ten prominent search engines in the marketplace: well-funded heavyweights like AltaVista, Lycos, Yahoo, Ask Jeeves, Look Smart, MSN Search, Infoseek, and numerous others. Google delivered valuable benefits that outshone other search engines by a factor of nine. All customers had to do was type their desired search query into a box — just as they had done on previous search engines — and the intricate algorithms operated in the background. As of 2023, some 90% of all desktop searches were conducted on Google, amounting to over 8.5 billion searches per day, or 99,000 per second.
3. Nail it before you scale it (and don’t confuse technology market-fit with product market-fit)
Before you scale, make sure you know the difference between technology market-fit and product market-fit. Technology market fit refers to whether the company’s technology effectively aligns with market requirements in terms of performance and cost. Product market fit refers to whether customers genuinely value the product — leading to actual sales. Some startups will realize too late that they should have focused on nailing their product market fit, winning over their first ten customers and refining their sales and marketing strategies before scaling.
Premature scaling accounts for 70 percent of all startup failures, according to a Startup Genome study. Rushing to market with a flawed product or unready customer is likely to set off a vicious cycle of product recalls or customer dissatisfaction. It’s been well established that a satisfied customer may share their positive experience with just one person, while an unhappy customer tends to broadcast their discontent to as many as ten others.
4. Separate your sales pipeline from your sales funnel
This is something all entrepreneurs should understand — it’s not just something reserved for the sales team. A sales pipeline is the step-by-step, multi-stage path your business follows throughout the sales process, including lead generation, prospect qualification, meetings, proposal presentation and, ultimately, closing the deal. It outlines the journey a prospect takes as they evolve into a paying customer.
A sales funnel tracks the progression of leads through different stages, ultimately leading to converted customers at the bottom. Think of a sales funnel as a container into which you pour all your leads. You can then monitor how they move through your metaphorical shop and how many eventually transform into buyers. Forecast your sales projections on your pipeline, but evaluate your marketing strategies through your sales funnel.
5. Partner with your early customers
Don’t forget that you’re an “early-stage company,” bordering the “startup” category. Customers who purchase from a startup have a whole range of unspoken concerns: Can the company provide reference users for potential customers to speak with? Has the product been thoroughly tested, and does its performance match the claims made in marketing materials? Will the company be able to provide the necessary products and services in the long run? Even if customers don’t voice these concerns as the top ones, they are big subconscious hesitations that entrepreneurs must address upfront.
Frankly, it’s taken me a long time to understand the paradox that underlies customer behaviors. But a wise investor once told me that “the Number One way to solve all your problems is through paying customers.” It’s certainly easier said than done. But it’s also something you should never overlook. Sheer brilliance will not carry the day, but carefully strategizing with customers in mind will.
Ashwin Gulati is the author of Soul Venture: A True Life and Death Journey into the Startup Culture.
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2025-03-28 13:45:36
It’s the season of new beginnings, and Verizon Small Business Digital Ready is your free resource to help build your skillset and your community. Digital Ready offers events and courses with experts you can speak with directly, all part of the exclusive networking opportunities and digital skills training the program offers its members.
And, guess what? Joining is free.
Interested? If you have not yet joined the Digital Ready program (Did we say that it’s free and easy?), you can do that here. That’s your first step.
The program also provides $10,000 small business grants, with a spring grant program about to open in just a few weeks. Join now and be ready to apply when the application period opens. And even if you don’t secure a grant, joining Digital Ready and taking advantage of the tools and resources the program provides is a smart investment in your future.
These events and courses are for April. They are just a sample of the program’s benefits.
Safe capital to keep your business secure
From creating personas to using them
Growing your profit margins
AAPI Digital growth essentials: Transform your brand & website into lead-generation engines
Research techniques with AI: Finding, sourcing, and synthesizing information
Determining your prices
Founder SWOT
Personas to campaign
Small seeds grow: Small business can do big business
Small business chat: Healing Cuts SF, Artisan-Preneur Consulting
Assertive communication for entrepreneurs
Building a scalable business: Mastering processes & onboarding
Unlocking government contracts: Part 1
Joyful budgeting #2
Emotional intelligence in the workplace
Small business chat: Moments of Focus LLC, OMSutra
Grow your LinkedIn network
Building an engaging brand: How to attract, engage, and retain lifelong customers
AAPI Social media made simple: How to connect, engage & grow
The customer journey
Using local resources to grow your business
Website usability review
Microlending
Podcast power plays: Conversations into conversions
Peer to Peer Check-in Series: A dynamic interactive on-going series, designed to help small businesses stay on track and break through roadblocks. Connect with a community of like-minded individuals bi-weekly in either the morning and/or the evening sessions to share your goals, receive guidance and encouragement from your fellow Digital Ready small businesspeers.
What can you expect to take away from a peer to peer review?
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2025-03-28 13:33:25
Customer acquisition may help a company generate revenue. However, without customer retention, it’s difficult for a business to survive in the competitive landscape.
The success of a company in the long run depends on the joint efforts of two domains: sales and customer success. One focuses on conversions and generating business for you, whereas the other aims for customer satisfaction and brand advocacy.
The collaboration between the sales personnel and your customer success team makes it possible for you to ensure lasting customer relationships and grow your business.
In this article, we will talk about how customer sales and customer success work together, along with some useful tips to ensure success.
So, without further ado, let’s dive in.
Sales and customer success may be independent domains in a company, but they share a few similarities. Apart from their exclusive responsibilities, there are a few collective goals that both sales and customer services strive to achieve.
Knowing your audience helps you score sales and ensure customer retention in the long run. You need customer insights to pitch your solutions to the right audience and convince them to consider buying.
Similarly, familiarizing yourself with your audience’s preferences helps you meet their expectations and prevents your customers from considering other alternatives in the industry.
Useful customer insights allow you to identify the pain points of your target audience and learn how to cater to their concerns smartly.
Getting acquainted with your customers makes it possible for you to offer personalized experiences throughout the buyer’s journey. It not only helps you attract new customers but also improves your retention.
Your sales personnel gather customer insights by interacting with them through different channels of communication, such as live chat, email, social media, and more.
The same goes for your customer success personnel. Plus, they conduct customer satisfaction and feedback surveys to gather useful information.
Knowledge sharing plays a critical role here and helps both sales and customer success representatives achieve the set goals.
When it comes to generating revenue, sales and customer success play direct and indirect roles, respectively.
Your sales personnel are responsible for generating leads, nurturing them, and scoring conversions. Hence, revenue generation serves as one of the core indicators that highlight their performance.
Customer success professionals try to improve retention and brand loyalty. They make sure that you fulfill the promises made to customers when they interact with you, which fuels advocacy.
Happy customers contribute to you generating leads through referrals, making it easier for you to generate more revenue.
Effective collaboration between sales and customer success paves the way for you to grow consistently and stay ahead of the curve.
Sales and customer service work closely to amplify customer engagement, which in turn improves loyalty.
The teams ensure that your customers get optimal value from the products or services. Plus, they work together to ensure that the solutions you offer meet your customers’ expectations.
It takes more than just scoring sales to make your business grow. You need to strive for undying loyalty as it transforms your customers into brand ambassadors, fueling social proof and setting you on the path to consistent growth.
Sales and customer success collaborate to help you offer an enhanced customer experience throughout their journey. You are able to keep up with customer expectations that change over time and pivot to achieve success in the long run.
You must improve coordination between your sales and customer success personnel to acknowledge consistent growth. Here are a few noteworthy recommendations that can help:
The first step to achieving success as a growing business is to set actionable goals. You should also communicate your goals clearly so your teams know what you expect from them.
You can’t expect your teams to perform when you’re unaware of your destination. Your goals help you keep things on track and make it possible for you to assign responsibilities to the key stakeholders.
For example, your sales teams are responsible for bringing in quality leads and closing the deals to help you generate revenue. On the other hand, customer success is responsible for retaining your customers and improving brand advocacy.
For both teams to meet your expectations, you need to communicate these responsibilities clearly. It eliminates the possibility of them getting sidetracked, and helps you get optimal results from your efforts.
You should constantly track the performance of your teams to make sure that you’re on the right path. Identifying and implementing the right key performance metrics play a critical role in that regard.
For example, the metrics that help you assess the performance of your sales department can be the number of leads generated over a period, lead quality score, conversion rate, customer acquisition cost, and so on.
Fitting indicators to measure the performance of your customer acquisition team can be churn rate, customer health score, net promoter score, customer lifetime value, referral rate, etc.
If you observe closely, the indicators representing both sales and customer success teams may be different yet intertwined to help you grow.
Choosing the right metrics for your operations and monitoring them enables you to ensure that both sales and customer success fulfill the assigned responsibilities, bringing you closer to achieving the goals you set and ensuring smooth cross functional collaboration.
The way your sales teams operate can affect the performance of your customer success. Similarly, your customer success team’s effectiveness can make it easier for you to generate more sales.
For example, it will be very difficult for your customer success team to meet the expectations of your customer base and ensure high satisfaction if your sales team resorts to overpromising to close the deal.
Likewise, customer success excellence helps you build a rapport in your respective industry and fuels social proof. It helps your sales team attract new prospects and maintain a high conversion rate.
Therefore, you should consistently track the performance of both domains and see that they fulfill the assigned duties, as the performance of one can influence the success of another.
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You should have a knowledge base or customer management system in place to facilitate information sharing and easy data access to drive the best results from your sales and customer success initiatives.
Customer data helps both your sales and customer success representatives perform their jobs well, which improves customer retention and loyalty.
You successfully cater to the pain points of your customers and establish a strong bond with them. It becomes easier for both teams to keep up with their deliverables and enable you to offer a seamless pre and post-sales experience.
You should focus on collecting data and customer insights across all touch points in the customer journey. You can consider conducting surveys, leveraging social media to assess audience sentiment, and analyzing customer support tickets to familiarize yourself with the pain points of your customers.
Customer data helps you get acquainted with your audience’s interests and expectations. The goals of your customers keep changing over time. Therefore, you need constant access to such information that enables you to minimize friction in the buyer’s journey and ensure a seamless transition of prospects from one stage to another.
The data helps you attract and engage customers with ease. Plus, it enables you to tailor the experience you offer to the changing needs of your customers. As a result, you maintain lasting relationships with your customers and cultivate undying loyalty.
When your sales and customer success teams operate in silos, it minimizes your chances of achieving success. They need to go hand-in-hand to identify the right customers and set them on the path to becoming your brand ambassadors.
Effective communication ensures that both domains perform at their absolute best. Therefore, you need to keep a close eye to identify communication discrepancies and loopholes in the information handover process.
You should also encourage brainstorming sessions to enhance synergy and devise fruitful ideas that can help you acknowledge lasting customer relationships. It can also help with identifying potential upselling or cross-selling opportunities, enabling you to grow your revenue exponentially.
If you’ve been curious about how sales and customer success work together to help you grow, now you know.
Collaboration between both domains helps you score more sales and establish strong ties with your customer base.
You can get started by setting clear goals and selecting the right metrics to assess the performance of your teams.
You should also focus on improving information sharing and ensuring effective communication as it enables you to leverage data to offer an enhanced experience throughout a customer’s lifespan.
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The post Customer Success and Sales: Best Practices for a Profitable Fit appeared first on StartupNation.
2025-03-27 13:26:39
Think for a moment about how much time and energy you put into attracting new customers, then compare it to the resources spent on the customers you already have. If you notice a pretty severe bias in favor of the former, you’re not alone.
It’s pretty common for marketing efforts to be unevenly weighted toward securing new sales, leaving the valuable opportunities for nurturing existing customer relationships somewhat neglected.
Focusing more on generating repeat sales is great for your brand, and it’s essential for the longevity of your company — and that’s where after-sales marketing can be your most valuable tool.
The way customers interact with businesses, along with their expectations, has undergone a big shift in recent years. Providing a great product or service is only one-half of the deal now, as a new standard has been set for a customer experience with personalization and tailored communication.
What this really means is that businesses are expected to keep proving their value long after an initial purchase is made. So, if your B2B marketing strategies or B2C promotions are primarily focused on everything before a sale, it might be time to consider what happens after.
Remember, it’s a widely accepted fact that it’s more cost-effective to retain existing customers than to focus on finding new ones, leaving you with a higher return on investment. So, it’s in your best interests if you want to be competitive and profitable.
It’s also a way to make sure you stand out from the bustling crowd. Making the extra effort to keep your customers engaged and feeling valued pays off. You’re building a stronger brand connection and the kind of customer loyalty your competitors will be striving to replicate.
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It’s important to think about your relationship with customers in the long term, not only up until you get the first sale over the line. To strengthen this bond, one of the most effective tools at your disposal is tailored and targeted communication.
Using personalized email marketing in your after-sales strategy can have a big impact, demonstrating to customers that they’re more than just a number on a balance sheet. These emails might include a simple thank you or perhaps a follow-up on their purchase with a request for feedback.
Think carefully about the timing of your communication. While a thank you message can be prompt, an email asking how a product or service is working for them should be sent a little later, allowing them time to be able to provide a meaningful answer. These touches show that even after they’ve made a purchase, your commitment to customer satisfaction remains.
When you ask customers for feedback, make sure you mean it. This isn’t just about creating the appearance that you’re listening but about the benefit you can gain from actually listening. Seek out customers’ opinions on your products or services and make it easy for them to share their thoughts with you.
There are a number of possible ways to gather customer feedback. An email that opens up the floor for them to express their views freeform is one way. However, for more structured insights, a survey may be a better option.
Social media is another channel that can provide a quick litmus test for perceptions of your brand. Plus, there’s always the more personal approach of a phone call or face-to-face meeting, which can result in a more organic and detailed understanding of how a customer is feeling.
Once you’ve gathered the information you need, look for any issues that are coming up regularly and take steps to remedy anything that needs fixing. Once you’ve made any changes, track the customer response — did a change in your service or product affect the way customers interact with your offerings?
Consistently collecting feedback, implementing changes, and gaining insights into customer behavior will go a long way to creating loyal customers and, as a result, helping your business grow.
What value are you offering customers after a sale? Consider what you could provide to create a more positive experience. For example, educational resources like user guides or how-to tutorials can help customers get even more out of their purchases.
This provides them with useful and valuable support while also showing that satisfied customers are your priority. This showcases you as a brand that wants to share your expertise and invest in your client’s success, helping to build trust, which is a prerequisite for customer loyalty.
Another strategy that many businesses have adopted is to create a community where customers can connect with others who have similar needs or interests. An online forum or social media group where customers get to feel like they’re part of something is a popular choice, and it’s also great for creating loyalty.
No one likes to deal with complaints but even the best companies will have to handle them on occasion. When they arise, you have a chance to set yourself apart from competitors in the way that you handle them.
The main focus should be on finding solutions, so when things go wrong, you can take the chance to show customers that you’re going to do everything possible to make it right. Make sure the service they receive is personal and understanding.
If you have a bigger team, invest in service training to make sure difficult customer inquiries are handled with care and diligence. Also, make sure there are multiple support channels open, including email, phone, and live chat, so they can reach you in a way that ‘s most convenient to them.
Quick response times are important here, potentially preventing a difficult situation from escalating any further and making it less stressful for customers and staff alike. Look carefully at your customer service policies too.
Warranties, repairs, and return policies that are flexible and fair can have a big impact on how customers view your brand. Using these strategies to handle complaints or issues can keep customers on your side and help improve the overall post-purchase experience.
This idea is simple: if you want customers to stick around, reward them for their loyalty. Think about the unique needs and capabilities of your business so you can start building a loyalty program that works for you and your customers.
You could go with a tried-and-tested points system or something similar, but alternatively, you might try creating a loyalty program that offers a more personalized experience with meaningful rewards.
For example, you could offer exclusive access to new products and services or early access to sales. An approach that many businesses have adopted is a tiered rewards system.
If you offer different levels of benefits based on engagement or expenditure, you can create a loyalty program that gives the feeling of exclusivity while still remaining accessible to different-sized budgets.
Loyalty can then be rewarded at every level, but the most frequent customers get the very best VIP experience to encourage ongoing purchases or commitment.
Try to think beyond the basics of a loyalty program and craft something that fits with your brand identity while cultivating happy customers who are in it for the long haul.
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If you want to take after-sales strategy to the next level, introduce automation and AI into your marketing efforts. Not only do they make everything run more efficiently, but they can also help you achieve new heights of personalization and excellent customer service.
Predictive AI tools, for example, analyze customer behavior and find opportunities for the next steps, such as sending out a feedback survey, an email reminder to reorder a frequently purchased product, or tailored suggestions for other products and services.
You may also find tools designed for lead generation and marketing automation to be useful in integrating your after-sales efforts with your overall marketing strategy. They simplify the whole journey, improving the consistency of messaging and communication from the beginning of a customer relationship through to the post-sale period.
However, if you use these tools, keep in mind the importance of finding the right balance between humans and technology. Chatbots, for instance, are a great tool for answering some queries quickly and efficiently, but there will always be times when human sensitivity and judgement are needed.
Fine-tuning your after-sales services and marketing is one of the best tactics you can use to encourage customer loyalty. Typically, a lot of work goes into attracting new customers, but investing in existing clients is an equally worthwhile use of your resources.
Providing a personalized experience lets customers know they’re valued while offering value in return through loyalty programs or educational content, keeping customers returning to your brand time after time.
Use the right technology solutions to help you stay efficient while you tailor the service you provide and always listen to your customers.
All these strategies will help your customer retention rates improve, which, in turn, contributes to sustainable growth and profitability.
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