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3a customer validation.2013.q2
 

3a customer validation.2013.q2

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Part of 2013 Q2 Lean Launch Pad Presentations ...

Part of 2013 Q2 Lean Launch Pad Presentations

0a-Introduction.2013.Q2.pptx
1a-Three_Types_Of_Startup.2013.Q2.pptx
1b-Customer Discovery (problem hypothesis).2013.Q2.pptx
2a-Customer Discovery ( canvas and story ).2013.Q2.pptx
2b-Value_Chain (team specific).2013.Q2.pptx
3a-Customer_Validation.2013.Q2.pptx
3b-GKG-CustomerRelationships.2013.Q2.pptx
4a-EndGame.2013.Q2.pptx

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    3a customer validation.2013.q2 3a customer validation.2013.q2 Presentation Transcript

    • Day 3 (a) Customer Validation – “Develop a repeatable sales process” Agenda * 1
    • Review: Key Course Themes “It’s About People” •  People buy products & solutions •  Drucker’s High-Level Goals –  Create a customer –  Know the customer •  …Make product sell itself •  Customer Development –  Linking People’s needs to your Solution/Product 2
    • Review Customer Discovery “Last Week” Customer Discovery Customer Validation Customer Creation Scale Company •  Stop selling, start listening •  Test your hypotheses –  Two are fundamental: problem and product concept 3
    • Today: Customer Validation Customer Discovery Customer Validation Customer Creation Scale Company •  Develop a repeatable sales process •  Focus on “early-vangelists” –  Only they are crazy enough to buy 4
    • Customer Discovery Customer Validation 5
    • We’re Attempting to “Get Algorithmic” 6
    • We Are Trying to Build A Scaleable Company •  •  •  •  •  •  Lifestyle {Work to Live Their Passion} Small Business {Work to Feed Family} Scalable {Born to be Big} Buyable {Born to Flip} Large Company {Innovate or Evaporate} Social – {Driven to Make a Difference} •  More - http://steveblank.com/2011/09/01/why-governments-don%E2%80%99t-get-startups/ 7
    • Sell: Turn Visionaries into EarlyVangelists •  Very few are early customers •  Visionaries will emerge to buy an unfinished product if it truly solves a painful problem •  A lack of these early purchasers is a red-flag •  Market Type effects ease of execution 8
    • Sell: Org’n Map Build The Organization Map Dave Jones CEO Karen Rogers VP Marketing Neil Garret VP Database Marketing Suzanne Kellog VP Merchandizing The potential customer In house competition Issues to be addressed before a sale 9
    • Sell: Org’n Map One Step at a Time Dave Jones CEO Ben White VP Sales Joe Black Dir. Sales Ops Karen Rogers VP Marketing Neil Garret VP Database Marketing Suzanne Kellog VP Merchandizing Leslie Brown Financial Modeling The potential customer In house competition Issues to be addressed before a sale 10
    • Sell: Org’n Map Organization Map Dave Jones CEO Ben White VP Sales Joe Black Dir. Sales Ops Karen Rogers VP Marketing Neil Garret VP Database Marketing Suzanne Kellog VP Merchandizing Leslie Brown Financial Modeling The potential customer In house competition Issues to be addressed before a sale Roger Smith CIO Phil Winters Director IT Geoff Smith Financial Tools Dev 11
    • In Time •  Patterns will become clear •  You can prepare a Sales Plan (Sales Funnel ) 12
    • Sell: Sales Roadmap 13
    • Sell: Influence Map The Influence Map Functional High Technical Executive CIO or Division IT Executive 1 Low End Users 3 2 Corp IT Staff or Division IT 4 14
    • Sell: Influence Map The Sales Roadmap: Starts with Influence Map Educate & Present Solution Execs 1 End Users 3 CIO 2 IT Staff 4 :think: This is different for each company. This is only an example. 15
    • Sell: The Sales Roadmap: Add Access, Assessment, & Strategy Finance Prod Mgmt Sales Corp. Mktg Intro Meetings Account Strategy Execs 1 End Users 3 Support CIO 2 IT Staff 4 IT Access Assess Needs Strategy Educate & Present Solution 16
    • Sell: The Sales Roadmap Finance Prod Mgmt Sales Corp. Mktg Intro Meetings Account Strategy Execs 1 End Users 3 Support CIO 2 IT Staff Implement Plan Proposal 4 IT Access Assess Needs Strategy Educate & Present Solution Sell ! Sell ! Sell ! 17
    • Sell: Roadmap becomes The Sales Pipeline 18
    • Sales Roadmap/Pipeline The Most Important Process That You Will Develop [The Sharp End of the Stick « Steve Blank](http://steveblank.com/2009/05/04/the-sharp-end-of-the-stick/) 19
    • MammOptics Hospital purchasing decision tree :Example:
    • MammOptics Private practice purchasing decision tree :Example:
    • :Example:
    • Sell: Sell/Refine Channel Roadmap •  Early channel partners need to be “Visionaries” •  Indirect channels/integrators have $ minimum •  Indirect channels/integrators just fulfill •  Market Type affects channel adoption •  Refine/Revise Collateral Plan 23
    • Sell: •  Intended audience: Customer Value / ROI •  ATMF interface Plan of Record Why Us? .ppt “early” Standards Applications Documents Why Us? .ppt & .doc * OIF Interface • Compliance Testing Plan Document * Sub-system Jitter Compliance testing * Present to User Group Driver Software Full Compliance documentation “how to” & “results” V0.1 partner Optics, SerDes Front End System V0.x partner “Full Module” Paper Reference Design Q2 Q3 V1.0 partner Tested Reference Design Alpha Chip (Product) Q1 :think: What More Stuff do you need to support the sale? • This is focussed on actual user. •  ! Add in Rows for all the other “customer types” ! Sampling Q4 Production Q1 Q2 24
    • Sell: •  • Intended audience: Internal Plan of Record Exec Influencers •  :think: What More Collateral/Stuff do you need to support the sale? •  List it all out. • What does it “really” take •  Make it available •  You’re trying to make it a “recipe” Technology Gatekeepers Deal Signer Coach many … Price list, Quote Form, NDA,Contracts, … Sales Docs Q1 Q2 Q3 Q4 Q1 Q2 25
    • Sell: Example: Direct Sales Collateral Plan “Four Steps” Table 4.1 Page 88 “SOM” Table 9.2 Page 301 26
    • Reference Customer Creation – All - Step by Step Customer Discovery Customer Validation Customer Creation Year One Objectives • Type Of Startup Distribution Model • Revenue Model • Channel Model • Launch Model • Sales Model Positioning • Articulate Problem & Product concept • Understand customers view of the competitors • Initial company & Product Positioning • Test w/ Early Adopters • Company/Product Positioning by PR Agency with audit Launch • Day in the life • Attend Shows/Confs • Estimate Mkt Size • Company & product launch strategy • Test w/ early adopters • Launch/Introduce • Launch type depends on “mkt type” of startup Demand Creation • Press, Analysts, Influencers List • How do customers make buying decisions? •  How do customers purchase? • Understand analysts/ influencers view • Implement demand creation • Type depends on “mkt type” 27
    • END 28
    • Customer Validation 29
    • Customer Validation Inside the Building Outside the Building 30
    • Customer Validation Loop Phase 1 Get Ready To Sell From Discovery Phase 4 Business Model Verified Phase 2 Sell to “Early-Vangelists To Creation Phase 3 Develop Positioning 31
    • Sell: Phase 2: Sell •  First sales •  First channel sales •  Scalable and Repeatable 32
    • Sell: Sell to EarlyVangelists •  Contact Visionaries •  Sell •  Learn –  Refine Sales Roadmap –  Refine Collateral Plan/Material •  Sell to Channel Partners –  Refine Channel Roadmap 33
    • Sell: Sell: Contact Visionaries •  Looking for people with problems •  They are few are far between •  They need to become your cheerleaders... –  while paying you to do so 34
    • Positioning: Phase 3: Company & Product Positioning •  •  •  •  Market Type driven Company & Product Based on real-world facts Test it out with Analysts and Influencers. Why Now? * You now have “real facts” about why customers buy. * You now have “real” customers to test it out on. Ries & Trout [Product Positioning](http://www.quickmba.com/marketing/ries-trout/positioning/) 35
    • Positioning: “Develop” Positioning •  •  •  •  Product Positioning Company Positioning Present to Analysts & Influencers Builds “product” & “company” positioning briefs for demand creation activities 36
    • Positioning: Positioning: Product Positioning Fyi … doesn’t need to be perfect .. Get the ball rollin’ 37
    • Positioning: Positioning: Company Positioning 38
    • Phase 4: Verify, Iterate, or Exit •  The Product •  Channel Roadmap –  ? Did you do custom versions for everyone ? –  ? How much did it really cost ? •  Sales Roadmap –  ? Did you get orders ? –  ? Is it really repeatable ? –  ? Do they really add value ? –  ? How do you drive demand into channel ? •  Business Model –  ? Are you really Profitable ? –  ? How much more money do you need ? Iterate … or exit 39
    • Re-Group 40
    • Customer Validation Loop Phase 1 Get Ready To Sell From Discovery Phase 4 Business Model Verified Phase 2 Sell to “Early-Vangelists To Creation Phase 3 Develop Positioning 41
    • Time To Prep •  Let’s go back to Phase 1. •  A lot of this prep is not possible on the first pass. ( You don’t have the information - yet ) •  But you will need to know it all to “exit” this stage and become a “real company” 42
    • MORE •  The next slides are on preparing for Customer Validation. 43
    • Get Ready to Sell: Phase 1: Get Ready to Sell •  Serious preparation before 1st sales –  Another writing exercise –  Aligning Executives –  Aligning all stakeholders. •  Investors, team, friends, family 44
    • Get Ready to Sell: Phase 1: Get Ready to Sell •  •  •  •  •  •  •  Value Proposition Sales Collateral Distribution Plan Sales Roadmap Sales Closer Synchronize Execs Advisory Board :Think: * Our Idea is “firm” * We’re gonna put a stake in the ground * “all hands on deck” 45
    • Get Ready to Sell: Articulate a Value Proposition •  Create Value Proposition –  Is it emotionally compelling? –  Does it make, or reinforce, an economic case? –  Does the it pass the reality test? •  Varies by Market Type –  Existing - “incremental” –  New - “transformational” :Think: “Elevator Pitch” You’ve got “One Sentence” 46
    • Get Ready to Sell: Preliminary Sales Collateral •  Create collateral roadmap –  What you need and when you need it –  Supports the sales roadmap –  Ensure the collateral matches the internal audiences of your prospect. –  :idea: make a collateral plan-of-record similar to product PoR •  Create all selling materials –  –  –  –  –  Presentations Data sheets White Papers Demo Price List, Quote Form, Contracts, NDAs, etc •  How would collateral differ by Market Type? 47
    • Get Ready to Sell: Example: Direct Sales Collateral Plan “Four Steps” Table 4.1 Page 88 “SOM” Table 9.2 Page 301 48
    • Get Ready to Sell: •  • Intended audience: Customer Value / ROI •  ATMF interface Plan of Record Why Us? .ppt “early” Standards Applications Documents Why Us? .ppt & .doc * OIF Interface • Compliance Testing Plan Document * Sub-system Jitter Compliance testing * Present to User Group Driver Software Full Compliance documentation “how to” & “results” V0.1 partner Optics, SerDes Front End System V0.x partner “Full Module” Paper Reference Design Q2 Q3 V1.0 partner Tested Reference Design Alpha Chip (Product) Q1 :think: Collateral can require significant Engineering Effort Sampling Q4 Production Q1 Q2 49
    • Get Ready to Sell: Preliminary Channel Road Map •  Channel Food Chain and responsibility •  Channel discount and financials •  Channel Management •  How would channel plan differ by Market Type? 50
    • Get Ready to Sell: What’s the Price? Page 182-184 SOM •  That’s what you’re gonna figure out in this phase by trying to win some real deals. •  Your first guess may be based on existing products, segment margins, typical discounts, your costs, and other stuff. • Market Type makes a difference – Existing • … price expectation is known. – New Segment :Aside: page 108 “Four Steps” -- I really like this “you need to pay list price because you are going to be the first person to use it.” • … price bar is set by existing. – Are you Lower or Higher? – New Market • … is just …. “difficult” 51
    • Get Ready to Sell: Who’s Doing the Buying? •  The buyer and user may not be the same •  Who is the: –  Economic buyer –  Technical evaluator –  Recommender –  Deal signer –  Actual users –  Saboteur –  Coach Miller - Heiman is great resource on this topic Title: The New Strategic Selling: The Unique Sales System Proven Successful by the World's Best Companies (Paperback) by Robert B. Miller (Author), Stephen E. Heiman (Author), Tad Tuleja (Author) 52
    • Get Ready to Sell: Preliminary Sales Road Map •  Built around key insights about the selling process •  Answers –  Who decides the sale? –  Influencers, recommender, decision makers –  Where is the budget? •  How many sales call to the sale? –  To who? –  What is the script for each? •  Consists of: –  –  –  –  –  Organization Map Influence Map Customer Access Map Sales Strategy Implementation Plan 53
    • Get Ready to Sell: Definition: EarlyVangelist 54
    • Get Ready to Sell: Example: Organization Map Dave Jones CEO Karen Rogers VP Marketing Neil Garret VP Database Marketing Suzanne Kellog VP Merchandizing 55
    • Get Ready to Sell: The Sales Roadmap Finance Prod Mgmt Sales Corp. Mktg Intro Meetings Account Strategy Assess Needs Strategy End Users Execs Implement Plan Proposal Support IT Access Educate & Present Solution Sell ! Sell ! Sell ! 56
    • Get Ready to Sell: Sales Economics Understanding your Sales Pipeline •  Timing –  How long, on average, from lead-to-deal •  Dollars –  Average order size –  Lifetime value •  Get, Keep & Grow –  Acquisition –  Churn, retention, loyalty –  Cross-sell & Upsell 57
    • Get Ready to Sell: :idea: Hire a “Sales Closer” •  Identify need for a “Sales Closer –  Do Founders have experience “closing” business? –  Do they have a “world-class”set of contacts? –  Would you bet the company on their ability to close sales? •  If not, hire a “Sales Closer” –  Do NOT hire a VP of Sales –  Typical background would be a regional manager •  How does Market Type effect this hire? 58
    • Get Ready to Sell: Synchronize Your Execs •  Product Development –  Schedule –  Deliverables –  “Good-enough”Philosophy •  Engineering’s role in sales, installation, postsales support –  Yes, they have a role. –  Makes “customer” tangible for them. •  Sales Collateral review –  Eng fact checks. 59
    • Get Ready to Sell: Formalize Advisory Boards •  Advisory boards are critical in the nascent stages of a startup •  To sell to industry specific customers requires an industry advisory board •  Multiple Advisory Boards –  Use at different times –  Different purposes •  :Aside: book has good commentary on Sales/Marketing egos. –  Meet these guys one-on-one. –  There’s not enuff air-space for two in a room :-) •  :Aside: Key Customers can become advisors –  Otherwise Note … Advisors are NOT YOUR CUSTOMERS. –  You are the customer expert ( or are becoming one ) 60
    • Reference: Advisory Board Roles “4 Steps” page 102 - Table 4.2 “SOM” page Page 353 – Table 9.5 61