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"Inbound" Sales and Marketing - Fuel Your Startup's Growth

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Startany Cloud Acceleration Platform
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Sam Mallikarjunan is the Principal Marketing Strategist for HubSpot, world's leading inbound marketing platform that has received over $100 million in funding and did an IPO in 2014. Previously Sam has taken various positions at HubSpot, ranging from Head of Experimental Marketing to Head of eCommerce Marketing. Sam is also a continuing education instructor at Harvard and is the author of "How to Sell Better than Amazon" and "Why Medium Works".

The world has changed. How people buy has changed. The last 15 years have seen dramatic shifts in how people communicate, buy, and live their lives. Sales and marketing, however, have been slow to adapt. In this talk, we'll introduce the framework of "inbound" sales and marketing to help you attract (rather than interrupt) your customers and fuel your startup's growth.

Published in: Marketing
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"Inbound" Sales and Marketing - Fuel Your Startup's Growth

  1. 1. Inbound Sales & Marketing Fuel Your Startup’s Growth Sam Mallikarjunan
  2. 2. @HubSpot Sam @Mallikarjunan
  3. 3. People‘s behaviors have changed. They‘re tuning out traditional marketing tactics.
  4. 4. 86% 91% 44% 200M The old marketing playbook is Skips TV ads Unsubscribe to email On the Do Not Call List Of direct mail is never opened B K
  5. 5. Stockbrokers Slightly ahead you have You have car salesmen On the low end And Lawyers And Lobbyists 6 In the middle, you have us Sales & Marketing
  6. 6. “We had another great month that doesn't happen without you. Thanks for building trust and credibility with our prospects before we engage with them - makes every conversation a pleasure rather than a fight :)” – email from a VP of Sales to his marketing team
  7. 7. In order to attract customers, marketers have to provide them with something they love.
  8. 8. Definition Inbound Marketing Is a holistic, data-driven approach to marketing that attracts individuals to your brand and converts them into lasting customers.
  9. 9. Cold Calling Cold Emails (SPAM) Interruptive Ads Marketer - Centric Traditional SEO Blogging Attraction Customer - Centric Inbound VS What Makes Inbound Different?
  10. 10. Can you out-help your competitors? (helping is hard!)
  11. 11. Attract Blog Keywords Social Media Convert Forms Calls-to-action Landing Pages Close Email Signals Workflows Delight Events Social Inbox Smart Content How does inbound marketing work? Visitors Leads Customers PromotersStrangers
  12. 12. “We don’t make money when we sell things. We make money when we help customers make purchase decisions.” – Jeff Bezos
  13. 13. It wasn’t Alwaythis way.
  14. 14. Technology adoption Lifecycle Innovator s Early Adopters Early Majority Late Majority 10% 40% 48% 1% Laggards 1% “The Chasm” Area under the curve represents number of customers
  15. 15. history We live in the one of the most of commerce. interesting periods in the
  16. 16. We live in an era of big bang disruptive innovation.
  17. 17. Rogers Market segments Innovator s Early Adopters Early Majority Late Majority Laggards Trial users Vast Majority Big bang Market segments
  18. 18. 20 new within the last decade 1000 are >70%of businesses on the US Fortune
  19. 19. Just Because Your Company Has survived The last 100 years doesn’t mean it will survive the next ten.
  20. 20. Mass extinction brings opportunities for new species to flourish.
  21. 21. No one wants a ¼ inch drill bit. They want a ¼ inch hole.
  22. 22. The company that best solves for the customer wins.
  23. 23. 27 “Okay, I’m excited enough -- so what can I do about this?"
  24. 24. Your extendable core is the job you do for customers that a competitor couldn’t replicate without adopting the same cost-structure. An Extendable Core Insulates You From Disruption
  25. 25. “Inbound marketing is a business model innovation based on the fact that it’s more economically efficient to create an experience that attracts consumers than it is to interrupt someone else’s.”
  26. 26. Inbound marketing creates an extendable core that insulates you from disruption. … or helps you disrupt others.
  27. 27. Inbound Marketing is hard.
  28. 28. It’s not all sunshine and rainbows.
  29. 29. (It’s pretty hard to justify, too.)$$ You can’t improve what you can’t measure.
  30. 30. Marketing is half of the acquisition equation “We spent $1000 and got 500 website visits” CoCA: $400 CoLA: $40 CoVA: $2 5% Visit-to-lead 10% Lead-to-customer
  31. 31. Measure everything. 57% Worked Percentage 0% 100% 33% 50% Unworked eCommerce Leads 55% Average Last Attempt # 0 3 Average Attempts Per Hi/Med SAL 6 9 4.94 26% Sum of Probability Adjusted Recognized MMR in USD (Thousands) 0.00 12.60 Current Month Sales Forecast 16.80 25.20 6.64
  32. 32. You're generating leads but is sales working them? Sales is creating opportunities, but how deeply are they working them?
  33. 33. Someone can copy your exact business model and outgrow you just by measuring better.
  34. 34. The Old Marketing Math Model $ 6000 $ 50,000 $ 60,000 PP C SEO Firm Conten t Writing Expense Yearly Amount “I’m spending a bunch of money on marketing, and I’m making more money than I’m spending back.”
  35. 35. “I spend $W to acquire customer of persona X from source Y, and they spend an average of $Z with me over their lifetime.” Customer Centric Economics Model
  36. 36. Starbucks has an AOV of ~$6* Using the AOV:COTA model, to get a 3:1 ratio a Starbucks marketer would spend ~$2 to acquire that $6 transaction. $14,099Avarage LTV How Much Would You Spend? * *Source: KissMetrics
  37. 37. Inbound marketing is a business model innovation based on the fact that it’s more economically efficient to create an experience that attracts consumers than it is to interrupt someone else’s.
  38. 38. A Business Model A Better Business Model COCA COCA COCA CLTV CLTV CLTV CLTV CLTV CLTV $1 in, $2 out. $2 in, $12 out. A Scalable Business Model COCA CLTV CLTV $2 in, $4 out. Faster growth. COCA COCA CLT V Cost Of Customer Acquisition CLTV CLTV CLTV CLTV CLTV CLTV CLTV CLTV CLTV CLTV Customer Life Time Value
  39. 39. Customer centricity creates competitive leverage
  40. 40. Time Investment Period Payback Period Profit Period Time to Payback Self funding point Break even point Discountedcash Max Cash Consumed
  41. 41. So easy, pretty, and simple to understand, ain’t it? The Conventional Linear Buying Process I'm just in the neighborhood and dropped in to browse I urgently need to buy a black sweater. Awareness Consideration Purchase
  42. 42. 46 It’s not an end-state It’s an infinite loop Awareness Interest Desire Action Reinforcement
  43. 43. How Real People Really Buy
  44. 44. How Real People Really Buy
  45. 45. How Real People Really Buy
  46. 46. How Real People Really Buy
  47. 47. The marketing activities and tools to this point add up to the Cost Of Customer Acquisition
  48. 48. Now the focus shifts to increasing the customer’s Life Time Value
  49. 49. How Real People Really Buy
  50. 50. How Real People Really Buy
  51. 51. How Real People Really Buy
  52. 52. Everyone goes through this process
  53. 53. Key Takeaway: Compete in the Research Phase Yes. I downloaded their eBook. Yes. They helped me make a decision. Yes. I bought from them.
  54. 54. And yes. She said Yes
  55. 55. This new age of marketing is the beginning of something truly remarkable, and your relationship with your customers will never be the same.
  56. 56. Thank

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