How To Win Your First B2B Customer

Tactical Insights from tacto Co-Founder André Petry

Author

Fabian Tausch
November 08, 2024

In the early stages of a startup, acquiring your first customers can seem like an impossible challenge. How do you convince someone to try your unproven product or service?

André Petry, Co-Founder of tacto, a successful Series A startup specializing in procurement software for manufacturing companies, shares his deep, tactical insights on securing initial customers through pilot partnerships and co-development strategies.

This article (based on our (German) podcast) distills his key arguments and takeaways, providing tech founders and operators with profound, tactical guidance.

1. Embrace Cold Outreach to Secure Your First Customers

André's Thesis:

  • Direct Approach Works: Don't hesitate to reach out cold to potential customers. Personal, direct communication can open doors you might assume are closed.

"Try to acquire the first five customers simply by cold calling them. It's a bit dirty; everyone shies away from it. But in the end, that's what works, and that's what you should do."

Actionable Insights:

  • Identify Key Targets: Compile a list of potential customers who would benefit from your product.

  • Craft a Personalized Message: Tailor your outreach to address specific challenges the prospect might face.

  • Be Persistent and Genuine: Understand that rejection is part of the process. Remain authentic and persistent in your efforts.

Why This Matters:

Relying solely on personal networks can limit your potential reach and may not be scalable. Cold outreach demonstrates your commitment and can validate market interest beyond your immediate connections.

2. Avoid Overreliance on Personal Networks for Initial Customers

André's Thesis:

  • Scalability Requires Broader Outreach: Acquiring initial customers through friends or family isn't sustainable in the long run.

"I see very often that the first customers are somehow the cousin or the best friend's mother who is in management. That's more of a danger because that's not how you'll be able to scale sales in the end."

Actionable Insights:

  • Think Long-Term: Build a customer acquisition strategy that can scale beyond your personal network.

  • Test Your Value Proposition: Use cold outreach to validate that your offering appeals to the broader market.

  • Develop a Repeatable Process: Aim to create a sales process that others can replicate as your team grows.

Why This Matters:

Building a scalable business requires proving that you can attract and retain customers who have no prior relationship with you. This validation is crucial for growth and investor confidence.

3. Develop a Systematic Approach to Customer Acquisition

André's Thesis:

  • Systematization Leads to Scalability: Implementing a structured process is essential for moving from the first few customers to hundreds.

"You need to develop a system... Is it via this channel, via this method that we can get ten, one hundred, a thousand customers?"

Actionable Insights:

  • Define Your Sales Funnel: Map out each stage of your sales process from initial contact to closing the deal.

  • Measure Key Metrics: Track conversion rates, outreach efforts, and customer acquisition costs to identify what's working.

  • Optimize Channels: Focus on the channels that yield the highest returns and are most scalable.

Why This Matters:

A systematic approach allows you to effectively predict outcomes, allocate resources, and scale your customer acquisition efforts.

4. Create Supporters Through Delivering Real Value

André's Thesis:

  • Satisfied Customers Become Advocates: Early customers who benefit from your product can become powerful references.

"It's much more important in the initial phase to have supporters—people who stand up for you. That helps much more than the best processes."

Actionable Insights:

  • Prioritize Customer Success: Ensure that your product provides real value and solves a significant customer problem.

  • Build Strong Relationships: Engage closely with your early customers to foster trust and satisfaction.

  • Leverage Testimonials: Use the success stories of your early customers to build credibility with new prospects.

Why This Matters:

Customer advocates can significantly reduce friction in your sales process, as potential customers highly trust referrals and testimonials.

5. Invest Heavily in Product Development Based on Customer Feedback

André's Thesis:

  • Co-Development is Key: Working closely with your early customers to develop your product ensures it meets real market needs.

"We really invested everything in building the product and gathering customer feedback, not worrying so much about anything else."

Actionable Insights:

  • Establish Pilot Partnerships: Collaborate with select customers willing to provide detailed feedback and insights.

  • Regular Communication: Schedule frequent meetings (e.g., weekly) to discuss progress and challenges and gather input.

  • Iterate Rapidly: Use the feedback to make swift improvements to your product.

Why This Matters:

Building a product in a vacuum can lead to misalignment with market needs. Co-development ensures that your product evolves in a way that directly addresses customer pain points.

6. Manage Pilot Partnerships Effectively

André's Thesis:

  • Close Collaboration Drives Success: The depth of your engagement with pilot customers can significantly impact the value you derive from the partnership.

"We were on the phone with them once or twice a week for a couple of hours, visited them, watched everything live, talked to buyers. We were very, very, very close."

Actionable Insights:

  • Set Clear Expectations: Define the partnership's goals, timelines, and mutual benefits upfront.

  • Be Present: Spend time on-site, if possible, to fully understand the customer's environment and workflows.

  • Foster a Genuine Partnership: Approach the relationship collaboratively rather than transactionally.

Why This Matters:

Effective management of pilot partnerships yields valuable product insights and strengthens the relationship, increasing the likelihood of long-term customer retention and advocacy.

7. Transition from Co-Development to a Scalable Sales Model

André's Thesis:

  • Evolve Your Approach Over Time: While co-development is critical early on, you must shift towards a more standardized sales process as you grow.

"After about 10 to 15 customers, there was a switch... where many customers then simply bought the product you built and not the vision and the co-development partnership."

Actionable Insights:

  • Standardize Your Offering: Develop a clear value proposition and package your product accordingly.

  • Train a Sales Team: Hire and train team members who can replicate your sales process without your direct involvement.

  • Scale Customer Acquisition Efforts: Expand your outreach channels, leveraging marketing and sales strategies that have proven effective.

Why This Matters:

Scaling requires moving beyond bespoke arrangements to a replicable model that can be executed by a growing team, ensuring consistent revenue growth.

8. Immerse Yourself in Your Customer's World

André's Thesis:

  • Deep Understanding Drives Product-Market Fit: Fully immersing yourself in your customer's environment allows you to build solutions that align with their needs.

"I would now, in retrospect, probably say... it's a good idea to sit on-site with them for, say, four weeks, like an internship, and soak everything up."

Actionable Insights:

  • Conduct Field Research: Spend significant time within customer operations to observe and learn firsthand.

  • Challenge Assumptions: Be open to discovering that your preconceptions may not match reality.

  • Adapt Accordingly: Use these insights to refine your product and strategies.

Why This Matters:

Surface-level understanding can lead to products that miss the mark. Deep immersion ensures you grasp the nuances of customer challenges, leading to better solutions and stronger customer relationships.

9. Build for Sustainability, Not Just Quick Wins

André's Thesis:

  • Focus on Long-Term Value: Success isn't just about acquiring customers quickly but ensuring they remain satisfied and continue to derive value.

"You have to build a product that truly adds value because otherwise, you won't get the supporters... you won't be able to win 100 customers sustainably."

Actionable Insights:

  • Monitor Customer Outcomes: Regularly check in on how your product is delivering value to customers.

  • Enhance Continuously: Keep improving your product based on ongoing feedback and changing needs.

  • Think Beyond Acquisition: Invest in customer success and support to maintain high satisfaction levels.

Why This Matters:

Sustainable growth is built on a foundation of satisfied customers who see long-term value in your product, leading to retention, upsells, and referrals.

Conclusion: The Path to Your First Customers Is Through Genuine Engagement and Value Creation

Key Takeaways:

  • Be Proactive: Don't wait for customers to come to you; reach out directly and confidently.

  • Think Scalably: Build a customer acquisition strategy that can grow with your company.

  • Prioritize Relationships: Early customers are not just revenue sources but partners in your journey.

  • Invest in Your Product: Ensure it delivers real value to foster advocacy and long-term success.

  • Understand Deeply: Immerse yourself in your customer's world to build products that truly meet their needs.

Final Thought:

André Petry's approach underscores that the journey to acquiring your first customers is rooted in genuine connections, relentless focus on delivering value, and the willingness to immerse yourself fully in understanding your customer's challenges. By applying these tactics, founders can build a strong foundation for sustainable growth.

About André Petry and tacto:

  • André Petry is the Co-Founder of tacto, a leading procurement software startup that helps manufacturing companies optimize their supply chain by connecting them with the right suppliers for their products. Under his leadership, tacto has grown significantly, demonstrating the effectiveness of the strategies outlined above.

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