WhoBuilt

How To Earn Customers For Life

Mar 3, 2023· 13 min· 114K views·Watch on YouTube

Speakers

Michael Seibel and Dalton Caldwell of Y Combinator discuss how startups can build lasting customer relationships in a conversation recorded in person at the start of a YC batch.

Stop pushing a product at people

Seibel and Caldwell describe founders who treat sales as forcing a product on customers, often through mass emails or lightly customized templates. Seibel suggests asking whether you would respond to the email you are sending.

Learn from customers, not big-company habits

Seibel asks founders whether they like their users, and Caldwell points to Comcast and Facebook as examples of companies that can feel hostile to customers. They caution startups against copying large companies’ dark patterns or distance from users, since those companies’ scale can obscure how they first earned customers.

Make founder access part of the experience

The hosts say founders can stand out by speaking directly with customers instead of recreating large-company support structures. Seibel recalls Patrick Collison personally apologizing after Stripe overcharged customers, and Jeff Barr helping his startup get access to EC2 when it was in beta.

Build genuine care into selling

Seibel advises founders to take an interest in the people they serve, even if they did not start out passionate about the customer’s industry. A founder selling to coffee shops, for example, can learn about owners’ lives and how the software might help their businesses and employees.

Care earns trust and better feedback

The hosts argue that caring about customers can matter more than raising more money or becoming better known. Customers are more likely to explain their problems and give a company the benefit of the doubt when they believe it is trying to solve those problems.

Takeaways

  • Before sending a sales email, ask whether you would reply to it yourself.
  • Talk directly with customers instead of hiding behind a support process.
  • When something goes wrong, explain it plainly, fix it, and apologize personally.
  • Learn about customers’ lives and connect your product to a real problem they face.
  • Offer a product you believe delivers real value, so customers have reason to trust you.

Mentioned in this talk

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What was claimed 5

  • feature
    Comcast: The speakers say Comcast renamed to Xfinity.
    “Comcast, who dislikes its users so much, I think they renamed to Xfinity.”
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    Unverified1 source· Talk
  • feature
    Comcast: The speakers describe its customer experience as designed around an assumption that customers are bad.
    “the whole thing was designed with the implicit assumption that they don't like their customers”
    YouTube
    Unverified1 source· Talk
  • feature
    Meta: The speakers describe Facebook as known for user-hostile practices, including dark patterns.
    “Facebook is known to do some user-hostile stuff.”
    YouTube
    Unverified1 source· Talk
  • feature
    Stripe: Its founder personally contacted a customer to explain and apologize after customers were overcharged.
    “Patrick DM'd me, told me what happened, said they'd fixed it, and apologized.”
    YouTube
    Unverified1 source· Talk
  • feature
    AWS: Jeff Barr helped the speakers get access to EC2 when they could not sign up.
    “Jeff Barr tweeted us back: “Yes.””
    YouTube
    Unverified1 source· Talk

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