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Building Your Revenue Engine As Your Startup Evolves

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Startups go through different stages of evolution. In this presentation we discuss what your marketing and sales engine might look like with a specific deep dive into demand generation, optimizing your unit economics and focusing on a specific buyer persona.

Published in: Marketing

Building Your Revenue Engine As Your Startup Evolves

  1. 1. HOW TOBUILD YourREVENUE ENGINE as yourstartup evolves HANA ABAZA VP MARKETING,UBERFLIP @hanaabaza
  2. 2. Self Serve > High-Touch Full funnel visibility > Complex buying process 19 Employees> 73 Employees Channel problems > Process problems Big Customer Churn > Negative Revenue Churn Thelast27months
  3. 3. youneedmorethanA great productto scale An effective system for improvingprocess and operations can be a competitive advantage.
  4. 4. PEOPLE PROCESS TOOLS (In that order!)
  5. 5. 3 Phases of Evolution
  6. 6. The Wizard of Oz Phase You’re following the yellow brick road, things are happening, but…
  7. 7. Don’t look behind the curtain cause it’s a f@!&ing s*#%show.
  8. 8. The Scooby Doo Phase You sort of know what you’re doing. You usually solve the mystery. But mostly, you’re still a bunch of bumbling idiots.
  9. 9. The Oceans 11 Phase A team of specialized people with defined roles. You’re focused, coordinated and executing based on a strategic plan.
  10. 10. Whereareyou? Wizard of Oz Scooby Doo Oceans 11 Different parts of your business may be at different stages.
  11. 11. Marketing Sales Customer   Success
  12. 12. Sales&marketingare onthesame spectrum Sales Sales Sales Demand Marketing + Sales Brand & Demand + Sales *It doesn’t mean brand doesn’t matter early on – but your area of focus is different.
  13. 13. CustomerSuccessisthe heartofyourgrowth Support (reactive) Support & Success Support, Success, Advocacy
  14. 14. Control Churn Boost Revenue Create Advocates Feed Marketing Customer success
  15. 15. You need to understand the operational mechanisms at play. howdoyouscaleallthe “otherstuff”
  16. 16. #1 Focuson aspecificpersona
  17. 17. WhoisYOURBREADANDBUTTER Everyone! More focused Other growth layers
  18. 18. WhoisYOURBREADANDBUTTER Everyone! More focused Other growth layers Nope. It’s not. Figure out P/M fit. It isn’t always super clear.
  19. 19. WhoisYOURBREADANDBUTTER Everyone! More focused Other growth layers Who is your bread and butter? Can you create a scalable and repeatable process with predictable revenue growth? Nope. It’s not. Figure out P/M fit. It isn’t always super clear.
  20. 20. WhoisYOURBREADANDBUTTER Everyone! More focused If your bread & butter segment is scalable and repeatable, it might make sense to to explore other opportunities. Other growth layers Who is your bread and butter? Can you create a scalable and repeatable process with predictable revenue growth? Nope. It’s not. Figure out P/M fit. It isn’t always super clear.
  21. 21. Free  Trial Connect  Content Customize  Hub Upgrade Customer Lead Marketing  Qualified  Lead Sales  Qualified  Lead Opportunity Customer Nikki Mary,  Jenn   &  David Self-serve/low touchfunnel Marketing& sales engine
  22. 22. It’s hardto optimizeforboth Youneedto FOCUS
  23. 23. The problem with most startups isn’t a lack of ideas. It’s the lack of clarity and focus.
  24. 24. Lead Marketing  Qualified  Lead Sales  Qualified  Lead Opportunity Customer What happened when we picked one? ü More focused ü Better process ü Higher Value (ARPC & LTV) ü Negative Churn
  25. 25. Lead Marketing  Qualified  Lead Sales  Qualified  Lead Opportunity Customer 3 things that had to happen: ü Revamp analytics set up ü Shift in growth tactics ü Define process and criteria for handing leads to sales (this needs ongoing refinement and will change as you scale)
  26. 26. You might make a different decision but remember… “It’s hard to build a big business outof smalldeals.” Resource: mattermark.com
  27. 27. HowDOyouknowwhichPERSONA? *Product/Market fit Unit Economics Opportunity What do you want? This gets more complex as you go upmarket.
  28. 28. HowDOyouknowwhichPERSONA? If you’re focused on mid-market and enterprise companies with a complex buying process, you may have a handful of “personas”that you need to learn about.
  29. 29. @Uberflip These are the ones most likely to be your first point of contact. They will either reach out to you themselves or will be the ones you will most frequently contact. Marketing Mary Demand Jenn Do-it-all David Strategic Samantha
  30. 30. @Uberflip Champion25-39 Purchase Process Research: Events, peers, Google Events: INBOUND, CM World, other content-specific events Blogs & Influencers: HubSpot blog, MarketingProfs, CMI, LinkedInPulse Social Media: Preferred Content: Want specific, actionable pieces of content. Short format (blog or video). Things that will make them better at their job. Watering Holes Marketing Mary Customers Adriane Holter, Impinj FloraCheung, Loblaw Cassandra Jowett, Influitive VictoriaHoffman Kelly O’Hara Uberflip’s Marketing Marys
  31. 31. @Uberflip Job Role Years Experience: 3-10 Essential Duties: Creates content. May be in charge of strategy, sometimes also in charge of social. Tools: Google Docs, CMS, Marketing Automation Common Titles: Marketing Coordinator, Specialist, Manager, sometimes Director. May have content or similar specialization in title. In some cases, Product Marketing Manager. Goals & Initiatives: Want to write more and be creative. Looking to learn as much as possible, especially around SEO, analytics, and strategy. Want to move up in company. Challenges: Creating engaging B2B content that attracts views. Proving that long- term strategy is valuable and not everything has immediately measurable ROI. Demand to create and edit content for entire marketing team/entire buyer journey. Room for Growth: Wants to learn more about analytics, SEO, creating a long-term strategy.
  32. 32. @Uberflip Focus on engagement, shareability, awareness, and content creation / experience audiences love. If reaching out by email, tryto stand out. Shecan see through automated emails-- use personality. Ideal Messaging Creative types, usually interested in writingor have a writing background Find it difficult to find time to be creative due to execution of tasks HATE being reached out to — they need to GSD! Title worth calling out:Product Marketing Notable Learnings
  33. 33. “By not deciding on one of these personas, we paid a gigantic, invisible ‘optionality’ tax.” - Brian Halligan, CEO of HubSpot Fromstartup toscaleup Resource: readthink.com
  34. 34. It’s notjustthepeople. It’s theprocess. (their internal process)
  35. 35. Initial Touch (Champion) Influencers & Decision Makers Budget Approval (YAY!) Verbal Yes (YAY!) Procurement (SHIT) EVERYONE needs to understand the buying process.
  36. 36. #2 YourFunnelIsn’tLinear
  37. 37. YourFunnel Lead Customer
  38. 38. YourFunnel Lead Customer Lead Qualified Lead Customer
  39. 39. YourFunnel Lead Customer Lead Qualified Lead Customer Lead Marketing Qualified Lead Sales Accepted Lead Sales Qualified Lead Opportunity Customer
  40. 40. YourFunnel Lead > MQL > SAL > SQL > OPP > Customer Opportunity Stages 1. Evaluating 2. Recommended 3. Verbal Yes 4. Procurement 5. Closed (Won/Lost) Opportunity Customer Sales  Qualified  Leads Sales  Accepted   Leads Marketing  Qualified  Leads Leads
  41. 41. YourFunnel A linear funnel is overly simplistic. It’s dynamic and bi-directional. Opportunity Customer Sales  Qualified  Leads Sales  Accepted   Leads Marketing  Qualified  Leads Leads 1. People may move up and down your funnel 2. Sales & marketing functions overlap at every stage of the funnel
  42. 42. YourFunnel A linear funnel is overly simplistic. It’s dynamic and bi-directional. Opportunity Customer Sales  Qualified  Leads Sales  Accepted   Leads Marketing  Qualified  Leads Leads 1. Feedback mechanisms to enhance quality 2. Coordinated campaigns at every stage 3. Process for re-engaging lost leads & accounts
  43. 43. YourFunnelvs. theirjourney Awareness Interest Evaluation Purchase   Decision Advocacy Repeat marketing sales marketing sales marketing marketing marketing  and  sales sales marketing  and  sales
  44. 44. YourFunnelvs. theirjourney Awareness Interest Evaluation Purchase   Decision Advocacy Repeat blog email social PPC SEO webinars eBooks whitepapers retargeting demo nurture sales customer  board customer  webinar expansion referral  campaign
  45. 45. #3 Buildingtheengine
  46. 46. Marketing Sales Customer   Success
  47. 47. ü Product ü Process ü Reporting
  48. 48. Opportunity Customer Lead  Management Nurture,  Scoring,  Data  Enrichment,  Lead   Recycling   Sales  Enablement Messaging,   Positioning,  Collateral Sales  Qualified   Leads Bi-­‐directional  Funnel Mechanisms  in  place  to   facilitate  feedback  loop   between  marketing  and   sales  to  enhance  lead   quality  and  re-­‐engage   lost  opportunities.   Sales  Accepted  Leads Marketing  Qualified  Leads Leads Campaigns  &  Programs Grade  My  Stack,  The  Uberflip  Experience,  Content   Events  &  Partner  Marketing,  Content  Syndication,   Publishers,  PPC,  ABM,  Outbound  Lead  Engine Customer  Marketing Marketingengine
  49. 49. Opportunity Customer Lead  Management Nurture,  Scoring,  Data  Enrichment,  Lead   Recycling   Sales  Enablement Messaging,   Positioning,  Collateral Sales  Qualified   Leads Demand   Generation Sales  Accepted  Leads Marketing  Qualified  Leads Leads Campaigns  &  Programs Grade  My  Stack,  The  Uberflip  Experience,  Content   Events  &  Partner  Marketing,  Content  Syndication,   Publishers,  PPC,  ABM,  Outbound  Lead  Engine Customer  Marketing Marketingengine
  50. 50. WTFisdemandgen? Demand generation is the engine that generates leads, identifies and nurtures qualified prospects, and optimizes conversion throughout the sales cycle. (psst… demand gen is marketing)
  51. 51. Opportunity Customer Nurture campaigns, data enrichment, lead management processes Sales collateral, sales training, messaging & persona, reporting Sales  Qualified   Leads Core Operations Sales  Accepted  Leads Marketing  Qualified  Leads Leads Messaging, design , asset creation content marketing, optimization, campaign management. Lead capture, source tracking, lead scoring. Usage data, account health, advocacy & referral
  52. 52. Strategies&Tactics • Content (syndication), webinars, partner marketing.Lead  Generation • PPC (Social & Search), RetargetingOnline  Advertising • Large niche publishers with a substantial reader basePublishers • Highly targeted, niche topic and audienceConferences • Partner marketing (webinars, ebooks, events etc.)Partners • Content,  SEO  ,  social  etc.Organic  Leads
  53. 53. Whatfuelsdemandgen? Content Marketing (people need to be nurtured) Direct Channels (are people ready to buy) Event marketing (volume vs. deal size) Account based marketing (ABM)
  54. 54. Structure yourmarketingteam One or two generalists More focused roles Highly specialized
  55. 55. COREMARKETINGFUNCTIONS Content   Marketing Audience   Growth Lead   Generation Awareness Demand   Generation Lead   Generation Lead   Nurture Operations   &  Insights Events Marketing Lead  Gen  /   Nurture Customer   Nurture Awareness Product   Marketing Sales   Enablement Product   Feedback Product   Positioning  
  56. 56. Communic-­ ations Sales   Enablement Field   Marketing Advocate   Marketing Brand   Marketing Otherpossiblefunctions Ops  &   Analytics
  57. 57. Teamstructure &growth How you build and structure your team depends on where you need to focus your marketing and growth efforts.
  58. 58. Identifying key signals for lead quality, outreach indicators and intent to purchase is one of the most important demand gen functions. Quality,indicators &intent
  59. 59. How doweknow? fit engagement intent ?
  60. 60. Lead Scoring Predictive Analytics *But we also need to understand the pre-purchase indicators where you can prompt action How doweknow intent?
  61. 61. Site re-design Fiscal yearend Ramp up in content strategy Investment in technology Change in role Industry growth Outreachindicators
  62. 62. It’s allaboutrelationships #smarketing
  63. 63. MQLs Leads SALs SQLs OPPs A  respondent  to  a  marketing  campaign  who  doesn’t   yet  meet  our  minimum   qualification  and  behaviour   criteria A  lead  who  makes  the  minimum   fit  criteria  and  has   displayed  enough  interest  to  be  handed  off  to  sales.   MQLS  are  scored  and  categorized  as  cold,  warm,   or  hot  leads An  MQL  that  has  been  accepted  by  the  BDR  for   further  qualification  to  determine  pipeline-­readiness An  SAL  that  has  been  identified  as  pipeline-­ready   but  needs  further  qualification  to  determine  the   probability  of  converting  to  an  opportunity An  SQL  that  has  progressed  to  an  opportunity  and   is  now  committed  to  pipeline DEFINITION ACTIVITY Lead  gets  entered  into  the  appropriate  segmented   nurture  program Lead  has  achieved  a  score  of  35  or  higher  and  is   entered  into  a  new  MQL  nurture  program BDR   is  identifying  prospects  requirements  and   probing  to  understand  the  context  for  buyers’   decision AE  is  actively  engaged  in  meaningful  dialogue  to   validate  the  use  case,  identify  the  champion,  and   schedule  a  demo Uberflip  has  been  introduced  to  a  wide  audience   and  there  is  general  team  consensus  around   solution  need,  value  and  fit LEAD  RECYCLING:   the  handoff  to  sales  took  place  but  the  prospect  doesn’t  respond,  doesn’t  have  budget  or  some  other  roadblock.    Sales  believes  there  is   potential  for  the  future.    The  lead  gets  placed  back  into  the  funnel  for  further  nurturing  with  the  goal  of  re-­engagement  at  a  later  time. LEAD  LIFECYCLE EXAMPLE
  64. 64. MQLs Leads SALs SQLs OPPs A  respondent  to  a  marketing  campaign  who  doesn’t   yet  meet  our  minimum   qualification  and  behaviour   criteria A  lead  who  makes  the  minimum   fit  criteria  and  has   displayed  enough  interest  to  be  handed  off  to  sales.   MQLS  are  scored  and  categorized  as  cold,  warm,   or  hot  leads An  MQL  that  has  been  accepted  by  the  BDR  for   further  qualification  to  determine  pipeline-­readiness An  SAL  that  has  been  identified  as  pipeline-­ready   but  needs  further  qualification  to  determine  the   probability  of  converting  to  an  opportunity An  SQL  that  has  progressed  to  an  opportunity  and   is  now  committed  to  pipeline DEFINITION ACTIVITY Lead  gets  entered  into  the  appropriate  segmented   nurture  program Lead  has  achieved  a  score  of  35  or  higher  and  is   entered  into  a  new  MQL  nurture  program BDR   is  identifying  prospects  requirements  and   probing  to  understand  the  context  for  buyers’   decision AE  is  actively  engaged  in  meaningful  dialogue  to   validate  the  use  case,  identify  the  champion,  and   schedule  a  demo Uberflip  has  been  introduced  to  a  wide  audience   and  there  is  general  team  consensus  around   solution  need,  value  and  fit LEAD  RECYCLING:   the  handoff  to  sales  took  place  but  the  prospect  doesn’t  respond,  doesn’t  have  budget  or  some  other  roadblock.    Sales  believes  there  is   potential  for  the  future.    The  lead  gets  placed  back  into  the  funnel  for  further  nurturing  with  the  goal  of  re-­engagement  at  a  later  time. LEAD  LIFECYCLE
  65. 65. MQLs Leads SALs SQLs OPPs A  respondent  to  a  marketing  campaign  who  doesn’t   yet  meet  our  minimum   qualification  and  behaviour   criteria A  lead  who  makes  the  minimum   fit  criteria  and  has   displayed  enough  interest  to  be  handed  off  to  sales.   MQLS  are  scored  and  categorized  as  cold,  warm,   or  hot  leads An  MQL  that  has  been  accepted  by  the  BDR  for   further  qualification  to  determine  pipeline-­readiness An  SAL  that  has  been  identified  as  pipeline-­ready   but  needs  further  qualification  to  determine  the   probability  of  converting  to  an  opportunity An  SQL  that  has  progressed  to  an  opportunity  and   is  now  committed  to  pipeline DEFINITION ACTIVITY Lead  gets  entered  into  the  appropriate  segmented   nurture  program Lead  has  achieved  a  score  of  35  or  higher  and  is   entered  into  a  new  MQL  nurture  program BDR   is  identifying  prospects  requirements  and   probing  to  understand  the  context  for  buyers’   decision AE  is  actively  engaged  in  meaningful  dialogue  to   validate  the  use  case,  identify  the  champion,  and   schedule  a  demo Uberflip  has  been  introduced  to  a  wide  audience   and  there  is  general  team  consensus  around   solution  need,  value  and  fit LEAD  RECYCLING:   the  handoff  to  sales  took  place  but  the  prospect  doesn’t  respond,  doesn’t  have  budget  or  some  other  roadblock.    Sales  believes  there  is   potential  for  the  future.    The  lead  gets  placed  back  into  the  funnel  for  further  nurturing  with  the  goal  of  re-­engagement  at  a  later  time. LEAD  LIFECYCLE Sales and Marketing Need to Agree On EVERYTHING
  66. 66. MQLs Leads SALs SQLs OPPs A  respondent  to  a  marketing  campaign  who  doesn’t   yet  meet  our  minimum   qualification  and  behaviour   criteria A  lead  who  makes  the  minimum   fit  criteria  and  has   displayed  enough  interest  to  be  handed  off  to  sales.   MQLS  are  scored  and  categorized  as  cold,  warm,   or  hot  leads An  MQL  that  has  been  accepted  by  the  BDR  for   further  qualification  to  determine  pipeline-­readiness An  SAL  that  has  been  identified  as  pipeline-­ready   but  needs  further  qualification  to  determine  the   probability  of  converting  to  an  opportunity An  SQL  that  has  progressed  to  an  opportunity  and   is  now  committed  to  pipeline DEFINITION ACTIVITY Lead  gets  entered  into  the  appropriate  segmented   nurture  program Lead  has  achieved  a  score  of  35  or  higher  and  is   entered  into  a  new  MQL  nurture  program BDR   is  identifying  prospects  requirements  and   probing  to  understand  the  context  for  buyers’   decision AE  is  actively  engaged  in  meaningful  dialogue  to   validate  the  use  case,  identify  the  champion,  and   schedule  a  demo Uberflip  has  been  introduced  to  a  wide  audience   and  there  is  general  team  consensus  around   solution  need,  value  and  fit LEAD  RECYCLING:   the  handoff  to  sales  took  place  but  the  prospect  doesn’t  respond,  doesn’t  have  budget  or  some  other  roadblock.    Sales  believes  there  is   potential  for  the  future.    The  lead  gets  placed  back  into  the  funnel  for  further  nurturing  with  the  goal  of  re-­engagement  at  a  later  time. LEAD  LIFECYCLE Set Expectations -- SLA
  67. 67. Smarketingchallenges Selling Implementing Process Scaling Process
  68. 68. #4 Uniteconomics
  69. 69. Uniteconomics Do we have PM Fit? Does the math work? Does the math scale?
  70. 70. Canyoumakemoremoneythanit coststo getacustomer?
  71. 71. CAC Uniteconomics LTV Cost of Sales & Marketing / #of new customers Avg. MRR x Customer Lifetime Customer Lifetime 1 / Churn Rate (months or years) Resource: forentrepreneurs.com
  72. 72. CAC problems LTV Are you calculating “fully loaded” CAC? Do you really know LTV? Customer Lifetime Is churn even accurate? Resource: forentrepreneurs.com
  73. 73. CAC RATIO Uniteconomics PAYBACK LTV to CAC Ratio Guideline = 3+ Efficiency/Scalability Months to recover CAC Guideline = <12 months Cashflow/Profitability Source: forentrepreneurs.com
  74. 74. Optimizing forgrowthandoptimizing forefficiencyisn’t necessarilythe samething.
  75. 75. Wehaveacacproblem. Nowwhat?
  76. 76. DecreasingCACvs. CACEfficiency
  77. 77. Company A Company B CAC $1000 $1000 MRR $100 $100 ACV (MRR*12) $1200 $1200 Payback 10 months 10 months Churn 2.5% 2.5% LTV (MRR / Churn) $4000 $4000 CAC Ratio 4 4 Adapted from: sixteenventures.com
  78. 78. Company A Focus on decreasing CAC Pay less per customer Find cheaper channels Increasing Tofu cconversion Focus on TOFU metrics Company B Focuses on CAC efficiency Better marketing/sales process Evaluate pricing Shorten payback period Increase customer value DecreasingCACvs.CACEfficiency Adapted from: sixteenventures.com
  79. 79. *Increasing ACV and moving to annual payments will allow for increasing spend to drive faster / more growth and outspend competitors. Company  A Company  B CAC $800  (-­20%) $1000 MRR $100 $167 ACV  (MRR*12) $1200 $2000   Payback   8  months 6  months Churn 2.5% 2.5% LTV  (MRR  /  Churn) $4000  (no  change) $6680  (+67%) CAC  Ratio   5  (+25%) 6.68  (+67%) Adapted from: sixteenventures.com
  80. 80. Yes, these are totally made up. But they do illustrate the potential of focusing on efficiency. While in some cases, focusing only on decreasing costs might be warranted, it may also decrease lead quality, lowering your customer conversion rate (and subsequently effecting CAC negatively).
  81. 81. #3 What’syourstack?
  82. 82. PEOPLE PROCESS TOOLS (In that order!)
  83. 83. What’syourstack? Email marketing CRM Analytics Optimization Marketing Automation Campaign Management Data enrichment Sales automation Predictive Analytics Multi-touch attribution Programmatic Personalization
  84. 84. Automating bad marketing is still bad marketing.
  85. 85. Automating bad marketing is still bad marketing. Don’t jump to the tech too soon. You need the foundational elements in place first – good people, good process and good marketing.
  86. 86. Uberflip’s marketing stack(you cansee it here)

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