Zoho is a technology company based in Southeast Asia that offers a wide range of technology for businesses of all shapes and sizes.
Last year they exceeded $1 billion in revenue – with zero outside funding.
That’s a big feat these days, as much of their competition is fueled by loads of VC cash.
How did they do it?
It wasn’t luck.
It was a series of smart business moves and innovative marketing strategies. Their journey is a masterclass in savvy marketing and relentless focus on customer needs.
We’re going to dig into 8 aspects of their marketing that have played a role in their growth over the last decade.
- Freemium Products
- A Huge Base of Resellers
- Investing Into Product First
- Big Brand Awareness Advertising
- Tools as Lead Generators
- Heavy Cross-Selling and Upselling
- Community + A Unique Rewards Program
- Deep + Wide Blog Content
1. Freemium Products as Entry Points
Offering freemium products early on helped Zoho explode onto the small business marketing and tech scene, long before they became a household name. It got their product into the hands of lots of businesses looking for budget-friendly options, and significantly widened their customer base.
By providing free versions of their tools, Zoho allowed potential customers to test-drive the software with zero financial risk. This “try before you buy” strategy effectively proved the utility and reliability of their offerings, creating a smooth transition to paid versions once users were hooked on the capabilities of the free ones.
The lure of freemium products substantially lowered the barrier to entry, making it easier to capture both small businesses and larger enterprises on the lookout for cost-effective solutions.
Should You Offer a Freemium Option Like Zoho?
Here are a few tips to help you decide:
- Assess your market size and product complexity: Freemium works best when targeting a large audience with relatively simple, easy-to-use tools that customers can quickly understand. If your product requires extensive customization or onboarding, a free trial or personalized demo might provide more value than a freemium model, as it reduces confusion and churn.
- Evaluate your monetization path: Ensure there’s a clear upgrade journey from freemium to paid plans. If the free version delivers too much value, customers may never feel compelled to pay. Balance offering enough features to demonstrate the core product’s utility while withholding key premium functionalities that encourage users to upgrade.
- Analyze your cost structure: Freemium models can lead to significant expenses in supporting a large volume of free users. Before launching, consider whether your infrastructure can handle a large user base without compromising performance, and if your business can sustain the expenses until conversions to paid plans become profitable.
2. A Huge Base of Resellers
Zoho committed early on to driving sales through resellers.
Starting small, Zoho identified partners who were already experts in their regional markets. This meant they could leverage local knowledge and relationships to penetrate new territories swiftly and accurately. Providing training to these resellers was not just about product knowledge; it was about empowering them to understand Zoho’s vision and the value it brings to different businesses.
These resellers became trusted advisors, rather than just salespeople, integrating Zoho’s products into the operations of countless companies.
Another crucial aspect was the support Zoho offered to these resellers. They didn’t just hand off the products and expect miracles. Zoho provided continuous updates, marketing collateral, dedicated account managers, and technical support. This ongoing partnership meant that resellers were always equipped with the latest tools and information to address any concerns their clients might have.
The support system also nurtured a strong community among the resellers, enabling them to share best practices and success stories, further amplifying their effectiveness.
With this structured and supportive reseller network, Zoho didn’t just increase its sales; it also extended its brand presence and reputation globally. For the resellers, it was a win-win: Zoho gave them the resources, and in return, they expanded Zoho’s reach far beyond what the company could achieve through direct sales alone.
How to Get the Most Out of a Reseller Program
Whether you’re on the fence about using resellers or you’ve got a program you’re just not getting much out of, here’s how to make the most of one:
- Choose resellers strategically based on market knowledge and alignment: Focus on identifying resellers who are not only experts in their regional markets but also align with your brand’s vision and target customers. Resellers who truly understand your product’s value and can tailor it to local needs will be far more effective in selling and integrating your solution into their clients’ operations.
- Invest in continuous training and support: Empower your resellers with comprehensive product training, regular updates, and marketing materials, but also go beyond the basics. Provide them with the tools to deeply understand the customer pain points your product solves, and offer dedicated support channels. This transforms resellers into knowledgeable advisors, improving client satisfaction and trust.
- Foster a sense of community among resellers: Create a platform where resellers can share success stories, best practices, and challenges. Building a collaborative reseller network encourages learning and innovation, motivating them to improve their sales approach while reinforcing a sense of partnership with your company.
3. Investing Everything into Product First
Zoho has always prioritized product over marketing.
“We save a great deal of money by politely declining to engage in marketing … Should we spend money marketing to you, or should we spend it on building products for you?” – A Zoho blog from 2018.
“We save a great deal of money by politely declining to engage in marketing … Should we spend money marketing to you, or should we spend it on building products for you?”
The team believed in spending money on building better products rather than extensive marketing campaigns. They relied on word-of-mouth and customer satisfaction to drive organic growth. This approach not only saved money but also reinforced their commitment to product quality.
When most companies think about growth, the first thing that comes to mind is often how to get the word out. Investing in extensive marketing campaigns, billboards, and flashy advertisements appear to be the default route. Zoho, however, took a different path to success. They made a conscious decision to prioritize product development over aggressive marketing.
At the heart of Zoho’s strategy was a focus on creating powerful, user-friendly software that people genuinely loved using.
How to Prioritize Product First Like Zoho
- Gather and act on real user feedback early: Before ramping up marketing efforts, ensure that you’ve gathered feedback from actual users through beta testing or soft launches. Use this feedback to refine features, fix bugs, and optimize the user experience. A polished, user-approved product will naturally drive positive word-of-mouth and higher satisfaction rates when you scale marketing.
- Prioritize core functionality over flashy features: Focus on perfecting the essential features that solve your customers’ pain points before adding extra bells and whistles. A streamlined, reliable product that delivers on its promises will build trust and loyalty, which is critical when scaling marketing efforts. Customers will forgive missing features if the core product works flawlessly.
- Establish a robust customer support system: A well-developed product should be supported by excellent customer service, especially in the early stages. Ensure you have systems in place to handle inquiries, troubleshoot issues, and provide timely updates. This creates a seamless customer experience that will turn early users into brand advocates, which enhances marketing efficiency down the road.
4. Big Brand Awareness Advertising
Zoho chooses its advertising spots very carefully, focusing on high-visibility locations, and only running ads at opportune times. Remember, their marketing budget is pretty small compared to much of their competition.
Take, for instance, their choice of billboards in San Francisco. This wasn’t just any random decision. San Francisco is teeming with tech enthusiasts, startups, and major industry players – a perfect audience for Zoho’s suite of cloud-based business tools. By situating billboards in locations frequented by their ideal customer base, Zoho ensured that their name became synonymous with innovation and efficiency in spaces where these qualities are highly valued.
Then there were the Subway ads in New York. Think about how densely populated and bustling New York City’s subway system is. Running ads there meant that millions of commuters, including small business owners, entrepreneurs, and corporate professionals, saw Zoho’s message every day.
Let’s not forget the splash they made during the NBA Playoffs in 2018. Now, this was a genius move. The NBA Playoffs attract a massive, engaged audience – people who are not only passionate but also pay attention to detail and strategy, much like Zoho’s own target demographic.
A big piece of their success is driving significant brand awareness without breaking the bank.
How to Make Smart Brand Awareness Plays Like Zoho
If you’re going to do big time advertising, your placements are vital. Here’s how to get the most out of them:
- Target high-traffic locations with relevance to your audience: Focus on advertising in locations where your ideal customer base naturally congregates. Whether it’s industry hubs like San Francisco for tech companies or public transit systems in business-heavy cities, choose spots where visibility is maximized among people who are most likely to need your product.
- Time your ads around major events that align with your audience’s interests: Leverage large-scale events that capture your target audience’s attention. Whether it’s industry conferences or major sporting events like Zoho’s NBA Playoffs campaign, advertising during these moments can boost brand recall by aligning your message with something your audience is already invested in.
- Optimize spending by choosing fewer, high-impact placements: Instead of spreading your budget thin over many channels, focus on a few well-chosen, high-visibility spots that offer sustained exposure. This allows you to make a memorable impact without overextending your resources, maximizing return on investment for each advertising dollar spent.
5. Tools as Lead Generators
Zoho built simple tools to attract high-volume keyword searches.
Take the Excel viewer, for example. With a whopping 75,500 monthly visitors, this tool catered to a broad audience—students, professionals, small business owners—all of whom needed an easy way to view Excel files without complicated software.
Similarly, the free invoice generator, drawing 10,000 visitors every month, tapped into the needs of freelancers and small businesses who were looking for quick, efficient, and free ways to handle billing. These tools were more than just features; they were problem solvers, and people naturally gravitate towards solutions, especially when they’re cost-free.
What’s fascinating is how these tools fit perfectly into Zoho’s broader strategy. Zoho has always leaned towards minimal marketing, preferring to let their products speak for themselves. Instead of splurging on flashy ad campaigns, they invested in developing tools that met real needs, thereby creating a constant stream of organic leads.
This essentially brought the audience to them without Zoho having to chase after potential customers aggressively.
How to Use Free Tools as Lead Generators
- Identify high-demand, low-complexity solutions: Focus on building tools that address common, straightforward problems your target audience faces, much like Zoho’s Excel viewer and invoice generator. Conduct keyword research to identify high-volume searches related to your industry, then create simple, easy-to-use tools that cater to those needs.
- Ensure seamless user experience and accessibility: Keep your tools lightweight and accessible without requiring users to sign up or download anything complicated. The goal is to solve a problem quickly and efficiently, drawing users in with minimal friction, which can later lead to more interest in your paid products.
- Align tools with your core offerings for strategic lead generation: Create tools that complement your main product suite, offering a natural progression from the free tool to your paid services. This way, you’re not just attracting traffic but nurturing leads who are already engaged with solutions relevant to your business.
6. Heavy Cross-Selling and Upselling
Over time, Zoho has built a very wide range of tools that cater to a wide range of business needs—everything from CRM and email to finance and project management.
This diverse lineup meant that once someone used one Zoho tool and loved it, it was super easy to start using another.
Imagine you’re a small business owner who starts with Zoho CRM. You see how seamlessly it integrates with other Zoho products like Zoho Books for accounting and Zoho Projects for task management. Before you know it, your entire business is running on Zoho tools, and you’re hooked.
This strategy—cross-selling and upselling—has been key to Zoho’s success. When existing customers find value in one product, they’re much more likely to try and invest in other tools within Zoho’s ecosystem.
The best part for Zoho is that it maximizes the revenue from each customer without the need for constant new customer acquisition, which is typically way more costly.
Zoho has made it a point to offer products at competitive prices, making it viable for businesses of all sizes to come on board. Their freemium model allows startups and small businesses to start for free and then scale up as they grow. This is not just smart; it’s brilliant. It creates a relationship built on trust and allows businesses to grow alongside Zoho.
How to Master Cross-Selling and Up-Selling
- Create an integrated ecosystem of complementary products: Design your product lineup to work seamlessly together, making it easy for customers to see the value of using multiple solutions from your brand. By highlighting integrations and shared functionalities, you encourage customers to adopt more tools within your ecosystem without feeling like they’re starting from scratch.
- Leverage data to personalize upsell opportunities: Use customer behavior and usage data to identify when a client is ready for additional products or upgraded features. By understanding their needs, you can offer timely, relevant suggestions that feel helpful rather than pushy, increasing the likelihood of adoption.
- Offer scalable pricing and upgrade paths: Start customers on freemium or entry-level plans and provide clear, affordable upgrade paths as their needs grow. By offering pricing that scales with business growth, you build long-term relationships, making it easier to cross-sell and upsell without overwhelming the customer’s budget.
7. Zoho Community + A Unique Rewards Program
Zoho fostered a strong community where enthusiasts connect, engage, and learn. With over 100,000 members and 500,000 discussions, this community enhanced customer loyalty and engagement.
Zoho’s unique rewards program further incentivized participation and advocacy, strengthening their user base. These programs weren’t just about earning points or getting discounts—they went a step further by providing opportunities for skill enhancement, professional recognition, and even career growth.
Longtime users and active contributors could gain certifications, get featured in case studies, and receive invitations to exclusive events. This holistic rewards approach made participation genuinely worthwhile, turning casual users into dedicated advocates who were more than willing to spread the word about Zoho.
Regular webinars, interactive workshops, and training sessions were instrumental in keeping the community engaged and educated. These initiatives weren’t limited to just product training; they expanded to cover industry trends, best practices, and even soft skills. This constant stream of valuable content ensured that community members saw tangible benefits from their involvement, thereby boosting customer loyalty and turning users into lifelong fans.
How to Foster Community and Incentivize Participation
- Build a community around value, not just your product: Encourage engagement by offering more than product support. Provide educational content like webinars, workshops, and industry insights that help users grow professionally. When your community becomes a hub for knowledge and networking, it fosters deeper connections and loyalty, transforming users into active participants.
- Create a rewards program focused on recognition and career growth: Go beyond traditional discounts and points. Offer rewards that enhance the user’s professional standing, like certifications, case study features, and invitations to exclusive events. This makes the rewards program more meaningful, giving users tangible incentives that contribute to their career progression and industry credibility.
- Promote user-generated content and peer interaction: Encourage discussions, user-generated content, and peer-to-peer support within your community. Highlighting success stories, sharing best practices, and allowing members to solve each other’s challenges builds a sense of belonging and increases active participation, turning users into enthusiastic brand advocates.
8. The Long Game Blog Content
The Long Game blog is a key tool in Zoho’s strategy to grow their customer base and build loyalty. By focusing on unique, thought-provoking content beyond typical business advice, Zoho positions itself as more than just a software provider.
They’re a trusted source of solid advice and business knowledge.
The blog explores meaningful topics like “spiritual capitalism,” data insights, and long-term business thinking, resonating with small and medium businesses that share these values. This approach builds a deeper connection with readers, aligning them with Zoho’s philosophy and creating brand affinity.
Unlike conventional business blogs, The Long Game offers thoughtful analysis and fresh perspectives, making its content both engaging and educational.
By covering diverse topics, from sales to marketing and people management, the blog draws a wide audience. Each post subtly ties back to Zoho’s products, showing how their tools can support the strategies discussed, driving interest and conversions without feeling like a hard sell.
The blog also strengthens long-term loyalty by positioning Zoho as a thought leader and trusted advisor. It offers real value that helps businesses grow, fostering trust and community. By consistently delivering insights that align with their audience’s needs, The Long Game helps Zoho nurture lasting customer relationships and reinforce its brand presence.
How to Use Content to Actually Build Trust
- Focus on delivering real value, not just promoting your products: Shift from product-centric content to customer-centric insights. Provide actionable advice, industry trends, and solutions to real problems your audience faces. When your content is genuinely helpful, it builds trust and engagement, making readers more likely to explore your offerings.
- Find your unique voice and perspective: Stand out by sharing fresh ideas or unique perspectives that reflect your brand’s values. Avoid generic topics and focus on areas where you can offer deeper insights or unconventional approaches. Content that sparks thought or addresses overlooked issues will attract a more loyal and engaged audience.
- Leverage data to understand your audience’s needs: Use analytics to identify what topics resonate with your readers and adjust your strategy accordingly. Pay attention to which types of content drive the most engagement, and focus on refining those areas to better connect with your target audience. Data-driven insights help ensure you’re creating content that meets your audience’s real needs.
Grow Like Zoho
Zoho’s growth is a testament to the power of smart, customer-centric strategies that prioritize long-term value over quick wins. From their early use of freemium models and reseller networks to their emphasis on product quality, targeted advertising, and fostering a strong user community, Zoho has created a sustainable and scalable growth engine.
If you want to grow like Zoho, start by building high-quality products that address real customer needs. Then implement some of their other plays and you’ll be on your way. But keep in mind every business growth story is unique – your journey won’t look just like theirs.
Cheers to your growth!
