DigitalOcean Doubles Down on Its Frugal Strategy to Win Customers
Cloud computing provider DigitalOcean (NYSE: DOCN) is built for developers and small businesses. Most of the company's customers spend less than $50 each month, and all customers have access to 24/7 support and a wealth of resources. Getting started is easy, pricing is simple, and the list of products is short to avoid overwhelming users with options.
This focus on smaller customers means that DigitalOcean can't spend too heavily on customer acquisition. A direct sales force makes sense if you're selling enterprise customers on long-term contracts worth many thousands of dollars annually. When your customer base is small and fickle, this approach just doesn't make much sense.
On top of word-of-mouth marketing fueled by satisfied customers, DigitalOcean pulls in potential users with a vast array of articles, tutorials, and guides. Instead of hiring expensive sales teams or dumping cash into pricey online ads, DigitalOcean has put in the work to build out a vast collection of helpful content.
Source Fool.com
