Tuesday, January 15, 2013

How a new Entrepreneur can use Web analytics to generate capital from venture capitalists?





New online marketing using a well designed website is a great opportunity to introduce your product and measure customer interest in purchasing the product. Young Entrepreneurs who have successful track record of getting capital  to expand and sell their products have extensively taken advantage of building good websites and using web analytics to constantly make changes to their website design to attract new customers who are willing to give their personal contact details before the product is ready in stock. A young local Salt lake city entrepreneur started a watch company called “Zennick” watches and used the same new online marketing idea to successful get his project funded from “KICKTSTRAT.com” to start manufacturing watches and sell them to customers. In Jan 2012 they started their business and now they are offering new models to attract both old and new customers.

Zennick launched their project @ KICKSTARTER in Dec 2011 and got first funding in Jan 2012. Before the company looked for capital they heavily spent time building their website design to generate interest and following. I got an opportunity to talk to one of the founder’s at Zennick and he mentioned using Google Analytics to measure their performance on how much the customer was interested in their product. Zennick attributed Google analytics to play a huge role in getting their business funded and subsequently generate revenue allowing the company to grow. He mentioned five important indicators to look for which improved their website design and subsequently engage customers to buy their product.

1)      Do visitors know what Zennick is selling?
The goal should be only few customers know the name of the company to look them up but rest of them should know about the product they are selling.

      2)    Does Zennick have social media?
Zennick can be followed in all famous social media websites like Facebook, Twitter and Google Plus. Zennick saw a high rate of followers to their website was coming from social media websites.

      3)      Does visitor’s conversion rate for becoming member have any pattern?
Zennick was able to streamline their marketing strategy by learning more about the followers through social media who converted to becoming a Zennick member. They found target market segments as followers who were interested in ski, board and biking.

      4)      Do visitors bail from homepage?
Zennick felt like if visitors are leaving from the homepage, then their website needs more design changes to keep visitor interested in staying more time on website.

      5)      Was Zennick offering different product offerings?
Zennick kept track of how many visitors are looking at different pages on website to see amount of the interest visitor has on the offerings.

I did open www.zennick.com and should admit that I had a great experience learning what they offer but I am not ready to order because I don’t usually wear a watch.

References:
  • Presentations from Venture Foundation course from Fall 2012
  • www.zennick.com