Airbnb, Etsy, Uber: Acquiring the First Thousand Customers

Startup companies usually compete against each other in order to increase their customers'
base.Over here, the issue is significantly more difficult with new businesses in the sharing
economy, which have been launched as platforms in order to connect for providing independent
services to customers.

Airbnb, Etsy and Uber have acquired thousands of customers in a very short period of time by
using two-sided online platforms, which were determined among the most noteworthy
developing web or online startups every where. These commercial centers tried to match the
suppliers and demands of assets for rent, physical products or online services with clients.
As two sided online markets developed to expand, there was a significant impact on the system,
which attracted more customers, resulting in an increase in the suppliers for the company as
they had to meet the demands of the customers.

These companies were able to acquire first thousand customers mainly through five strategies:

Focus on acquiring customers in bulk: Airbnb, Etsy, and Uber observed a gap between a high
demand and low supply within their individual markets, and they created a strategy of acquiring
multiple customers while spending less on marketing the products.

Escape and avoid direct competition: Airbnb escaped and avoid direct competition with
Craigslist or any other competitor within rental space as they started with concentrating on big
conferences early on, which appeared to cause overcapacity in hotels. Etsy focused on getting
into business relationship with sellers who were influential crafters and artisans but were
unsuccessful or did not like to sell their products on eBay, and this model helped Etsy avoid
direct competition with eBay. Uber introduced its services in cities and at times when supply
outstripped demand for taxis, and this strategy helped Uber escape and avoid direct competition
with already existing local or regional taxi drivers.

Perform the necessary research and legwork: Airbnb, Etsy, and Uber made sure to follow this
strategy in order to establish themselves within their target market. Airbnb provided its
customers with more personal and detailed information on the rental properties along with nice
photos, which helped in building customer loyalty and customer satisfaction.
Etsy team also worked on ground to sign up the sellers for their
platform and Etsy’s team traveled across US and Canada to various art and craft shows to
get connected with influential artisans and crafters, which helped them building the
supply side of the business. Uber employees also researched about the transportation
industry and worked on tackling the existing taxi infrastructure to make it seamless,
enjoyable, and quality experience for their customers across the board.

As a nascent business, you need to research and develop your new product. You need to hire
marketers to create content and bring in new customers. Some prospective customers will have
questions and concerns before or after a purchase. But you probably don't have the ability to
hire expert employees in R&D, marketing, and sales support. It turns out, your first customers
can do all these roles for you.