If mobile marketing isn't in your startup's toolkit, it should be. Photo via Getty Images

Consumer privacy is driving startups to immediately begin marketing and data collection. Google and Apple have recently stressed the importance of first-party data collection for businesses. For the last two decades, businesses have had access to cookies to advertise to people who visited their digital assets. Digital advertising has already changed with Apple’s iOS 14.5 alterations, switching the default of ad tracking from yes to no and both Google and Apple expect data privacy to increase.

For startups, when and how to begin marketing their business can feel like a cumbersome task. As a chief marketing officer, I was asked to list services and channels that I oversee, and I came up with 16. For founders of startups who must often take on the roles of CEO and COO in addition to CMO as they look to expand their teams, that time commitment is not reasonable for someone who also has a personal life.

Entrepreneurs need tools that are simple to institute and not cost prohibitive, to meet their respective milestones. First, we need to collect first party data, so that when we get to our minimum viable product we have plenty of people waiting to buy it. Next, marketing must work even when we can’t focus on it. Third, we must focus on revenue generating activities, whether they are marketing or not. Finally, we want to create an environment where successful entrepreneurs have a work and life balance.

Before doing anything else — get a virtual phone number

A virtual phone number is the first marketing tool I would use for any business. This number can be connected to your cell phone during certain hours of the day and disconnected for others. This allows people to reach you on your schedule. Put this phone number on every asset you have, so it can be integrated into future tools, such as customer relationship management and Google My Business. With proper opt-in information, it also creates an immediate list for SMS marketing in the future. A virtual phone number typically runs $1 to $2 a month plus usage fees, so it can be used by any business.

It is important that this is set up first, because without this, you can’t use the following marketing tools effectively.

Tool 1: Missed Call – Text Back

An entrepreneurs’ worst nightmare is missing an important phone call, whether it’s an investor or closing your first sale. Constant phone and email checking causes anxiety, but more importantly, it is a low revenue activity, so you are actively hurting your business.

Missed Call – Text Back, or MCTB, allows a customizable text message to be delivered to a client when you miss their phone call. It moves the caller towards resolution (sales or otherwise) immediately encouraging them to give you more information about their problem. The best part is, that once you have the system in place, it costs you zero time. Imagine walking out of a meeting and instead of 10 missed calls, you have 10 text messages that you can quickly answer. How much time did you just get back?

Pro Tip: In many cases, you can automate your emails in a similar way.

Tool 2: A funnel page

Now that we have a tool that allows us to work productively without constant phone checking, we need to increase our book of business. This is where a funnel comes in.

A funnel is a unique digital experience you would like a specific person — a client or investor — to have. When you start a business, a funnel can be your website because you only have one specific thing you want any visitor to do, like collect information.

Almost every consultant to new businesses is promoting funnel building. Why? Because a good funnel motivates people to act in a specific way. If you are raising funds, you want an investor to have a specific experience to garner interest, not hope they navigate to the correct webpage. If you have a new technology, you want early adopters to learn and then provide a simple way to collect their information, so that you can contact them when your product is ready. Finally, if you’re about to hit the market with your new product, providing customers with a simple purchase method will improve revenue during your important proof-of-concept period.

Funnels, like MCTB, can grow and adapt with your business, providing different groups of people with different experiences, with minimal effort. For instance, suppose I created a dating app and needed early adopters. Instead of creating one funnel, let’s say I created two. The only difference between the two funnels, is the first one’s headline was “The No. 1 new dating app for men” and then the second one said women. Everything else remains the same, but the experience is immediately different for the consumer. The more you can change the funnel to cater to their personal experience, the better it will be, but even simple changes can go a long way.

Pro Tip: Funnels are easiest to keep track of when they are subdomains of your website.

Tool 3: Automated SMS marketing

The final tool I recommend to start is Automated SMS Marketing. Assuming you have people properly opted in from your funnel — review Telephone Consumer Protection Act (1991) to ensure legal compliance — you can make sure they receive a welcome message in the first 5 minutes.

The most important part of text messaging marketing is allowing your customer to believe they are really having a conversation with you. If you can avoid it, never tell a customer that your digital number is automated. If you need, tell them it is automated but overseen by you. You are the owner of the business or the inventor of the technology, people want to talk to you. Customers want to pretend that they know you. Allow them this feeling. Once the customer responds, you should be picking up an organic conversation with them anyway.

Bringing it together

Using these tools, we have created a simple, repeatable method to gather customer data and start their customer journey. Your funnel may also help you gather an email list, but your most active prospects will be more than willing to communicate with you over the phone.

When you can’t take calls, whether it’s because you are in a meeting or with your kids, you can rest easier, knowing that potential customers get an immediate response that helps them get where they need to go, or at the very least, when you get back to work, you can help them quickly.

And the best part for a new entrepreneur is that this can all be done cost effectively. Personally, I recommend a service called HighLevel, a feature-rich cost-effective CRM, that includes all of the tools previously discussed. Most tech savvy entrepreneurs can figure out how to institute all these practices quickly from one platform in a no code environment. If you’d rather have assistance, there are 20,000 agencies that use the platform and just as many YouTube videos.

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Chris Romani is the chief marketing officer for illumiPure, a Houston-based medical device company.

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Houston startup debuts new drone for first responders

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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.

XSpace adds 3 Houston partners to fuel national expansion

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Texas-based XSpace Group has brought onboard three partners from the Houston area to ramp up the company’s national expansion.

The new partners of XSpace, which sells high-end multi-use commercial condos, are KDW, Pyek Financial and Welcome Wilson Jr. Houston-based KDW is a design-build real estate developer, Katy-based Pyek offers fractional CFO services and Wilson is president and CEO of Welcome Group, a Houston real estate development firm.

“KDW has been shaping the commercial [real estate] landscape in Texas for years, and Pyek Financial brings deep expertise in scaling businesses and creating long‑term value,” says Byron Smith, founder of XSpace. “Their commitment to XSpace is a powerful endorsement of our model and momentum. With their resources, we’re accelerating our growth and building the foundation for nationwide expansion.”

The expansion effort will target high-growth markets, potentially including Nashville, Tennessee; Orlando, Florida; and Charlotte and Raleigh, North Carolina.

XSpace launched in Austin with a $20 million, 90,000-square-foot project featuring 106 condos. The company later added locations on Old Katy Road in Houston and at The Woodlands Town Center. A third Houston-area location is coming to the Design District.

XSpace condos range in size from 300 to 3,000 square feet. They can accommodate a variety of uses, such as a luxury-car storage space, a satellite office, or a podcasting studio.

“XSpace has tapped into a fundamental shift in how entrepreneurs and professionals want to use space,” Wilson says. “Houston is one of the best places in the country to innovate and build, and XSpace’s model is perfectly aligned with the needs of this fast‑growing, opportunity‑driven market.”