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Buyer Centric Funnel Design

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In my talk at the 2017 LAUNCH SCALE conference in San Francisco, I discuss how to get inside your buyer's head to increase funnel conversion rates. In the talk, I cover:

- How to design and build a buyer-centric sales funnel that has low CAC and fast sales cycles.
- How to figure out why your sales funnel isn't working as well as it could be, and how to fix it.
- How to understand the way buyers react to your funnel, and how to use that knowledge to increase funnel conversion rates.

Published in: Technology
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Buyer Centric Funnel Design

  1. 1. BUYER CENTRIC FUNNEL DESIGN DAVID SKOK, MATRIX PARTNERS
  2. 2. WHY DO WE NEED A SALES PROCESS?
  3. 3. MyProduct.com HOW IT WORKS DESCRIPTION Our collaboration product allows you … BUY NOW! Only $9,999.99 In a perfect world…
  4. 4. WHY DOESN’T THIS WORK?
  5. 5. BUYER QUESTIONS AND CONCERNS BUYING PROCESS
  6. 6. How do we respond?
  7. 7. Break the process down into a series of steps… Design a series of steps that we want customers to go through Website Free Trial Purchase
  8. 8. Results in a Funnel Not all people entering the first step will get to the second, etc.
  9. 9. Studying Funnel Blockage Points Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects
  10. 10. The Source of most Problems Vendor Centric
  11. 11. NOT MOTIVATED TO DO THAT THEY ARE CUSTOMERS WILL DO SOMETHING YOU ARE HOPING YOUR
  12. 12. A better way to approach to Funnel Design Buyer Centric Buyer-Centric
  13. 13. THE BUYERS JOURNEY
  14. 14. THE BUYERS JOURNEY Awareness Consideration Purchase
  15. 15. Mismatch: Sales often handle every lead as though they were in the Purchasing phase I’m paid to sell. I better be selling.
  16. 16. Likely Distribution of Web Site Visitors Vendor Web Site 80% Awareness 15% Consideration 5% Purchase
  17. 17. Different Dialog and Content for each stage Awareness Consideration Purchase • Create Problem/Pain awareness • Discuss how people are solving • Discuss benefits people are seeing • Don’t mention your product • Don’t sell! • Product info • Free Trial / Demo • Customer stories • Nurture with regular content (Newsletter) • Try to create trigger • Sales
  18. 18. • Just lost my data in hard drive crash • Backup software/service • Starting a new software project • Dev Tools, etc. • Performance issues with existing app • APM tools • Difficulties tracking bugs across multi-tier apps • Bug tracking software TRIGGERS
  19. 19. Buyer Personae
  20. 20. Getting to know your Buyer Personae • Identifying Characteristics • What are their key business goals? • How does our product help them achieve those? • What does their Boss expect of them? • What pain do they have that we address? • Is it latent pain, or obvious pain? • How do they describe the pain and what they are looking for? • (Helpful for messaging) • Is solving this pain a high priority for them? • If not, what features would make it a higher priority? • Are they out there searching for solutions? • If so, how? • Most important features? Decision criteria? • What are their reactions to our product/company? • What will they like? What will they not like? • What are the main questions and concerns they will have? • What are the steps in their purchasing process? • What are their likely decision making criteria? • Who else has to be involved in the decision (e.g. Business buyer, IT)? • Who influences them? (Sites, organizations, and people) • (Helps us figure out how to market to them) • Other characteristics that are relevant to this purchase • E.g. Developers: • Don't have a budget • Prefer Open Source, and don't like to pay for software
  21. 21. MAP BUYERS PROCESS TO YOUR STEPS Research Shortlist Vendors Evaluation ROI & Justification BUYER Website Free Trial VENDOR
  22. 22. GET INSIDE YOUR BUYERS HEAD Research Shortlist Vendors Evaluation ROI & Justification Website Free Trial BUYER VENDOR How are they reacting as they go through our funnel steps? What are they thinking as they go through their process?
  23. 23. OPTIMIZE YOUR STEPS TO FIT Research Shortlist Vendors Evaluation ROI & Justification Website Free Trial BUYER VENDOR Competitive Features Matrix ROI Calculator
  24. 24. ADDRESS ALL DECISION CRITERIA Address Security Concerns 3rd Party Security Audit & Whitepaper BUYER Is this a safe vendor to choose? • Customer Stories • Safe Channel Partners
  25. 25. FRICTION CONCERNS For Broken Funnel Steps: Get Inside your Customer’s Head
  26. 26. MOTIVATIONS FRICTION CONCERNS Re-design, or try to use what motivates them
  27. 27. EXAMPLE BLOCKAGE POINT DRIVING TRAFFIC TO YOUR WEB SITE
  28. 28. LESSONS FROM WEBSITE GRADER • Score leverages competitive urge, and acts as a trigger • Free tools drive viral spread • Low customer work required / High value delivered • Builds trust through clear demonstration of expertise
  29. 29. WEBSITE GRADER MARKETINGPRODUCT A great example of how the Product team can solve marketing problems
  30. 30. Freemium, Free Trials, Open Source • Great strategy • Free products have a chance of going viral • Greatly lowers CAC, but at the expense of high engineering costs • Other positives • Addresses the Evaluation phase, and answers a ton of questions about the product • The customer does the work
  31. 31. Freemium, Free Trials, Open Source The Product is your sales person
  32. 32. WHAT IS YOUR TIME TO WOW! ? Thanks to Gail Goodman of Constant Contact
  33. 33. DEFINING WOW! A moment where your buyer sees something cool and exciting • Motivates them to continue exploring The moment when your buyer gets excited enough to want to buy Mini Wow! Full Wow!
  34. 34. TIME TO WOW! •How many steps? •How much time does it take? •How much FRICTION is involved
  35. 35. REMOVE STEPS & REMOVE FRICTION
  36. 36. EXAMPLE
  37. 37. As eCommerce shoppers… … what makes us buy?
  38. 38. Photos Feature Summary Recommended Accessories Rich description Video Reviews Detailed Specifications Answer: Rich Product Content
  39. 39. Salsify – Product Content Supply Chain Automation Brands Photos Videos Text Specs Etc. Retailer Portal Retailer Portal Retailer Portal Retailer Portal
  40. 40. Salsify’s original trial experience Sign up Wait for email with Account Open the App Learn the UI Import Content Locate & Export Content Export to new Retailer Sign up with new Retailer
  41. 41. Landing Page Lots of Fields
  42. 42. Next, Wait for Email…
  43. 43. Sign In… Now What? • Lots of work still required
  44. 44. Get inside your Buyers Head and analyze for Problems Sign up Wait for email with Account Open the App Learn the UI Import Content Locate & Export Content Export to new Retailer Sign up with new Retailer
  45. 45. Redesign Trial Steps for Problems (Friction, Concerns, & Motivations) Sign up Wait for email with Account Open the App Learn the UI Import Content Locate & Export Content Export to new Retailer Sign up with new Retailer Delay causing major drop off
  46. 46. First step in the redesign Import Content Locate & Export Content Export to new Retailer Sign up with new Retailer Sign up Learn the UI
  47. 47. New Landing Page: JUST YOUR EMAIL
  48. 48. Motivation: “If these guys are using it, it must be pretty good…”
  49. 49. Still leaves a problem: • Locate & Export Content • Then import to Salsify to have something to play with Then: Land directly in App
  50. 50. Major Friction + Other people involved = Long Delays Import Content Locate & Export Content Export to new Retailer Sign up with new Retailer Sign up Learn the UI
  51. 51. Offer a chance to start with Sample Data Sign up Import Content Locate & Export Content Export to new Retailer Sign up with new Retailer They now have the MOTIVATION to import their own data Play with Sample Data Mini Wow! Learn the UI
  52. 52. Eliminate the risk that the won’t find the path to Wow! Learn the UI Import Content Locate & Export Content Export to new Retailer Sign up with new Retailer • High friction • Too much risk they won’t find the path to Wow! Sign up
  53. 53. Guided Navigation Human Help available
  54. 54. Uplift - % Conversion, Before and After 0 10 20 30 40 50 60 70 80 90 100 Before After Trial Request -> Logged into App Logged in -> Product Page Product Page -> Taking action 3x Overall Improvement
  55. 55. Next problem area… Sign up Import Content Locate & Export Content Export to new Retailer Sign up with new Retailer Play with Sample Data • High Friction • Long Delay
  56. 56. Problem solved – Export to Google Manufacturer Center Sign up Import Content Locate & Export Content Play with Sample Data Export to Google
  57. 57. Last remaining problem area… Sign up Import Content Locate & Export Content Play with Sample Data Export to Google • Huge Friction & Delay • Other People involved
  58. 58. Scrape publicly available data from existing retailer’s pages Sign up Play with Sample Data Export to Google No import needed Scrape Content for them • They have my content in here already • They’re showing me all the issues Mini Wow!
  59. 59. Eliminates need for Sample Data Sign up Play with Sample Data Export to Google See their own Data Scrape Content for them
  60. 60. Final Redesigned Process • Fast Time to Wow! • High conversion rates Sign up Export to Google See and solve problems with their own Data Scrape Content for them
  61. 61. RE-THINK THE PROCESS Source: Josh Porter – Designing for Social Traction CONVENTIONAL APPROACH SIGN UP FOR TRIAL Wow! CONVERT TO CUSTOMER WOW! FIRST, REGISTER LATER Wow! SIGN UP FOR TRIAL CONVERT TO CUSTOMER
  62. 62. OUTBOUND COLD CALLING
  63. 63. Outbound Cold Calling Cold Call Arrange Meeting with Sales Rep
  64. 64. FRICTION CONCERNS Problem: No Buyer wants a cold call from a salesperson
  65. 65. MOTIVATIONS FRICTION CONCERNS Get inside your buyers head – look for a suitable motivation
  66. 66. Redesign Cold Call Invitation to… (something of value) • Educational Event • Meet their peers • See data that is of value • See their own data in a new way • Etc. Build Relationship Build Trust
  67. 67. Use publicly accessible Data to build personalized assessments Hi Barbara, In doing a bit of research on fortinet.com, I noticed that you’ve lost a significant amount of traffic to the site (4,400 visits) over the past month. Is this something the team is aware of or have any idea what could have contributed to it? I also noticed while you folks dropped off the 1stpage of Google in 11 searches, there are tons of opportunities for your team (916 search opportunities!) See below:
  68. 68. ARE THERE DIFFERENT BUYER TYPES WHOSE IDEA OF WOW! ARE NOT THE SAME?
  69. 69. TribeHR HR Information System Applicant Tracking Performance Management CEO Wow! Head of Recruiting Wow! HR Administrator Wow!
  70. 70. USING CHROME EXTENSIONS
  71. 71. CLEARBIT LEADS + DATA ENRICHMENT New Leads Enrich Existing Leads
  72. 72. CLEARBIT • Data Quality • Highly skeptical • Seen lots of products like this before • Enrichment data wasn’t good • Data Coverage • Skeptical • What % of our leads would be covered in this database? Buyer’s Key Concerns
  73. 73. I have to go through IT to get Salesforce connected FREE TRIAL BLOCKAGE POINT Connect to Salesforce
  74. 74. SOLUTION: CHROME EXTENSION Browser connection to Salesforce See enriched data in Salesforce UI Judge quality of data Report shows data coverage % Chrome Extension
  75. 75. CHROME EXTENSION • Easy to install • Low buyer concern • Re-write the page’s HTML
  76. 76. CLEARBIT CHROME EXTENSION - ENLARGED
  77. 77. ELIMINATE STEPS THAT HAVE DEPENDENCIES ON OTHER PEOPLE
  78. 78. Funnel Whack-a-Mole • Solve for blockage points • As you fix one, the problem will move elsewhere
  79. 79. SILOED THINKING MARKETING SALES CUSTOMER SUCCESS PRODUCT
  80. 80. THE NEW GROWTH TEAM MARKETING SALES CUSTOMER SUCCESS PRODUCT
  81. 81. USE FUNNEL FLOW CHARTS Website Free Trial Handle other questions Proposal High Level Overview xx xx xxx xx xx xxx MicroFunnels where needed
  82. 82. Funnel Metrics "IF YOU CAN NOT MEASURE IT, YOU CAN NOT IMPROVE IT." - LORD KELVIN
  83. 83. Funnels: Governed by Two Primary Levers Top of Funnel Flow (Quantity) Conversion Rate
  84. 84. The Key Metrics VISITORS CAMPAIGNS TO DRIVE TRAFFIC TRIALS CLOSED DEALS CONVERSION % CONVERSION % OVERALL CONVERSION %
  85. 85. FINAL THOUGHTS
  86. 86. Treat your Buyer like a Bank Account Make a deposit before you try to make a withdrawal
  87. 87. For more details on all these topics: visit ForEntrepreneurs.com Presentation Slides: forentrepreneurs.com/launch-scale-2017
  88. 88. APPENDIX
  89. 89. DEVELOPER TOOLS EXAMPLE For those building infrastructure, not applications
  90. 90. EXAMPLE
  91. 91. Defining Wow! • Mini Wow! Moment Sees a React component wired up to data with very little work • Build a GraphQL Server • Connected to their own data • Web, iOS and Android clients connect to that data (React/React Native) • Full Wow! Moment
  92. 92. Buyer Journey (partial) Validate how easy it is to build a React app with GraphQLReact Developer Play with it (Trial) Demo/sell to others in company CTO & Backend Developer buy in Play with it (Trial)
  93. 93. Trial involves three hard steps Set up a GraphQL Server that fetches our data Deploy so it is accessible by URL Create React & ReactNative component Demo access to data in iOS & Android
  94. 94. Tons of Friction in first two steps Build a GraphQL Service • Have Node installed • Download a boilerplate project from GitHub • Npm install some packages • Run the server • Open GraphiQL in your browser • Edit server code • Switch to GraphiQL in your browser • Run the query to see the new result To Deploy to a URL • Hope your server boilerplate has a production deploy setup • Identify a hosting provider • Install the hosting CLI or tools • Sign up for account on hosting service • Run deploy command • Wait for it to deploy • Open GraphiQL in your deployed server to check it's still working • Done
  95. 95. Redesign: Wow! in a matter of minutes Launchpad "new" screen: https://launchpad.graphql.com/new Ticketmaster Example Launchpad: https://launchpad.graphql.com/9pw9nnkjr Expo client-side example: https://snack.expo.io/B1Bk_-k7- For more details: Video of Workshop: https://github.com/stubailo/ticketmaster-workshop List of examples: https://github.com/apollographql/launchpad
  96. 96. SUMMARIZING WHAT APOLLO DID: • Clear understanding of Wow! • Analyzed Friction and Concerns for buyer • Redesigned, removing steps and friction
  97. 97. JBOSS EXAMPLE
  98. 98. JBOSS EXAMPLE EMAIL ADDRESS BEFORE FREE DOWNLOAD
  99. 99. IMPACT CUT THE DOWNLOAD RATE BY MORE THAN 10X
  100. 100. MOTIVATIONS FRICTION CONCERNS Re-design, or try to use what motivates them
  101. 101. JBOSS EXAMPLE • Making $27,000 a month selling documentation • Solution: • Give away documentation as motivation to get their email address • Result: • 10,000 leads a month
  102. 102. SEPARATED BUYER PERSONAE SLIDES
  103. 103. Identifying Characteristics • What characteristics define them as part of our target sector • What characteristics eliminate them • Other characteristics that are relevant to this purchase • E.g. Developers: • Don't have a budget • Prefer Open Source, and don't like to pay for software
  104. 104. What Drives and Motivates them? • What are their key business goals? • How does our product help them achieve those? • What does their Boss expect of them? • What pain do they have that we address? • Is it latent pain, or obvious pain? • How do they describe the pain and what they are looking for? • (Helpful for messaging) • Is solving this pain a high priority for them? • If not, what features would make it a higher priority?
  105. 105. What are they looking for? • Most important features? • Decision criteria? • What are their reactions to our product/company? • What will they like? What will they not like? • What are the main questions and concerns they will have? • What Competitive product are they likely to gravitate towards that we will have to move them away from?
  106. 106. How do they go about purchasing? • Are they out there searching for solutions? • If so, how? • What are the steps in their purchasing process? • Who else has to be involved in the decision (e.g. Business buyer, IT)? • Who influences them? (Sites, organizations, and people) • (Helps us figure out how to market to them)

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