When Should an AI Startup Begin Marketing?
The answer to the question in this post’s title is, in short: ideally during the development phase of the initial product or service. This allows for the company to build anticipation, raise awareness, inform potential customers, establish initial differentiation, and attract talent to the company. Does early marketing tipoff the potential competition? Yes, but the benefits outweigh the consequences of lack of awareness. Starting early enables a startup to establish its presence, gather feedback, and refine its marketing strategy as it moves towards launch and beyond.
However, the commencement of marketing activities in an AI startup hinge on five key interrelated factors being in place. These include a:
resources to initiate and sustain this phase of marketing activities,
viable product or service with compelling story,
target market visibility and preferably comprehensive grasp of it,
internal commitment alongside a plan to attain product-market fit (PMF), and
well-defined, testable value proposition constructed to navigate the unpredictable landscape of customer engagement.
In the early stages of marketing, simplicity serves as a guiding principle. Key marketing activities will include:
market research
development of a clear and consistent brand identity – mainly the company's name, logo, and design
simplified messaging based on the value prop and customer pain points
the establishment of a basic website and presence on relevant social media platforms
building an email list and deploying rudimentary email campaigns
participation in networking events and activities
lastly, gathering feedback from initial customers aids.
The AI value proposition plays a crucial role in effective market engagement yet remains challenging for many startups to articulate. It communicates the unique benefits of an AI product or service, making it more appealing and relevant to customers by clarifying its advantages. Additionally, it distinguishes the offering from competitors, fostering both short-term customer attraction and long-term brand loyalty. Moreover, a well-defined value proposition aligns executive and engineering positioning and messaging, contributing to success in financing, market entry, and hiring.
The evolving landscape of AI startups and marketing demands distinct approaches to business versus consumers. Business-to-business (B2B) marketing entails providing comprehensive technical explanations while avoiding excessive complexity, emphasizing return on investment (ROI), developing detailed case studies, and offering proof-of-value (POV) product testing and complimentary consultations. Conversely, business-to-consumer (B2C) marketing necessitates simplified explanations of products or services, straightforward software demos and the creation of diverse content to engage a broader audience.
Both B2B and B2C marketing are confronted with “the AI Marketing Challenge”. This involves:
Firstly, explaining the AI incorporated within the product or service, being transparent about the underlying algorithm, and addressing any concerns related to the dataset or algorithm.
Additionally, it requires addressing the broader scope of AI, its impact on human moral, social or ethical issues and work environments.
Furthermore, marketers need to educate potential customers about technical concepts and jargon specific to their AI, while emphasizing its potential benefits.
As Charlie Guyer, founder and Principal of the Guyer Group, emphasizes, "Launching your AI product or service shouldn't be done in a vacuum. Start marketing early to build awareness, gain insights from influencers and industry analysts, and carve-out your place in complex ecosystem like AI. You don’t have to ‘boil’ the ocean and do everything, but once you turn ‘it’ on, keep it going. Even a little can go a long way if done correctly."
In sum, don't wait for launch day to reveal your AI product or service leaving the eager world unaware. By following these principles and commencing marketing activities early, you can build momentum, gather valuable insights, and position your startup for success in the ever-evolving AI landscape. Keep in mind that a well-crafted marketing strategy is an essential tool for navigating the path to PMF and attaining enduring success.