Photo by Campaign Creators on Unsplash
Cycles of booms and busts are not uncommon in the world of business — it is the ripple effects of the peaks that cause troughs and those that survive the trough rise up to build the next peak. After a booming last year in the startup ecosystem, this year may be a reversal.
“We haven’t seen a slowdown like this in at least five to six years. It is going to be brutal,” said Anand Lunia of venture capital firm India Quotient, an investor in more than 70 startups since 2012.
A majority of startups cash burn extensively in marketing to meet the high growth expectation they quoted to the investors while raising funds. Investors now have begun to ask high-growth companies to go back to basics — chase profits and reduce their cash burn.
In times like such, having a strong data person who can build a setup of a smart marketing system is very crucial. A data scientist can help the company minimize cash burn (probably save millions of dollars) with minimum impact on growth numbers.
1Liner: To identify the high propensity users to target for a campaign. Secondary goal: maximize engagement and minimize cost of targeting
Marketing and discounting on items happen everywhere be it a food delivery company offering pro subscription; a ride-hailing company giving you monthly ride passes, or a fintech company targeting their customers by offering credit or loans.
Targeting Users happen through mainly four channels: Call, Email (or LinkedIn Inmail), Whatsapp, and Push Notifications
Connecting with Users (Image by Author)
In general, the above placement of cost and impact is true but cash burn through different channels and conversion impact may vary for some businesses.
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