Why Startups Struggle With Engagement (and What These Founders Are Doing Right)

What Does Customer Engagement Actually Mean for Startups in 2025?

Let’s start with a truth bomb. In 2025, customer engagement isn’t about followers or traffic. It’s about building trust, systems and repeatable results. If you’re raising investment or scaling, you need more than surface-level activity. You need customers who stick around and are loyal.

This was the topic we tackled at a recent Funding Mastermind with some of ourbrilliant Funding Accelerator mentors including Lucy Whittington and Daniya Stewart, and Funding Accelerator graduate Mohamedali Walji. Together we explored what engagement really looks like in practice.

Here’s what we learned, and how you can apply it.

Why Is Engagement So Hard to Pin Down for Founders?

Because it’s not just a funnel. It’s a relationship.

During our session, I reminded everyone:

“Investors want to see a machine you can run again and again to get more happy paying customers.”

That machine can feel impossible to build when you’re juggling MVPs, product tweaks and multiple customer types. Just ask Mohamedali Walji, founder of Quirk. He’s managing three separate streams – SaaS partners, accountancy firms and e-commerce businesses.

His challenge? Not just identifying ideal customers, but creating a repeatable process to reach and retain them.

How Can You Build Engagement Before Your Product Is Ready?

The answer is simple. Start now, even if you feel unready.

Mohamedali offered £100 Amazon vouchers and a significant lifetime discount to early adopters who shared feedback over three months. It wasn’t just an incentive. It was a way to involve people early and shape the product with real user insight.

Daniya Stewart, who previously launched a consumer food brand, had a similar approach:

“I went to a farmers market because people give you real feedback, not what your friends think you want to hear.”

Early engagement doesn’t need polish. It needs honesty, presence and a feedback loop you’ll act on.

What’s Working Now: Community Over Campaigns

If you’re thinking email blasts or drip funnels, you might be missing the point.

Instead of pushing for a sale, Mohamedali built a community called Inventory Alchemist. It’s a space for founders to discuss KPIs, inventory insights and operational pain points.

There’s no sales pitch. Just shared problems and value-led discussion.

Marketing expert Lucy Whittington encouraged this approach:

“You’re not selling software. You’re asking for change. Start with a smaller problem you can solve immediately.”

A community creates space for customers to learn they can trust you first, before they buy.

What Makes Cold Outreach Work in 2025?

It’s not just about automation. It’s about persistence and relevance.

Mohamedali shared how he uses Apollo, LinkedIn and HubSpot in tandem. His goal is to create 7 to 11 meaningful interactions before a demo is booked.

Here’s what those touchpoints include:

Research-led emails
Connection requests with context
KPI-led tips and resources
Community invites
Value-focused demos

This is engagement in action. Not just awareness, but real movement down the path to purchase.

How Do You Turn Engagement into a Repeatable System?

This is what every founder wants to know.

Lucy offered a clear reminder:

“Always talk about the result you offer. But invite people to start with something less dramatic.”

Daniya’s take? Get your customers involved. Her monthly seasonal specials, created from customer-submitted recipes, became one of her most popular tactics.

If your running a SaaS business even small updates, like fixing bugs and optimising a platform, show customers you’re listening. Engagement isn’t always flashy. Often it’s consistent care.

My key takeaway from this discussion:

“Don’t wait for perfect. Focus on revenue, but remember it’s relationships that really matter.”

So, What’s the Real Lesson About Startup Engagement?

Here’s what it comes down to.

Engagement isn’t about shouting louder. It’s about showing up better. It’s how you build trust before the product is finished, and how you keep customers even when things aren’t perfect.

Startups that succeed in 2025 are doing the following:

Building with customers, not just for them
Offering value before asking for commitment
Creating community as a strategy
Measuring progress with real people, not just metrics

This is how you build traction that leads to trust, funding and long-term success.

What does customer engagement mean for startups in 2025?

For startups, customer engagement is more than traffic or followers. It means building trust, repeatable systems and long-term customer loyalty that investors value.

Why do startups struggle with customer engagement?

Startups often confuse customer engagement with marketing activity. The real challenge is creating consistent, meaningful interactions that turn interest into revenue.

Can startups build customer engagement before the product is ready?

Yes. Founders can test engagement early through pilot programmes, user feedback groups, waiting lists and community building, even before launch.

What role does community play in customer engagement?

Community is one of the strongest engagement tools for startups. It builds trust, creates feedback loops and helps customers connect before committing to purchase.

How many touchpoints are needed to build customer engagement?

On average, startups need 7–11 meaningful touchpoints. These can include personalised outreach, demo invites, community discussions and value-driven content.

How can startups prove customer engagement to investors?

Investors want evidence of traction. Startups can show engagement with metrics like demo requests, pilot programme feedback, repeat users and active communities.

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Hatty Fawcett

CEO & Founder at Focused For Business

Hatty is the founder of Focused For Business, and has a wealth of experience in growing startups and securing early-stage equity investment for startups. Hatty had a 15-year career in marketing before completing an MBA at Imperial College and working in a succession of startups. She raised over £250,000 for her own startup and also managing some of the investments former Dragon’s Den star Kelly Hoppen made when she appeared on the TV show. Hatty’s dual perspective, both as a founder who has secured investment and as a coach and advisor to startups raising investment, gives her a unique perspective which she uses to demystify the investment process and empower entrepreneurs. Her dedication to levelling the playing field in equity investment caused her to create the Funding Accelerator programme and has earned her the title of Adviser of the Year twice in 2022 and 2024 from Enterprise Nation. She was also a finalist in the Great British Entrepreneur Awards in 2023.

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