Startany Cloud Acceleration Platform ___________________________________________________ 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.

2. Inbound Sales
& Marketing
Fuel Your Startup’s Growth
Sam Mallikarjunan

3. @HubSpot
Sam @Mallikarjunan

4. People‘s behaviors
have changed.
They‘re tuning out
traditional
marketing tactics.

5. 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

6. 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

8. “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

9. In order to attract
customers,
marketers have
to provide
them with
something
they love.

10. Definition
Inbound Marketing
Is a holistic, data-driven approach to
marketing that attracts individuals
to your brand and converts them
into lasting customers.

11. Cold Calling
Cold Emails (SPAM)
Interruptive Ads
Marketer - Centric
Traditional
SEO
Blogging
Attraction
Customer - Centric
Inbound
VS
What Makes Inbound Different?

12. Can you
out-help
your
competitors?
(helping is hard!)

13. 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

14. “We don’t make money when we
sell things. We make money when
we help customers make
purchase decisions.” – Jeff Bezos

15. It wasn’t
Alwaythis
way.

16. 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

17. history
We live in the one of the most
of commerce.
interesting periods in the

18. We live in an era of big
bang disruptive innovation.

19. Rogers Market segments
Innovator
s
Early Adopters Early Majority Late Majority Laggards
Trial
users
Vast
Majority
Big bang
Market segments

20. 20
new within
the last
decade
1000 are
>70%of businesses on
the US Fortune

21. Just Because Your
Company
Has survived
The last 100
years
doesn’t
mean it will
survive the
next ten.

22. Mass extinction
brings opportunities
for new species to
flourish.

23. No one wants a
¼ inch drill bit.
They want a ¼
inch hole.

25. The company that best
solves for the customer wins.

27. 27
“Okay, I’m excited
enough -- so what
can I do about
this?"

28. 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

29. “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.”

30. Inbound marketing
creates an extendable
core that insulates you
from disruption.
… or helps you disrupt
others.

31. Inbound Marketing is hard.

32. It’s not all sunshine
and rainbows.

33. (It’s pretty hard to justify, too.)$$
You can’t improve
what you can’t
measure.

34. 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

35. 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

36. You're generating leads but
is sales working them?
Sales is creating
opportunities, but
how deeply are they
working them?

37. Someone can copy your exact
business model and outgrow
you just by measuring better.

38. 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.”

39. “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

40. 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

41. 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.

42. 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

43. Customer
centricity
creates
competitive
leverage

44. Time
Investment
Period
Payback
Period
Profit
Period
Time to Payback
Self funding point Break even point
Discountedcash
Max Cash
Consumed

45. 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

46. 46
It’s not an end-state
It’s an infinite loop
Awareness
Interest
Desire
Action
Reinforcement

48. How Real People Really Buy

49. How Real People Really Buy

50. How Real People Really Buy

51. How Real People Really Buy

52. The marketing activities and tools to this point add
up to the Cost Of Customer Acquisition

53. Now the focus shifts to increasing the
customer’s Life Time Value

54. How Real People Really Buy

55. How Real People Really Buy

56. How Real People Really Buy

57. Everyone goes through this process

58. Key Takeaway:
Compete in the Research Phase
Yes. I downloaded their eBook.
Yes. They helped me make a decision.
Yes. I bought from them.

59. And yes.
She said
Yes

60. This new age of
marketing is the
beginning of something
truly remarkable, and
your relationship with
your customers will
never be the same.

61. Thank