Why Your Business Needs a Gateway Product
Why Your Business Needs a Gateway Product
Presentation By Andy Barton, Director of Catalystica
Catalystica is a digital and inbound marketing, CRM and eCommerce agency, providing specialist advisory and implementation services to B2B and B2C businesses.
Unlike your typical advisory firms, Catalystica get their hands dirty by offering practical advice, identifying issues, and recommending and implementing solutions for companies in the UK and Ireland.
Network4Business are lucky to have Catalystica’s director Andy Barton as a member, and benefited highly from Andy’s recent presentation discussing the benefits of gateway products to both businesses and customers.
What is a Gateway Product?
A gateway product is one of the most important tools that your business can use to turn a prospective customer in to a paying one.
It is likely to be the first product or service that a new customer will purchase from you, and is a key opportunity to make a strong first impression. It entices the client to make further higher-value purchases, or to make a firm commitment to an ongoing paid service.
Gateway products can be found across many different business types and industries; it might be an introductory offer, a bundled starter-pack to allow a customer to try out a range of products, or even a free consultation meeting in which to demonstrate how your services could benefit a client.
A classic example of a gateway product can be found in many online systems, in which companies offer a “freemium” version of their product with limited functionality, enticing a potential client to upgrade to the paid version to receive all the benefits of a paid subscription.
How Can a Gateway Product Benefit Your Business?
Catalystica are firm believers that a strong gateway product can do wonders for a business. Recently, Catalystica were able to secure two new clients purely on the strength of their gateway services: SEO and Marketing Automation.
SEO stands for Search Engine Optimisation - put simply, it means ensuring that your site performs well on Google and is prominently listed on search engines, well above your competitors.
As part of Catalystica’s SEO services, they offer a free SEO audit via their website, showing potential clients any issues with their site that may be preventing it from ranking highly. Their ongoing SEO services then start from £200 per month, a low-cost introductory option for new clients. The benefits to the customer are increased website traffic, more leads, and no need for an entirely new website or hosting provider.
Catalystica benefits from the opportunity to upsell further services such as marketing automation or paid adverts, making this a hugely effective way to tempt customers to avail of more premium services, and build trust between the business and a new client. After benefitting from an SEO service, a customer may even sign on for a full digital marketing retainer, making this the holy grail of recurring, predictable revenue.
Other fantastic examples of gateway services are Catalystica’s marketing automation service, or a startup loan from Smorgasbord, which could then be upsold to a complete sales and marketing strategy.
So What is Your Gateway Product?
The best gateway products will vary hugely from business to business, however there are a few key rules to keep in mind when deciding on your gateway product:
It will need to be a low-cost product - piquing the interest of your customer and demonstrating how much they could benefit from your full price product.
It should be easy to buy - straightforward enough that your customer will see no risk in trying it out.
It should be low commitment - a really effective gateway product won’t tie the customer in to a long subscription right off the bat, it will give them a sense of freedom and no excuse not to sample your service.
Finding your ideal gateway product is a sure-fire way to move your business forward. After all, it is six times more expensive to acquire a new customer than to sell to an existing one, so once you have them on the hook, you’re going to benefit hugely from nurturing them as a customer; guaranteeing reliable repeat business in the process.