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Connecting Product Decisions to Revenue

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Connecting Product Decisions to Revenue

  1. 1. Connecting Product
 Decisions to Revenue Elevate the role product plays in the growth of your business.
  2. 2. 2 Hold up.
  3. 3. Product = “the right thing” 3
  4. 4. Businesses run on dunkin’ 4
  5. 5. Businesses run on bitcoin 5
  6. 6. Businesses run on VC money 6
  7. 7. Businesses run on customer revenue 7
  8. 8. Easier than it seems 8
  9. 9. 9 Product should have a quota inside your company.
  10. 10. Undeniable: more knowledge = better decisions 10
  11. 11. 11 QUALIFICATIONS
 CEO from 2013-2019 0 to 1,200 customers Raised $15M from VCs Pretty good at Keynote Hi, I’m Jonathan. CPO @ Appcues
  12. 12. About you 12
  13. 13. Agenda 13
  14. 14. 14 1. Speaking the Language of Revenue 2. Connecting Returns 3. Sizing Investments 4. Maximization 5. Product-Led Culture
  15. 15. Speaking the language of revenue 15
  16. 16. 16 Countin' Benjis while we meetin', make 'em shake my other hand.
  17. 17. 17 Bookings Billings CAC COGS Opex Margin Money customers commit to paying. Money you actually received. Dollars spent to get 1 new customer. Product costs. Dollars spent running the business. How much you make (or lose).
  18. 18. How revenue is usually calculated 18
  19. 19. Past performance * 2 or Salespeople * quota 19
  20. 20. Product revenue does show up 20
  21. 21. Product lines! Enterprise features! Unhappy customers (per product)! Servers & support costs!
  22. 22. The dream is self-serve revenue 22
  23. 23. Connecting returns 23
  24. 24. Should we do this? Why is this the right thing? 24
  25. 25. 25 LTV of interested customers, revenue under "closed lost” reasons, etc.
  26. 26. Example: build vs buy 26
  27. 27. Sizing investments 27
  28. 28. 28 But shit, it was ninety-nine cents.
  29. 29. 29 INVESTMENT/COST Headcount Time/runway COGS Maintenance Other opportunities RETURN Future cash (bookings) Investable cash (billings) Retained customers Brand value Strategic positioning
  30. 30. Example: the cost of a support ticket 30
  31. 31. Maximizing impact 31
  32. 32. Self-serve = narrow price range 32 Product maturity Pricerange
  33. 33. 33 Traditional sales = wide price range Product maturity Pricerange
  34. 34. Sales becomes more valuable for a really great product 34
  35. 35. Creating a product-led culture 35
  36. 36. 36 Dollar, dollar bill y’all. !
  37. 37. PRODUCT-LED DEFINITION
 Viewing the product as your primary lever for business growth 37
  38. 38. 1. Share the financial decisions 38
  39. 39. 2. Put the product to work 39
  40. 40. 3. Find & pursue the win/win 40
  41. 41. 41 thank u

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