For half a year, Michael Litt woke up to the same thing every morning: a series of wild goose chases to find his next enterprise customer.
The founder of Vidyard, the Waterloo Ont.-based provider of video marketing tools, would have spent the previous day pouring through a list of 85,000 companies which had been identified as having some kind of video hosted on their site.
Litt tried to find 100 companies every day that might be interested in his startup’s offerings.
“The conversion rate was miserably low,” Litt recalled in a session at Techweek Toronto on Thursday, estimating he and his team contacted about 25,000 prospects in a six-month period.
“We got about 200 customers paying maybe five dollars a month.”
Needless to say, Litt and Vidyard have learned a lot since then, but customer acquisition in B2B remains incredibly challenging, especially for new market entrants.