No matter what stage your company is in, here's what you need to know about navigating a communications strategy. Photo via Getty Images

The significance of effective communication and its contribution to a company’s success are points regularly stressed by conference panelists and forum speakers. Yet for many founders it’s advice that fuels frustration for how to make communications a priority with a lack of understanding of the practice.

This article combines insights from investors, customers, advisers, and founders, with actionable recommendations that benefit both startups and growth stage leaders who are scaling the impact of their companies.

Why marketing communications is important

Marketing communications combines the use of messages and a broad spectrum of tools to communicate with target audiences in attracting customers, cultivating relationships, acquiring funding, increasing visibility, and growing influence.

To define marketing communications in singular terms limits its impact. “For some, communications is simply a pretty graphic,” says Adam Lipman, managing partner of Ecliptic Capital, “and they don’t think about the importance of communications that speak to the needs of their key audiences in language that will resonate with them.”

It can be tempting to jump straight to producing tools that you can touch, hear and see, but applying thoughtful strategies first has everything to do with how successful those tools will be.

A dangerous misconception

Regardless of how innovative your device, therapeutic or service, there is always competition, including the option of customers doing nothing. “We call it the good enough problem,” says Lipman. “If what’s currently being done is considered good enough, what is the incentive to improve or change it with your idea?”

Comparison is a common method for comprehending a disruptor’s unprecedented concept. Your wearable device that does something no one else’s does will, at the very least, be categorized and compared to other wearables. Your innovative concept for improving cardiovascular patient outcomes will be compared within the broad category of cardiovascular care. To believe there’s no competition to challenge your success, regardless of how unique, is a false sense of security that requires proactive messaging.

“If you don’t define your brand, someone else is going to do it for you, and it may not be what you want,” warns Tatiana Fofanova, co-founder and CEO of Koda Health.

The analogy we use when formulating messaging for our clients is to define their “seat at the table” so that no matter who or how many competitors are seated alongside them, the advantage their solution offers and the beneficial role they fill within the ecosystem is very clear.

Strategically connecting the dots

Distinguishing your company from its competition and motivating action on the part of investors or customers requires communication strategies that connect all the dots.

“Many entrepreneurs think their technology will sell itself,” says Michelle Stansbury, vice president of innovation and IT applications for Houston Methodist. “But for me to understand what we gain by utilizing their product, I want to know what problem are they solving. Does their product increase efficiencies, improve patient satisfaction, or answer a financial problem? Answering these questions is fundamental.”

In addition to messaging that clearly defines how your company is uniquely capable of delivering valuable solutions, it’s important to apply strategies for speaking your audience’s language and identifying the pain points you are capable of relieving. It also requires considering the perspective and experience of an audience’s different members. For instance, if presenting to an investor who is also a neurologist, sharing scientific data will be appreciated. For others, the why and how of what you offer may be better told through story.

The homework you do to fully understand your audience’s needs will not only produce beneficial insights but also demonstrate a level of commitment that can impress influencers and potential funders.

“I’m drawn to founders who want to walk in their customer’s shoes. They are generally deeply empathetic because they've spent time literally walking the halls with them and sat in the chairs next to them,” says John “JR” Reale, venture lead for the Texas Medical Center Venture Fund. “It’s very endearing to see a founder who wants to understand and continue to learn from who they want to serve.”

Actionable advice

Just as marketing communications is defined by multiple components, there are several actionable strategies for getting past the understanding phase. Here are three key recommendations to implement, whether a startup with limited resources or a company experiencing accelerated growth.

As a startup

  • Develop brand messaging that distinguishes your solutions from the competition and captures the compelling purpose and passion of your company’s mission.
  • Establish a working relationship with professional communicators. Though your budget is small, it’s a great way to develop trust and familiarity within the parameters of a single project for when greater resources allow expanded assistance in the future.
  • Identify each of your key audiences, including strategic partners, community influencers, and end users, as well as potential investors and other funding sources. The list may be daunting, so rank contacts in each category and unleash your entrepreneurial curiosity to research their needs and priorities.

The growth stage company

  • Invest in comprehensive communication consultation to elevate your startup marketing communications to the 2.0 level of expected sophistication. This is when the working relationship seeds you planted with a professional communicator really pays off. Trust has been established and there is a fundamental understanding for who you are and why it matters.
  • Just as your business plan provides vital direction, a strategic communications plan functions as an essential blueprint for achieving your goals, including connecting with target audiences, increasing visibility, marketing your company’s services or products, and strengthening your bottom line. Strategies should be tailored to your organization’s specific needs and identify the tools necessary for achieving success.
  • Prioritize and produce marketing tools identified in your plan that promote the company’s impact and build on the brand reputation it has achieved.

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Kelli Newman is president of the Houston-based communication strategies firm, Newman & Newman Inc., where she leads a talented team of marketing professionals advancing the success of their purpose-driven clients.

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11 Houston researchers named to Rice innovation cohort

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The Liu Idea Lab for Innovation and Entrepreneurship (Lilie) has named 11 students and researchers with breakthrough ideas to its 2026 Rice Innovation Fellows cohort.

The program, first launched in 2022, aims to support Rice Ph.D. students and postdocs in turning their research into real-world ventures. Participants receive $10,000 in translational research funding, co-working space and personalized mentorship.

The eleven 2026 Innovation Fellows are:

Ehsan Aalaei, Bioengineering, Ph.D. 2027

Professor Michael King Laboratory

Aalaei is developing new therapies to prevent the spread of cancer.

Matt Lee, Bioengineering, Ph.D. 2027

Professor Caleb Bashor Laboratory

Lee’s work uses AI to design the genetic instructions for more effective therapies.

Thomas Howlett, Bioengineering, Postdoctoral 2028

Professor Kelsey Swingle Laboratory

Howlett is developing a self-administered, nonhormonal treatment for heavy menstrual bleeding.

Jonathan Montes, Bioengineering, Ph.D. 2025

Professor Jessica Butts Laboratory

Montes and his team are developing a fast-acting, long-lasting nasal spray to relieve chronic and acute anxiety.

Siliang Li, BioSciences, Postdoctoral 2025

Professor Caroline Ajo-Franklin Laboratory

Li is developing noninvasive devices that can quickly monitor gut health signals.

Gina Pizzo, Statistics, Lecturer

Pizzo’s research uses data modeling to forecast crop performance and soil health.

Alex Sadamune, Bioengineering, Ph.D. 2027

Professor Chong Xie Laboratory

Sadamune is working to scale the production of high-precision neural implants.

Jaeho Shin, Chemistry, Postdoctoral 2027

Professor James M. Tour Laboratory

Shin is developing next-generation semiconductor and memory technologies to advance computing and AI.

Will Schmid, Electrical and Computer Engineering, Postdoctoral 2025

Professor Alessandro Alabastri Laboratory

Schmid is developing scalable technologies to recover critical minerals from high-salinity resources.

Khadija Zanna, Electrical and Computer Engineering, Ph.D. 2026

Professor Akane Sano Laboratory

Zanna is building machine learning tools to help companies deploy advanced AI in compliance with complex global regulations.

Ava Zoba, Materials Science and Nano Engineering, Ph.D. 2029

Professor Christina Tringides Laboratory

Zoba is designing implantable devices to improve the monitoring of brain function following tumor-removal surgery.

According to Rice, its Innovation Fellows have gone on to raise over $30 million and join top programs, including The Activate Fellowship, Chain Reaction Innovations Fellowship, the Texas Medical Center’s Cancer Therapeutics Accelerator and the Rice Biotech Launch Pad. Past participants include ventures like Helix Earth Technologies and HEXASpec.

“These fellows aren’t just advancing science — they’re building the future of industry here at Rice,” Kyle Judah, Lilie’s executive director, said in a news release. “Alongside their faculty members, they’re stepping into the uncertainty of turning research into real-world solutions. That commitment is rare, and it’s exactly why Lilie and Rice are proud to stand shoulder-to-shoulder with them and nurture their ambition to take on civilization-scale problems that truly matter.”

Houston startup debuts new drone for first responders

taking flight

Houston-based Paladin Drones has debuted Knighthawk 2.0, its new autonomous, first-responder drone.

The drone aims to strengthen emergency response and protect first responders, the company said in a news release.

“We’re excited to launch Knighthawk 2.0 to help build safer cities and give any city across the world less than a 70-second response time for any emergency,” said Divyaditya Shrivastava, CEO of Paladin.

The Knighthawk 2.0 is built on Paladin’s Drone as a First Responder (DFR) technology. It is equipped with an advanced thermal camera with long-range 5G/LTE connectivity that provides first responders with live, critical aerial awareness before crews reach the ground. The new drone is National Defense Authorization Act-compliant and integrates with Paladin's existing products, Watchtower and Paladin EXT.

Knighthawk 2.0 can log more than 40 minutes of flight time and is faster than its previous model, reaching a reported cruising speed of more than 70 kilometers per hour. It also features more advanced sensors, precision GPS and obstacle avoidance technology, which allows it to operate in a variety of terrains and emergency conditions.

Paladin also announced a partnership with Portuguese drone manufacturer Beyond Vision to integrate its Drone as a First Responder (DFR) technology with Beyond Vision’s NATO-compliant, fully autonomous unmanned aerial systems. Paladin has begun to deploy the Knighthawk 2.0 internationally, including in India and Portugal.

The company raised a $5.2 million seed round in 2024 and another round for an undisclosed amount earlier this year. In 2019, Houston’s Memorial Villages Police Department piloted Paladin’s technology.

According to the company, Paladin wants autonomous drones responding to every 911 call in the U.S. by 2027.

Rice research explores how shopping data could reshape credit scores

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More than a billion people worldwide can’t access credit cards or loans because they lack a traditional credit score. Without a formal borrowing history, banks often view them as unreliable and risky. To reach these borrowers, lenders have begun experimenting with alternative signals of financial reliability, such as consistent utility or mobile phone payments.

New research from Rice Business builds on that approach. Previous work by assistant professor of marketing Jung Youn Lee showed that everyday data like grocery store receipts can help expand access to credit and support upward mobility. Her latest study extends this insight, using broader consumer spending patterns to explore how alternative credit scores could be created for people with no credit history.

Forthcoming in the Journal of Marketing Research, the study finds that when lenders use data from daily purchases — at grocery, pharmacy, and home improvement stores — credit card approval rates rise. The findings give lenders a powerful new tool to connect the unbanked to credit, laying the foundation for long-term financial security and stronger local economies.

Turning Shopping Habits into Credit Data

To test the impact of retail transaction data on credit card approval rates, the researchers partnered with a Peruvian company that owns both retail businesses and a credit card issuer. In Peru, only 22% of people report borrowing money from a formal financial institution or using a mobile money account.

The team combined three sets of data: credit card applications from the company, loyalty card transactions, and individuals’ credit histories from Peru’s financial regulatory authority. The company’s point-of-sale data included the types of items purchased, how customers paid, and whether they bought sale items.

“The key takeaway is that we can create a new kind of credit score for people who lack traditional credit histories, using their retail shopping behavior to expand access to credit,” Lee says.

The final sample included 46,039 credit card applicants who had received a single credit decision, had no delinquent loans, and made at least one purchase between January 2021 and May 2022. Of these, 62% had a credit history and 38% did not.

Using this data, the researchers built an algorithm that generated credit scores based on retail purchases and predicted repayment behavior in the six months following the application. They then simulated credit card approval decisions.

Retail Scores Boost Approvals, Reduce Defaults

The researchers found that using retail purchase data to build credit scores for people without traditional credit histories significantly increased their chances of approval. Certain shopping behaviors — such as seeking out sale items — were linked to greater reliability as borrowers.

For lenders using a fixed credit score threshold, approval rates rose from 15.5% to 47.8%. Lenders basing decisions on a target loan default rate also saw approvals rise, from 15.6% to 31.3%.

“The key takeaway is that we can create a new kind of credit score for people who lack traditional credit histories, using their retail shopping behavior to expand access to credit,” Lee says. “This approach benefits unbanked applicants regardless of a lender’s specific goals — though the size of the benefit may vary.”

Applicants without credit histories who were approved using the retail-based credit score were also more likely to repay their loans, indicating genuine creditworthiness. Among first-time borrowers, the default rate dropped from 4.74% to 3.31% when lenders incorporated retail data into their decisions and kept approval rates constant.

For applicants with existing credit histories, the opposite was true: approval rates fell slightly, from 87.5% to 84.5%, as the new model more effectively screened out high-risk applicants.

Expanding Access, Managing Risk

The study offers clear takeaways for banks and credit card companies. Lenders who want to approve more applications without taking on too much risk can use parts of the researchers’ model to design their own credit scoring tools based on customers’ shopping habits.

Still, Lee says, the process must be transparent. Consumers should know how their spending data might be used and decide for themselves whether the potential benefits outweigh privacy concerns. That means lenders must clearly communicate how data is collected, stored, and protected—and ensure customers can opt in with informed consent.

Banks should also keep a close eye on first-time borrowers to make sure they’re using credit responsibly. “Proactive customer management is crucial,” Lee says. That might mean starting people off with lower credit limits and raising them gradually as they demonstrate good repayment behavior.

This approach can also discourage people from trying to “game the system” by changing their spending patterns temporarily to boost their retail-based credit score. Lenders can design their models to detect that kind of behavior, too.

The Future of Credit

One risk of using retail data is that lenders might unintentionally reject applicants who would have qualified under traditional criteria — say, because of one unusual purchase. Lee says banks can fine-tune their models to minimize those errors.

She also notes that the same approach could eventually be used for other types of loans, such as mortgages or auto loans. Combined with her earlier research showing that grocery purchase data can predict defaults, the findings strengthen the case that shopping behavior can reliably signal creditworthiness.

“If you tend to buy sale items, you’re more likely to be a good borrower. Or if you often buy healthy food, you’re probably more creditworthy,” Lee explains. “This idea can be applied broadly, but models should still be customized for different situations.”

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This article originally appeared on Rice Business Wisdom. Written by Deborah Lynn Blumberg

Anderson, Lee, and Yang (2025). “Who Benefits from Alternative Data for Credit Scoring? Evidence from Peru,” Journal of Marketing Research.