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Driving to Market - V2! - How to "Drive" Competitive Advantage in your Go To Market (GTM) strategies and tactics for Startups - Harvard Innovation Lab Series

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Harvard innovation lab :       Michael J Skok :           Startup Secrets :   Go To Market
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Driving to Market - V2! - How to "Drive" Competitive Advantage in your Go To Market (GTM) strategies and tactics for Startups - Harvard Innovation Lab Series

New version 2 - including case examples from Spotfire, Demandware, Hubspot and David Skok.

Developed for the Harvard Innovation Lab workshop series on Startup Secrets.

This is part 4 of the 5 part series by Michael J Skok on how to get competitive advantage as a startup.

Michael's slides are the agenda for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://mjskok.com/

New version 2 - including case examples from Spotfire, Demandware, Hubspot and David Skok.

Developed for the Harvard Innovation Lab workshop series on Startup Secrets.

This is part 4 of the 5 part series by Michael J Skok on how to get competitive advantage as a startup.

Michael's slides are the agenda for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://mjskok.com/

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Driving to Market - V2! - How to "Drive" Competitive Advantage in your Go To Market (GTM) strategies and tactics for Startups - Harvard Innovation Lab Series

  1. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi Hi Harvard innovation lab #innovationlab @mjskok #startupsecrets www.mjskok.com START UP SECRETS An insider’s guide to unfair competitive advantage Going To Market (GTM) MICHAEL J SKOK North Bridge Venture Partners twitter: @mjskok mjskok.com 1
  2. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secrets - Series • Sep 11: Perfect Pitch • Oct 11: Value Proposition • Oct 16: Company Formation • Nov 13: Business Model • Dec 4: Go-To-Market Strategy 2
  3. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Introductions & connections • Our guests: • Your hosts: – Apperian – Harvard I Lab • Mark Lorion @mark_lorion #innovationlab – Demandware – Michael Skok @mjskok • Jamus Driscoll @jamusdriscoll – Startup Secrets #startupsecrets – Hubspot • Brian Halligan @bhalligan – www.mjskok.com – Matrix partners • http://www.mjskok.com/reso urces/go-market • David Skok @bostonvc 3
  4. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets 4
  5. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets A Startup GTM Framework Marketing & Sales Strategies Audience Cycle Tactics Channel Awareness Brand Direct vs. Targeting, Channel Segmentation Interest Positioning OUTbound / INboound Messaging Channel Personas Understanding Development, Social Management, Actors/Scenes Media Etc. Engagement PR Strategic Trial Services Partners References Purchase • Results Oriented, Metrics, Execution Driven • Continuous Iteration & Improvement 5
  6. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets 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 – introductions to key areas 1. Inbound 2. Building your GTM machine 6
  7. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Identity Name system Brand Essence Every Touch Product Point 7
  8. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Brand • A science unto itself – don’t underestimate it’s power – Are you Coke or Pepsi, Apple or Dell? • But for starters, in startups – It’s about YOU, the founders – Your People – Your Culture (per the Company Formation session) – How you Execute • eg interact with your ecosystem of Customers, Partners, Suppliers, Stakeholders 8
  9. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Brand Essence Framework Vision What about the world is changing that makes us necessary? Promise What do we promise to customers at the most fundamental level? Spike unique What makes us distinctly Attributes Special different & valuable to our better customers? How do we Standard cost of entry achieve over and over? Personality Style What does it feel Emotion If we were a person How would we present like to engage what would we be ourselves to the world? with us? like? 9
  10. Branding Demandware Jamus Driscoll, SVP Marketing jdriscoll@demandware.com December 3, 2012 Copyright 2012 Demandware, Inc. - Confidential
  11. The Demandware Branding Challenge & Change the Criteria Copyright 2012 Demandware, Inc. - Confidential
  12. The Demandware Branding Challenge From To & Control of software Control of ecommerce The cost to install The cost to stay cutting edge Expense Revenue driver For mid-size companies For high-growth brands Our platform Your Brands Risk Confidence For visionaries For great marketers Copyright 2012 Demandware, Inc. - Confidential
  13. The Demandware Opportunity Brand/ & Marketing eCommerce Technology Features Benefits Rewards Copyright 2012 Demandware, Inc. - Confidential
  14. What It Meant • Demandware couldn’t differentiate on claims alone • Must go beyond rational and functional benefits • Address ambition • Speak the customer’s language • It’s not what we can do, it’s what the customer can do • Look and act like a marketing partner • Show, don’t just tell • Make it inspiring! Copyright 2012 Demandware, Inc. - Confidential
  15. Brand Positioning It’s not just about how the customer feels about you It’s also about how you make the customer feel about herself Copyright 2012 Demandware, Inc. - Confidential
  16. Stronger brands, faster, more The agility and profitable control to stay ahead growth and build my brand CEO/CMO Better economics over A more effective and the long term reliable business platform that frees up resources to higher- value uses E-COMMERCE FINANCE & IT
  17. An industry leader to I ROCK!! watch A business CEO/CMO facilitator, not just a bean A real business counter enabler; creative problem-solver E-COMMERCE FINANCE & IT
  18. What Does This Mean to Our 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. Copyright 2012 Demandware, Inc. - Confidential
  19. How Does the Customer Benefit? Think It. Do It. No limits. No worries. No surprises. Copyright 2012 Demandware, Inc. - Confidential
  20. Brand Promise Rests On Brand Attributes Innovation Simplicity Partnership Performance Automatic global Single platform: Business model World-class releases Multi-brand/ operating Multi-country/ * * environment Omni-channel Thought Innovation leadership * * eco-system Uptime/Security Transparent, * * inclusive * Customer- Link partners pricing focused Scalability * * innovation Community Extensible/ * Interoperable Customer * * panels Labs Integrated 3rd * party services Open cloud-based and apps services Copyright 2012 Demandware, Inc. - Confidential
  21. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secret: Be consistent from the start to get Brand Integrity • Consistency - Great brands are consistent; everywhere you touch they are the same. • Values – Great brands have attributes consistent with company values. • Reliability – Great brands consistently keep their promise. 21
  22. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secret: Start how you mean to End 22
  23. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets 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 – introductions to key areas 1. Inbound 2. Building your GTM machine 23
  24. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Positioning Occupy a distinct place – in a potential customer’s mind – unique whitespace in market • For (target customers – beachhead segment only) • Who are dissatisfied with (current market alternative) Good news! • Our product is a (new product category) You already did a • That provides (key problem solving capability) simplified version • Unlike (reference competitive differentiation, to in the Value Prop alternative), session! • We have assembled (key whole product features for your specific application) 24
  25. Positioning Mark Lorion, CMO Apperian. Previously VP Marketing Spotfire Analytics Division TIBCO Software
  26. Company/Product Overview & Positioning / Messaging Spotfire acquired by TIBCO Software ($1+B rev) in 2007 Analytics software sold to enterprises in numerous vertical markets $xxxM Operating Unit w/ xxx employees Field teams in throughout Americas, EMEA, APAC • 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 • Our approach offers a user-driven and visual approach for looking at data • That rapidly uncovers new insights that lead to business opportunities, avoids threats, and helps people make better decisions • 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
  27. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Competition • Unique differentiation – Not just technology • EG Targeted Segment • Barriers to entry – Rewind, repeat: Not just technology! • EG Business Model, GTM approach • What is sustainable? – IP, patents, network, data, process, etc • Consistent with your CORE value? 27
  28. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Positioning 2 x 2 Whatever sets you up… for a unique white space High Define real {whitespace} BARRIERS a To entry into c each segment The choice of axes is b critical Bubble sizing for relative d size of competitors Low Low High 28
  29. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets 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 – introductions to key areas 1. Inbound 2. Building your GTM machine 29
  30. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Perfect Startup Storm Disruptive Business Model Disruptive New Market & Technology GTM 30
  31. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Why does Targeting & Segmentation matter? • Product / Market fit • Packaging and Pricing • Channels, Distribution • Messaging, communication … and more • DEPEND on Targeting & Segmentation 31
  32. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Perfect Startup Storm Focus on Value Prop FOR Target Segment Disruptive Business Model Disruptive New Market & Technology GTM TARGET segment 32
  33. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Value Prop: Recap & Intersection – 3D Solution • Discontinuous • Defensible • Disruptive – 4U Need • Unworkable • Unavoidable • Urgent (For Targeting, • Underserved market Segmentation) 33
  34. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Perfect Startup Storm Focus on Value Prop FOR Target Segment Disruptive Business Model Disruptive New Market & Technology GTM TARGET segment Unique Underserved 34
  35. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Adding to Lean Startup thinking… Minimum Viable Product (MVP) AND Minimum Viable Segment (MVS) MV MV S S Smaller, Easier Target to Cover 35
  36. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Segmentation Startup Secret: Common Set of Needs -> Reference • Segment according to the same NEEDS – Customers can compare solutions • When you deliver – They will REFERENCE each other • Leads to… – Initial Beachhead 36
  37. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Targeting Segmentation Get to common Problem / NEEDS • Vertical – Automotive Vertical – Financial Services Siz – Government e Problem/NEED • Size S – Consumer – SMB – Enterprise • Problem / NEEDS – E.G. Regulatory Approval Process • Applicable Across Pharma, Fin Services, Govt, etc 37
  38. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Targeting Segmentation Example, seeking Critical Need Mobile Professionals vs. Office Worker 38
  39. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Targeting Segmentation Example, seeking Critical Need Mobile Professionals vs. Office Worker Field Workers vs. White Collar 39
  40. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Targeting Segmentation Example, seeking Critical Need Mobile Professionals vs. Office Worker Field Workers vs. White Collar Services vs. Sales 40
  41. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Targeting Segmentation Example, seeking Critical Need Mobile Professionals vs. Office Worker Field Workers vs. White Collar Services vs. Sales Medical Equipment vs. Office Equipment 41
  42. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets 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 42
  43. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets 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 43
  44. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secret Don’t be afraid to FOCUS! • Narrow as possible to start! – Think Beachhead (Geoffrey Moore) • Which would you rather… – Expand on success? – Contract on failure? 44
  45. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets 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 – introductions to key areas 1. Inbound 2. Building your GTM machine 45
  46. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets The Startup Marketing & Sales Cycle Awareness Interest Understanding Engagement Trial Purchase 46
  47. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Target, Segment AND Startup Secret: Personify ―Actors‖ Awareness Actors Interest Segment Understanding Target Engagement Trial Purchase Underserved, Uniquely valued 47
  48. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secret: Customer ―Actors‖ Change Through ―Stages‖ Awareness Customer ―Actors‖ Actors Interest • Visionary Segment Understanding • Technocrat STAGES Target Engagement • Operator • Influencer Trial • Economic buyer Purchase Underserved, Uniquely • Decision maker valued 48
  49. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Ultimately figure out Customer DMU: Decision Making Unit Awareness Customer ―Actors‖ Actors Interest • Visionary Segment Understanding • Technocrat STAGES Target Engagement • Operator DMU? • Influencer Trial • Economic buyer Purchase Underserved, Uniquely • Decision maker valued 49
  50. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secret: Qualify Early AND Often • Qualify early Target – Save all the $, Time and Focused Resources early in the process – Opportunity cost for another Segment suspect • Qualify often (things change) Awareness Customer ―Actors‖ – Create lead scoring, nurturing programs Interest • Visionary • Technocrat “SCENES” Understanding • Marketing qualifiers: Tie to • Operator Targeting & Segmentation DMU Engagement – Narrow criteria = easy • Influencer qualification • Economic buyer Trial • Decision maker • Sales qualifiers: Purchase – MANACT : Money, Authority, Need, Ability, Competition, 50
  51. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets 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 – introductions to key areas 1. Inbound 2. Building your GTM machine 51
  52. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets ―Driving‖ Startup Marketing & Sales YOU Control Neutral GEARS to build Momentum Awareness Interest Understanding Engagement Trial Purchase Overdrive 52
  53. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets ―Driving‖ Startup Marketing & Sales YOU Control Customer Controls Neutral Accelerator / Brake / Clutch GEARS to build Momentum Awareness Interest Understanding Engagement Trial Purchase Overdrive 53
  54. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Your controls: Gears in the sales cycle • Gears to build momentum – 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 a gear too long when accelerating – you’ll over rev the engine = same with customer = instead… – Engage a new Gear (sales or marketing tool) every time the customer puts the clutch in • Measure whether it enables customer to accelerate & build momentum for the sale 54
  55. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Customer’s Controls: ABCs of sales cycle Accelerator – Accelerates the customer from one step to another – – e.g. SLIPPERY product, things like self service, free trials etc. Brake – Stops the customer moving from one step to another – e.g. lack of understanding of your solution, poor competitive positioning – DON’T assume it’s price! (ACTIVELY LISTEN to carefully dissect sales objections, recognize sales stops / starts) Clutch – Is engaged when the customer doesn’t know what the next step is, or there’s inertia and risk causing a stalled sales cycle 55
  56. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Driving Marketing & Sales Proof Connecting it to CUSTOMER Gain/Pain Ratio Neutral Awareness Interest Understanding GEARS Engagement Accelerator Trial Purchase Overdrive 56
  57. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Driving Marketing & Sales Proof Connecting it to CUSTOMER Gain/Pain Ratio Neutral Customer Gain: Awareness • Revenue Interest • Cost savings • Time Understanding GEARS • People Engagement Accelerator • Competitive advantage Trial • Reputation Purchase • Etc.. Overdrive Gain 57
  58. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Driving Marketing & Sales Proof Connecting it to CUSTOMER Gain/Pain Ratio Neutral Customer Gain: Awareness Customer Pain: • Revenue • See, (Find) - Awareness Interest • • Try - Engagement, Trial Accelerator / Brake Cost savings • Time Understanding • Buy – Price, Package, GEARS • People License Engagement • Competitive • Fly - Implement, Deploy advantage Trial • Own, (TCO) – Service, • Reputation Support Purchase • Etc.. Overdrive Gain Pain 58
  59. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Driving Marketing & Sales Proof Connecting it to CUSTOMER Gain/Pain Ratio Accelerator / Brake / Clutch Neutral Customer Gain: Awareness Customer Pain: • Revenue • See, (Find) - Awareness Interest • Cost savings • Try - Engagement, Trial • Time Understanding • Buy – Price, Package, GEARS • People License Engagement • Competitive • Fly - Implement, Deploy advantage Trial • Own, (TCO) – Service, • Reputation Support Purchase • Etc.. Overdrive Inertia, RISK on a startup : • Switching costs? • Default = do nothing • Alternatives? • Good enough = good enough! Inertia, Gain Pain RISK 59
  60. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Driving Marketing & Sales Relating to Business Model CORE, levers & multipliers Awareness Interest Understanding Engagement Trial Purchase Multipliers s Lever CORE 60
  61. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Driving Marketing & Sales Relating to Business Model CORE, levers & multipliers Multiplier Examples Neutral Sales & Marketing Awareness  Tiered Pricing Interest  Freemium  Channel partners Understanding GEARS Product  SLIPPERY products * Engagement  ―Russian Doll‖ Packaging * Trial  Technology stacks Purchase  WHOLE product Overdrive ACCELERATE In the Sales Multipliers Cycle s Lever CORE 61
  62. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Driving Marketing & Sales Relating to Business Model CORE, levers & multipliers Multiplier Examples Lever Examples Accelerator / Brake / Clutch Neutral Sales & Marketing Awareness Sales & Marketing  Tiered Pricing  Web Interest  Freemium  Inside sales  Channel partners  Inbound Understanding GEARS Product  Referencing, viral  SLIPPERY products * Engagement Product  ―Russian Doll‖  Support Packaging * Trial  Services  Technology stacks Purchase  WHOLE product  WHOLE product Overdrive ACCELERATE Reduce In the Sales BRAKES Multipliers Cycle In the Sales Cycle s Lever CORE 62
  63. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Road Test: put it all together Reduce Brakes, let out Accelerate in Gear via Clutch • Automation • Time • NOT people dependent • People • Self service for the • Resources customer Engage levers Use Multipliers • Distill to repeat & scale • SLIPPERY product • Eg Videos, Podcasts • Russian Doll packaging • Self service portals, Knowledge bases, (Around your Configurators CORE Value Prop) 63
  64. Go-To Market Strategy & Planning Mark Lorion, CMO Apperian. Previously VP Marketing Spotfire Analytics Division TIBCO Software
  65. Our go-to-market planning Corp and Division Objectives Playbooks Yearly executed & Business & Segmentation evaluated Marketing quarterly Plan “Plays” (limited set of cross-functional Platform initiatives  org Roadmap alignment and scale)
  66. Our go-to-market map (2010 sample) The “Plays” Channels Play APJ FSI Play (China) Viral + Awareness Play ($$$) LS Play LS Play Manufacturing (research) (clinical) LS Play EU Energy FSI Play (research) CPG Telco LS Play Channels Play Manufacturing TIBCO Play (clinical) CPG LS Play US FSI Play Energy (research) Telco Government LS Play Channels Play Manufacturing TIBCO Play (clinical) “Silver Spotfire” ($$) $0 (Sales driven) $ $$ $$$ Relative Marketing Programs Investment
  67. Driving Sales and Marketing at Spotfire… Risk & Financial Services Play (2010 Sample) OVERVIEW TACTICAL OPTIONS Objectives: Demand Support  Sell risk analytics solutions to banks, I-banks, Insurance Co.,  Conferences: RiskMinds Geneva, GARP NYC 2/10 Asset managers, Hedge funds, and corporations  Outbound: telemarketing program to reach named list of  REVENUE POTENTIAL: ____ prospects, email db and lists for webcast series  EXPECTED INVESTMENT: ___  Inbound: Develop thought leadership content – Magazine articles, speaker slots at events, purchase magazine space for Audience columns/editorials; consider blogging series on Cap Markets  VP, Group Risk Mgmt, VP Cap. Mgmt, Trading Management trends re Risk at major banks  Web—PPC, Banner ads (GARP, MashRisk Network, others),  Head of-- Modeling and Research/Actuarial Team/Trading rationalize website and upgrade concentration of keywords Message:  Webcasts -- SF/S+ risk related series, 1/mo, RiskCenter, Fierce  Respond to changing competitive and regulatory landscape more Finance email blast for each event; E&Y compliance series, 6/yr, quickly, effectively and confidently audience is across verticals; Reuters, 3/yr SF use as embedded provider of visual analytics  Empower analysts and decision makers to explore and interrogate data to gain more complete understanding Equip Sales:  Deploy real-time data processing and visual /statistical analytics to  New ―solution‖ demos are required with support kits – based off uncover/discern hidden trends in data XYZ customer deals in 1H’09 Offering:  Flash tours (4) Develop between 12/09 and 6/10  Enterprise Risk Aggregation ―solution‖  A dedicated presales resource needed in each major GEO!  Credit risk modeling and performance monitoring ―solution‖  Bloomberg subscription (share cost with Energy Play) Primary Competition: Partners/Resellers/OEM:  SAS, @Risk, FactSet, R, MatLab, SPSS, Algorithmics  Leverage ptship with Reuters, CapitalIQ for go-to-market programs  Internal apps (Excel, Homegrown applications)  Enable resellers with sales kits and investigate co-mkting oppty Competitive Edge: Product Enhancements:  Open, adaptable, and scalable modeling platform  Updating time series data; 3d surface plots; Standard distribution reference curves; Custom calendar capability; Weighted average,  Fast, intuitive multi-dimensional, user-driven visualizations cumulative return; Productize FinMetrics and NuOpt; Bloomberg  Complete data spectrum capabilities – from inputs, quality, Data connection (1-Historic data, 2-’real time’ data) analysis, to post-processing reporting and visualizations  Greater range of visualization and computational capabilities
  68. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets 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 – introductions to key areas 1. Inbound 2. Building your GTM machine 68
  69. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets ROME Results Oriented, Measured Execution • You can’t manage what you can’t measure • Measure every step Awareness – Time – People Interest – Other resources Understanding • Conversion rates Engagement – Accelerators Trial – Brakes – Clutch Purchase – Gears 69
  70. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Drill down - Marketing & Sales lead lead lead lead lead lead Awareness $,Time, Resources Interest Conversion rate % Understanding Break down measurable, manageable Engagement steps Trial Purchase ULTIMATELY: $, Time, Resources Conversion rate % Customer 70
  71. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Marketing & Sales - FLOW lead lead lead lead lead lead lead lead lead lead lead Awareness Interest Understanding Seamlessly linked steps, that incent customers to Engagement flow from one step to another Trial Purchase Customers 71
  72. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secret : Reverse Engineer $,Time, Awareness Resources Interest Conversion rate % REVERSE Understanding ENGINEER THE FUNNEL Engagement ULTIMATELY: Trial $,Time, Resources Purchase Conversion rate % 72
  73. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secret: Closed Loop, Web $,Time, Resources Awareness Conversion rate % Interest Understanding Closed Loop Engagement via Web Trial Purchase ULTIMATELY: $,Time, Resources Conversion rate % 73
  74. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets The Web: Changes (nearly) everything Positives: Negatives: • Measure everything • One click away • Closed loop  Competitors  Distractions • Lower cost Closed Loop via Web Virtual Sales, Marketing, Services Don’t forget the human factors  Webinars  Personal touch  Video  Relationships – better real than virtual!  Podcasts  Experiential learning is invaluable 74
  75. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets 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 – introductions to key areas 1. Inbound 2. Building your GTM machine 75
  76. Brian Halligan CEO, HubSpot @Bhalligan
  77. content
  78. CREATE CONTENT • Blog Posts • Info graphics • Videos • E-books • White papers • Reports • Calculators • Freemium Appl • Grader
  79. OPTIMIZE
  80. PROMOTE
  81. LINKS ARE TO THE INTERNET AS DOLLARS ARE TO THE ECONOMY @BHalli gan
  82. Better More Usage Personalizati on Better Better Value Conversion
  83. MIT 15.S16 Special Seminar in Management: Entrepreneurial Product Marketing and Development (Spring)
  84. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Inbound vs. Outbound ? $1M OUT-bound $500k Deal Size $100k $50k Hybrid ? $10k IN-bound $0 98
  85. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets When some Outbound Marketing Makes Sense for the Startup Mark Lorion @mark_lorion Apperian, CMO RESOURCE ONLINE AT http://mjskok.com/resource/gtm-outbound-marketing 99
  86. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets 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 – introductions to key areas 1. Inbound 2. Building your GTM machine 100
  87. Building a SALES & MARKETING MACHINE FUNNEL DESIGN AND OPTIMIZATION CAC ROI by Viral Lead Coefficient Time to Source Recover LTV CAC Churn Rate Viral Cycle Conversion Time Rate
  88. 1 st THE BASICS OF FUNNEL DESIGN
  89. Expand Suspects Closed Deals Upsell Cross sell
  90. IN A PERFECT WORLD… 1 Step
  91. IN A PERFECT WORLD… MyProduct.com DESCRIPTION HOW IT WORKS Our product allows you … Only $9,999.99 BUY NOW!
  92. THE ART OF MARKETING
  93. THE BUYER
  94. THE BUYING CYCLE PURCHASE CONSIDERATION CLOSED DEAL AWARENESS
  95. 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
  96. AN ORGANIZATIONAL METAPHOR FOR THE KEY FUNNEL STAGES SALES MIDDLE OF THE FUNNEL CLOSED DEAL TOP OF THE FUNNEL
  97. WHAT IS TOP OF THE FUNNEL? customer is not aware customer has a they have a problem, or problem and is that your product looking for a solution category exists GENERATE GET FOUND AWARENESS
  98. WHAT IS THE MIDDLE OF THE FUNNEL? QUALIFY MQL (MARKETING QUALIFIED LEAD) NURTURE
  99. WHAT IS THE MIDDLE OF THE FUNNEL? QUALIFY MQL (MARKETING QUALIFIED LEAD) NURTURE • Blog • eMail Campaigns • Webinars Wait for a Trigger • Free Trials • Newsletters Or try to create a Trigger • etc.
  100. THE BUYER CONSIDERATION ADDRESS THEIR QUESTIONS & CONCERNS • Will this work for my situation? • Is it the best product in the market? • Is it a safe choice? (Who else is using it?) • Will I get a return on my investment? • Is it scalable, secure? • Is it easy to implement? • Will I get good support? • Etc.
  101. MEASURE "IF YOU CAN NOT MEASURE IT, YOU CAN NOT IMPROVE IT." - LORD KELVIN
  102. WHAT TO MEASURE FOR EACH STEP / ACTION: NO OF ACTIONS % CONVERSION RATE TIME TIME
  103. THE KEY METRICS CAMPAIGNS TO DRIVE TRAFFIC VISITORS OVERALL CONVERSION CONVERSION % % TRIALS CONVERSION % CLOSED DEALS
  104. Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects BUT EVEN IF YOU ARE MICROSOFT, CISCO, ORACLE, OR GOOGLE YOUR FUNNEL WILL HAVE BLOCKAGE POINTS
  105. 3 IMPROVE
  106. IN DIAGNOSING MANY FUNNEL BLOCKAGE POINTS, I HAVE FOUND THAT THERE IS A CLEAR PATTERN…
  107. YOU ARE HOPING YOUR CUSTOMERS WILL DO SOMETHING THAT THEY ARE NOT MOTIVATED TO DO
  108. 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
  109. JBOSS EXAMPLE PUT A REGISTRATION FORM ON THEIR WEB SITE BEFORE A FREE DOWNLOAD IMPACT CUT THE DOWNLOAD RATE BY MORE THAN 10X
  110. GET INSIDE YOUR CUSTOMER’S HEAD FRICTION CONCERNS
  111. UNDERSTAND WHAT MOTIVATES THEM FRICTION CONCERNS MOTIVATIONS
  112. JBOSS EXAMPLE • Making $27,000 a month selling documentation • Solution: • Give away documentation to get their email address
  113. EXAMPLE: DRIVING TRAFFIC TO YOUR WEB SITE GETTING FOUND Not going to find your site unless: friction & - On top page of Google concerns search results - Recommended by a trusted source - Referred to in social media or blogosphere
  114. 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
  115. using engineering for marketing
  116. First Contact Sell Build Build First Contact Sell Relationship Trust
  117. OFTEN NECESSARY TO FIND TOPICS THAT ARE NOT RELATED TO THE SALE Build Build Relationship Trust First Contact Sell
  118. SELLING IS 10X EASIER… ONCE YOU HAVE ESTABLISHED TRUST
  119. THE KEYS TO SUCCESS THE BUYER GET INSIDE YOUR BUYER’S MIND
  120. For More information  Visit my blog at www.forEntrepreneurs.com
  121. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets 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 – introductions to key areas 1. Inbound 2. Building your GTM machine 137
  122. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Recap Marketing & Sales Strategies Audience Cycle Tactics Channel Awareness Brand Direct vs. Targeting, Channel Segmentation Interest Positioning OUTbound / INboound Messaging Channel Personas Understanding Development, Social Management, Actors/Scenes Media Etc. Engagement PR Strategic Trial Services Partners References Purchase • Results Oriented, Metrics, Execution Driven • Continuous Iteration & Improvement 138
  123. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets What we did we NOT cover, case examples on www.mjskok.com • Brand elements • Channel / Distribution • Services, Professional Services • Guerilla Marketing – when you’ve got no $! • To come – Connection with business model – Whole product – Strategic partnering 139
  124. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Key Points to Remember • Manage your brand from the start • Position to be unique • Target & segment around customer needs • Think about ―driving‖ your marketing & sales cycle • GTM is both strategic and tactical • But it is ultimately about ROME 140
  125. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Remember, ROME wasn’t built in a Day Nor will your GTM strategy and tactics be – R esults Listen – O riented GTM Learn – M easured Business Lead Model Iterate – E xecution Pivot – D riven through iteration • Results Oriented, Metrics, Execution Driven • Continuous Iteration & Improvement 141
  126. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Building an enduring company: GTM is a key part of your Execution Vision Executio Listen n Peopl Learn Value Lead e Prop Iterate Pivot Startup Enduring Cultural Consistency Compan y 142
  127. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi www.mjskok.com #innovationlab @mjskok #startupsecrets Thank you… • Apperian Follow online – Mark Lorion www.mjskok.com • Demandware @mjskok – Jamus Driscoll /mjskok • Hubspot linkedin.com/in/mjskok – Brian Halligan bit.ly/mjskok-google • Matrix partners bit.ly/mjskok-youtube – David Skok 143
  128. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market Hi Hi Harvard innovation lab #innovationlab @mjskok #startupsecrets www.mjskok.com START UP SECRETS An insider’s guide to unfair competitive advantage Going to Market MICHAEL J SKOK North Bridge Venture Partners twitter: @mjskok mjskok.com 144

Editor's Notes

  • 67 Billion – business week 2009, most valuable brand in the world.
  • This is always a fun section. Entrepreneurs often claim they have no competition because the idea is so unique. While that may indeed be true, it’s unlikely that you won’t have competition for at least the dollars that the customer has to spend on either existing approaches or alternatives.So what helps here is to describe very clearly what your unique differentiation isThen be clear what barriers there are to others following you. Technology is one obvious differentiator to bring out, but don’t forget others For example your business model, which may include your pricing advantage or your open source development capability or your ability to partner and or open up new channels. Other sustainable advantages may include the network of users you build up or the data being collected.  In the end all these may be  as compelling as your technology differentiation, and more important as a barrier to entry for competitors.
  • There may be many ways to express your unique positioning, but I’m a believer in pictures - in case you hadn’t already figured that out ;) So here’s the kind of simple picture I recommend using to clearly position yourself. The key to this particular diagram is the axes you choose. Suffice it to say you want to end up in the top right, positioned to win in a unique whitespace. Here bubble sizing is for relative size of competitors a,b,c,d.Catch me in person and I'll tell you the real key is to find a way to explain why the competitors just can't cross the barriers in this diagram to even enter the top quadrant. Then you know you're really onto a winner.It's a subject unto itself for a drill down, but you need to be able to get across the white space you have identified
  • Disruptive to the industry and the competition and NOT the customer (remember the gain/pain ratio)
  • 5th U - Unique
  • a set of actual or potential customers for a given set of products or services who have a common set of needs or wants, and who reference each other when making a buying decision.Moore, Geoffrey A. (2009-03-17). Crossing the Chasm
  • W/ Inbound, success is much more about the width of your brain than the width of your walletTrad marketing – if you had money, you could buy customers through ads, buying lists, hiring a PR firm…every day those techniques work less and less well.Inbound marketing – You use your unique ideas and content to pull people in from se, tw, fb, etc.Inbound is about the width of your brain, not the width of your wallet! Rubbing braincells together, not rubbing greenbacks together.
  • With inbound, you succeed by creating your own marketing assets not renting space on someone else’s assets.Trad marketing – Here’s the way it works in trad marketing…every month, you take a pile of money and shovel into Google Adwords mouth…just like this. For every dollar in, you might get a dollar ten out, but it is a one time deal. Gotta do it again the next month.Inbound marketing – You create permanent assets that pull in links, twitter followers, fb fans, LI group members etc. Those assets never go away and continue to pull in customers for years and years. It grows like interest in your 401k accountInbound is about creating leverage w/ your marketing dollars.
  • With inbound, you succeed by loving up your marketplace, not irritating your marketplace.I have a guy at a Software QA co that cold calls me every Monday and Thursday at 8:07am…not only is that technique not effective, but it is ruining his co’s brand.You want your potential customers to love your brand and talk about them like LuLuLemon, Whole Foods, or Charity Water.
  • 1st part is content…need to think of yourself as a content creation studio – cnn, hbo, pbs.
  • remarkable
  • NOTE: Bottom half of funnel
  • Imperial Palace
  • Assets – not inventory, machine tools, etc…links, ranks, reach.
  • In a perfect world, we would hope that we could take our suspected market directly to purchase in one step.
  • 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.

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