2. Confidential & Proprietary @underscorevc
Startup Secrets
Workshops
2
1. What’s Your Roadmap to Success?
2. Building a Compelling Value Proposition
3. Turning Products into Companies
4. Culture, Mission and Vision
5. Hiring A+ Talent
6. Game-Changing Business Models
7. Go to Market Strategies
8. Getting Behind the Perfect Investor Pitch
9. Funding Strategies to go the Distance
10. Have You Got What It Takes?
11. Mastering Mutual Mentorship
3. Confidential & Proprietary @underscorevc
Introductions
and
Connections
Our guests:
â—Ź Apperian
â—‹ Mark Lorion @mark_lorion
â—Ź Demandware
â—‹ Jamus Driscoll
@jamusdriscoll
â—Ź Hubspot
â—‹ Brian Halligan @bhalligan
â—Ź Matrix partners
â—‹ David Skok @bostonvc
Your hosts:
â—Ź Harvard I Lab #innovationlab
â—Ź Michael Skok @mjskok
â—Ź Startup Secrets #startupsecrets
â—‹ www.startupsecrets.com
3
4. Confidential & Proprietary @underscorevc
A Startup GTM Framework
Marketing & Sales Cycle
Awareness
Interest
Understanding
Engagement
Trial
Purchase
Strategies
Tactics Channel Audience
Brand
Positioning
Messaging
Social
Media
PR
Services
References
Direct vs.
Channel
Channel
Development,
Management,
Etc.
Strategic
Partners
Targeting,
Segmentation
Personas
Actors/Scenes
â—Ź Results Oriented, Metrics, Execution Driven
â—Ź Continuous Iteration & Improvement
OUTbound/INbound
4
5. Confidential & Proprietary @underscorevc
Agenda
Strategic
1. Brand
2. Positioning
3. Targeting, Segmentation
Tactical
1. The Marketing and Sales Cycle
2. Driving to Market
3. Results-Oriented, Measured Execution
Execution – Introduction to Key Areas
1. Inbound
2. Building Your GTM Machine
5
7. Confidential & Proprietary @underscorevc
Brand
● A science unto itself – Don’t underestimate its power!
â—‹ Are you Apple or Dell? Coke or Pepsi?
â—Ź But for starters, branding in startups:
○ It’s about YOU, the founders!
â—‹ Your People
â—‹ Your Culture (see the lecture on Culture, Vision, and
Mission)
â—‹ How You Execute:
â– How you interact with your ecosystem of customers,
partners, suppliers, and stakeholders
7
8. Confidential & Proprietary @underscorevc
Brand Essence Framework
Vision How is the world changing in a way that makes your idea necessary?
Promise What do you promise customers at the most fundamental level?
Attributes
Spike
Special
Standard cost of entry
different & better
unique
What makes us distinctly
valuable to our
customers? How do we
achieve over and over?
Engagement
What does it feel like
to engage with us?
Personality
If we were a person
what would we be like?
Style
How would we present
ourselves to the world?
Emotion
8
11. Confidential & Proprietary @underscorevc
The Demandware Branding Challenge
From
â—Ź Control of Software
â—Ź Cost to Install
â—Ź Expense
â—Ź Mid-size Companies
â—Ź Our Platform
â—Ź Risk
â—Ź Visionaries
To
â—Ź Control of eCommerce
â—Ź Cost to Stay Cutting-Edge
â—Ź Revenue Driver
â—Ź High-Growth Brands
â—Ź Your Brands
â—Ź Confidence
â—Ź Great Marketers
11
12. Confidential & Proprietary @underscorevc
The
Demandware
Opportunity
Brand/
Marketing
eCommerce
Technology
Features Benefits Rewards
12
13. Confidential & Proprietary @underscorevc
What It Meant
● Demandware couldn’t differentiate on claims alone
â—Ź Must go beyond rational and functional benefits
â—Ź Address ambition
● Speak the customer’s language
● It’s not what you can do, it’s what the customer can do
â—Ź Look and act like a marketing partner
● Show, don’t just tell
â—Ź Make it inspiring!
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14. Confidential & Proprietary @underscorevc
Brand Positioning It’s not just about how the
customer feels about
you…
…It’s also about how you
make the customer feel
about their self
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15. Confidential & Proprietary @underscorevc
CEO/CMO
IT
eCommerce
Finance
An industry
leader to
watch
A real
business-enabler
and creative
problem-solver
I ROCK!!
A business
facilitator, not
just a bean
counter
15
16. Confidential & Proprietary @underscorevc
What Does this Mean for the Demandware Customer?
The Demandware Brand Promise:
Our customers can count on Demandware to
help them drive their business – and their own
careers – to their full potential.
16
Copyright 2012 Demandware, Inc. - Confidential
17. Confidential & Proprietary @underscorevc
How Does the Customer Benefit?
Think It. Do It.
No limits. No worries. No surprises.
17
18. Confidential & Proprietary @underscorevc
Brand Promise Rests on Brand Attributes
Automatic global
releases
Innovation
eco-system
Link partners
Community
Labs
Open cloud-based
services
Single platform:
Multi-brand/
Multi-country/
Omni-channel
Transparent,
inclusive pricing
Extensible/
Interoperable
Integrated 3rd
party services
and apps
Business model
Thought leadership
Customer-focused
innovation
Customer panels
World-class
operating
environment
Uptime/Security
Scalability
Innovation Simplicity Partnership Performance
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19. Confidential & Proprietary @underscorevc
Startup Secret!
Be Consistent
From the Start
to Maintain
Brand Integrity
â—Ź Consistency - Great brands are
consistent— everywhere a
customer comes into contact,
they are the same.
● Values – Great brands have
attributes consistent with
company values.
● Reliability – Great brands
consistently keep their promise.
19
21. Confidential & Proprietary @underscorevc
Agenda
Strategic
1. Brand
2. Positioning
3. Targeting, Segmentation
Tactical
1. The Marketing and Sales Cycle
2. Driving to Market
3. Results-Oriented, Measured Execution
Execution – Introduction to Key Areas
1. Inbound
2. Building Your GTM Machine
21
22. Confidential & Proprietary @underscorevc
Positioning
Occupy a distinct space:
● In a potential customer’s mind
â—Ź In a unique whitespace in the market
● For? (target customers — beachhead segment only)
â—Ź Who are dissatisfied with? (current market alternative)
● Our product is a… (new product category)
● That provides… (key problem-solving capability)
● Unlike… (reference competitive differentiation to alternative)
● We have assembled… (key whole-product features for your specific
application)
Good news!
You already did a
simplified version
in the Value Prop
session!
22
24. Confidential & Proprietary @underscorevc
Company/Product Overview
and Positioning/Messaging
â—Ź For line-of-business managers and data analysts at global enterprises
● Who are dissatisfied with rigid BI reports (business intelligence software) that don’t answer questions and
require IT support to modify
â—Ź Our approach offers a user-driven and visual approach for looking at data
â—Ź That rapidly uncovers new insights that lead to business opportunities, avoids threats, and helps people
make better decisions
â—Ź Unlike traditional Business Intelligence
Spotfire is an Analytics & Data Discovery software platform that provides dimension-free data exploration
and freeform user control to ask and answer new questions at the speed of thought
Spotfire acquired by TIBCO Software (over $1 billion in revenue) in 2007
Analytics software sold to enterprises in numerous vertical markets
$xxxM Operating Unit w/ xxx employees
Field teams in throughout Americas, EMEA, APAC
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25. Confidential & Proprietary @underscorevc
Competition
â—Ź Unique differentiation
â—‹ Not just technology
â– e.g., Targeted Segment
â—Ź Barriers to entry
â—‹ Rewind, repeat: Not just technology!
â– e.g., Business Model, GTM approach
â—Ź What is sustainable?
â—‹ IP, patents, network, data, process, etc.
â– Consistent with your CORE value?
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26. Confidential & Proprietary @underscorevc
Positioning
2x2
Whatever sets you up
for a unique white
space
a
b
c
d
{white
space}
Low
Low
High
High
The choice
of axes is
critical
Define real
BARRIERS
to enter into
each segment
Bubble sizing
for relative
size of
competitors
26
27. Confidential & Proprietary @underscorevc
Agenda
Strategic
1. Brand
2. Positioning
3. Targeting, Segmentation
Tactical
1. The Marketing and Sales Cycle
2. Driving to Market
3. Results-Oriented, Measured Execution
Execution – Introduction to Key Areas
1. Inbound
2. Building Your GTM Machine
27
28. Confidential & Proprietary @underscorevc
The
Perfect
Startup
Storm
Disruptive
Business Model
Disruptive
Technology &
Defensible IP
New Market &
GTM
28
29. Confidential & Proprietary @underscorevc
Why Do
Targeting and
Segmentation
Matter?
â—Ź Product / Market fit
â—Ź Packaging and Pricing
â—Ź Channels, Distribution
â—Ź Messaging, communication
○ … and more
DEPEND on Targeting &
Segmentation
29
30. Confidential & Proprietary @underscorevc
The Perfect
Startup
Storm:
Focus on Value
Proposition FOR
Target Segment
TARGET
SEGMENT
30
Disruptive
Business Model
Disruptive
Technology &
Defensible IP
New Market &
GTM
31. Confidential & Proprietary @underscorevc
Value
Proposition:
Recap and
Intersection
â—‹ 3D Solution
â– Discontinuous
â– Defensible
â– Disruptive
â—‹ 4U Need
â– Unworkable
â– Unavoidable
â– Urgent
â– Underserved market
(For Targeting,
Segmentation)
31
32. Confidential & Proprietary @underscorevc
The Perfect
Startup
Storm:
Focus on Value
Proposition FOR
Target Segment
TARGET
SEGMENT
32
Disruptive
Business Model
Disruptive
Technology &
Defensible IP
New Market &
GTM
Unique Undeserved
33. Confidential & Proprietary @underscorevc
Adding
Value to
Lean
Startup
Thinking MVP MVS
Smaller, Easier Target to Cover
Minimum Viable Product (MVP)
AND
Minimum Viable Segment (MVS)
33
34. Confidential & Proprietary @underscorevc
Startup Secret!
Segmentation:
A Common Set
of Needs Leads
to Reference
â—Ź Segment according to the same
NEEDS
â—‹ Customers can compare
solutions
â—Ź When you deliver
â—‹ They will REFERENCE each
other
● Leads to…
â—‹ Initial Beachhead
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35. Confidential & Proprietary @underscorevc
â—Ź Vertical
â—‹ Automotive
â—‹ Financial Services
â—‹ Government
â—Ź Size
â—‹ Consumer
â—‹ SMB
â—‹ Enterprise
â—Ź Problem / NEEDS
â—‹ e.g., Regulatory Approval Process
â– Applicable Across Pharmaceutical Industry, Fin
Services, Government, etc.
Vertical
Size
Problem/NEEDS
Targeting
Segmentation:
Get to Common
Problem and
NEEDS
35
36. Confidential & Proprietary @underscorevc
Targeting
Segmentation:
Example: Seeking
Critical Need
Mobile Professionals vs. Office Worker
37. Confidential & Proprietary @underscorevc
Targeting
Segmentation:
Example: Seeking
Critical Need
Mobile Professionals vs. Office Worker
Field Workers vs. White Collar
38. Confidential & Proprietary @underscorevc
Targeting
Segmentation:
Example: Seeking
Critical Need
Mobile Professionals vs. Office Worker
Field Workers vs. White Collar
Services vs. Sales
39. Confidential & Proprietary @underscorevc
Targeting
Segmentation:
Example: Seeking
Critical Need
Mobile Professionals vs. Office Worker
Field Workers vs. White Collar
Services vs. Sales
Medical Equipment vs. Office Equipment
40. Confidential & Proprietary @underscorevc
Targeting
Segmentation:
Example: Seeking
Critical Need
Mobile Professionals vs. Office Worker
Field Workers vs. White Collar
Services vs. Sales
Medical Equipment vs. Office Equipment
Hospitals vs. Medical Clinics
41. Confidential & Proprietary @underscorevc
Targeting
Segmentation:
Example: Seeking
Critical Need
Mobile Professionals vs. Office Worker
Field Workers vs. White Collar
Services vs. Sales
Medical Equipment vs. Office Equipment
Hospitals vs. Medical Clinics
Critical Care vs. Diagnostics
42. Confidential & Proprietary @underscorevc
Startup Secret!
Don’t Be Afraid
to FOCUS!
â—Ź Narrow as possible to start!
â—‹ Think Beachhead (Geoffrey
Moore)
â—Ź Would you rather:
â—‹ Expand on success?
â—‹ Contract on failure?
42
43. Confidential & Proprietary @underscorevc
Agenda
Strategic
1. Brand
2. Positioning
3. Targeting, Segmentation
Tactical
1. The Marketing and Sales Cycle
2. Driving to Market
3. Results-Oriented, Measured Execution
Execution – Introduction to Key Areas
1. Inbound
2. Building Your GTM Machine
43
44. Confidential & Proprietary @underscorevc
The Startup
Marketing
and Sales
Cycle
Awareness
Interest
Understanding
Engagement
Trial
Purchase
44
45. Confidential & Proprietary @underscorevc
AA
Actors
Segment
Target
Undeserved and Uniquely Valued
Target,
Segment, and
Startup
Secret!
Personify
“Actors”
45
Awareness
Interest
Understanding
Engagement
Trial
Purchase
48. Confidential & Proprietary @underscorevc
â—Ź Qualify early
â—‹ Save all the money, time and resources
that you can early in the process
â—‹ Opportunity cost for another suspect
● Qualify often—things change!
â—‹ Create lead scoring, nurturing programs
â—Ź Marketing qualifiers: tie to Targeting and
Segmentation
â—‹ Narrow criteria = easy qualification
â—Ź Sales qualifiers:
â—‹ MANACT : Money, Authority, Need,
Ability, Competition, Timescales
â—‹ DMU: Decision Making Unit
Focused
Target
Segment
Startup Secret! Qualify Early and Often
48
49. Confidential & Proprietary @underscorevc
Agenda
Strategic
1. Brand
2. Positioning
3. Targeting, Segmentation
Tactical
1. The Marketing and Sales Cycle
2. Driving to Market
3. Results-Oriented, Measured Execution
Execution – Introduction to Key Areas
1. Inbound
2. Building Your GTM Machine
49
50. Confidential & Proprietary @underscorevc
“Driving”
Startup
Marketing
and Sales
YOU Control
Neutral
Overdrive
GEARStobuildMomentum
Awareness
Interest
Understanding
Engagement
Trial
Purchase
50
51. Confidential & Proprietary @underscorevc
“Driving”
Startup
Marketing
and Sales
YOU Control
Neutral
Overdrive
GEARStobuildMomentum
Awareness
Interest
Understanding
Engagement
Trial
Purchase
51
CUSTOMER Controls
Accelerator/Brake/Clutch
52. Confidential & Proprietary @underscorevc
Your
Controls:
Gears in
the Sales
Cycle
â—Ź Gears to build momentum
â—‹ Why the analogy?
■Because it’s tough to go from 1st gear to 5th gear in one
step – likewise, it’s tough to skip steps in a sales
process
■Don’t stay with one gear too long when accelerating –
you’ll over-rev the engine. Same with the customer!
Instead…
â—‹ Engage a new Gear (sales or marketing tool) every time the
customer puts the clutch in.
â– Measure whether it enables customer to accelerate &
build momentum for the sale
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53. Confidential & Proprietary @underscorevc
Customer’s
Controls:
ABCs of
the Sales
Cycle
â—Ź Accelerator
â—‹ Accelerates the customer from one step to another:
â—‹ e.g., SLIPPERY product, things like self service, free trials,
etc.
â—Ź Brake
â—‹ Stops the customer moving from one step to another:
â—‹ e.g., lack of understanding of your solution, poor
competitive positioning
○ DON’T assume it’s price!
â—‹ (ACTIVELY LISTEN to carefully dissect sales objections and
recognize sales stops / starts)
â—Ź Clutch
○ Is engaged when the customer doesn’t know what the next
step is
○ Or there’s inertia and risk that causes a stalled sales cycle
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54. Confidential & Proprietary @underscorevc
“Driving” Marketing and Sales: Proof
Connecting It to Customer Gain / Pain Ratio
Neutral
Overdrive
GEARS
Awareness
Interest
Understanding
Engagement
Trial
Purchase
Accelerator
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55. Confidential & Proprietary @underscorevc
“Driving” Marketing and Sales: Proof
Connecting It to Customer Gain / Pain Ratio
Neutral
Overdrive
GEARS
Awareness
Interest
Understanding
Engagement
Trial
Purchase
Accelerator
55
Customer Gain:
• Revenue
• Cost savings
• Time
• People
• Competitive
advantage
• Reputation
• Etc.
Gain
56. Confidential & Proprietary @underscorevc
“Driving” Marketing and Sales: Proof
Connecting It to Customer Gain / Pain Ratio
Neutral
Overdrive
GEARS
Awareness
Interest
Understanding
Engagement
Trial
Purchase
Accelerator
56
Customer Gain:
• Revenue
• Cost savings
• Time
• People
• Competitive
advantage
• Reputation
• Etc.
Gain
Customer Pain:
• See (Find) –
Awareness
• Try –
Engagemen
t, Trial
• Buy –
Price,
Package,
License
• Fly –
Implement,
Deploy
• Own (TCO) –
Service,
Support
Pain
57. Confidential & Proprietary @underscorevc
“Driving” Marketing and Sales: Proof
Connecting It to Customer Gain / Pain Ratio
Neutral
Overdrive
GEARS
Awareness
Interest
Understanding
Engagement
Trial
Purchase
Accelerator
57
Customer Gain:
• Revenue
• Cost savings
• Time
• People
• Competitive
advantage
• Reputation
• Etc.
Gain
Customer Pain:
• See (Find) –
Awareness
• Try –
Engagemen
t, Trial
• Buy –
Price,
Package,
License
• Fly –
Implement,
Deploy
• Own (TCO) –
Service,
Support
Pain
Inertia, RISK on a startup :
â—Ź Switching costs?
â—Ź Default = do nothing
â—Ź Alternatives?
â—Ź Good enough = good enough!
58. Confidential & Proprietary @underscorevc
“Driving” Marketing and Sales
Relating to Business Model CORE, Levers, and Multipliers
CO
RE
Levers
Multipliers
Awareness
Interest
Understanding
Engagement
Trial
Purchase
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59. Confidential & Proprietary @underscorevc
“Driving” Marketing and Sales
Relating to Business Model CORE, Levers, and Multipliers
CO
RE
Levers
Multipliers
Awareness
Interest
Understanding
Engagement
Trial
Purchase
59
Multiplier Examples
Sales & Marketing
â—Ź Tiered Pricing
â—Ź Freemium
â—Ź Channel partners
Product
â—Ź SLIPPERY products *
● “Russian Doll”
Packaging *
â—Ź Technology stacks
â—Ź WHOLE product
Lever Examples
Sales & Marketing
â—Ź Web
â—Ź Inside sales
â—Ź Inbound
â—Ź Referencing, viral
Product
â—Ź Support
â—Ź Services
â—Ź WHOLE product
Neutral
Overdrive
GEARS
Accelerator/Brake/Clutch
ACCELERATE
In the Sales Cycle
Reduce BRAKES
In the Sales Cycle
60. Confidential & Proprietary @underscorevc
Road
Test:
Put It All
Together
Reduce Brakes, let out
Clutch
â—Ź Time
â—Ź People
â—Ź Resources
Accelerate in Gear
â—Ź Automation
â—Ź NOT people dependent
â—Ź Self service for the
customer
Engage levers
â—Ź Distill to repeat &
scale
â—Ź e.g., Videos, Podcasts
â—Ź Self service portals,
Knowledge bases,
Configurators
Use Multipliers
• SLIPPERY product
• Russian Doll packaging
(Around your
CORE Value Prop)
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61. 61
Go-to-Market Strategy and Planning
Mark Lorion, CMO Apperian.
Previously VP Marketing
Spotfire Analytics Division
TIBCO Software
62. Confidential & Proprietary @underscorevc
Our Go-To Market Planning
Corp and
Division
Objectives
Yearly
Business &
Marketing
Plan
Platform
Roadmap
“Plays”
(limited set of
cross-
functional
initiatives →
org alignment
and scale)
Playbooks
executed &
evaluated
quarterly
Segmentation
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63. Confidential & Proprietary @underscorevc
Our Go-To
Market Map
(2010
Example)
Viral+AwarenessPlay($$$)
$$$
U
S
$ $$$0 (Sales driven)
E
U
AP
J
FSI Play
LS Play (clinical)Channels Play
CPG
Relative Marketing Programs Investment
TIBCO Play
LS Play
(research)
Telco
Manufacturing
Energy
Government
FSI Play
LS Play (clinical)Channels Play
TIBCO Play
LS Play
(research)Energy
Telco
Manufacturing
CPG
LS Play (clinical)
LS Play
(research)
FSI Play
Channels Play
(China)
Manufacturing
“Silver Spotfire” ($$)
The “Plays”
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Driving Sales and Marketing at Spotfire
Overview:
Objectives:
â—Ź Sell risk analytics solutions to banks, I-banks, Insurance Co., Asset
managers, Hedge funds, and corporations
â—Ź REVENUE POTENTIAL: ____
â—Ź EXPECTED INVESTMENT: ___
Audience
â—Ź VP, Group Risk Management, VP Cap. Management, Trading
Management at major banks
â—Ź Head of-- Modeling and Research/Actuarial Team/Trading
Message:
â—Ź Respond to changing competitive and regulatory landscape more
quickly, effectively and confidently
â—Ź Empower analysts and decision makers to explore and interrogate
data to gain more complete understanding
â—Ź Deploy real-time data processing and visual /statistical analytics to
uncover/discern hidden trends in data
Offering:
● Enterprise Risk Aggregation “solution”
● Credit risk modeling and performance monitoring “solution”
Primary Competition:
â—Ź SAS, @Risk, FactSet, R, MatLab, SPSS, Algorithmics
â—Ź Internal apps (Excel, Homegrown applications)
Competitive Edge:
â—Ź Open, adaptable, and scalable modeling platform
â—Ź Fast, intuitive multi-dimensional, user-driven visualizations
● Complete data spectrum capabilities – from inputs, quality, analysis,
to post-processing reporting and visualizations
â—Ź Greater range of visualization and computational capabilities
Tactical Options:
Demand Support
â—Ź Conferences: RiskMinds Geneva, GARP NYC 2/10
â—Ź Outbound: telemarketing program to reach named list of prospects,
email databases and lists for webcast series
● Inbound: Develop thought leadership content – Magazine articles,
speaker slots at events, purchase magazine space for
columns/editorials; consider blogging series on Cap Markets trends re
Risk
● Web—PPC, Banner ads (GARP, MashRisk Network, others), rationalize
website and upgrade concentration of keywords
â—Ź Webcasts -- SF/S+ risk related series, 1/month, RiskCenter, Fierce
Finance email blast for each event; E&Y compliance series, 6/year,
audience is across verticals; Reuters, 3/year SF use as embedded
provider of visual analytics
Equip Sales:
● New “solution” demos are required with support kits – based off XYZ
customer deals in 1H’09
â—Ź Flash tours (4) Develop between 12/09 and 6/10
â—Ź A dedicated presales resource needed in each major GEO!
â—Ź Bloomberg subscription (share cost with Energy Play)
Partners/Resellers/OEM:
â—Ź Leverage partnership with Reuters, CapitalIQ for go-to-market programs
â—Ź Enable resellers with sales kits and investigate co-marketing opportunity
Product Enhancements:
â—Ź Updating time series data; 3d surface plots; Standard distribution
reference curves; Custom calendar capability; Weighted average,
cumulative return; Productize FinMetrics and NuOpt; Bloomberg Data
connection (1-Historic data, 2-’real time’ data)
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65. Confidential & Proprietary @underscorevc
Agenda
Strategic
1. Brand
2. Positioning
3. Targeting, Segmentation
Tactical
1. The Marketing and Sales Cycle
2. Driving to Market
3. Results-Oriented, Measured Execution
Execution – Introduction to Key Areas
1. Inbound
2. Building Your GTM Machine
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66. Confidential & Proprietary @underscorevc
ROME:
Results
Oriented,
Measured
Execution
You can’t manage what
you can’t measure
â—Ź Measure every step:
â—‹ Time
â—‹ People
â—‹ Other resources
â—Ź Conversion rates
â—‹ Accelerators
â—‹ Brakes
â—‹ Clutch
â—‹ Gears
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Awareness
Interest
Understanding
Engagement
Trial
Purchase
67. Confidential & Proprietary @underscorevc
Drill Down:
Marketing
and Sales
lead
lead lead
lead lead
Awareness
Interest
Understanding
Engagement
Trial
Purchase
$,Time, Resources
Conversion rate %
Break down
measurable,
manageable steps
ULTIMATELY:
$, Time, Resources
Conversion rate %
Customer
67
68. Confidential & Proprietary @underscorevc
lead
lead lead
lead lead
Awareness
Interest
Understanding
Engagement
Trial
Purchase
Customers
Marketing
and Sales:
FLOW
Seamlessly linked steps,
that incent customers to
flow from one step to
another
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97. Confidential & Proprietary @underscorevc
Agenda
Strategic
1. Brand
2. Positioning
3. Targeting, Segmentation
Tactical
1. The Marketing and Sales Cycle
2. Driving to Market
3. Results-Oriented, Measured Execution
Execution – Introduction to Key Areas
1. Inbound
2. Building Your GTM Machine
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98. Confidential & Proprietary @underscorevc
Building a
Sales and
Marketing
Machine:
Funnel Design
and Optimization
Time to
Recover
CAC
Conversion
Rate
Viral
Coefficient
Churn
Rate
Viral
Cycle
Time
ROI by
Lead
Source
LT
V
98
CACCAC
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In a
Perfect
World…
MyProduct.com
HOW IT WORKS
DESCRIPTION
Our product
allows you …
BUY NOW!
Only $9,999.99
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Triggers
â—Ź Moving homes
â—‹ Movers, phones, cable TV, furniture, insurance, etc.
â—Ź Starting a new software project
â—‹ PaaS (Platform as a Service), developer tools, etc.
â—Ź Needing to hire lots of new employees
â—‹ Applicant tracking system
â—Ź Losing data in a hardware crash
â—‹ Backup software or service
â—Ź Reading about a scary new computer virus
â—‹ Anti-virus software
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An Organizational Metaphor for the Key Funnel Stages
MIDDLE OF THE FUNNEL
CLOSED
DEAL
TOP OF THE FUNNEL
SALES
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What Is the Top of the Funnel?
Customer is not aware
they have a problem, or
that your product
category exists
GENERATE
AWARENESS
Customer has a
problem and is
looking for a solution
GET FOUND
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What Is the Middle of the Funnel?
QUALIFY MQL
(MARKETING QUALIFIED
LEAD)
NURTURE
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What Is the Middle of the Funnel?
QUALIFY MQL
(MARKETING QUALIFIED
LEAD)
NURTURE
â—Ź Blog
â—Ź Email Campaigns
â—Ź Webinars
â—Ź Free Trials
â—Ź Newsletters
â—Ź etc.
Wait for a Trigger
Or try to create a Trigger
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Consideration
Address their Questions and Concerns:
â—Ź Will this work for my situation?
â—Ź Is this the best product on the market?
â—Ź Is it a safe choice?
â—Ź Who else is using it?
â—Ź Will I get a return on my investment?
â—Ź Is it scalable? Secure?
â—Ź Is it easy to implement?
â—Ź Will I receive support?
â—Ź Etc.
BUYE
R
TH
E
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Measurement
”If you cannot measure it, you cannot improve it."
- Lord Kelvin
2nd
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What to Measure for Each Step / Action
NO. OF ACTIONS % CONVERSION RATE
TIME TIME
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Even if you are Microsoft,
Cisco, Oracle, or Google,
your funnel will have…
Blockage
Points
Suspect
s
Suspect
s
Suspect
s
Suspect
s Suspect
s
Suspect
s
Suspect
s
Suspect
s
Suspect
s
Suspect
s Suspect
s
Suspect
s
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In diagnosing many funnel blockage points, there is a…
Clear Pattern
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You are hoping your
Customers will do something
That they are
Not motivated to do
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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
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For example, JBoss
Put a registration form on their website before a
free download
And Impact
Cut the download rate by more than 10x
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Understand What Motivates Them
MOTIVATIONS
FRICTION CONCERNS
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JBoss
Example:
They were making $27,000 per month
selling documentation.
Solution?
Give away documentation to get their
email address.
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Example: Driving Traffic to Your Website
GETTING FOUND
Customers are not going to find
your site unless it is:
â—Ź On the top page of Google
search results
â—Ź Recommended by a
trusted source
â—Ź Referred to in social media
or the blogosphere
Friction and
Concerns
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Lessons
from
Website
Grader
â—Ź Free tools drive viral spread
â—Ź Low customer work required
â—Ź High value delivered
â—Ź Score leverages competitive urge, and acts
as a trigger
â—Ź Builds trust through clear
demonstration of expertise
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It Is Often Necessary to Find Topics That Are Not
Related to the Sale
Build
Trust
SellFirst Contact
Build
Relationship
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The Keys to Success
BUYER
THE
GET INSIDE
YOUR BUYER’S
MIND
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Agenda
Strategic
1. Brand
2. Positioning
3. Targeting, Segmentation
Tactical
1. The Marketing and Sales Cycle
2. Driving to Market
3. Results-Oriented, Measured Execution
Execution – Introduction to Key Areas
1. Inbound
2. Building Your GTM Machine
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Recap
Marketing & Sales Cycle
Awareness
Interest
Understanding
Engagement
Trial
Purchase
Strategies
Tactics Channel Audience
Brand
Positioning
Messaging
Social
Media
PR
Services
References
Direct vs.
Channel
Channel
Development,
Management,
Etc.
Strategic
Partners
Targeting,
Segmentation
Personas
Actors/Scenes
â—Ź Results Oriented, Metrics, Execution Driven
â—Ź Continuous Iteration & Improvement
OUTbound/INbound
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More case
examples:
www.startupsecrets.com
â—Ź Brand elements
â—Ź Channel / Distribution
â—Ź Services, Professional Services
● Guerilla Marketing – when you’ve got
no $!
â—Ź To come
â—‹ Connection with business model
â—‹ Whole product
â—‹ Strategic partnering
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Key Points to
Remember:
â—Ź Manage your brand from the start
â—Ź Position to be unique
â—Ź Target & segment around customer
needs
● Think about “driving” your marketing
& sales cycle
â—Ź GTM is both strategic and tactical
â—Ź But it is ultimately about ROME
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Remember, ROME Wasn’t Built In a Day!
Nor will your GTM strategy and tactics be
â—Ź Results
â—Ź Oriented
â—Ź Measured
â—Ź Execution
â—Ź Driven through iteration
Listen
Learn
Lead
Iterate
Pivot
GTM
Business
Model
â—Ź Results Oriented, Metrics, Execution Driven
â—Ź Continuous Iteration & Improvement
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Building an Enduring Company:
GTM Is a Key Part of Execution
Vision
Value
Proposition
People
Execution
Cultural Consistency Enduring
Company
Startup
Listen
Learn
Lead
Iterate
Pivot
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Thank You!
â—Ź Apperian
â—‹ Mark Lorion
â—Ź Demandware
â—‹ Jamus Driscoll
â—Ź Hubspot
â—‹ Brian Halligan
â—Ź Matrix partners
â—‹ David Skok
â—Ź Harvard I Lab #innovationlab
â—Ź Michael Skok @mjskok
â—Ź Startup Secrets #startupsecrets
â—‹ www.startupsecrets.com
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