Startup Marketing Using Metrics Driven Customer Development to Reach Your Startup’s Full Potential Sean Ellis Principal at 12in6 Startup Launch Accelerator Email: sean@12in6.com Blog: Startup-Marketing.com

First six months of customer engagement most critical for reaching your full potential Blog: Startup-Marketing.com

Prepare for big launch Work like crazy for awareness Build customer acquisition channels Target 1 million users by Jan 1 Typical execution first six months Blog: Startup-Marketing.com

Prepare for big launch

Work like crazy for awareness

Build customer acquisition channels

Target 1 million users by Jan 1

Missed targets High burn VP Marketing turnover Reduced potential Typical Results Blog: Startup-Marketing.com

Missed targets

High burn

VP Marketing turnover

Reduced potential

80% of typical startup launch efforts are a waste of time and money 80/20 Rule Applies Blog: Startup-Marketing.com

12in6 Methodology Concentrate effort & resources into 20% that matters, when it matters Blog: Startup-Marketing.com

Reduced burn during discovery and optimization Accelerated customer development (12 months in 6) Improved tactical results between 2X & 10X in 6 months 12in6 Methodology Results Blog: Startup-Marketing.com

Reduced burn during discovery and optimization

Accelerated customer development (12 months in 6)

Improved tactical results between 2X & 10X in 6 months

12in6 Methodology: The Sequence 1 ) Survey Driven Discovery 3) Experiment driven Growth 2) Metrics Driven Iteration 12in6 Methodology builds momentum Blog: Startup-Marketing.com

12in6 Methodology: The Metrics Potential Conversion Metrics Visit-to-registration rate (Or visit to download rate) Trial-to-transaction rate Potential Transaction Metrics Average revenue per user Average transaction size Transactions per customer Months per subscriber Potential Acquisition Metrics User acquisition sources Campaign ROI management Allowable acquisition costs Focus on actionable metrics that drive decisions to improve results Blog: Startup-Marketing.com

Potential Conversion Metrics

Visit-to-registration rate

(Or visit to download rate)

Trial-to-transaction rate

Potential Transaction Metrics

Average revenue per user

Average transaction size

Transactions per customer

Months per subscriber

Potential Acquisition Metrics

User acquisition sources

Campaign ROI management

Allowable acquisition costs

Evolving Over Several Startups… … and continues to evolve Blog: Startup-Marketing.com Startup When My Role Description Stage Uproar 1996 - 2001 VP Marketing Worldwide Leader Online Games ’00 -’01 NASDAQ IPO in 2000, Acquired by Vivendi Universal LogMeIn 2003 - 2008 VP Marketing 50M active installs for remote access Filed for NASDAQ IPO in Jan 2008 (pending) Xobni Jan 2008 - Current VP Marketing Interim, Advisor Leader Email Contact Profiles VC (A) – Khosla Ventures, FRC Eventbrite Aug 2008 – Feb 2009 Acceleration program Event Ticketing Platform VC (A) – European Founders’ Fund Dropbox Sep 2008 - Current Launch program Cloud/PC/Mac file/folder Sync VC (A) - Sequoia

Survey Driven Discovery Attract the right users who are passionate about your solution Blog: Startup-Marketing.com

Survey Driven Discovery Your passionate users hold the keys to unleashing massive customer adoption * The Four Steps to the Epiphany by Steven Blank recommended for early customer development. Blog: Startup-Marketing.com Why do they love it? Need/Problem? Messaging that gets more “must have” users? Which users say: “Must Have”?

Metrics Driven Iteration Reduce barriers, streamline experience, maximize average revenue per visitor Blog: Startup-Marketing.com

Metrics Driven Iteration X% X% Iterate flow to eliminate barriers that prevent gratification and transactions Blog: Startup-Marketing.com

Experiment Driven Growth Discover scalable, profitable customer acquisition channels Blog: Startup-Marketing.com

Develop Free Channels First Develop External Free Drivers SEO (self) – Ideal for products/services that disrupt existing categories. Blog - Blog about passion to solve a problem. Link with other blogs in category. Widgets make it easy to embed your content (brand experience) on other sites/platforms Potential User-Get-User Channels Viral replication - if your product has a social element Blog: Startup-Marketing.com

Develop External Free Drivers

SEO (self) – Ideal for products/services that disrupt existing categories.

Blog - Blog about passion to solve a problem. Link with other blogs in category.

Widgets make it easy to embed your content (brand experience) on other sites/platforms

Potential User-Get-User Channels

Viral replication - if your product has a social element

Paid channel testing sequence PR : Great for “innovators” Demand harvesting channels (easier than demand creation) Create unique onramps for each usage and user type SEM, directories Demand creation last (challenging and expensive) Get ideas by monitoring competitors and overall trends Widgets, webcasts, sponsorships, banners, radio, trade shows Then Test Paid Channels Test lowest hanging fruit first Begin by testing user acquisition channels most likely to have easy, positive ROI Blog: Startup-Marketing.com

Paid channel testing sequence

PR : Great for “innovators”

Demand harvesting channels (easier than demand creation)

Create unique onramps for each usage and user type

SEM, directories

Demand creation last (challenging and expensive)

Get ideas by monitoring competitors and overall trends

Widgets, webcasts, sponsorships, banners, radio, trade shows

Test lowest hanging fruit first

Begin by testing user acquisition channels most likely to have easy, positive ROI

Budget For Profitable Growth World Domination Budget Strategy Budget max spend for allowable acquisition of a new user that returns investment more slowly. Low Burn Budget Strategy Budget max spend for allowable acquisition cost of a new user that gives fast payback. With the 12in6 Methodology you should always invest for a positive ROI – but payback period changes by strategy. Blog: Startup-Marketing.com

World Domination Budget Strategy

Budget max spend for allowable acquisition of a new user that returns investment more slowly.

Low Burn Budget Strategy

Budget max spend for allowable acquisition cost of a new user that gives fast payback.

Need More Help? 12in6’s mission is to help as many startups as possible reach their full potential through a metrics driven go to market approach. Help ranges from free guidance (this presentation and the startup-marketing.com blog) to a hands on go to market program for qualifying startups. What is 12in6? 12in6 uses a metrics driven approach to help startups gain customer traction and build long-term momentum. The name represents the objective of achieving twelve months of customer development progress in only six months of execution. Sean Ellis Email: sean@12in6.com Blog: Startup-Marketing.com Learn More About 12in6

12in6’s mission is to help as many startups as possible reach their full potential through a metrics driven go to market approach.

Help ranges from free guidance (this presentation and the startup-marketing.com blog) to a hands on go to market program for qualifying startups.