Four-fifths of startups in India fail within the first five years. Only 8% survive beyond a decade. Which of the bandwagons are you riding right now? It is time to join the 8% group. Minimise odds in your favour by strategically listening to your most important stakeholder – your customer.
A startup revolution is brewing in the heart of India’s growing cities, even as the landscape is littered with ventures that didn’t hit the mark. With the rise of entrepreneurship, there has also been a parallel surge in startup mortality.
A lot of startups naturally start with an idea. A great new idea that is so clever and innovative that it can only be successful! Then why do so many startups fail? The reasons are apparent, but founders seem oblivious to them – a disconnect with customers, cash flow mismanagement, daunting regulatory pathways and marketing myopia.
Does Your Number 1 Stakeholder Have A Seat At Your Table?
Customers typically don’t have a seat at the startup’s strategy planning table. Every startup founder must know that at the end of the day, business success is based on whether customers choose them over other alternatives, are loyal to their business and repurchase, buy additional products and services, and recommend them to others and leave positive reviews.
Everything else that a founder needs to do is to achieve these objectives.
The Startup Traps That You Need To Overcome
A startup ignoring customer feedback and insights is set for failure. But why does this happen? It is because of a mindset unique to startups, irrespective of whether it is a tech company or a restaurant. The most common three elements of a startup mindset are:
An inside-out mindset: Startups are often so enamoured with their idea that they fail to see if their target market wants the new product or service. This mindset can also create a warped view that the product stands out compared to alternatives, but this may not be so. Market research has found that 90% of startups fail in India due to a lack of real innovation.
Launch a half-baked product to correct defects post-launch: The trouble with this mindset is that most new ideas become successful because they go viral via positive word of mouth in the early days. The flip side of this is that if you are blissfully unaware of negative word of mouth in the initial life stage of your startup, then you could be the victim of negative word of mouth that will destroy your business before it has any chance of success.
Lack of customer feedback, especially in the early days: It is critical to understand product and CX satisfaction along with how customers use your product. The discipline in the early days of a startup should be customer insights and action as a continuous loop.
Picture this: A brilliant startup idea nurtured with dedication, investment and hours of toil, yet it never takes off. The seemingly impeccable product just doesn’t resonate with the intended audience. Or the logistical nightmares keep piling up, driving potential customers away.
The frustration of being so close, yet so far, is palpable. In the vast, intricate maze of the Indian startup world, the voice of the customer often gets lost. And that’s where the chasm lies.
Shaping The Startup Growth Story Through VoC Insights
More than 90% of startups in India do not cross the 10-year mark primarily because of their inside-out mindset and because they don’t listen to the voice of the customer.
If you are a part of the startup leadership team, the name of the game for you is not just selling products but building a loyal following. This mindset shift will move your thinking to be customer-centric rather than product or idea-centric.
Prioritising customer experience is the key to unlocking this loyal customer base. By understanding your customers deeply, you can create a strong connection that keeps them coming for more.
How can strategic customer feedback and insights help startups overcome disempowering mindsets and become successful? The golden key is customer feedback. If Indian startups want to turn the tide, they need to start with listening.
Feedback can unveil the practicalities of product usage, allowing startups to evolve and meet genuine market needs. Further, listening and acting on feedback communicates value and trustworthiness to customers. A startup also needs critical feedback that can reveal overlooked challenges, offering a chance to address them proactively. Lastly, feedback allows a startup to see the path forward, ensuring it remains aligned with shifting customer desires.
This is why startups – and every other company – need to take their customer insights very seriously. By listening to what customers have to say, you gain valuable information to make your product and experience better. It is like having a map that guides you toward smoother waters.
You need a combination of quantitative and qualitative insights. This feedback-driven approach turns your good product into a fantastic one.
Turn Insights Into Gold
Focusing on customer experience is like hitting the jackpot in the startup world. Shifting your mindset from creating a product to crafting an exceptional experience that builds a loyal following sets you up for success. By listening to your customers and making improvements, you can turn them into your biggest promoters.
So, when you’re building your startup, remember that it is not just about what you create, it is also about how you make your customers feel. That is a winning strategy that’s helped us create powerful brands.
The Indian startup sphere is bustling, and the difference between fleeting ventures and stalwart giants could be as simple as ensuring customer voices are at the forefront. So, to every budding entrepreneur out there: Are you listening?
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