By York IE and Fulcrum Equity Partners

For many years, the startup ecosystem has centered around a few major hubs.

California’s Silicon Valley has long been considered the center of the U.S. tech scene. New York City’s connection to Wall Street and the stock market make it a bustling center for innovation. Boston, with its close ties to higher education and biotech, garners plenty of the startup spotlight.

But in today’s distributed world, tech innovation can come from anywhere. Across the United States, secondary cities are emerging as new startup hubs. The Secondary Startup Cities Report aims to give these burgeoning tech centers their shine.

York IE, an advisory and venture capital firm based out of Manchester, New Hampshire and Fulcrum Equity Partners, a private equity firm in Atlanta, Georgia, have teamed up to share proprietary data on fundraising and investment activity from secondary markets within the United States. The report defines a secondary city as any metro area in the U.S., excluding locations in California, New York and Massachusetts, given the major tech hubs in these states.

Secondary cities offer unique advantages, including lower operational costs, high-quality talent pools and a growing number of tech-savvy consumers and businesses. The shift towards remote work and distributed teams, accelerated by the COVID-19 pandemic, has further propelled the attractiveness of secondary cities.

Let’s dissect this data:

Key Takeaways

A handful of high-level themes emerged from this data:

Strong Investment Outflow from Secondary Cities

In 2023, investors based in secondary cities collectively invested nearly $62 billion in companies based outside of their metro area, demonstrating their significant role in fueling growth and innovation beyond their own regions.

Diversification of Investment Portfolios

Secondary cities are not only attracting investments but also fueling investment in other markets. These cities are diversifying their portfolios and participating in global innovation ecosystems, fostering collaboration and knowledge exchange.

Opportunities for B2B Startup Expansion and Collaboration

Secondary cities offer unique opportunities for B2B startups and investors to expand their reach, tap into new markets and forge strategic partnerships. By taking advantage of the strengths of secondary cities’ ecosystems, businesses can access talent, capital and resources essential for scaling their operations and driving sustainable growth.

Collaborative Ecosystems Drive Growth

Cities such as Baltimore, Washington, D.C. and Austin demonstrate the power of collaborative ecosystems, where startups, investors, academic institutions and government bodies work together to foster innovation and entrepreneurship. These cities serve as models for building inclusive and supportive environments conducive to B2B SaaS investment and growth.

Startups in Secondary Cities Attract Significant Investment

Startups in secondary cities received over $15 billion in investments in 2023.

The top secondary cities/metro areas that received the most investment dollars in 2023:

Startups in the Austin, Seattle and Washington D.C. metro areas garnered plenty of interest from investors last year. A mix of factors likely led to this investment boom: economic incentives and tax benefits, access to cutting-edge research and development facilities and quality of life and cost of living advantages

The recipe for success was different for each city, however. Austin’s strong tech ecosystem and abundant talent pool likely spurred the growth of its startups. The Seattle metro area can likely point to contributions from tech giants such as Microsoft and Amazon, who both hold a large presence in the city (and thus attract further innovation). Washington, D.C.’s success is likely tied to its proximity to political and regulatory centers of influence.

Secondary Cities Emerge as Investing Hubs

Investors in secondary cities invested over $62 billion in other cities in 2023.

The top 10 secondary cities/metro areas that made the most investments in 2023:

Once again, the trio of the Seattle, Washington D.C. and Austin metro areas proved their importance within the fundraising landscape. Thriving tech ecosystems in Seattle and Austin likely spurred investment for the venture capital communities, whereas Washington D.C. benefited from federal and private sector funding sources.

These impressive numbers showcase the strategic importance of these cities in fueling growth and innovation beyond their regions. Investment dollars from secondary cities play a large role in job creation, economic growth and tech innovation beyond their city borders.

Key Markets Lead the Way

The top markets in secondary cities that received investment in 2023:

Startups in the software and SaaS markets naturally played a large role in fundraising activities in secondary cities last year. A boom in the AI industry was also noticeable, as companies pilot more innovations in this space.

York IE has long supported B2B SaaS and Vertical SaaS companies in secondary markets, including the following portfolio companies:

• 40GRID: Portland, ME
• Creatively Focused: St. Paul, MN
• Cognitive Space: Houston, TX
• Datanomix: Nashua, NH
• Defendify: Portland, ME
• Finmark (acquired by Bill): Raleigh, NC
• Klearly: Durham, NC
• Ovation: Provo, UT
• Science On Call: Chicago, IL
• Serenity Engage: Denver, CO
• Spark Your Channel (acquired by 360 Insights): Boulder, CO
• VETRO: Portland, ME

Fulcrum Equity Partners has taken a similar approach, investing in companies such as:

• Digital Hands – Tampa, FL
• Feathr – Gainesville, FL
• FieldPulse – Dallas, TX
• Florence Healthcare – Atlanta, GA
• Olio – Indianapolis, IN
• NavigatorCRE – Seattle, WA
• QASymphony (Insight Partner’s Tricentis) – Atlanta, GA
• SaaSOptics (exited to Battery Ventures) – Atlanta, GA
• Stax (exited to Greater Sum Ventures) – Orlando, FL
• Stratasan (exited to Thoma Bravo’s Syntellis) – Nashville, TN
• SureFire Local – Washington, D.C.

Looking Ahead: The Future of Secondary Cities

Secondary cities will continue to shape the B2B SaaS landscape.

An expansion of fundraising activities will foster more expansions and strategic partnerships and create more resources for growing companies. As these cities continue to establish themselves, they’ll likely help drive innovation and create new booming markets in other cities.

Innovation can happen anywhere. Which cities are next?

The post The Secondary Startup Cities Report appeared first on York IE.

Startup equity dilution is an important concept to understand as you navigate the fundraising process.

Founders and operators typically pour their hearts and souls into building their businesses. This mental and emotional investment is repaid in the form of equity, i.e. an ownership stake in the company.

The startup journey often involves raising capital from outside investors, however. And with each funding round comes a potential decrease in your ownership percentage. This is known as equity dilution.

As the CFO of York IE, I manage our corporate strategy and finance services for fast-growing technology companies. Startup dilution is a common topic for many of our clients as they scale, fundraise and reward loyal employees. In this blog post, I’ll tap into some of the best practices I’ve learned from helping founders and operators manage their equity dilution:

What Is Equity Dilution?

Equity dilution refers to the reduction in ownership percentage of existing shareholders when additional shares are issued. It typically occurs when a startup raises capital by selling new shares to investors, such as during Seed or Series A rounds, or by allocating shares to any equity option pool for employee compensation. Dilution may also occur, but be delayed,  through a convertible note or Simple Agreement for Future Equity (SAFE) when the positions are converted to equity well after the fundraise.

Startup equity dilution isn’t inherently good or bad. On one hand, every time you raise money from a venture capital firm or other investor, you’re effectively selling a piece of your company to an outside party. Founders and operators should be strategic about how much they’re raising and how much equity they’re selling off.

There is, however, another side of the equation. An injection of capital might allow you to scale your business and increase your valuation. In the long term, owning a smaller percentage of a more valuable company might be more beneficial than claiming a larger share of equity in a less valuable organization. Plus, many investors serve as active advisors who can help grow your company strategically.

How Does Dilution Work?

Dilution is measured relative to the number of total shares of equity in a company. If you know the total number of shares available in your company (which might not always be the case), you can express dilution with this formula:

new ownership percentage = (your number of pre-money shares) / (total shares outstanding after round)

Pre-money shares are what you own before the funding round. Total shares outstanding are the total number of shares in the company after the new investors are included.

For example: Let’s say you own 10 out of 100 shares in your company, equal to 10%. You conduct your Seed round, in which you issue 25 new shares to your investors.

You now own 10 of the 125 shares of the company, reducing your new ownership percentage to 8%.

I want to be clear that this is a very simplified version of a startup equity dilution calculation. The math is a little bit more complicated when you start dealing with SAFEs and convertible notes (and pre- and post-money valuations).

What Is an Equity Dilution Event?

An equity dilution event is any event that triggers a reduction in the ownership percentage of existing shareholders. This can refer to more traditional fundraising rounds you’re familiar with, but also stock option grants to employees, conversions of SAFEs and convertible notes, or even mergers and acquisitions where shares are exchanged.

Causes of Startup Equity Dilution

Startup equity dilution can be caused by:

• priced fundraising rounds;
• the creation or expansion of an employee/advisor stock option pool;
• a merger or acquisition; and
• convertible notes and SAFEs.

Priced Fundraising Rounds

Each time you raise capital through the issuance of new shares (aka a priced round), your ownership percentage decreases. Hopefully, your company will achieve a higher valuation with each successive round. Although you’re likely to experience startup dilution from each round, the real-money value of your equity will likely increase if your valuation does.

Employee Stock Options

Many startups like to reward their early and key employees with shares in the company. This can be a great incentive that allows employees to reap rewards when the company succeeds. It can also be a great negotiating tool to offset cash compensation with equity when capital resources are slim.

Typically, the board of directors will create an option pool; they’ll take a certain number of shares and set them aside. There’s a distinction between authorized shares allocated to the option pool  (i.e., ones the board has set aside) and issued shares (ones that have been awarded to employees and advisors). Only issued and vested shares have an immediate impact on equity dilution.

Mergers and Acquisitions

Let’s say your company is acquired with stock as part of a deal. In this case, the conversion ratio between your shares and the acquiring company’s shares will determine the final ownership stake for founders and other shareholders. Negotiating a favorable conversion ratio becomes crucial to minimizing dilution in this scenario. Remember, even in an acquisition, a smaller ownership stake in a much larger, successful company can be a very positive outcome.

Convertible Notes and SAFEs

Debt instruments such as convertible notes and SAFEs will convert into equity at a discount during a future fundraising event. Because of this, the dilutive impact of these instruments is not immediately understood at the time they’re agreed upon.

How to Prevent Share Dilution for a Founder

Here are a few ways to prevent share dilution:

1. Conduct sound financial and capital runway planning.
2. Raise only what you need.
3. Negotiate your valuation.
4. Manage your option pool wisely.
5. Explore alternative financing options.
6. Play the long game.

1. Conduct sound financial and capital runway planning

Growth at all costs is a thing of the past. Keep a close eye on the company’s capital structure and how future funding rounds may affect it. Understanding potential dilution scenarios can help founders make informed decisions.

2. Raise only what you need

Don’t fall into the trap of raising more capital than necessary. Every dollar raised comes at the cost of some equity. Sure, it might feel good to announce new funding every six months, but you’ll likely do some serious damage to your ownership percentage. Carefully plan your runway and focus on achieving key milestones before seeking additional funding.

3. Negotiate your valuation

The higher the valuation you secure during fundraising, the fewer shares you need to issue to raise the same amount of capital. That’s because a higher price per share buys the new investor fewer shares with their fixed amount of capital.  This translates to less dilution for you and your co-founders.

Before entering negotiations, research valuation benchmarks for similar companies in your industry and at your stage. Clearly articulate your company’s potential for growth and profitability to justify a higher valuation. Consider bringing in a fundraising advisor such as York IE to help you understand your valuation inputs, navigate the negotiation process and ensure you’re getting the best possible terms.

4. Manage your option pool wisely

Stock options are a crucial tool for attracting and retaining talent, but a bloated option pool can significantly dilute your ownership.

Once again, consider benchmarking against industry standards and tailor the pool size to your specific needs and stage. Implement vesting schedules that require employees to stay with the company for a certain period to fully acquire their stock options. This incentivizes long-term commitment.

Prioritize granting options to key hires and employees with high-growth potential. This part becomes especially crucial in the early stages of your company. The first few hires you grant equity to will set the standard for future equity grants. Think long-term and don’t set the bar too high.

5. Explore alternative financing options

Debt financing or revenue-based financing can provide growth capital without immediate equity dilution. Roughly 34% of small businesses apply for loans in a given year. Consider options such as venture debt alongside traditional equity fundraising for a more balanced approach. While the interest costs of startup loans can be high, alternative financing might still fit into your company’s overall capital strategy.

6. Play the long game

While dilution might seem like a loss in the short term, remember: It’s all about building long-term value. If your company experiences significant growth and achieves a successful exit (acquisition or IPO), even a smaller ownership stake can translate into a substantial financial reward.

Typical Dilution for a Seed Round

Founders should expect between 15% and 30% dilution in a Seed round. Put another way, you’ll likely have to give your investors between 15% and 30% of your company shares in exchange for the capital you need.

Typical Series A Dilution

Founders conducting their Series A financing should expect between 15% and 25% startup dilution. Series A companies are typically a little further along than their Seed counterparts, meaning dilution tends to skew slightly lower in this round. This is because the valuations tend to be a bit higher.

Startup Equity Dilution Example

Let’s take everything we’ve learned about startup equity dilution and put it into a hypothetical story:

Lauren Williams has had early success with her startup. She has strong product market fit and great traction with a couple of well-known brands. Lauren has identified key areas for investment that will allow her to scale her business but needs additional capital to reach her milestones sooner.

After considering non-dilutive options, like a bank loan or revenue-based financing, Lauren decides that a traditional equity raise is the best approach for her company.

Lauren previously raised $600,000 from a few close investors. In that Seed round, the company was valued at $2.7 million pre-money. Lauren retained 82% ownership of the company after the round.

Lauren weighs several factors when considering how much to raise in her upcoming Series A, including her company’s valuation and its capital requirements. With help from her advisors, Lauren determines that a $1.5 million raise is best suited for her company, and her company could reasonably be valued at $9 million pre-money.

When the round is completed at her terms, it has a 14% dilutive effect on the ownership position for folks on the cap table. This is calculated by the simple math on the new investment as a percentage of the new valuation:

$1.5M invested / $10.5M post-money valuation = 14% of the company  

After the Seed round, Lauren owned 82% of her company. The Series A raise of $1.5 million reduces her ownership allocation to 70%.  Since the valuation also increased, she secures an unrealized gain of $4.6 million. Although 14% dilution is significant, Lauren feels this outcome will be an overall win, because her diluted ownership percentage will be worth a far greater value in real dollars when the company reaches a successful exit.

Ownership in your company is a big deal. If you’re a founder or operator, you’ll likely sacrifice much of your physical, mental and emotional energy into growing your company. Strategically managing your startup dilution will help ensure that your company’s success will correlate to personal financial gains to reward your hard work.

The post Equity Dilution for Startups: Everything You Need to Know appeared first on York IE.

A CRM implementation guide can help your company gain maximum value from your CRM software from day one.

A customer relationship management (CRM) system should be a foundational element of your company’s tech stack as you scale. Many companies view their CRM as the central hub of their marketing, sales and customer service activities.

The right CRM can help optimize the entire customer journey: identifying and nurturing leads, turning prospects into customers and delivering the best experience to those clients. It’s all about achieving a smooth process; 78% of sales leaders report that their CRM improved alignment between their sales and marketing teams.

It’s important to nail the CRM implementation process, but not every fast-growing technology company gets it right. The complexities of implementation mean that many CRM projects fail to achieve their desired outcomes.

In my nearly 20 years in the technology world, I’ve helped lead several CRM selection and implementation projects. I served as CTO of Forcivity, a full-service CRM consultancy and systems integrator, and now work as part of the York IE advisory services team that guides CRM implementation projects for early-stage technology companies.

In this blog post, we’ll outline the process and go through some key CRM implementation steps. Don’t forget to download our free CRM implementation guide to help you get started.

What Is the CRM Implementation Process?

The CRM implementation process is the exercise of launching a new CRM platform and ensuring it smoothly integrates with the existing workflows of an organization. The process includes assessing a company’s sales, marketing and customer service needs, and carefully implementing the CRM in a way that helps optimize these operations.

A successful CRM implementation helps create a customized environment that reflects the specific requirements of an organization and its customers.

What Are the 5 Keys to Successful CRM Implementation?

The keys to successfully implementing your CRM are:

• change management
• executive sponsorship
• user engagement
• clear documentation
• regular reviews

Change Management

Implementing a new CRM will likely bring wholesale changes to your sales, marketing and customer service operations. Consistent communication with colleagues is key. The leader of the implementation process should clearly communicate the benefits of the new CRM and involve end users in the process to navigate this change.

Executive Sponsorship

It’s important to secure buy-in from company leaders before launching your CRM. Executives can help drive the initiative and address any concerns or questions from employees. They can also provide big-picture thoughts on business growth goals to inform the implementation strategy.

User Engagement

The most important people in any implementation project are the users who will rely on the CRM daily. Provide them with regular updates on the status of the project. Offer training sessions to help users get up to speed. Recognize their feedback and adjust your implementation process accordingly.

Clear Documentation

CRM implementations are complex and include multiple steps. It’s often helpful to maintain clear and detailed documentation of processes, configurations and ownership over different aspects of the platform. Some CRMs have internal documentation tools to keep your notes in order. You could also document the process in a project management tool such as Notion or within a shared Google Doc.

Regular Reviews

High-growth companies are constantly learning as they scale. A CRM implementation process should reflect this iterative culture. Conduct regular reviews during and after your implementation to ensure your platform is meeting the needs of your business, users and customers.

What Are the Steps of CRM Implementation?

The 8 CRM implementation steps are:

1. Define objectives and goals.
2. Assemble a project team.
3. Select the right CRM.
4. Customize the CRM.
5. Migrate your data.
6. Conduct user and quality assurance testing.
7. Train and onboard team members.
8. Review post-implementation results.

1. Define objectives and goals

Clearly define what you hope to achieve with the platform. Will you focus on increasing marketing leads? Boosting sales efficiency? Refining your attribution model and setting up dashboards for your RevOps team? Selecting your primary focus areas will help you choose the right CRM and customize it to align with your goals.

2. Assemble a project team

You’ll want some different perspectives and voices as you follow these CRM implementation steps. Appoint a project manager to oversee the implementation process. This could be a sales or marketing leader, a technical or IT specialist or some combination. Include key stakeholders that will use the CRM once it’s implemented. Achieving their buy-in is important.

3. Select the right CRM

Selecting the best CRM for you comes down to factors such as budget, features and user interface. At York IE, we often recommend HubSpot to our technology company clients, as it offers a friendly user interface and versatility across marketing, sales and customer service. Check out our blog post on choosing the right CRM if you’re looking for a deeper dive.

We recommend requesting a demo or conducting a free trial period for any CRM you’re considering.

4. Customize the CRM

With your CRM selected, it’s time to focus on planning your implementation. Develop a realistic timeline; we recommend a phased approach that allows for constant review. Our CRM implementation guide can help you map out your strategy.

Define your current workflows and processes, and decide how your CRM can help augment these operations. Outline your user roles and permissions. Set up integrations with your existing tools and systems, including email, marketing automation and accounting.

5. Migrate your data

Your contact data exists somewhere prior to implementing your CRM: a spreadsheet, document or within your email. Create a detailed plan to migrate your data from any existing systems to the new CRM and map those fields accordingly. Conduct a test migration to identify and resolve any issues before migrating all of your data.

6. Conduct user and quality assurance testing

We can call this the soft launch phase of the implementation. Your goal is to ensure all of the CRM’s features work as expected and address any bugs or issues. This is where your project team can help. Conducting user acceptance testing with the CRM’s users will help you validate that the new system addresses their needs.

7. Train and onboard team members

Here’s where you hard launch the CRM and get everyone up to speed. If you’ve built a diverse project team, they can help address questions within their department or focus area. Ensure ongoing support is available for users. Most CRMs offer comprehensive resource guides, and you’ll likely have access to a customer service expert who can guide you along the way.

8. Review post-implementation results

Any successful CRM implementation process is iterative. Gather feedback from users to see what can be improved. Measure the CRM against your predefined goals. As you analyze this data, implement changes and enhancements to keep your system operating to its full potential.

The right CRM can be transformational for your organization; 45% of companies say their CRM platform has helped increase sales revenue. Especially as a fast-growing company, you want to see those benefits right away.

These CRM implementation steps should help guide your team as you select and launch your new platform. Remember that any successful CRM implementation is a collaborative process; stay in constant communication with your colleagues and bring together employees from sales, marketing, customer service and technical backgrounds.

A great CRM can unlock the potential of your go-to-market team. Best of luck getting yours up and running!

The post 8 Steps for Successful CRM Implementation (+Guide) appeared first on York IE.

Choosing a CRM is all about finding the right software that aligns with the specific needs and workflows of your company.

A customer relationship management (CRM) platform is an essential part of any organization’s go-to-market (GTM) motion. The right CRM can help your team nurture marketing leads, boost sales effectiveness and deliver exceptional customer service. That’s why 45% of companies report that using CRM software helps them increase their sales revenue.

When choosing a CRM, founders and operators should begin by defining their goals and budget, and then conduct a careful examination of the features their users need most.

I’ve been working in the technology industry for nearly 20 years. In that time, I’ve taken part in several CRM selection and implementation processes. Before joining York IE, I served as CTO of Forcivity, a full-service CRM consultancy and systems integrator. Now, I’m part of the York IE advisory services team that helps growing technology companies navigate the complexities of setting up their own CRM.

Let’s discuss what to look for in a CRM and outline a step-by-step process for how to choose a CRM:

What should I look for in a CRM?

Here’s what to look for in a CRM:

• contact management
• sales automation
• customization
• user friendliness
• integrations
• training and support
• scalability
• pricing flexibility
• reasonable ongoing costs
• security and compliance

Contact Management

The most basic function of a CRM is contact management: the process of collecting, storing and organizing information about a person and their interactions with your company. You’re looking for a centralized database that makes this information easily accessible for all members of your org. As a starting point, your CRM should track contact information, purchase history and communication preferences.

Sales Automation

The best CRMs are more than contact repositories. Your tool of choice should also automate repetitive tasks. This includes helping you generate quotes, schedule meetings, log call notes and set up sequences that trigger automatically based on lead behavior. For example, HubSpot’s CRM offers an extension that automatically logs your email communication with prospects.

Customization

Every business is different. Your CRM should fit the unique processes and requirements of your business. Customization is a double-edged sword; you want enough flexibility to tailor the system without bringing unnecessary complexity.

User Friendliness

This ties closely with the idea of customization. Founders and operators typically target systems with simple, intuitive interfaces that all users — from marketers to customer service reps — can navigate with ease.

Mobile access can be a necessary element for any team members who prefer to access their CRM from the field or on the go.

Integrations

Integrating your CRM with your email is the bare minimum. Some companies require CRMs to connect with their tools for marketing automation, e-commerce, accounting, enterprise resource planning (ERP), etc. Make sure your desired platform can integrate with your existing systems before making a selection.

Training and Support

Getting your company up and running on a CRM shouldn’t be a one-person job. Look for a CRM provider that offers you access to resources and live support as you troubleshoot and get up to speed.

Scalability

Ensure that your CRM can scale with you. Will your platform keep up as your GTM motion matures and you have more leads, data usage and users?

Pricing Flexibility

CRMs aren’t necessarily one-size-fits-all platforms. Especially as an early-stage company, you probably won’t need every advanced feature that your provider offers. Look for a platform that allows you to pick which features you need, without paying for unnecessary ones. Most providers will offer pricing tiers based on company stage.

Reasonable Ongoing Costs

Take some time to understand the long-term costs of your CRM beyond the implementation. Look at fees for data usage and new user licenses, and factor these costs into your long-term GTM planning.

Security and Compliance

Most of the big-name CRMs have robust security measures and protocols, but you should do your due diligence before making a selection. If your company deals with sensitive data, be sure your CRM complies with regulations such as HIPAA or GDPR.

It’s important to remember that a CRM is not a silver bullet. A great CRM can’t fix messy sales processes and your system is only as good as the data that goes into it.

6 CRMs for Growing Tech Companies

Here are six CRMs to consider for your company:

HubSpot

If I had to recommend one platform for an early-stage technology company, I’d probably go with HubSpot. They offer a free CRM tier with basic features and offer a generally user-friendly experience that’s good for team members wearing multiple hats.

One advantage of HubSpot is that it allows companies to set up specific marketing workflows, campaigns, forms and landing pages that easily integrate with the sales and customer service aspects of the platform.

Salesforce

Although it might be better known as an enterprise tool, Salesforce offers several options that could appeal to early-stage companies. Salesforce’s CRM tends to be highly customizable, with robust features and strong integration capabilities. For those concerned about cost and complexity, Salesforce Essentials is a scaled-down version of Salesforce for small businesses, which offers a great package of features at a value for fast-growing tech companies.

Zoho

Zoho’s comprehensive CRM solution comes at a competitive price, making it a good value for many growing companies. Zoho CRM integrates easily with other Zoho business applications for help desk support, project management and more. Companies looking for a comprehensive ecosystem of tools might enjoy this versatility.

Pipedrive

Pipedrive, as you might guess, specializes in sales pipeline management. Users can easily track leads and deals at a glance. Pipedrive’s focus on sales activities and straightforward interface could make it a good option for companies with a sales-driven culture and a limited number of users.

Microsoft Dynamics 365

Microsoft Dynamics offers business applications for CRM and ERP. Dynamics benefits from its strong integration with all Microsoft products, as well as its powerful analytics and AI-driven capabilities. It could be a fit for companies within the Microsoft ecosystem that value tight integration with existing tools and a comprehensive business management solution.

Freshsales

Freshsales is a streamlined CRM by Freshworks that’s designed to simplify the sales process. Its AI features and strong integrations can be great for productivity, and it’s relatively affordable. While a great option for early-stage companies, it might not have the customization options that appeal to organizations with more complex sales workflows.

These aren’t the only CRMs on the market, but they are some of the most common. Do your research to see if any other platforms align with your needs.

How Do I Choose the Right CRM?

Here are seven steps to follow when choosing a CRM:

1. Identify your business needs
2. Define your budget
3. Assemble a CRM team
4. Evaluate the key features
5. Request a demo and trial
6. Gather user feedback
7. Make your selection and begin implementation

1. Identify your business needs

Conduct an internal needs assessment before you start thoroughly researching your best CRM options. Outline your sales process and identify the key stages you need in your CRM. Zero in on the types of customer data you need to track and manage and consider who in your organization will need access to the CRM. Think about what data and metrics you’ll need for reporting and attribution.

2. Define your budget

You’ve outlined what you hope to accomplish by choosing a CRM. Now it’s time to determine how much you’re willing (and able) to spend on the right software. Remember that you’ll need to allocate funds for initial CRM implementation, as well as ongoing costs such as data usage and new user licenses. Conduct a quick cost-benefit analysis. What are you willing to pay, and what efficiencies will you achieve by allocating this budget?

3. Assemble a CRM selection team

A CRM is inherently a collaborative tool. Your marketing, customer service and sales teams will be using the platform every single day. Bring together some of these users to help you conduct your CRM search. Gather a diverse set of perspectives without bringing too many cooks into the kitchen. Have one person assigned as a de facto project manager; they’ll hold the ultimate power to make the decision.

4. Evaluate the key features

Now it’s time to start an apples-to-apples comparison of some of your top options. Do some research about the CRM platforms that fit your budget. From there, see which CRM checks the most boxes when it comes to features). You’re looking for the combination of functionality, user-friendliness and value that works for your specific needs.

5. Request a demo and trial

A new CRM is a major investment; take some time to test-drive your leading contenders before you make a purchase. Request a demo to see the product in action. Most CRM providers also make it easy to get started with a free trial version of their product.

6. Gather user feedback

This is where your CRM selection team comes into play. Give your users (i.e., the people who’ll use the platform every day) a chance to test out their workflows. Were they able to accomplish their tasks? Did they enjoy using the product? Could they find the dashboards and portals they needed most? Take all of this into account.

7. Make your selection and begin implementation

By now you’ve got all the information you need to make a decision. Rely on your cost-benefit analysis, feature comparisons and the feedback of your colleagues. From there, do some research to understand the CRM implementation process and timeline. Make sure your provider offers you adequate support for technical assistance and training.

Choosing a CRM involves carefully considering your business needs, researching the top options that match your criteria and actually testing out the platforms for yourself. Be sure to collaborate with your colleagues as you make your decision; your CRM selection will affect your entire organization as you scale.

Finding the right software fit can pay off big dividends for your GTM motion. These tips should help you figure out how to choose a CRM in a strategic manner. You know what to look for in a CRM; now it’s time to make your decision strategically.

The post How to Choose a CRM appeared first on York IE.

I’ve written a lot recently on the impact AI will have on marketing and how some marketers fear the arrival of these tools.

Marketers think AI tools will, at best, diminish their value and contributions to the team and, at the worst, eliminate their jobs. I disagree. In some ways I think they are ushering in a new era, especially in tech. Though, again, this is nothing new.

The evolution of wealth accumulation reflects the shifting trends of human civilization, from conquest and colonization to trade, industrialization and the digital age. While the methods and skill sets have evolved over time, one constant remains: the resilience and adaptability of the human spirit.

Let’s dive into the history of this evolution. In doing so, I’d like to remind you that as we embark on a new frontier of wealth creation, human ingenuity tends to thrive amidst technological advancements.

The Eras of Wealth Creation Through History

Throughout history, there have been dramatic changes in how people became rich and powerful, and the skill sets needed to master that.

Ancient Conquests

From early days to the 17th century, the path to riches often included conquest and territorial expansion.

Leaders like Alexander the Great, renowned for his military prowess and strategic brilliance, carved out vast empires through hostile takeover. Similarly, figures like Julius Caesar and Mansa Musa leveraged military might, political alliances and taxation to amass wealth and power. The skill sets required in this era were primarily physical strength, battlefield acumen and political maneuvering, often through strategic marriages and alliances.

Transition to Trade and Commerce

Then in 1600, the East India Company was formed, which became, essentially, the first publicly traded company. This ushered in an era of hugely powerful public companies, which is why now, when you think of the wealthiest people in the world, you don’t think of kings and queens but CEOs and founders.

With the dawn of the Renaissance and the Age of Exploration, the economic landscape underwent a transformation. The emergence of trade routes, maritime exploration and the establishment of colonies ushered in a new era of wealth accumulation through commerce.

Merchants and traders like Marco Polo and the Medici family rose to prominence, leveraging their entrepreneurial acumen and trade networks to amass fortunes. This era demanded skills in navigation, negotiation and risk management, marking a shift from conquest to commerce.

Industrial Revolution and Capitalism

The 19th and 20th centuries witnessed the ascent of industrialization and capitalism, reshaping the dynamics of wealth creation. Innovators and industrialists like Andrew Carnegie, John D. Rockefeller and Henry Ford revolutionized industries, amassing unprecedented fortunes through innovations in steel, oil and automobiles. The skills prized in this era were entrepreneurship, industrial innovation and financial acumen,

The Digital Revolution

Technology has always played a role within the aforementioned publicly traded companies. But that became even more powerful in the last 50 years with advancements in computing and the Internet. I asked AI to tell me the fastest-growing companies in the last 50 years. Here’s the list:

• Apple Inc.
• Amazon
• Microsoft
• Google (now Alphabet Inc.)
• Facebook (now Meta Platforms, Inc.)
• Netflix
• Tesla, Inc.
• Walmart

The path to fame and fortune in this period was through computer science. All of the founders of the above-mentioned tech companies were essentially computer scientists. The engineering mind was needed to succeed here. Some of these characteristics include:

• Analytical Thinking: Technical founders tend to possess strong analytical skills, allowing them to break down complex problems into manageable components and derive practical solutions. They have a natural inclination towards data-driven decision-making and rely on empirical evidence to guide strategic choices.
• Curiosity and Learning Agility: These founders are typically curious individuals who have a thirst for knowledge and a passion for continuous learning. They stay abreast of emerging technologies, industry trends and market developments, seeking opportunities to innovate and stay ahead of the curve.
• Problem-Solving Orientation: Technical founders excel at solving complex problems and thrive in environments characterized by ambiguity and uncertainty.

We have seen this change over the 5 years of York IE.

New Methods for Wealth Creation

Our firm’s history is deeply rooted in a company called Dyn, which was the world leader in the domain name system (DNS).

This is deeply technical Internet infrastructure. Kyle York, our CEO, was Dyn’s CRO, and built a massive go-to-market machine. He was selling to the technical leads at massively popular tech companies like Zappos, Twitter, Amazon, etc. While talking to these technical leads, they would often ask him how he built the GTM machine.

Thus the idea for York IE was born.

We had a vast network of potential technical founders and we would become their GTM extension. This made sense, especially given Dyn’s run from 2012 to 2016.

But like so many other areas, even tech has been impacted by tech. We’re seeing more and more companies founded by non-technical people. The group of people we’re seeing here are different and represent a different model.

The Era of Audience Building (1920s-Present)

We recently, historically speaking, entered into a new phase beyond coding, which is the era of audience building. The influencer, so to speak, has always existed. Their reach, however, has grown exponentially since the 1920s with the invention of television. The rapid expansion of platforms and the elimination of gatekeepers have allowed more and more people to build wealth and fame through building audiences. Think Joe Rogan, Mr. Beast, etc.

The skills needed here include:

• Authenticity: Authenticity is paramount for online influencers. Audiences are drawn to influencers who are genuine, transparent and true to themselves. Authenticity fosters trust and credibility, which are essential for building a loyal and engaged following.
• Engaging Content: Successful influencers create content that resonates with their audience. Whether it’s entertaining, educational, inspirational or informative, the right content captures the attention of followers and encourages interaction, such as likes, comments and shares.
• Consistency: Consistency is key in the world of online influence. Influencers who consistently post high-quality content on a regular basis tend to maintain and grow their audience over time. A consistent rhythm helps keep followers engaged and reinforces the influencer’s brand identity.
• Strong Personal Brand: Successful influencers cultivate a strong personal brand that sets them apart from others in their niche. This includes elements such as their unique voice, style, values and aesthetic. A strong personal brand helps influencers stand out and attract a dedicated following.

While an influencer’s personality traits can be different from a technical founder’s, there is one major commonality: they are reaching their audience, one to many and digitally.

Like all of those who have come before it, this arena has a shelf life, too. AI will level the playing field and eliminate the competitive advantage good creators and unique POVs have. Is the era of mass production ending?

The Next Chapter of Company Building

All of the above commentary is based on the traditional narrative of wealth, where money reigns supreme. But as we step into a new era, a shift is underway: a redefinition of what it means to be truly wealthy. In this emerging landscape, time emerges as the most valuable currency, reshaping our understanding of prosperity and success.

Here’s how these thoughts can shape the foundation and growth of new businesses:

1. Capital Efficiency

Rather than relying on massive funding rounds and exorbitant valuations, future entrepreneurs will prioritize capital efficiency. They will seek to responsibly fund their ventures, leveraging lean startup methodologies and cost-effective technologies to minimize overhead and maximize returns. By doing so, founders can maintain greater control over their companies and focus on sustainable growth without being beholden to external investors.

2. Utilizing Technology

Technology will play a central role in the growth of new companies, enabling them to reach broader audiences with minimal resources. From digital marketing and social media engagement to e-commerce platforms and remote collaboration tools, technology provides entrepreneurs with the tools they need to expand their reach and scale their businesses efficiently. By harnessing the power of technology, startups can compete on a level playing field with larger competitors while maintaining agility and flexibility.

3. Niche Focus

In the pursuit of credibility and connection, future companies will adopt a more niche-focused approach. Rather than targeting mass markets, entrepreneurs will identify specific niches where they can establish themselves as experts and build meaningful relationships with their audience. By catering to the unique needs and interests of a niche audience, companies can differentiate themselves from larger competitors and foster greater loyalty and engagement among their customers.

4. Building Personal Brand

Founders will prioritize building their personal brand as thought leaders in their respective industries. By sharing their expertise, insights and values through content creation, public speaking and networking, founders can establish themselves as trusted authorities and influencers within their niche. A strong personal brand not only enhances the credibility of the founder but also strengthens the reputation and visibility of the company.

5. Balancing Work and Life

In contrast to the traditional “hustle culture” mentality, future founders will prioritize work-life balance and holistic well-being. Recognizing the importance of mental and emotional health, entrepreneurs will cultivate practices that promote balance, mindfulness and fulfillment in both their professional and personal lives. By prioritizing self-care and fulfillment, founders can sustainably pursue their passions and contribute positively to their companies and communities.

6. Prioritizing Happiness

Ultimately, the goal of building new companies will extend beyond financial success to encompass holistic happiness and fulfillment. Founders will measure their success not only by their bottom line but also by their sense of purpose, fulfillment and impact on the world. By aligning their businesses with their values and passions, entrepreneurs can create companies that bring joy and fulfillment to themselves, their teams and their customers.

In summary, the future of building new companies will be characterized by capital efficiency, technology-driven growth, niche focus, personal branding, work-life balance, and prioritization of happiness. By embracing these principles, entrepreneurs can create businesses that are not only financially successful but also personally fulfilling and positively impactful.

Will this happen or am I just dreaming? Human history tells me I am probably dreaming. But that’s the beautiful part of being a founder. You need to dream!

The post The New Era of Tech Leadership appeared first on York IE.

In recent months, I’ve found myself contemplating the future and the transformative influence of generative AI in marketing. The question looming large in my mind is whether AI’s integration will merely herald an evolutionary progression or spark a full-blown revolution in the realm of marketing.

When we dissect the essence of marketing, it revolves around three pivotal aspects:

1. the distribution channels of marketing;
2. the way marketing is created; and
3. the core principles of marketing.

Let me work through how generative AI will affect each of them and whether its effects will be evolutionary or revolutionary.

The Distribution Channels of Marketing

Marketing distribution channels have evolved significantly throughout human history, driven by advancements in technology, changes in consumer behavior and shifts in societal norms.

Here’s an overview of how some key marketing channels have evolved over time:

1. Word of Mouth (Prehistoric Era-Present)

Word of mouth is one of the oldest forms of marketing, dating back to prehistoric times when early humans communicated through oral traditions. In ancient civilizations, word of mouth played a crucial role in spreading information about goods, services and experiences within local communities.

With the advent of written language and literacy, word of mouth evolved into more formalized forms of communication, such as personal referrals, testimonials and recommendations.

2. Print Advertising (15th Century-Present)

The invention of the printing press in the 15th Century revolutionized communication and paved the way for modern advertising. Print advertising began with simple text-based announcements in newspapers, pamphlets and posters, gradually evolving into more visually appealing and persuasive formats.

With the rise of mass media in the 20th Century, print advertising became one of the dominant marketing channels, with newspapers, magazines and billboards serving as primary vehicles for reaching consumers.

3. Direct Mail (19th Century-Present)

Direct mail marketing has been around since the 19th Century, when businesses began sending promotional materials directly to consumers’ mailboxes.

Initially, direct mail consisted mainly of catalogs, flyers and coupons, but it evolved over time to include personalized letters, postcards and targeted mailings. With the rise of digital technology, direct mail has adapted to new formats, such as email marketing and electronic newsletters, while still retaining its effectiveness as a targeted marketing channel.

4. Broadcast Media (20th Century-Present)

The 20th Century witnessed the emergence of broadcast media channels, including radio and television, which revolutionized mass communication and advertising.

Radio advertising became popular in the early 20th Century, allowing brands to reach large audiences with audio commercials and sponsorships. The advent of television in the mid-20th Century further expanded the reach and impact of advertising, enabling brands to convey their messages through sight, sound and motion.

5. Digital Marketing (20th Century-Present)

The rise of the internet in the late 20th Century ushered in a new era of marketing, with digital channels offering unprecedented opportunities for reach, targeting and measurement. Websites, search engines, email, social media and mobile apps have become essential components of digital marketing strategies, allowing brands to engage with consumers across multiple touchpoints.

The evolution of digital marketing continues with advancements in technologies such as generative AI, machine learning and augmented reality, which are shaping the future of consumer engagement and brand communication.

6. Social Media Marketing (21st Century-Present)

The emergence of social media platforms in the 21st century has transformed the way brands interact with consumers, enabling real-time communication, user-generated content and influencer partnerships.

Social media has become a powerful channel for building brand awareness, fostering community engagement and driving customer loyalty through targeted advertising and organic content.

7. Mobile Marketing (21st Century-Present)

The proliferation of smartphones and other mobile devices has led to the rise of mobile marketing, encompassing tactics such as mobile advertising, SMS campaigns and in-app promotions. Mobile marketing capitalizes on consumers’ increasing reliance on their devices for information, communication and commerce, offering brands new opportunities to connect with audiences on the go.

Will Generative AI Create New Marketing Channels?

Overall, marketing channels have evolved from primitive forms of communication to sophisticated, technology-driven platforms that span across digital and traditional media. As consumer behavior continues to evolve, marketers must adapt their strategies to take advantage of emerging channels and engage with audiences in meaningful ways.

This has always been the case, and marketers have always adapted or died. As a result, we have evolved to be capable of operating in this new era of AI more than anyone.

This leads to the question: Will the use of generative AI in marketing lead to the creation of new distribution channels?

I couldn’t think of any off the top of my head, so I did the natural thing: I asked AI. Some of its suggestions are below:

AI-Personalized Content Platforms: AI-powered content platforms could emerge, leveraging machine learning algorithms to analyze user data and preferences in real-time. These platforms could dynamically generate personalized content tailored to individual users’ interests, behavior, and demographics, delivering a more relevant and engaging experience.

Voice-Activated Marketing Channels: With the proliferation of voice assistants like Amazon Alexa, Google Assistant, and Apple Siri, voice-activated marketing channels are becoming increasingly important. AI-driven voice technology could enable brands to engage with consumers through interactive voice experiences, such as personalized recommendations, voice search optimization, and voice-enabled shopping. 

AI-Generated Virtual Reality (VR) Experiences: As VR technology continues to advance, AI could play a significant role in creating immersive and interactive marketing experiences. AI algorithms could generate hyper-realistic virtual environments, personalized avatars, and dynamic storytelling narratives, allowing brands to engage consumers in unique and memorable ways.

There were more results, which were all good but certainly seemed like evolutions on existing distribution channels vs. completely revolutionary ones.

Final verdict: AI will continue to improve upon and evolve the channels we use.

Using Generative AI to Create Marketing

The second impact of generative AI in marketing is on how assets are created. This too has constantly evolved. Let’s take ghostwriting as an example.

The earliest forms of ghostwriting can be traced back to ancient civilizations, where scribes would write on behalf of rulers and scholars. This practice continued through the Middle Ages, where ghostwriting was often a form of collaboration between authors and scribes.

With the advent of the printing press, the demand for copy increased. Famous authors such as Alexandre Dumas and H.P. Lovecraft employed ghostwriters to help them meet the demand for their writing and maintain their prolific output.

The digital age has brought new opportunities and challenges for ghostwriters. With the rise of the internet and self-publishing platforms, ghostwriters have expanded their services to include blog posts, social media content and e-books. The anonymity of ghostwriting, however, has also led to ethical concerns and controversies.

When I first entered marketing from journalism, I was naively shocked to learn that my job was to primarily write drafts for other people’s bylines. No one ever had any objections to that set up. While ghostwriting was once stigmatized as deceptive or unethical, it is now widely accepted as a legitimate profession. Many authors, celebrities and public figures openly acknowledge their use of ghostwriters, recognizing the value they bring to the creative process.

Yet there is an inherent uneasiness when people think about AI writing the first draft. Why? What is the difference?

I recently watched the movie “Hidden Figures” with my daughter. I loved it. The main character of the film is Katherine Goble Johnson, whose job it was to do math. Her job was ultimately replaced by a computer. There were no moral qualms about a machine doing math. Why are there when it comes to marketing?

Is it because marketing, by its nature, is intended to persuade and influence human beings? And so there is a natural uneasiness to that? No, that can’t be the case, because if we felt that way we would have rejected social media and its algorithms long ago. Though, in retrospect, perhaps we are.

Perhaps there is the fact that many marketers think of themselves as creatives and so in a way hold their craft up as an art and not just a practice to drive monetary benefit. Personally, I like that train of thought. If I am being honest, as a young boy, I dreamed of writing novels, not necessarily ad copy.

And therein may lie the rub — or, said another way, the opportunity — with generative AI in marketing. Perhaps in a world of automated creation, the marketing messages that will resonate rise to the level of art. Perhaps, the tools will free marketers up to become the artists we have always wanted to be?

Final verdict: If AI transforms marketers into artists, that would be revolutionary.

The Core Principles of Marketing

The final area to assess the impact of generative AI in marketing is around these core principles:

• understanding customer needs;
• creating value propositions;
• segmenting and targeting markets;
• integrating marketing communications;
• building and managing brands;
• managing customer relationships;
• measuring performance; and
• adapting to market changes.

These principles guide marketers in delivering value to customers and achieving business goals.

As previously discussed, there are obvious bullets on the above list that AI will automate, which will have a major impact. The first bullet, though, is at the heart of the entire conversation of evolution or revolution. And it raises a question that isn’t directly related to marketing:

Will AI impact us as humans to become more like machines, or will it drive us to become more human?

Not to sit on the fence here, but the reality is that it will probably do a little bit of both. If human beings become more robotic, then an end-to-end, fully autonomous marketing team driven by AI makes sense. The way of reaching them will be programmatic and algorithmic, even if that programmatic approach is customized to each individual person. There is little limit to the information that AI can capture and customize. If a computer continues to become a human appendage, then AI-driven marketing will be the alpha and the omega.

But what if the volume and the noise becomes so loud and the recommendations become so clear and so calculated that human beings do an innate human thing: They do something different? What if it drives us away from our computers and back into the world? To a hunger for the physical, the experience, the authentic? I guess if that is the case, and that is where the opportunity exists for marketing, then companies would think of ways of injecting AI into that.

So that is why I think the use of generative AI in marketing is a revolution. I do not think there is an evolution past AI. I think it is the future, which would certainly make it revolutionary.

The post Is Generative AI in Marketing Evolutionary or Revolutionary? appeared first on York IE.

In the whirlwind world of marketing, there’s been this interesting trend bubbling up over the past five years.

It’s all about how companies, especially startups, tackle their marketing game plan. And guess what? It’s giving us a sneak peek into how AI might shake things up down the line and the impact that will have on the firms and agencies that help companies with their marketing.

Let’s discuss:

• The present and future of earned media
• How AI is shifting the conversation
• Where marketing firms fit into this future.

Hope you brought your crystal ball! Time to dive in:

The Value of “Owned, Earned, Paid”

Now, I’ve always been a fan of the old “owned, earned, paid” mantra when it comes to marketing. You start by testing your message on your own platforms, then you let the world validate it, and finally, you splash some cash to get that message out there to more folks. Simple, right?

But here’s the thing: a lot of startups used to skip straight to the “paid” part. And honestly, it used to bug me. I mean, why burn through your budget before you even know if your message is hitting home?

But over time, I’ve come to understand why they did it. Early-stage marketing is always in constant tension with itself. The best way to be successful long-term is to have a strong, organic brand. This takes time. Startups have a finite runway. See, startups are always racing against the clock; some estimates show that 75% of venture-backed startups fail.  Startups need leads, they need buzz, and they need it all yesterday. And sometimes, waiting around for your owned and earned channels to gain traction just isn’t an option.

So, more and more, I’m seeing these startups starting with their own content and testing the waters to see what resonates. Once they’ve got something that sticks, then they start pouring some cash into promotion. Of course, they’d have a higher success rate if people on the other end of those ads had heard of their company. But in the early stage, you can’t always afford to play the long game. And I mean that literally.

The First Phase of AI Marketing Adoption

As the landscape of marketing continues to evolve, it is becoming increasingly important for early-stage startups to leverage the power of AI tools to maximize their marketing efforts and see quick returns on their investment. With the integration of AI tools into the marketing workflow, startups can automate the journey from owned to paid media, allowing them to reach a wider audience and build their brand more effectively.

The use of AI tools in marketing not only saves time and resources for startups; it also allows them to compete with larger companies that have bigger budgets. By utilizing these tools, startups can analyze data, personalize content and optimize campaigns in real time, ultimately driving better results and increasing ROI.

As outlined in this interesting post from a16z, we are in the first phase of AI marketing adoption. These tools are only as good as the marketer wielding them.

This is why early-stage companies will continue to need marketing support teams. A busy founder still doesn’t have the time to think through the marketing strategy, leverage all of the tools and then continue to optimize. However, the founder of the future is going to embrace the concept of drumbeat marketing — rapid deployment of messaging through integrated channels —  and expect his service provider to be fluid and reasonably priced.

In the long run this is a good thing, as I have seen many early-stage companies overpay for services they weren’t ready for and, as a result, didn’t make the most out of.

While the effectiveness of AI tools in marketing may reach a limit as more companies adopt them, there is still significant potential for growth and innovation in this space. If the rate of adoption of other transformational technologies is any indication, we still have years before the commoditization of AI tools. And, at the rate of innovation, who can even imagine what will be created in those interim years?

Balancing Human Authenticity with Automation

Of course, none of this exists in a vacuum. As AI continues to weave its way into every aspect of our lives, it’s only natural that it would find its place in marketing too. From automated content creation to predictive analytics, AI has the potential to revolutionize the way we approach marketing.

But here’s the thing: AI can only take us so far.

At the end of the day, marketing is still a fundamentally human endeavor. It’s about connecting with people on a deeper level, and understanding their hopes, fears and aspirations.

So, as we look to the future of marketing, let’s not lose sight of what really matters. Let’s embrace the power of AI, but let’s never forget the power of human connection. Because in a world where trust is currency, authenticity is king. And that’s something no algorithm can ever replicate.

Which brings me back to this question: what about earned marketing? You know, the stuff you can’t just buy with ad dollars. Things like media coverage, influencer endorsements, and all that good stuff.

I haven’t seen as many AI tools tackling this side of things. And you know why? Because building genuine relationships is hard to automate. Sure, you can automate the outreach and the follow-ups, but at the end of the day, it’s still all about human connections.

And as AI continues to reshape the marketing landscape, those human connections are going to be more valuable than ever. In a world where everyone’s got access to the same data and the same fancy algorithms, authenticity is a differentiator.

Predicting the Future of Earned Media

The future for larger marketing firms is earned media. Cultivating relationships will be harder than ever, which means later-stage companies will be willing to pay more to have access to them, as they will be a huge competitive advantage.

All earned channels are not created equal, however. Look no further than the decline in journalists and media. When I started my career in tech marketing in 2012, landing a big spot for The Next Web put me on the map within the company I was at. And yet I have successfully grown York IE’s brand over the past 5 years without achieving another one of those “lightning strike” media mentions.

The problem isn’t that media isn’t powerful anymore. It is that newsrooms are shrinking, so it’s nearly impossible to have a personal relationship with journalists anymore. As a result, media relations can’t really be considered an earned channel anymore. So what are the earned channels that marketing firms will try to compete in? Here are three:

Community Engagement

Building and nurturing communities around a brand or shared interest can be a powerful driver of earned marketing. Online forums, social media groups and niche communities provide opportunities for brands to engage directly with their audience, foster relationships and cultivate brand advocates who can spread the word organically.

Strategic Partnerships

Collaborating with like-minded brands or organizations can amplify a brand’s reach and credibility. Strategic partnerships allow brands to leverage each other’s audiences and resources, creating mutually beneficial relationships that can drive earned marketing efforts.

User-Generated Content (UGC)

Consumers trust the opinions of their peers more than branded content. As such, user-generated content is poised to become a cornerstone of earned marketing strategies. Brands that can encourage and leverage UGC effectively will likely see success in building trust and credibility with their target audiences. I love this because AI tools will make it easy for users to create compelling content.

The above channels are individually important. However, like Captain Planet, the real power is the combination of these channels. Relationships are too valuable to be siloed.

The Marketing Firms of the Future

That is why I see niche marketing firms that focus on a single channel consolidating into ecosystem marketing firms that can help across the spectrum.

As a result, I see the landscape of marketing firms being pulled apart to opposite ends of the spectrum: high-velocity AI-led firms that help early-stage and relationship-led ecosystem firms.

Ecosystem marketing firms provide comprehensive solutions across multiple earned channels. These firms understand the importance of building and nurturing relationships with customers, partners and stakeholders to drive long-term success. By taking a more integrated approach to marketing, these ecosystem firms are able to create cohesive brand experiences that resonate with audiences on a deeper level.

On the other end of the spectrum, we have high-velocity AI-led firms that cater to the needs of early-stage businesses looking to scale quickly. These firms leverage cutting-edge technology and data analytics to optimize campaigns, automate processes and drive rapid growth. While these firms may lack the personal touch of relationship-led ecosystem marketing firms, they excel at delivering results at speed.

As the marketing landscape continues to evolve, we can expect to see a further divergence between these two types of firms. However, it is important to recognize that both approaches have their strengths and can complement each other in a larger marketing strategy. Ultimately, the key is finding the right balance between high-velocity, AI-led tactics and relationship-led ecosystem building in order to achieve sustainable growth and success in today’s competitive market.

The post AI and the Vanishing Middle Class of Tech Marketing Agencies appeared first on York IE.

“Measure twice, cut once” couldn’t be more true when it comes to startups. But how do you measure something that doesn’t exist yet?

By focusing on product development feedback.

I’ve seen too many startups treat feedback gathering as an ad-hoc, qualitative process. Going into it without a plan will leave you with a bunch of parts and pieces that are hard to make sense of.

In this post, I’ll explain my approach to creating a product feedback loop that makes it easier to find out what’s working and what’s not, so you can build a product that truly meets your customers’ needs. I’ll also share the product feedback template I use to guide these efforts.

Inside the Product Development Process

The product development process starts with identifying customer needs, and feedback is crucial throughout the entire process.

In the beginning, product development feedback helps define your vision and features. Later, prototypes are tested to gather feedback on usability and functionality. Even after launch, feedback is essential for ongoing improvement and iteration.

The full product development lifecycle can be broken down into seven stages:

1. Requirement gathering and analysis: This initial stage involves defining the product vision and its goals, based on an understanding of customer needs.
2. Prioritization and roadmap: Here, features are prioritized and a roadmap is created, outlining the development timeline.
3. Design and prototyping: This stage focuses on creating a clear idea of how the product will look and function.
4. Development: The product is built and rigorously tested to ensure it meets quality standards.
5. Testing: This stage involves comprehensive testing to identify and fix any bugs or usability issues.
6. Launch: The minimum viable product (MVP) is launched, allowing for initial customer feedback and further refinement.
7. Maintenance and iteration: The product is continuously monitored and improved based on customer feedback and market trends.

By following a structured development process that incorporates customer feedback at every stage, businesses can increase their chances of turning ideas into successful products.

How to Get Useful Product Feedback

Follow these three steps to get feedback that’s actually useful:

1. Document the context and persona of the people you want to interview. Who they are, their experiences and their perspectives can drastically influence the product feedback you receive.
2. Distinguish between desirability and usability. Are your interviewees questioning the need for your product? Or just how it works? This distinction will guide your next steps in development.
3. Challenge positive signals. Don’t settle for vague affirmations. Ask if they’d commit today, and if not, why. It’s a tough question, but it reveals true commitment.

Product Feedback Form Questions

Ask these product feedback questions to solicit the most helpful, actionable responses:

• Who are you? What is your current role? What is your background and experience?
• What challenges are you facing?
• How are you trying to solve those challenges?
• How is this product better than your current solution(s) to those challenges?
• How are your current solution(s) better than this product?
• What other use cases can you envision for this product?
• Would you buy this product today? Why or why not?
• What additional functionality would you like to see in this product? Why?

How to Use Product Development Feedback

Here’s how to turn feedback into action and build a product your customers will love:

1. Look for common themes and patterns. Do several customers have the same problem? Is everyone begging for the same feature?
2. Prioritize ruthlessly. Identify the changes that will make the biggest difference for your customers and take the least amount of effort.
3. Stay true to your vision and strategy. Avoid implementing feedback blindly or believing the most common feedback item if it goes against your thesis. Double-check if you have common themes that overlap your survey participants so you can identify any bias in the results.
4. Phase out the changes and continue to communicate any updates to your customers. When you let them know their feedback is influencing the product, you build trust and encourage them to engage with you even more.
5. Measure how your changes have affected customer satisfaction, user engagement and other key performance indicators.
6. Establish an ongoing product feedback loop. Regularly reach out to your users and refine your product.

Well-structured feedback is a cornerstone of successful product development. Don’t waste your efforts on feedback that doesn’t drive action!

The post How to Use Customer Feedback in Product Development (+Template) appeared first on York IE.

(MANCHESTER, N.H, June 25) — York IE, an advisory and venture capital firm for technology companies, today announced its website and digital marketing practice.

The new practice helps growing tech companies build strong, scalable digital foundations that attract the right audiences and convert them into customers. Dozens of businesses, from early-stage startups to established companies, have already used its services to quickly and effectively bring their message to market.

“By working with York IE, we were able to build a brand new website — from design to launch — in just four months,” said Bryna Dilman, vice president of marketing at ENDVR, the digital platform for driving retail sales in the physical world. “It was a completely collaborative process, and we couldn’t have done it so efficiently on our own.”

Inside York IE’s Website Practice

York IE’s website clients work directly with a U.S.-based team of experienced marketing experts and in-house, India-based developers to create the best digital experiences for their audiences.

Services include:

• Digital marketing strategy development
• SEO and website traffic analytics
• Messaging development and copywriting
• User experience strategy development
• Graphic design
• Website development

“A website is a living, breathing part of your business that needs constant optimization, experimentation and care to become a conversion machine,” said Cassandra Cattabriga, director of website and digital marketing and practice lead for York IE’s website services. “Our onshore/offshore model helps companies get the strategic guidance and tactical support they need at a price that demonstrates real value.”

As a partner of WordPress, WP Engine and HubSpot, York IE has proven experience with the leading platforms for building websites and digital marketing infrastructure.

“York IE’s website practice is like an extension of our team,” said Pierson Krass, co-founder of Stay AI, the subscription management platform for direct-to-consumer brands. “They provide agile development resources so we can deploy and iterate on our marketing sites and support our sales teams.”

To take York IE’s free website health check, click here.

ABOUT YORK IE

York IE is an advisory and venture capital firm that helps technology companies grow. York IE leverages a 200+ person global operating team, data and automation technology, and deep ecosystem relationships to provide advisory as a service across product, go-to-market, and finance and to selectively invest in early-stage B2B SaaS startups. Founders, operators, and investors at all stages rely on York IE to help build, scale and monetize their business. Fuel® Your Strategic Growth at York IE.

The post York IE Launches Website Practice to Help Tech Companies Go to Market appeared first on York IE.

As marketers, we’re storytellers for the brands we represent. York IE’s Marketer Spotlight series focuses on the individuals crafting stories, orchestrating go-to-market strategies and executing across all channels. They embody their brand, laying the groundwork for scalability. Join us as we uncover the story behind the story with the top marketers in SaaS.

Here we talk to Taylor Pawelka, director of marketing at ProShip:

As marketers, we often are storytellers for the companies and brands we work with and for.  But everyone has a story. What’s yours? 

My journey as a marketer began with a degree in strategic professional communications from the Hubbard School of Journalism and Mass Communication at the University of Minnesota. Joining ProShip straight out of college, I was fortunate to learn under a skilled mentor who shaped my strategic approach to marketing while allowing me the freedom to try out my own ideas.

At ProShip, I focused on building a dynamic marketing team, selecting talent and fostering a culture of creativity and innovation. Together, we’ve elevated the brand’s presence and crafted content that continues to foster respect in the supply chain industry.

In essence, my story as a marketer is one of strategic vision, passionate storytelling and a relentless drive to make a lasting impact through the power of providing the right content at the right time.

Why did you start in marketing?

I actually wanted to be a psychiatrist entering college. Turns out, you have to excel in chemistry (and not just biology), which I certainly struggled with. Fortunately, I’ve always loved to write, so I commenced upon Plan B and followed the path of journalism and marketing. That’s where I found my true passion, and I’m thrilled to have failed that chemistry course to this day.

What’s your current role?

My current role is all about orchestrating strategic initiatives that not only showcase the innovative solutions we offer, but position our brand as the thought leader that businesses can trust for accurate, actionable industry information.

What keeps you in B2B marketing? What do you love about it?  

What’s great about B2B marketing is that it’s never dull. The economy changes, businesses change, and what businesses struggle with or need change. What I love most is the opportunity to delve deep into the needs and complexities of each type of business and provide the right message(s) in return. There’s never a one-size-fits-all solution, so you can’t utilize a one-size-fits-all marketing strategy.

What’s the biggest challenge you’re facing today as a marketer, and how are you overcoming it?
Email marketing. It’s really hard to stand out with the amount of emails being sent in the B2B world, and companies are getting better and better at blocking bulk sends and tossing them into junk to never see the light of day.

But by utilizing information from our intricate MarTech stack, we’re getting better at honing in our efforts to reach accounts that we know are in-market. We are also building targeted advertising and direct mail strategies into our campaigns.

How do you derive your goals for marketing? How closely are you tying with company KPIs?

Our marketing team is responsible for building 100% of the pipeline for net-new sales. Our sales team only receives qualified opportunities to close — no prospecting on their end required. As long as we hit our quarterly pipe goal, we’re hitting the most important KPI.

Where do you see marketing in the next year?  

I see a notable rise in account-based marketing, with detailed contact-based personalization at an all-time high on multiple mediums, especially on websites. People don’t want to talk to sales right away, and they don’t want to fill out 12 of your forms to download a single piece of content. Build the right content for each relevant title at each account and make it readily available. And be transparent! Do it the right way, and they’ll want to learn more.

This level of personalization will require an impressive MarTech stack and include AI features for it to scale properly, but it will payback big.

What is the worst marketing advice you ever received?   

“How are X, Y, and Z competitors marketing? Can’t we do something similar?”
Terrible advice. Be original. Blindly copying a competitor’s marketing strategy and/or messaging insults your own brand and results in lifeless content. Do better.

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