Slides from my talk at the 2014 RapNet Symposium

1. How inbound marketing is
disrupting everything.
RapNet Symposium 2014
Sam Mallikarjunan

2. Sam
@Mallikarjunan
Head of Marketing & Growth
@HubSpot
Labs

3. We live in the
most interesting
period in the
history of
business.

4. We live in an era of big bang
disruptive innovation.

5. Knowledge is power. And the balance
of power between companies and
consumers has shifted dramatically.

10. What is Inbound Marketing?

15. Frequent Blogging Is Critical
72% of eCommerce businesses that saw ROI from
Inbound Marketing blog at least once a week, and
people who blog are 155% more likely to see ROI
from Inbound Marketing.

16. Inbound Marketing is…
Instead of interrupting
experiences people love…
Inbound marketing focuses
on creating them.

17. “We don’t make money when
we sell things. We make money
when we help customers make
purchase decisions.”

18. Educational Content Leads To More Spending

19. Are you owning your customers?

21. Inbound marketing channels cost less
than any outbound marketing channel
Source: State of Inbound Marketing, HubSpot, 2012

22. Inbound Marketing is taking over B2B & B2C
Does your company do inbound marketing?”

23. Educational Content Leads To Higher ROI

24. Customer Centricity

25. A lot of people talk the talk…
*Source: HubSpot’s 2013 State of Inbound Marketing Report

26. You can’t call yourself a
“customer centric”
company if your customer
isn’t the center of your
universe.

27. #INBOUND2013

28. #INBOUND2013

30. OH NO! He’s
gonna make
us do math!

31. Yep. I’m not here
because I was the
cool kid in class.

32. We naturally operate
using ratios
Marketing $$$
Sales Revenue

33. Marketing $$$ Sales
Revenue

34. Ratios help us determine leverage

35. What do we do with this
information?
Marketing $$$
Sales Revenue

36. Marketing $$$ Customer
Revenue

37. What kinds of customers do
you want?

38. Exclusionary Buyer
Personas
Service
Demanders
Revenue
Reversers
Promotion
Maximizers
Spending
Limiters*

39. Narrative vs. Algorithmic Personas
Narrative Buyer Personas
Uses psychographic dimensions
to create experiences that attract
and influence
Algorithmic Buyer Personas
Uses automated numeric
correlations to predict
behavioral responses

40. The Old Economics Model
“I’m spending a bunch of money on marketing, and
I’m making more money than I’m spending back.”
Expense Yearly Amount
PPC $500,000
SEO Firm $60,000
Content Writing $120,000

41. The New(er) Economics Model
“I’m spending $X money on marketing, and I’m
making $Y in sales per channel.”

42. Growth Startup Economics Model
“I spend $W to acquire customer of persona X from source Y,
and they spend an average of $Z with me over their lifetime.”

43. Customer centricity creates leverage.

44. Time to Payback

45. This value analysis reaches
all the way back to marketing

46. This value analysis reaches
all the way back to marketing

47. Research Phase
Marketers are not just building a contact
list, they’re generating predictable future
sales revenue that they can analyze.
퐶
퐷
∗ 푉
C = # of new customers,
D = # of downloads,
V = Average LTV

49. How Much Would You Spend?
Starbucks has an AOV of ~$6*
*
*Source: KissMetrics

50. Customer Centric Companies See Higher ROI
Companies that saw ROI by company focus

51. Customer LTV Is A Profitable Focus
Companies that saw ROI by LTV focus rating

53. THANK YOU

54. I made an unforgiveable error and forgot business cards.
So tweet me
@Mallikarjunan
if you want to connect.

55. * Special Bonus Content

57. Solve For The Customer
Solve for LTV

58. Word of Mouth?
There’s a math for that.

59. The Conventional Linear
Buying Process
So easy, pretty, and simple to understand, ain’t it?

60. It’s not an end-state
It’s an infinite loop

62. A Grand Unified Theory of eCommerce

63. A Grand Unified Theory of eCommerce

64. A Grand Unified Theory of eCommerce

65. Price competition
isn’t working
anymore – there’s
always someone
willing to
make less money
than me.

66. More marketers are adopting
pre-transactional conversions

67. Marketers Aren’t Measuring
60% of ecommerce marketers don’t know their abandoned cart rate

68. A Grand Unified Theory of eCommerce

69. The marketing activities and tools to this point
add up to the Cost Of Customer Acquisition

70. Now the focus shifts to increasing the
customer’s Life Time Value

71. A Grand Unified Theory of eCommerce

72. A Grand Unified Theory of eCommerce

73. A Grand Unified Theory of eCommerce

74. Everyone goes through this process