Understanding Traction Channels

So far, we’ve covered what traction means. Let’s go a step further to explore the ways you can get traction for your product. These are called traction channels: the ways you can attract, engage, and retain customers.

In his book Traction, Gabriel Weinberg shares 19 traction channels you can use for this. In this lesson, we'll delve into these traction channels available to startups and how selecting the right channels can significantly impact your business's success. Building a successful venture is hard, and most ventures fail because they can’t gain traction. Therefore, it is important to be intentional about your approach to gaining traction.

Defining Success

Before you learn about the different ways to gain traction, an important first step is to define what traction means for your business. Defining traction starts with understanding your venture's objectives and stage of growth. Whether you're in the early stages of product development or seeking to scale your operations, your definition of traction will evolve accordingly. You can use the following steps to define traction effectively:

Clarify Business Objectives: Begin by clarifying your venture's overarching goals. Are you focused on acquiring customers, generating revenue, achieving product-market fit, or expanding into new markets? Understanding your objectives will inform your definition of traction.

Identify Key Metrics: Determine which metrics are most relevant to measuring progress towards your goals. These may include customer acquisition cost (CAC), customer lifetime value (CLV), monthly recurring revenue (MRR), conversion rates, user engagement, or market share. Choose metrics that align with your business model and growth strategy.

Consider Stage of Growth: Take into account the stage of your startup's development. Early-stage startups may prioritize metrics related to product validation and customer acquisition, while later-stage startups focus on revenue growth, profitability, and scalability. Your definition of traction should reflect the specific challenges and opportunities of your current stage.

Set Specific Goals: Establish clear and measurable goals for each key metric. Define ambitious yet achievable targets within a specified timeframe. For example, set goals to acquire a certain number of customers, achieve a target revenue milestone, or improve user retention rates by a certain percentage.

Select Appropriate Traction Channels and Align Team Efforts: Select traction channels that help you to achieve your specific goals, and use the key metrics to evaluate your progress. Also, ensure that your team is aligned around the defined goals and metrics. Communicate the importance of traction and empower team members to contribute to its achievement.

Case Study: The Pitfalls of Not Defining Traction

Meet EcoSolutions, a clean tech startup dedicated to developing innovative renewable energy solutions. The team at EcoSolutions is passionate about creating a sustainable future by reducing carbon emissions and promoting clean energy adoption.

At EcoSolutions headquarters, the team gathers for a strategy meeting to discuss their traction efforts. The CEO, Ami, kicks off the meeting by emphasizing the importance of gaining traction to attract investors and accelerate the company's growth. However, as the discussion progresses, it becomes evident that the team members have different interpretations of what traction means for EcoSolutions.

Ami believes that traction should be measured primarily in terms of revenue growth. She argues that increasing sales and generating revenue are essential for the long-term sustainability and success of the company. On the other hand, the head of marketing, Alex, argues that building brand awareness and acquiring a large user base should be the primary focus. He suggests investing in social media advertising and influencer partnerships to reach a broader audience.

Meanwhile, the head of product development, Aba, advocates for prioritizing product innovation and customer satisfaction. She believes that developing cutting-edge technology and delivering exceptional customer experiences are key drivers of traction for EcoSolutions. As the debate ensues, it becomes clear that the team lacks alignment on their definition of traction and the appropriate channels to achieve it.

Despite their differing perspectives, the team decides to move forward with a multi-pronged approach to traction. They allocate resources towards various channels, including social media advertising, product development, and attending industry conferences and trade shows. However, as they implement these strategies, they soon realize that their efforts are not yielding the desired results. Months pass, and EcoSolutions continues to struggle to gain traction in the market. While their social media campaigns have generated buzz and increased brand awareness, they have not translated into significant sales. The product development team has launched several new features, but customer adoption remains stagnant. Frustration mounts within the team as they grapple with the disconnect between their efforts and the company's true traction goal of revenue growth.

Finally, Ami calls for a reassessment of their traction strategy. She proposes refocusing their efforts on channels that directly contribute to revenue generation, such as targeted sales outreach and strategic partnerships with industry players. The team agrees to realign their priorities and redirect their resources towards these channels. With a renewed focus on revenue growth, EcoSolutions begins to see positive results.

Traction Channels

Now that you understand why traction is important, let's delve into the different channels you can utilize to build traction for your product.

📺 Watch the following video on Traction Channels

Here are the 19 Traction Channels mentioned in the article and video, along with examples of how they could be used by a fictional fintech startup named KiboWallet.

1. Viral Marketing: This involves creating content that spreads rapidly through word of mouth or online sharing. Example: KiboWallet could launch a viral marketing campaign involving a humorous video about personal finance tips that resonates with millennials and encourages them to share it across social media platforms.

2. Public Relations (PR): PR involves managing the spread of information between a company and the public. Example: KiboWallet could issue press releases highlighting new features or partnerships, aiming to get coverage in financial publications and mainstream media to increase brand awareness.

3. Unconventional Public Relations: This involves creative tactics to generate publicity. Example: KiboWallet could organize a stunt where they set up a pop-up shop in a busy financial district offering free financial advice sessions, garnering attention from passersby and local media.

4. Search Engine Marketing: This encompasses paid advertising on search engines like Google. Example: KiboWallet could bid on keywords related to their services, such as "online budgeting tool," to ensure their website appears at the top of search results when users are looking for financial management solutions.

5. Social and Display Ads: This involves advertising on social media platforms and other websites. Example: KiboWallet could run targeted ads on Facebook and Instagram promoting their mobile banking app to users who have shown interest in personal finance or banking services.

6. Offline Advertising: This includes traditional forms of advertising such as billboards, print ads, and radio spots. Example: KiboWallet could place ads in financial magazines or on public transportation to reach a broad audience of potential customers.

7. Search Engine Optimization (SEO): SEO involves optimizing a website to rank higher in search engine results organically. Example: KiboWallet could create informative blog posts and resources on topics like investing or credit scores to attract organic traffic from users searching for financial advice.

8. Content Marketing: This involves creating valuable content to attract and engage a target audience. Example: KiboWallet could produce educational videos, blog posts, and infographics about financial literacy topics to establish itself as a trusted source of information and attract users to its platform.

9. Email Marketing: This entails sending targeted emails to prospects and customers. Example: KiboWallet could send personalized emails with tips for saving money or notifications about new features to users who have signed up for their service.

10. Engineering as Marketing: This involves creating free tools or resources that demonstrate the value of a company's product or service. Example: KiboWallet could develop a budgeting app calculator that users can access for free on their website, which showcases the benefits of using their full-featured paid app.

11. Targeting Blogs: This involves reaching out to influential blogs in your industry for partnerships or guest posting opportunities. Example: KiboWallet could collaborate with personal finance bloggers to write guest posts about budgeting strategies or investment tips, reaching their audience with relevant content.

12. Business Development: This involves forming partnerships or alliances with other businesses to reach new customers. Example: KiboWallet could partner with a popular budgeting app to offer a discount to their users for signing up for their investment platform, mutually benefiting both companies.

13. Sales: This involves direct selling efforts to acquire customers. Example: KiboWallet could employ a sales team to reach out to small businesses and offer them a demonstration of their accounting software, highlighting how it can streamline their financial processes.

14. Affiliate Programs: This involves incentivizing third parties to promote your product or service in exchange for a commission on sales. Example: KiboWallet could create an affiliate program where financial influencers or bloggers earn a commission for every user they refer who signs up for the company's financial planning tool.

15. Existing Platforms: This involves leveraging established platforms like app stores or marketplaces to reach customers. Example: KiboWallet could optimize its app store listings with relevant keywords and compelling descriptions to increase the visibility and downloads of its budgeting app.

16. Trade Shows: This involves participating in industry-specific events to showcase products or services. Example: KiboWallet could set up a booth at a finance and technology trade show to demo its investment platform and network with potential clients and partners.

17. Offline Events: This involves hosting or sponsoring events in the physical world to engage with customers and prospects. Example: KiboWallet could organize a financial planning workshop or seminar in partnership with a local community center to educate attendees on retirement planning and investment strategies.

18. Speaking Engagements: This involves speaking at conferences, seminars, or webinars to share expertise and build credibility. Example: KiboWallet's CEO could be a keynote speaker at a finance industry conference, discussing the future of digital banking and financial innovation.

19. Community Building: This involves fostering a community around your brand or industry. Example: KiboWallet could create an online forum or social media group where users can share tips, ask questions, and connect with like-minded individuals interested in personal finance management.

🪞 You use many different products in your life and have been exposed to many companies attempting to gain your attention as they build traction for their new products. Reflect on one experience that you found to be particularly good or bad, and share your experience in the padlet below. Be sure to include which traction channel the company used and why you thought it was effective or ineffective.

Testing Traction Channels

📺 Watch the following video on testing traction channels

A key takeaway from the above video is that you don't inherently know which traction channel will take off. Therefore, it is important to adopt an experimental mindset when it comes to traction.