January, a time for new beginnings and plans for the future. But also a good time to reflect on what the past year has taught us! So if you have a business, what better time to take a look at the most interesting case histories of 2021 and try to derive useful lessons for your strategy.
But where to start? Luckily LinkedIn comes to our aid, compiling the list of the most successful startups of the last year, country by country (find the Italian ranking here and links to all the others).
So in this article we are going to analyze some of the most interesting examples chosen by our team. Let’s get started right away!
1. Learn how to intercept new needs (Better)
The business model of Better, a fintech company founded in 2016 and considered among the most promising startups of the moment, is not entirely new. The main sector in which the company operates is mortgage lending (mortgages, to be clear), which is complemented by complementary services, including an in-house real estate agency and insurance for owners and residents. Better’s goal, in short, is to make the home-buying process simpler, faster and more technological.
But then what is the reason for Better’s success?
The key has to be found in the particular historical moment we are all living through. Between periods of forced shutdowns, smart working and reduced social contacts, many people have rediscovered the importance of living in a comfortable home with suitable spaces to carry out their daily activities.
In the United States alone, housing stock has increased by $1.5 trillion, with significant growth in furniture purchases and renovations as well. The importance of having adequate home space has also raised complex policy issues, especially in contexts where a significant segment of the population lacks the economic means to improve their situation.
From a marketing perspective, Better’s success teaches us that-especially in a present like ours dense with changes, sometimes even momentous ones-among a company’s priorities should always be frequent and accurate analysis of its customers and potential target audience. Only in this way will it be possible to identify those needs, often latent or untapped, that could prove to be the decisive element in growing in the market.
2. Communities don’t just influence products, they can create them (Glossier)
In third place in LinkedIn’s U.S. rankings is Glossier, a cosmetics brand that was established only in 2014, but in just a few years has been able to establish itself as one of the most popular in the world. The company’s founder and CEO, Emily Weiss, had started a beauty blog in 2010, and as she worked with many companies in the industry, she realized that none of them had a brand cool enough to “want to wear a sweatshirt.”
The entrepreneur had therefore sensed that the cosmetics world had not yet realized the potential of the online market and especially of user communities. Seeing in this void a great business opportunity, Weiss therefore launched a brand created specifically for the Web, with a Direct to Consumer approach and strongly linked to her own community of users and influencers.
Unlike common influencer marketing strategies, in fact, Glossier not only uses the power of people-to-people contacts to promote the products it sells, but also to create new ones. Through its popular Instagram page, the brand often offers surveys and questions to find out what products customers would like to see marketed in the future. In some cases, selected users and influencers have been offered previews of products that are still in development in order to gather useful feedback to improve their quality and user experience.
Glossier’s success-which has led the company to exceed $1.2 billion in value-has already become a case study that demonstrates how the potential of a direct relationship with users, made possible by new online communication channels, is yet to be explored.
Our advice for your 2022 strategy, then, is to carefully consider what opportunities might be hiding in your company’s community. Not just simple influencer marketing, but also co-creation projects, the chance to receive useful feedback, and the chance to understand what your customers expect in the future. If, on the other hand, your company has not yet implemented community management activities, well: now you know you can no longer neglect this option!
3. Don’t be afraid to change your skin (Discord).
The history of Discord is quite peculiar: launched in 2015 as a platform dedicated to gamers where they could create spaces for communication and sharing, however, the service found a new key to growth in distance learning.
During the lockdown period due to the COVID-19 pandemic, in fact, many teachers found themselves in the situation of having to choose the most suitable tool for their online lessons. Many opted for video call services such as Zoom, Meet or Teams, while others decided to ask their students directly which platform they would prefer to use. Since a good percentage of kids of this age are also gamers, it was natural for them to suggest Discord specifically.
What makes this platform different from all other social platforms, and particularly suitable for use in a school setting, is its “server” based structure. In order to interact with one another, on Discord users must be invited into closed rooms, within which they can then share messages and files, as well as initiate group audio and video calls. A middle ground, then, between Facebook groups, Whatsapp chats, and Zoom calls.
Discord’s features, which were developed to facilitate communication during multiplayer gaming sessions, have therefore also proved attractive to a different audience than originally intended. This has enabled the platform to reach 150 million active users and a valuation of $15 billion today.
The lesson to be learned from this case study is how important it is to never take for granted what one’s “real” target audience is, and to always remain open to the possibility of new or alternative uses for one’s product. Changing your skin can be difficult and sometimes risky, but not doing so could preclude you from the greatest opportunities for growth.
4. Study the values of the generation you are targeting (Youth To The People).
Many studies show that people belonging to Gen-Z place great importance on values, impact and social engagement in their purchasing choices. A company that targets a young customer base, then, to be successful must be able to interpret these needs and demonstrate itself as a spokesperson for a clear and strong worldview.
It has been able to do this successfully Youth To The People, a brand once again operating in the cosmetics industry and founded by cousins Joe and Greg Gonzalez in 2015. Indeed, during 2020, the company experienced tremendous growth, especially in Earned Media Value, or exposure gained on social and third-party sites, with a 70 percent increase over the previous year.
The secret of Youth To The People lies in its ability to embrace those values with which its customers identify. Gonzalez says that the company’s goal has always been to propose a way of thinking, as well as a product: the pursuit of personal and collective well-being, social justice, environmental sustainability, and overcoming gender stereotypes are just some of the themes that characterize the brand’s voice.
If it was not already clear enough from the many examples that have emerged in recent years, the case of Youth To The People shows us once again how social responsibility, inclusivity, and the intangible values that a brand represents are becoming fundamental to effectively targeting the younger generation. And not only that, we have also talked about it here on our blog.
5. Dare to make different choices, in any sector (AideXa Bank)
When we talk about startups and innovation, we are often inclined to think of the traditionally more dynamic sectors, such as consumer technology or digital platforms. The case of Bank AideXa, however, shows that making different choices is possible even in typically hostile markets such as banking.
Founded in early 2020, in a period of full lockdown, it is the first Italian fintech to become a bank, developing a digital native credit project that has raised 45 million euros in funding (the highest ever obtained by an Italian fintech). The founders, former UniCredit employees and strong in their knowledge of the needs of the credit sector for small businesses, bet on the possibility of communicating the financial product in a new and digital-first way.
Indeed, the brand puts at the center of its image precisely that 1-to-1 relationship component that characterizes social and Web 2.0, valuing its users’ reviews and sharing its Trustpilot profile on the homepage. In this way, Bank AideXa wants to reverse the typical perception of lack of transparency that users have towards traditional banks, thus benefiting from its own atypicality in the industry.
The lesson here is clear: do not be afraid to make different choices, even and especially if the market in which you operate is static and with low levels of innovation.
6. Create new paradigms, mixing retail and digital (Poke House)
The future of retail is omnichannel. Poke House, which has made the fusion of physical and digital channels its secret, capable of leading the startup to close 2021 with a turnover of more than 40 million euros, knows this well.
Now the bowl restaurant chain present in Italy, Spain, Portugal, the United Kingdom and France with more than 75 locations, has become the first shareholder of Sweetfin, one of the California brands that helped popularize this Hawaii-born dish.
The main asset that has enabled Poke House this growing success is its digital infrastructure, created in-house, which includes click & collect systems, the proprietary app, payment systems, and a loyalty program, all managed through proprietary CRM software. The brand’s data-driven approach has enabled it to quickly intercept and exploit trends, chief among them home delivery.
The success story of this foodtech, founded only in late 2018 by young entrepreneurs Matteo Pichi and Vittoria Zanetti, teaches us how creating new business paradigms based on digitization and data analytics can determine success even in a typically brick-and-mortar sector like the restaurant industry.
7. Don’t settle for your comfort zone (Hopin).
In 10th place in the UK rankings compiled by LinkedIn is Hopin, a company that has distinguished itself as the fastest growing startup ever in Europe. As already seen in several other examples, Hopin’s success stems from its ability to understand the new needs brought about by the global crisis situation. In fact, Hopin is a platform dedicated to the creation of online events: therefore, it is not surprising that it experienced a major increase in its demand in 2020.
In such a favorable environment, many companies would have bet even more on their core business, thus taking advantage of a decidedly lucrative comfort zone. Hopin, however, realized that to remain relevant in the coming years, it would have to anticipate the market and differentiate its offerings. No longer just online events, then, but also live and hybrid events, but always with a strong digital innovation component.
Since this is a nascent industry, Hopin decided to tell its business story through a large number of in-depth case studies related to very different realities, so as to show prospective clients everything it can offer.
Moral of the story: if you have now found a comfort zone for your business, the next question you need to ask yourself is “how can I get out of it?”
8. There are no sectors in crisis, only sectors not yet digitized (The DoubleJ)
Is it possible to take something as inherently old as a luxury vintage goods boutique and digitize it?
Certainly, if you ask California-based (but Milanese by adoption) fashion editor J.J. Martin, founder of La DoubleJ. This brand, born in 2015 as a shoppable magazine and based today in the boutique on Via Sant’Andrea in Milan, has made the online sale (also) of highly sought-after items its hallmark. Clothes, jewelry, home decorations and prints: all the items on offer change every two weeks and are available both in the flagship store and on e-commerce.
La DoubleJ’s goal is thus to create an experience that can preserve the exclusivity that customers look for in this kind of lifestyle brand, while taking advantage of the potential offered by digital channels. And indeed, J.J. Martin revealed how the success achieved in recent years (which has brought the company to 10th place in LinkedIn’s Italian rankings) can be attributed to the excellent performance of e-commerce: in the first months of 2021, revenue growth from this channel was +100%.
This case thus shows us how digitization can be a powerful growth engine even for those sectors that would seem to be struggling. Thanks to the ability to address a global market, what would have been a small business aimed at a local clientele until some time ago can become a high-growth startup.
Why then can’t your company do it too, with the right strategy?
READ ALSO: E-commerce 2021, the present and future of online procurement
9. Flexibility makes employees happy, and leads to success (Swile)
A startup’s success depends not only on its ability to innovate and effectively attack the market, but also on the talent it manages to attract. One example of how optimal human resource management can be fuel for growth is Swile, a French company that aims to simplify the management of food stamps, gift certificates, and other salary benefits.
In fact, after raising investments of 70 million euros, the startup decided to invest a large part of the funds in its team, growing from 250 to 450 employees in just a few months. During 2022, the stated goal is to complete between 300 and 400 new hires.
Among the strengths of Swile’s HR model is the intelligent use of the hybrid organization, which allows about one-third of the total workforce to work 100% remotely. This has made the company a true standard-bearer for flexible working in the French context, thus attracting a large number of young talents during the most important period for its growth.
Lesson to be learned: in order to turn a startup into a successful company, it is not enough to look outward; you also need to understand and value your work team.
10. Talking about your employees can help you grow (Cajoo)
While in the previous point we saw how an innovative hiring and labor management policy can accelerate growth, the case of Cajoo shows how this factor can also prove to be an important competitive element in the market.
Cajoo is a French delivery startup that specializes in delivering groceries to your doorstep in less than 15 minutes. What distinguishes this reality from the many companies that have sprung up in the sector during the last few years is the relationship that binds it to its riders. Unlike its competitors, in fact, all of its more than 600 delivery employees are regularly hired and salaried. Cajoo’s intention is also to quintuple the number of its riders by the end of the year.
It is precisely this specificity that has led many people to choose this service instead of the cheaper service of competitors, for ethical and value-based reasons. The debate regarding the protection of riders’ rights in the delivery sector has been holding sway for quite some time, and more and more people are looking for a delivery service that also ensures proper working conditions.
Just as for Cajoo the choice to invest in the well-being of its employees and the ability to communicate it effectively have proven to be important factors for growth, there may also be labor stories worth telling in your company.
