Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Startup Customer Development (Seedcamp, London)


Published on

This is the first major update to my slides on Slideshare in almost a year. My thinking has evolved significantly after helping take an additional 8 startups to market.

Published in: Business, Travel
  • Good info!.... STARTUPS...Send your pitchdeck to thousands of VC's and Angel's with just 1 click. Visit:
    Are you sure you want to  Yes  No
    Your message goes here
  • Bandung 4 hari / 3 Malam
    student package harga mulai dari RM 200 seorang Minamal 4 orang
    1 malam di taman Kopo Katapang 2 malam hotel istana
    Ciwidey kawah putih,Ladang Strawbwry
    Rumah Kain dan Kilang Telekung
    Cibaduyut Kedai Kasut
    FO Kawasan Dago dan Jl Riau
    Pasar Baru
    Percuma Makan siang 2 kali
    Tempah sekarang di 081321808392 / /
    Are you sure you want to  Yes  No
    Your message goes here
  • Rational approach to customer acquisition for early-stage consumer companies.
    Are you sure you want to  Yes  No
    Your message goes here

Startup Customer Development (Seedcamp, London)

  1. Startup Customer Development<br />Sean Ellis <br />Seedcamp 2009 (London)<br />Sept 22, 2009<br />
  2. #1 Startup Risk = Customers<br />Huge challenge to acquire & convert<br />Little useful guidance available<br />Hard to know where to start (hundreds of things you “could do”)<br />2<br /><br />
  3. What Really Mattered on Road to IPOs?<br />Understand users and use cases<br />Focus on right metrics & optimize<br />Apply engineering to marketing<br />Early execution is most critical<br />3<br /><br />
  4. Primary Focus Now Critical Zone<br />Critical<br />Zone<br />IPOs<br />Growth Stage<br />Then light advising in growth stage<br />4<br /><br />
  5. Customer Development Framework<br />5<br /><br />
  6. Growth Starts with the Product<br />6<br /><br />
  7. What is Product/Market Fit?<br />People want/need your product<br />And they represent large enough market<br />Differentiated from alternatives<br />Users will pay for your product<br />Or you are advertising supported<br />7<br /><br />
  8. “Life of any startup can be divided into two parts -before P/M fit and after P/M fit”<br />Marc Andreessen<br />Founder Netscape, Opsware, Ning<br />8<br /><br />
  9. PayPal’s Quest for P/M Fit<br />$200K seed funding - cryptography<br />“No one really needed it” Max Levchin<br />$4.5M VC funding - PDA payments<br />People preferred web demo (100X users)<br />$1.5B sale to eBay – web payments<br />9<br /><br />
  10. Survey Your Product/Market Fit<br />Free template at<br />10<br /><br />
  11. Key Product/Market Fit Question<br />“How would you feel if you could no longer use Product?”<br />11<br /><br />
  12. Transition to Growth<br />12<br /><br />
  13. Transition to Growth<br />Track/report right metrics<br />Positioning (based on perceived value)<br />Viable economics (business model)<br />13<br /><br />
  14. Optimize Before Growing<br />Landing pages<br />Funnel (acquisition through transaction)<br />12%<br />13%<br />8%<br />…<br />14<br /><br />
  15. Scalable Growth Now Possible<br />15<br /><br />
  16. Test from Free to Paid Channels<br />16<br /><br />
  17. Driving/Managing Growth<br />Budget to maximize positive ROI spend<br />17<br /><br />
  18. Improve Lifetime Value<br />Customer retention is critical<br />Cross/up sell additional products<br />This expands profitable channels<br />18<br /><br />
  19. Complete Startup Pyramid<br />Growth<br />Optimize<br />Economics<br />Positioning<br />Product/Market Fit<br />Twitter: @seanellis<br />Blog:<br />