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BUILDING A SALES &
MARKETING MACHINE
Upsell/
Cross Sell
CAC/LTV
Virality
Engagement
Retention
Freemium
Conversion
Rates
BY DAVID SKOK
Free
Trials
THE ART & SCIENCE
OF GROWTH HACKING
Upsell/
Cross Sell
CAC/LTV
Virality
Engagement
Retention
Freemium
Conversion
Rates
BY DAVID SKOK
Free
Trials
GROWTH HACKING
Accelerate Growth
Through
Work on Funnel
A PERSONAL DEFINITION
INCREASE
FLOW &
CONVERSION
THIS USED TO BE MARKETING’S JOB
WHAT’S CHANGED?
TODAY’S WORLD
• Freely available information
• Free Trials
• On-line reviews
• Social Media commentary
THE CUSTOMER IS DOING THEIR RESEARCH
BEFORE THEY COME AND TALK TO YOU
YOUR ON-LINE PRESENCE
IS KEY
THE PRODUCT IS
YOUR SALESPERSON
THERE’S A RICH FLOOD
OF NEW DATA
METRICS
REQUIRES A NEW
COMBINATION OF SKILLS
BOTH MARKETING AND TECHNICAL
Data
Science
THE GROWTH HACKER
Creative
Marketing
Inbound
Marketing
Customer
Experience &
Product
Design
Funnel
Optimization
Instrumentation
& Metrics
THE BASICSOF FUNNEL DESIGN
Suspects Closed Deals
Loyal
Customers
who are
Advocates
Suspects Closed Deals
Loyal
Customers
who are
Advocates
Virality
IN A PERFECT WORLD…
1 Step
IN A PERFECT WORLD…
MyProduct.com
HOW IT WORKS
DESCRIPTION
Our product
allows you …
BUY NOW!
Only $9,999.99
BUYER
THE
QUESTIONS & CONCERNS
• Will this solve my specific problem?
• Is this the best product in the market?
• Can I trust this vendor?
• How hard is this to implement & use?
• Is it a safe choice? (Who else is using it?)
• Will I get a return on my investment?
• Is it scalable, secure?
• Etc.
DESIGNING YOUR FUNNEL
WHAT IS A FUNNEL?
ACTION
MOVEMENT
ACTION
MOVEMENT
ACTION
MOVEMENT
HOW DO WE DESIGN THE ACTIONS?
BUYER
THE
THE BUYERS JOURNEY
CONSIDERATION
CLOSED
DEAL
AWARENESS
PURCHASE
TRIGGERS
• Moving house
• Movers, phones, cable TV, furniture, insurance, etc.
• Starting a new software project
• PaaS (Platform as a Service), Dev Tools, etc.
• Need to hire a lot of new employees
• Applicant Tracking System
• Just lost my data in hard drive crash
• Backup software/service
• Read about a new scary computer virus
• Anti-virus software
Suspects
ToFu
Top of the
Funnel
MoFu
Middle of
the Funnel
Closed
Deals
Sales
Bottom of
the Funnel
Loyal
Customers
who are
Advocates
Customer
Sucess
Retention
Funnel
Retain
Expand
Upsell / Cross sell
Nurture
&
Qualify
Inbound &
Outbound
Marketing
Typical B2B Funnel
AWARENESS CONSIDERATION PURCHASE
Suspects
ToFu
Top of the
Funnel
Raw Lead
Inbound &
Outbound
Marketing
ToFu – Top of the Funnel
AWARENESS
Email address
or other
contact info
Suspects
ToFu
Top of the
Funnel
Inbound &
Outbound
Marketing
ToFu – Top of the Funnel
AWARENESS
Latent Need?
• Buyer not aware they have a need
• Or not aware there is a solution
Apparent Need?
• Buyer is aware they have a need,
and they are looking for a solution
Suspects
ToFu
Top of the
Funnel
Inbound &
Outbound
Marketing
ToFu – Top of the Funnel
AWARENESS
Latent Need
• Market needs Education
Apparent Need
• Understand how they are looking
• Ensure you get found during their
research
Suspects
ToFu
Top of the
Funnel
Inbound &
Outbound
Marketing
ToFu – Top of the Funnel
AWARENESS
Inbound Marketing
• Content Marketing
• Blogging, YouTube, etc.
• Social Media for distribution
Outbound Marketing
• Cold calling – (Sales Development Reps)
• Outbound email
• Working with Partners
MoFu
Middle of
the Funnel
Nurture
&
Qualify
MoFu – Middle of the Funnel
CONSIDERATION
Raw Lead MQL - Marketing Qualified Lead
MoFu – Nurture and Qualify
Nurture Qualify
Lead Nurturing
Database
Raw Lead MQL
MoFu – Segment, Nurture & Qualify
Personalized Nurturing
QualifyRaw Lead MQL
Segmented Database
What do we know
about them?
Buyer
Attributes
What do their
actions tell us?
Behaviors
DATA: THE CROWN JEWELS
MARKETING INTERACTIONS
ENGAGEMENT / PRODUCT USAGE
SCREEN SHOT FROM TOTANGO
EXAMPLES OF USAGE:
• IN APP MESSAGING
– “We noticed that you haven’t tried X feature. It has the following benefits.
Here is a link to a Video showing you how to use it.”
• EMAIL
– Send to all RAW LEADS that are in the FINANCE vertical, we have a Webinar
showing how Customer X uses our product to do fraud detection.
• SALESFORCE.COM QUEUES
– Add all Trial Users whose Engagement Score is below 50 to the Customer
Success Teams call queue
METRICS
"IF YOU CAN NOT MEASURE IT,
YOU CAN NOT IMPROVE IT."
- LORD KELVIN
METRICS FLOW / QUANTITY
CONVERSION
RATE
WHAT TO MEASURE
FOR EACH STEP / ACTION:
NO OF ACTIONS % CONVERSION RATE
TIME TIME
VISITORS
CAMPAIGNS
TO DRIVE
TRAFFIC
TRIALS
CLOSED DEALS
CONVERSION
%
CONVERSION
%
THE KEY METRICS
OVERALL
CONVERSION %
Visitors
Trial
5%
10%
$5,000 Customer
NOT ALL LEAD SOURCES ARE EQUAL
Google Ad Word Funnel FaceBook Ad Funnel
Visitors
Trial
2%
20%
$8,000 Customer
ROI by LEAD SOURCE
OVERALL
CONVERSION %
(BY LEAD SOURCE)
Cost per lead
Lifetime value of the Customer
THE
MAGIC OF
FUNNEL
MATH
Raw Lead
Marketing
Qualified Lead
Sales Accepted
Lead
Opportunity
Closed Deal
FUNNEL MATH
20%
90%
25%
20%
CONVERSION
RATES
Raw Lead
Marketing
Qualified Lead
Sales Accepted
Lead
Opportunity
Closed Deal
REVERSE FUNNEL MATH
20%
80%
25%
20%
CONVERSION
RATES
Closed Deal1
Opportunity5
Sales Accepted
Lead
20
Marketing
Qualified Lead
25
Raw Lead125
SALES CAPACITY – A KEY PROBLEM
• An extremely common
scenario:
– Portfolio companies
miss their bookings by
not having enough
sales capacity
0
1
2
3
4
5
6
7
8
9
10
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Bookings
Actual vs Budget
Actual Budget
Shortfall
SOLUTION
• Track Sales Capacity as a key metric
• Hire ahead of the budget and sales plan
• Build a recruiting machine
• Build a superb On-Boarding training program
REFINING THE SOLUTION
• Become experts at Sales Coaching
– Measure each step of the sale process
• Outbound calling
• Leaving messages
• Doing Demos
• Closing
– Take the best at each stage and use to coach the
worst
• Quickly remove the consistent non-performers
BUT EVEN IF YOU ARE MICROSOFT,
CISCO, ORACLE, OR GOOGLE
YOUR FUNNEL WILL HAVE
BLOCKAGE
POINTS
Suspects Suspects
Suspects
Suspects
Suspects
Suspects
Suspects Suspects
Suspects
Suspects
Suspects
Suspects
IN DIAGNOSING MANY FUNNEL BLOCKAGE POINTS,
I HAVE FOUND THAT THERE IS A
CLEAR
PATTERN…
NOT MOTIVATED TO DO
THAT THEY ARE
CUSTOMERS WILL DO
SOMETHING
YOU ARE HOPING YOUR
IN OTHER WORDS…
YOU DESIGNED YOUR FUNNEL
THE WAY YOU HOPED IT WOULD
WORK…
BUT YOU MAY NOT HAVE THOUGHT ENOUGH ABOUT
THE CUSTOMER’S POINT OF
VIEW
JBOSS EXAMPLE
CUT THE DOWNLOAD RATE
BY MORE THAN 10X
PUT A REGISTRATION FORM
ON THEIR WEB SITE BEFORE
A FREE DOWNLOAD
IMPACT
FRICTION
GET INSIDE YOUR
CUSTOMER’S HEAD
CONCERNS
UNDERSTAND WHAT
MOTIVATES THEM
MOTIVATIONS
FRICTION CONCERNS
JBOSS EXAMPLE
• Making $27,000 a month selling documentation
• Solution:
• Give away documentation to
get their email address
EXAMPLE: DRIVING TRAFFIC TO YOUR WEB
SITE
GETTING FOUND
Not going to find your site
unless:
- On top page of Google
search results
- Recommended by a trusted
source
- Referred to in social media or
blogosphere
friction &
concerns
LESSONS FROM WEBSITE
GRADER
• Free tools drive viral spread
• Low customer work required
• High value delivered
• Score leverages competitive urge, and acts as a trigger
• Builds trust through clear
demonstration of expertise
GOOD LINKAGE TO NEXT STEP
using engineering for marketing
GROWTH HACKING
USING DATA TO DRIVE WEB
TRAFFIC
SYSOMOS: SOCIAL MEDIA MONITORING
LEVERAGED THEIR DATABASE TO
CREATE BLOG POSTS WITH DATA ON
TOPICS OF CURRENT INTEREST:
• IRAN ELECTION RIOTS
• TWITTER’S GROWTH
• FACEBOOK USAGE
LED TO:
SYSOMOS ARTICLES IN
ECONOMIST, NY TIMES
WEB TRAFFIC TO READ THE FULL REPORT
LEADS – IMPRESSED BY THE CAPABILITIES
OF THE SOFTWARE
FREE TRIALS
THE PRODUCT IS YOUR SALES PERSON
WHAT IS YOUR TIME TO WOW! ?
Thanks to Gail Goodman of Constant Contact
WOW!
TIME TO WOW!
• How many steps?
• How much time does it take?
• How much FRICTION is involved
REMOVE STEPS
& REMOVE FRICTION
e.g. Provide Sample Data instead of requiring them to load their own
WOW!
ANALYZE TRIAL STEPS AS THOUGH
THEY WERE FUNNEL STEPS
Create a
full profile
Import
Contacts
Do a
search for
Prospects
See search
results
Imagine a Sales Rep signing up for the old LinkedIn
WOW!
LOOK FOR BLOCKAGE POINTS
Create a
full profile
Import
Contacts
Do custom
search for
Prospects
See search
results
Imagine a Sales Rep signing up for the old LinkedIn
HIGH FALL OFF RATES HERE
For an Outlook/Exchange User
WOW!Create a
full profile
Import
Contacts
Do custom
search for
Prospects
See search
results
Download
an App
Install
the App
Run
the App
APPLY BLOCKAGE POINT THINKING
WOW!
FRICTION
MOTIVATION
CONCERNS
Replace the downloaded App with request for email
credentials and get contacts from Exchange.
Create a
full profile
Import
Contacts
Do a
search for
Prospects
See search
results
• Concern:
– I have tons of very private and confidential
emails. I don’t want anyone to read those.
You want me to give you
the password
to login to my email?!!!
APPLY BLOCKAGE POINT THINKING
WOW!
FRICTION
MOTIVATION
CONCERNS
Replace the downloaded App by
connecting to Contacts on iOS/Android
Create a
full profile
Import
Contacts
Do a
search for
Prospects
See search
results
RE-THINK THE PROCESS
Source: Josh Porter – Designing for Social Traction
CONVENTIONAL
APPROACH
SIGN UP
FOR TRIAL
CONVERT
TO
CUSTOMER
WOW!
WOW! FIRST,
REGISTER LATER WOW! SIGN UP
CONVERT
TO
CUSTOMER
MAY VARY FOR
DIFFERENT
CUSTOMER TYPES
E.g. LinkedIn
• Different personae:
– Recruiter
– Sales person
– Individual looking to find a job
MAKE SURE THERE IS A CLEAR PATH FOR EACH ONE
WOW!
A/B TESTING
WEB SITE, LANDING PAGES, PRODUCT DESIGN
ADD VIRALITY
Customer
first sees
your app
Tries it
Creates/sees
information
that they
want to share
Creates an
invitation,
looks up
addresses,
and sends
Friend
receives
information +
invite to join
Friend
decides to
take a look
MEASURE FLOW & CONVERSION
Customer
first sees
your app
Tries it
Creates/sees
information
that they
want to share
Creates an
invitation,
looks up
addresses,
and sends
Friend
receives
information +
invite to join
Friend
decides to
take a look
CONVERSION
%
APPLY BLOCKAGE POINT ANALYSIS
Customer
first sees
your app
Tries it
Creates/sees
information
that they
want to share
Creates an
invitation,
looks up
addresses,
and sends
Friend
receives
information +
invite to join
Friend
decides to
take a look
FOR MORE ON VIRALITY
The Science behind Viral Marketing
http://www.forentrepreneurs.com/the-science-behind-viral-marketing/
WHY CHURN IS SO IMPORTANT
SaaS & RECURRING REVENUE
Revenue Lost with 2.5% monthly Churn
Renewals
Lost due
to Churn
YEAR 3
$3m $7m
Becomes harder &
harder to replace
this with new
bookings
Renewals
Lost due
to Churn
YEAR 6
$30m $70m
CHI SCORE
CUSTOMER HAPPINESS INDEX
PROACTIVE STEPS TO REDUCE CHURN
• Identify high risk customers (CHI score)
– Messaging (In-App, email) to try to correct
– Calls from Customer Success team
PRODUCT STICKINESS
CONTRASTING EXAMPLES
• SEO
– High value in first 90 days
– But not sticky
• Marketing Automation
– Valuable Data that grows over time
– Part of important daily workflows
NEGATIVE CHURN
INCREASED REVENUE
FROM
RETAINED CUSTOMERS
LOST REVENUE
FROM
CHURNED CUSTOMERS
>
IMPACT OF NEGATIVE CHURN
MRR (Monthly Recurring Revenue)
$-
$1,000.0
$2,000.0
$3,000.0
$4,000.0
$5,000.0
$6,000.0
$7,000.0
$8,000.0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58
5% Churn
0%
Negative 5% Churn
REQUIRES PRICING THOUGHT
At least one axis where pricing increases:
Enterprise
Edition
Pro
Edition
Basic
Users
Features
Depth of
Usage
Examples:
- Mailing list size
- Database size
- Amount of storage used
BUSINESS VALUE
MOST STARTUPS MARKET
AROUND FEATURES
• Ensure the product delivers this value
• Ideally in a measurable way
• Focus Customer Success team on getting this result
• Measure the increase/change from a baseline
• Provide feedback on ROI by quarterly email
WHAT IS YOUR BUSINESS VALUE?
BUYER
THE
THE KEYS TO SUCCESS
GET INSIDE
YOUR BUYER’S
HEAD
BUYER PERSONA
What characteristic most clearly identifies this Persona?
• Job role?
• Looking for a particular type of product?
When purchasing this kind of product:
• What pain are they trying to solve?
• What are their desired Business Outcomes?
• What are their key Decision Criteria?
• Is this buyer persona going to be receptive to our product?
• If not, what would they be receptive to?
• Feature changes
• Competitive products
• What are their Perceived Barriers to making a purchase?
BUYER PERSONA
• Role / job description?
• What is the primary goal of this person’s job?
• What is the greatest pain in this person’s work life?
• What is their role in the decision making process?
• Who do they report to?
• How does their boss measure their success?
• Who are their key influencers?
• What publications do they read, & what events do they attend?
• What messaging will appeal to them?
Secondary Questions – useful for Messaging & Content Marketing
For More information
• Visit my blog at www.forEntrepreneurs.com

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The Art & Science of Growth Hacking

  • 1. BUILDING A SALES & MARKETING MACHINE Upsell/ Cross Sell CAC/LTV Virality Engagement Retention Freemium Conversion Rates BY DAVID SKOK Free Trials
  • 2. THE ART & SCIENCE OF GROWTH HACKING Upsell/ Cross Sell CAC/LTV Virality Engagement Retention Freemium Conversion Rates BY DAVID SKOK Free Trials
  • 3. GROWTH HACKING Accelerate Growth Through Work on Funnel A PERSONAL DEFINITION INCREASE FLOW & CONVERSION
  • 4. THIS USED TO BE MARKETING’S JOB WHAT’S CHANGED?
  • 5. TODAY’S WORLD • Freely available information • Free Trials • On-line reviews • Social Media commentary THE CUSTOMER IS DOING THEIR RESEARCH BEFORE THEY COME AND TALK TO YOU
  • 7. THE PRODUCT IS YOUR SALESPERSON
  • 8. THERE’S A RICH FLOOD OF NEW DATA
  • 10. REQUIRES A NEW COMBINATION OF SKILLS BOTH MARKETING AND TECHNICAL
  • 11. Data Science THE GROWTH HACKER Creative Marketing Inbound Marketing Customer Experience & Product Design Funnel Optimization Instrumentation & Metrics
  • 15. IN A PERFECT WORLD… 1 Step
  • 16. IN A PERFECT WORLD… MyProduct.com HOW IT WORKS DESCRIPTION Our product allows you … BUY NOW! Only $9,999.99
  • 17. BUYER THE QUESTIONS & CONCERNS • Will this solve my specific problem? • Is this the best product in the market? • Can I trust this vendor? • How hard is this to implement & use? • Is it a safe choice? (Who else is using it?) • Will I get a return on my investment? • Is it scalable, secure? • Etc.
  • 19. WHAT IS A FUNNEL? ACTION MOVEMENT ACTION MOVEMENT ACTION MOVEMENT
  • 20. HOW DO WE DESIGN THE ACTIONS?
  • 23. TRIGGERS • Moving house • Movers, phones, cable TV, furniture, insurance, etc. • Starting a new software project • PaaS (Platform as a Service), Dev Tools, etc. • Need to hire a lot of new employees • Applicant Tracking System • Just lost my data in hard drive crash • Backup software/service • Read about a new scary computer virus • Anti-virus software
  • 24. Suspects ToFu Top of the Funnel MoFu Middle of the Funnel Closed Deals Sales Bottom of the Funnel Loyal Customers who are Advocates Customer Sucess Retention Funnel Retain Expand Upsell / Cross sell Nurture & Qualify Inbound & Outbound Marketing Typical B2B Funnel AWARENESS CONSIDERATION PURCHASE
  • 25. Suspects ToFu Top of the Funnel Raw Lead Inbound & Outbound Marketing ToFu – Top of the Funnel AWARENESS Email address or other contact info
  • 26. Suspects ToFu Top of the Funnel Inbound & Outbound Marketing ToFu – Top of the Funnel AWARENESS Latent Need? • Buyer not aware they have a need • Or not aware there is a solution Apparent Need? • Buyer is aware they have a need, and they are looking for a solution
  • 27. Suspects ToFu Top of the Funnel Inbound & Outbound Marketing ToFu – Top of the Funnel AWARENESS Latent Need • Market needs Education Apparent Need • Understand how they are looking • Ensure you get found during their research
  • 28. Suspects ToFu Top of the Funnel Inbound & Outbound Marketing ToFu – Top of the Funnel AWARENESS Inbound Marketing • Content Marketing • Blogging, YouTube, etc. • Social Media for distribution Outbound Marketing • Cold calling – (Sales Development Reps) • Outbound email • Working with Partners
  • 29. MoFu Middle of the Funnel Nurture & Qualify MoFu – Middle of the Funnel CONSIDERATION Raw Lead MQL - Marketing Qualified Lead
  • 30. MoFu – Nurture and Qualify Nurture Qualify Lead Nurturing Database Raw Lead MQL
  • 31. MoFu – Segment, Nurture & Qualify Personalized Nurturing QualifyRaw Lead MQL Segmented Database
  • 32. What do we know about them? Buyer Attributes What do their actions tell us? Behaviors DATA: THE CROWN JEWELS
  • 34. ENGAGEMENT / PRODUCT USAGE SCREEN SHOT FROM TOTANGO
  • 35. EXAMPLES OF USAGE: • IN APP MESSAGING – “We noticed that you haven’t tried X feature. It has the following benefits. Here is a link to a Video showing you how to use it.” • EMAIL – Send to all RAW LEADS that are in the FINANCE vertical, we have a Webinar showing how Customer X uses our product to do fraud detection. • SALESFORCE.COM QUEUES – Add all Trial Users whose Engagement Score is below 50 to the Customer Success Teams call queue
  • 36. METRICS "IF YOU CAN NOT MEASURE IT, YOU CAN NOT IMPROVE IT." - LORD KELVIN
  • 37. METRICS FLOW / QUANTITY CONVERSION RATE
  • 38. WHAT TO MEASURE FOR EACH STEP / ACTION: NO OF ACTIONS % CONVERSION RATE TIME TIME
  • 40. Visitors Trial 5% 10% $5,000 Customer NOT ALL LEAD SOURCES ARE EQUAL Google Ad Word Funnel FaceBook Ad Funnel Visitors Trial 2% 20% $8,000 Customer
  • 41. ROI by LEAD SOURCE OVERALL CONVERSION % (BY LEAD SOURCE) Cost per lead Lifetime value of the Customer
  • 43. Raw Lead Marketing Qualified Lead Sales Accepted Lead Opportunity Closed Deal FUNNEL MATH 20% 90% 25% 20% CONVERSION RATES
  • 44. Raw Lead Marketing Qualified Lead Sales Accepted Lead Opportunity Closed Deal REVERSE FUNNEL MATH 20% 80% 25% 20% CONVERSION RATES Closed Deal1 Opportunity5 Sales Accepted Lead 20 Marketing Qualified Lead 25 Raw Lead125
  • 45. SALES CAPACITY – A KEY PROBLEM • An extremely common scenario: – Portfolio companies miss their bookings by not having enough sales capacity 0 1 2 3 4 5 6 7 8 9 10 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Bookings Actual vs Budget Actual Budget Shortfall
  • 46. SOLUTION • Track Sales Capacity as a key metric • Hire ahead of the budget and sales plan • Build a recruiting machine • Build a superb On-Boarding training program
  • 47. REFINING THE SOLUTION • Become experts at Sales Coaching – Measure each step of the sale process • Outbound calling • Leaving messages • Doing Demos • Closing – Take the best at each stage and use to coach the worst • Quickly remove the consistent non-performers
  • 48. BUT EVEN IF YOU ARE MICROSOFT, CISCO, ORACLE, OR GOOGLE YOUR FUNNEL WILL HAVE BLOCKAGE POINTS Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects
  • 49. IN DIAGNOSING MANY FUNNEL BLOCKAGE POINTS, I HAVE FOUND THAT THERE IS A CLEAR PATTERN…
  • 50. NOT MOTIVATED TO DO THAT THEY ARE CUSTOMERS WILL DO SOMETHING YOU ARE HOPING YOUR
  • 51. IN OTHER WORDS… YOU DESIGNED YOUR FUNNEL THE WAY YOU HOPED IT WOULD WORK… BUT YOU MAY NOT HAVE THOUGHT ENOUGH ABOUT THE CUSTOMER’S POINT OF VIEW
  • 52. JBOSS EXAMPLE CUT THE DOWNLOAD RATE BY MORE THAN 10X PUT A REGISTRATION FORM ON THEIR WEB SITE BEFORE A FREE DOWNLOAD IMPACT
  • 55. JBOSS EXAMPLE • Making $27,000 a month selling documentation • Solution: • Give away documentation to get their email address
  • 56. EXAMPLE: DRIVING TRAFFIC TO YOUR WEB SITE GETTING FOUND Not going to find your site unless: - On top page of Google search results - Recommended by a trusted source - Referred to in social media or blogosphere friction & concerns
  • 57.
  • 58.
  • 59. LESSONS FROM WEBSITE GRADER • Free tools drive viral spread • Low customer work required • High value delivered • Score leverages competitive urge, and acts as a trigger • Builds trust through clear demonstration of expertise
  • 60. GOOD LINKAGE TO NEXT STEP
  • 61. using engineering for marketing GROWTH HACKING
  • 62. USING DATA TO DRIVE WEB TRAFFIC SYSOMOS: SOCIAL MEDIA MONITORING LEVERAGED THEIR DATABASE TO CREATE BLOG POSTS WITH DATA ON TOPICS OF CURRENT INTEREST: • IRAN ELECTION RIOTS • TWITTER’S GROWTH • FACEBOOK USAGE
  • 63.
  • 64. LED TO: SYSOMOS ARTICLES IN ECONOMIST, NY TIMES WEB TRAFFIC TO READ THE FULL REPORT LEADS – IMPRESSED BY THE CAPABILITIES OF THE SOFTWARE
  • 65. FREE TRIALS THE PRODUCT IS YOUR SALES PERSON
  • 66. WHAT IS YOUR TIME TO WOW! ? Thanks to Gail Goodman of Constant Contact WOW!
  • 67. TIME TO WOW! • How many steps? • How much time does it take? • How much FRICTION is involved
  • 68. REMOVE STEPS & REMOVE FRICTION e.g. Provide Sample Data instead of requiring them to load their own
  • 69. WOW! ANALYZE TRIAL STEPS AS THOUGH THEY WERE FUNNEL STEPS Create a full profile Import Contacts Do a search for Prospects See search results Imagine a Sales Rep signing up for the old LinkedIn
  • 70. WOW! LOOK FOR BLOCKAGE POINTS Create a full profile Import Contacts Do custom search for Prospects See search results Imagine a Sales Rep signing up for the old LinkedIn HIGH FALL OFF RATES HERE
  • 71. For an Outlook/Exchange User WOW!Create a full profile Import Contacts Do custom search for Prospects See search results Download an App Install the App Run the App
  • 72. APPLY BLOCKAGE POINT THINKING WOW! FRICTION MOTIVATION CONCERNS Replace the downloaded App with request for email credentials and get contacts from Exchange. Create a full profile Import Contacts Do a search for Prospects See search results
  • 73. • Concern: – I have tons of very private and confidential emails. I don’t want anyone to read those. You want me to give you the password to login to my email?!!!
  • 74. APPLY BLOCKAGE POINT THINKING WOW! FRICTION MOTIVATION CONCERNS Replace the downloaded App by connecting to Contacts on iOS/Android Create a full profile Import Contacts Do a search for Prospects See search results
  • 75. RE-THINK THE PROCESS Source: Josh Porter – Designing for Social Traction CONVENTIONAL APPROACH SIGN UP FOR TRIAL CONVERT TO CUSTOMER WOW! WOW! FIRST, REGISTER LATER WOW! SIGN UP CONVERT TO CUSTOMER
  • 76. MAY VARY FOR DIFFERENT CUSTOMER TYPES E.g. LinkedIn • Different personae: – Recruiter – Sales person – Individual looking to find a job MAKE SURE THERE IS A CLEAR PATH FOR EACH ONE WOW!
  • 77. A/B TESTING WEB SITE, LANDING PAGES, PRODUCT DESIGN
  • 78. ADD VIRALITY Customer first sees your app Tries it Creates/sees information that they want to share Creates an invitation, looks up addresses, and sends Friend receives information + invite to join Friend decides to take a look
  • 79. MEASURE FLOW & CONVERSION Customer first sees your app Tries it Creates/sees information that they want to share Creates an invitation, looks up addresses, and sends Friend receives information + invite to join Friend decides to take a look CONVERSION %
  • 80. APPLY BLOCKAGE POINT ANALYSIS Customer first sees your app Tries it Creates/sees information that they want to share Creates an invitation, looks up addresses, and sends Friend receives information + invite to join Friend decides to take a look
  • 81. FOR MORE ON VIRALITY The Science behind Viral Marketing http://www.forentrepreneurs.com/the-science-behind-viral-marketing/
  • 82. WHY CHURN IS SO IMPORTANT SaaS & RECURRING REVENUE
  • 83. Revenue Lost with 2.5% monthly Churn Renewals Lost due to Churn YEAR 3 $3m $7m Becomes harder & harder to replace this with new bookings Renewals Lost due to Churn YEAR 6 $30m $70m
  • 85. PROACTIVE STEPS TO REDUCE CHURN • Identify high risk customers (CHI score) – Messaging (In-App, email) to try to correct – Calls from Customer Success team
  • 86. PRODUCT STICKINESS CONTRASTING EXAMPLES • SEO – High value in first 90 days – But not sticky • Marketing Automation – Valuable Data that grows over time – Part of important daily workflows
  • 87. NEGATIVE CHURN INCREASED REVENUE FROM RETAINED CUSTOMERS LOST REVENUE FROM CHURNED CUSTOMERS >
  • 88. IMPACT OF NEGATIVE CHURN MRR (Monthly Recurring Revenue) $- $1,000.0 $2,000.0 $3,000.0 $4,000.0 $5,000.0 $6,000.0 $7,000.0 $8,000.0 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 5% Churn 0% Negative 5% Churn
  • 89. REQUIRES PRICING THOUGHT At least one axis where pricing increases: Enterprise Edition Pro Edition Basic Users Features Depth of Usage Examples: - Mailing list size - Database size - Amount of storage used
  • 92.
  • 93. • Ensure the product delivers this value • Ideally in a measurable way • Focus Customer Success team on getting this result • Measure the increase/change from a baseline • Provide feedback on ROI by quarterly email WHAT IS YOUR BUSINESS VALUE?
  • 94. BUYER THE THE KEYS TO SUCCESS GET INSIDE YOUR BUYER’S HEAD
  • 95. BUYER PERSONA What characteristic most clearly identifies this Persona? • Job role? • Looking for a particular type of product? When purchasing this kind of product: • What pain are they trying to solve? • What are their desired Business Outcomes? • What are their key Decision Criteria? • Is this buyer persona going to be receptive to our product? • If not, what would they be receptive to? • Feature changes • Competitive products • What are their Perceived Barriers to making a purchase?
  • 96. BUYER PERSONA • Role / job description? • What is the primary goal of this person’s job? • What is the greatest pain in this person’s work life? • What is their role in the decision making process? • Who do they report to? • How does their boss measure their success? • Who are their key influencers? • What publications do they read, & what events do they attend? • What messaging will appeal to them? Secondary Questions – useful for Messaging & Content Marketing
  • 97. For More information • Visit my blog at www.forEntrepreneurs.com

Editor's Notes

  1. In a perfect world, we would hope that we could take our suspected market directly to purchase in one step.
  2. That would be like hoping we could simply put up a web site and expect that people would just find it and immediately buy our product.