Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Motarme Customer Development Workshop for Trinity Launchbox July 2015

633 views

Published on

Motarme Customer Development workshop provided to participants of Trinity Launchbox, July 2015. Includes a definition of Customer Development, some techniques for testing and validating a new product, leading into a process for Customer Acquisition. Also quick review of Agile principles. Includes list of recommended links / books.

Published in: Business
  • Login to see the comments

  • Be the first to like this

Motarme Customer Development Workshop for Trinity Launchbox July 2015

  1. 1. STARTUPS CUSTOMER DEVELOPMENT FOR
  2. 2. 1 Motarme delivered real, measurable results in a short timeframe “ ”
  3. 3. Customer Development
  4. 4. 3 The process of achieving product-market fit by • testing with real customers and then • adding or removing features or • adjusting your target customer definition. Definition Once you've achieved product-market fit you then seek growth through a repeatable customer acquisition processes.
  5. 5. 4 http://www.slideshare.net/venturehacks/customer-development-methodology-presentation Definition
  6. 6. 5 Definition
  7. 7. 6 David Skok, Matrix Partners http://www.slideshare.net/DavidSkok/the-saas-business-model-and-metrics http://www.forentrepreneurs.com Definition
  8. 8. 7 • Most of us focus too much on product development at the start • We also wait too long before engaging seriously with customers • Serious engagement = sale • When you start, you realise customer development and then customer acquisition is as hard or harder than product development Key Points Therefore 1. You should start your Customer Development process at same time as product development. 2. Use lessons from other B2B and B2C startups to avoid reinventing the wheel
  9. 9. Customer Development II
  10. 10. 9 Principles Smoke Testing Test Demand at Low Cost1 2 Proceed or Modify
  11. 11. 10 Inputs Smoke Testing Target Customer Definition1 2 Value Proposition 3 Market – Existing, Resegmented, New
  12. 12. 11 Who Are We Trying To Target?  Where are they (countries, languages)  What do they like and dislike?  What industry sectors?  What types of organisation?  What size – revenue, number of employees ...?  Any specific named target companies?  What are the typical roles or titles?  How does your system relate to their job?  What are their key concerns/drivers/goals?  What are their demographics?  Where do they hang out online?  What sources of information do they use? ?
  13. 13. 12 Who Are We Trying To Target? • Draft “Personas” for your top 3 target customers • Brief descriptions representing 80% of your target visitors • Use them as way to describe and understand those customers • Also helps to identify ways to get in touch with these customers Oscar Role: Sales manager Organization: SME Age: 45 Goals: have easy access to prospect information 24/7; get better quality leads; better pipeline Nora Role: Marketing manager Organization: multi-national Age: 32 Goals: manage multiple channels; drive awareness of the company; produce more and better quality leads. Liam Role: IT manager Organization: SME Age: 31 Goals: reliability and availability; simplified architecture; security; cloud-based infrastructure
  14. 14. 13 • Select some value proposition claims for your target audiences – VP1, VP2 etc. • Position them on the grid • “Appeal” means – how strongly do the target customers want this VP? • “Exclusivity” means – can people get this VP anywhere else? • The closer you can get to the upper right hand quadrant the better your VP is The Value Proposition
  15. 15. 14 14 1. Talking about your company and its capabilities rather than focusing on the customer 2. Talking about features instead of the value provided by those features 3. Using marketing waffle like ‘leading global provider of X’ 4. Highlighting benefits that your customers don’t care about 5. Lack of a single definition within a company – if you ask two different sales people you get two different answers as to what they do and why they’re the best. Typical problems The Value Proposition
  16. 16. 15 Testing the Value Proposition Three main options  Inbound  Outbound  Via partners – potential delay
  17. 17. 16 Why You Need Outbound As Well As Inbound If your service is new, or you operate in a highly vertical/niche market then potential buyers may not be aware of or searching for your type of service. This means there may not be a big enough volume of search traffic to generate sufficient leads In that case, you will have to reach out to them in a targeted, efficient and cost effective process – Outbound Lead Generation Web based leads can sometimes be lower quality, since the visitor may also be searching on competitor websites. With Outbound, there is a good chance you are the first supplier to talk to them. For certain industries prospects may not use the web as a key part of their selection process. In this case, outbound is a better way to establish contact with them. 1 2 3
  18. 18. 17 17 Why Outbound As Well As Inbound Inbound • Website • Email • Search Marketing Outbound • Email marketing • Inside sales • Telemarketing • Executive events • Direct Mail Effectiveness Adoption
  19. 19. 18 Inbound Testing  Website design  Content  Landing pages  Social Media  Pay per click  Keyword Research  Split Test http://www.quicksprout.com/2013/09/26/7-things-every-great-landing-page-needs/
  20. 20. 19 Inbound: Drive Traffic to Your Website 19 Content1 Pay-per-click2 Search Engine Optimization 3 Social Media 4 Email Marketing 5
  21. 21. 20 Outbound as well as Inbound Source: Predictable Revenue by Aaron Ross
  22. 22. 21 Outbound Testing  Find lists of people who match your target profile  Send them a short business email  Be “politely persistent” – send 3 or 4 follow-up emails in a consistent process  This will be useful for any B2B companies in their long term customer acquisition process
  23. 23. 22 Principles Smoke Testing Test Demand at Low Cost1 2 Proceed or Modify? Not always a simple yes or no
  24. 24. 23 • An unsuccessful attempt to sell doesn’t mean there is no demand - could be because you didn’t execute correctly • When you are unsuccessful after repeated attempts across different channels then time to rethink • But don’t pivot too early – i.e. Don’t give up too easily Observations • When have you achieved Product-Market fit? • Good definition from David Cummings (www.davidcummings.org) – when you have sold 10 units to non-friends who share some commonality i.e. There is the beginning of a pattern • http://davidcummings.org/2013/07/04/5-ways-to-identify- product-market-fit/
  25. 25. 24 • 1st factor in success is targeting a big market – small markets are too tough • Resilience and persistence are key factors – don’t give up. See Paul Graham (Ycombinator) Observations • Start selling as quickly as possible – i.e. Get someone to pay for your product • As you try to sell, you’ll start learning about your longer- term Customer Acquisition Process
  26. 26. 25 • No textbook or blueprint will guarantee success – we are all reading the same books, but not everyone makes it • But it’s great to have a guide or model that explains what is happening • Also great to (a) learn from other people’s mistakes and (b) avoid re-inventing the wheel Observations • When reality is not matching your model then react – don’t keep executing a formula that isn’t working
  27. 27. 26 • Agile development is really important, and is the basis of Lean Startup • But a lot of startups don’t seem familiar with how Agile works • Important to learn how to execute correctly • However, JFDI is always best advice Observations • Prioritization by Business Value vs. Cost & Risk • Iterative, Time boxed • User Stories • Backlogs and Sprints • Planning Poker • Standups ,Scrums, Playbacks
  28. 28. 27 - 27 - Agile Manifesto 2001 We value: Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan That is, while there is value in the items on the right, we value the items on the left more. Observations
  29. 29. 28 The Twelve Principles of Agile Development Working software is the primary measure of progress. Agile processes promote sustainable development. The sponsors, developers, and users should be able to maintain a constant pace indefinitely. Continuous attention to technical excellence and good design enhances agility. Simplicity--the art of maximizing the amount of work not done--is essential. The best architectures, requirements, and designs emerge from self-organizing teams. At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behaviour accordingly. www.agilemanifesto.org Our highest priority is to satisfy the customer through early and continuous delivery of valuable software. Welcome changing requirements, even late in development. Agile processes harness change for the customer's competitive advantage. Deliver working software frequently, from a couple of weeks to a couple of months, with a preference to the shorter timescale. Business people and developers must work together daily throughout the project. Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done. The most efficient and effective method of conveying information to and within a development team is face-to-face conversation. Observations
  30. 30. 29 “ ” “People are more important than any process. However good people with a good process will outperform good people with no process every time” Grady Booch
  31. 31. Customer Acquisition
  32. 32. 31 A Repeatable Customer Acquisition Process Our Goal Predictable1 2 Scalable 3 Automatable
  33. 33. 32 Generate more leads at the top of the sales funnel using • Outbound Lead Generation email, phone, social media, events • Inbound Lead Generation website, SEO, Google pay-per-click, social media Use Lead Nurturing to profile and manage these leads more effectively so more become ‘sales qualified’ Our Goal – Increase Lead Generation and Conversion € $ £ Use your CRM system to manage the sales process / sales team and convert opportunities to customers. 1 2 3 4
  34. 34. 33 33 Why Inbound Is Important Savo Group Research Study 2012 via PepperGlobal.com • 41% of Business Buyers said they engaged with sales only after their initial research was conducted • 25% said they initiated contact after they had already established a preferred list of vendors Source: DemandGen White Paper “The New BtoB Path to Purchase”, 2012 of the buying process is completed before talking to a vendor. 58% – 70%
  35. 35. 3434 ABC, 1234 “What are you selling?” Your Value Proposition “Who are you selling to?” Your target buyers A B “How will you sell?” Your customer acquisition process C Bring people to your website 1 Traffic Persuade them to pay for your service 3 Subscription Convince them to renew each year – retain your customers 4 Retention 2 Conversion Persuade them to sign- up, register or download
  36. 36. 35 35 A: Your Value Proposition “Who are you selling to?” Your target buyers “How will you sell?” Your acquisition process B C  What value do you deliver?  How quickly can I see the value?  Why is your product better than competitors?  Why is it better than what I do at the moment? Value Proposition: Why should I buy something from you? “What are you selling?” Your Value Proposition A
  37. 37. 3636 B: Your Target Buyers “What are you selling?” Your Value Proposition “Who are you selling to?” Your target buyers “How will you sell?” Your acquisition process A B C  What do they want?  What do they like and dislike?  Where are they (countries, languages)  What industry sectors?  What types of organisation? Size, location ...  What are their typical roles or titles?  Where do they hang out online? Who are your buyers?
  38. 38. 3737 C: Your Acquisition Process - Online “What are you selling?” Your Value Proposition “Who are you selling to?” Your target buyers A B “How will you sell?” Your customer acquisition process C Bring people to your website 1 Traffic Persuade them to pay for your service 3 Subscription Convince them to renew each year – retain your customers 4 Retention 2 Conversion Persuade them to sign- up, register or download
  39. 39. 38 Outbound Lead Generation Outbound Lead Generation Automate Automate Prospecting Emails Automate Finding Prospects Automate Follow-up Actions Sales Team Lead Nurturin g Automate handover to Sales Team (CRM) or Lead Nurturing
  40. 40. Useful Links
  41. 41. 40 Resources • David Cummings • Great presentation “Building a Sales and Marketing” Machine from David Skok, Matrix Partners- http://www.forentrepreneurs.com/slides-sales-marketing-machine/ • Reid Hoffman’s notes on investment hypothesis • Brad Feld • OpenView Partners blog / newsletter – sign-up at http://openviewpartners.com/ • Hiten Shah • Lincoln Murphy’s blog Sixteen Ventures - http://sixteenventures.com/ - advice on pricing for SaaS • MarketingSherpa – fantastic source of advice and information on B2B technology marketing – www.marketingsherpa.com • Neil Patel’s blog QuickSprout (www.quicksprout.com) has excellent information on getting found on the web • Scott Brinker, Chief Marketing Technologist blog – www.chiefmartec.com • Moz.com – great blog on SEO – also check out Bruce Clay www.bruceclay.com • Growthhackers central resource - http://growthhackers.com/ • Sean Ellis’ advice on Product Market Fit for startups - http://www.startup-marketing.com/the- startup-pyramid/ Links
  42. 42. 41 Books Resources Also • “The Hard Thing about Hard Things” • “With Winning in Mind” • “Crossing the Chasm”, Geoffrey A. Moore – classic guide to product marketing, good intro to marketing for technologists
  43. 43. 42 Presentation Zen Bonus Advice
  44. 44. 43 Thank You Motarme Marketing Automation T: +353 1 969 5029 M: +353 86 383 8981 W: www.motarme.com Twitter: @motarme

×