Learn about developing your go to market strategy. We’ll take a look at the five key components to developing a go to market strategy including your target market, marketing channels, messaging, pricing & packaging and customer acquisition cost. By Kris Konrath, Marketing Director at Convergent
Slides David Shoenberger recently used in his discussion w/ mentees of The Product Mentor.
The Product Mentor is a program designed to pair Product Mentors and Mentees from around the World, across all industries, from start-up to enterprise, guided by the fundamental goals…Better Decisions. Better Products. Better Product People.
Throughout the program, each mentor leads a conversation in an area of their expertise that is live streamed and available to both mentee and the broader product community.
Use this modern go-to-market framework to define the activities required to successfully build market-driven products & services that customers will accept.
Slides David Shoenberger recently used in his discussion w/ mentees of The Product Mentor.
The Product Mentor is a program designed to pair Product Mentors and Mentees from around the World, across all industries, from start-up to enterprise, guided by the fundamental goals…Better Decisions. Better Products. Better Product People.
Throughout the program, each mentor leads a conversation in an area of their expertise that is live streamed and available to both mentee and the broader product community.
Use this modern go-to-market framework to define the activities required to successfully build market-driven products & services that customers will accept.
The Go-To-Market framework is a related set of activities and processes that connect the company’s product strategy to the customer experience. The Go-To-Market framework is cross-functional, spanning product management, product marketing, and sales. It is a strategy and requires operational efficiency.
Sales Impact Academy Coach, Mark Walker gives a preview of this foundational course.
You will learn:
1. How to identify the real pain points in your target market.
2. Which go-to-market model is best suited to your businesses.
3. Learn about the key success metrics you need to track.
Key Points:
1. Don’t be a solution in search of a problem - Consider the demand in the market first and then build a product for that pain.
2. Frame your key competitors as villain’s - it is a great way of identifying a problem and rallying people behind your product.
3. Be a pill not a vitamin - Is your product a ‘must have’ or a ‘nice to have’?
4. Your ICP should be narrow enough that you are able to streamline your entire operation and make your capital more efficient - you will have to say no to people.
5. A genuine go-to-market model considers every stage of the funnel.
We give you a framework for creating a B2B Sales Playbook - section by section, with key info about questions to consider when writing your own Sales Playbook.
Find out more about how to create your own Sales Playbook at: https://contemsa.com/sales-playbook/
Our Sales Enablement Plan Playbook is a planning methodology that highlights our premium tool-kit of tools & templates to help you develop a sales enablement plan that increases your win-rate, deal-size and % reps attaining quota.
Download the Sales Strategy Template
fourquadrant.com/product/strategic-account-plan-template/
Sales Strategy Template - The outline for s sales strategy plan should include an assessment of the customer’s business, opportunities that are prioritized, a summary of the team’s capabilities, an evaluation of relationships and a sales action plan.
Strategic Market Planning - Assessing a customer’s business is a fundamental element of strategic market planning. Start with a basic SWOT and then drill down to develop value statements that specific to specific business initiatives.
Sales Strategy Plan - The sales strategy plan should be centered around the opportunity area that provides high value to both the account and the vendor. Other opportunities may exist but win / win’s are the best possible outcome.
Marketing & Sales Strategy - Document the sales strategies and capabilities required to penetrate and or expand into the account.
Sales Tactics - The identification of key customer contacts required to advance the strategic and tactical aspects of the sales are key sales tactics. Formalize the collection of this information for the entire account team to leverage.
Market Development Strategy - The market development strategy must document the tangible, objective, quantitative measures of success. These sales metrics are typically expressed as subscription, bookings or revenue.
Download the Sales Strategy Template
fourquadrant.com/product/strategic-account-plan-template/
The presentation covers elements of a GTM plan, what makes it disruptive and how does one measure it. The presentation was used at the NASSCOM Product Conclave in Cochin held on 14 Dec 2016 by Sunder Madakshira.
Developing Your Go to Market Strategy - For Startup Founders & EntrepreneursAdam Moalla
How to think about your new business go to market strategy?
In my accelerators mentoring sessions, I try to bring all the knowledge I have built in the last 10 years into a 30min presentation, aiming to inspire entrepreneurs and startups founders and give them hints and tips on how to think and develop their go to market strategy as an essential part of successfully launching and growing their business idea.
These slides are by no mean a go-to-market strategy template but rather an elaboration on the different aspects of what constructs the process of building the sales and marketing activities of a new business.
The slides touch the following topics:
Things that you can control for your idea to be successful
Re-thinking your new business KPIs
Analysing the market objectively
Identifying target customers
Defining the "Minimum Viable Sales Process"
Widening the marketing activities
Tracking and optimisation
Presentation I have done in a Sloan software class on sales, sales management, and sales strategy. Particularly applicable to companies doing b2b selling.
Inilah pitch deck dari raksasa media digital, Buzzfeed. Bagi kamu yang memiliki model bisnis yang serupa dengan BuzzFeed, mungkin kamu dapat terinspirasi dari pitch deck ini.
The Go-To-Market framework is a related set of activities and processes that connect the company’s product strategy to the customer experience. The Go-To-Market framework is cross-functional, spanning product management, product marketing, and sales. It is a strategy and requires operational efficiency.
Sales Impact Academy Coach, Mark Walker gives a preview of this foundational course.
You will learn:
1. How to identify the real pain points in your target market.
2. Which go-to-market model is best suited to your businesses.
3. Learn about the key success metrics you need to track.
Key Points:
1. Don’t be a solution in search of a problem - Consider the demand in the market first and then build a product for that pain.
2. Frame your key competitors as villain’s - it is a great way of identifying a problem and rallying people behind your product.
3. Be a pill not a vitamin - Is your product a ‘must have’ or a ‘nice to have’?
4. Your ICP should be narrow enough that you are able to streamline your entire operation and make your capital more efficient - you will have to say no to people.
5. A genuine go-to-market model considers every stage of the funnel.
We give you a framework for creating a B2B Sales Playbook - section by section, with key info about questions to consider when writing your own Sales Playbook.
Find out more about how to create your own Sales Playbook at: https://contemsa.com/sales-playbook/
Our Sales Enablement Plan Playbook is a planning methodology that highlights our premium tool-kit of tools & templates to help you develop a sales enablement plan that increases your win-rate, deal-size and % reps attaining quota.
Download the Sales Strategy Template
fourquadrant.com/product/strategic-account-plan-template/
Sales Strategy Template - The outline for s sales strategy plan should include an assessment of the customer’s business, opportunities that are prioritized, a summary of the team’s capabilities, an evaluation of relationships and a sales action plan.
Strategic Market Planning - Assessing a customer’s business is a fundamental element of strategic market planning. Start with a basic SWOT and then drill down to develop value statements that specific to specific business initiatives.
Sales Strategy Plan - The sales strategy plan should be centered around the opportunity area that provides high value to both the account and the vendor. Other opportunities may exist but win / win’s are the best possible outcome.
Marketing & Sales Strategy - Document the sales strategies and capabilities required to penetrate and or expand into the account.
Sales Tactics - The identification of key customer contacts required to advance the strategic and tactical aspects of the sales are key sales tactics. Formalize the collection of this information for the entire account team to leverage.
Market Development Strategy - The market development strategy must document the tangible, objective, quantitative measures of success. These sales metrics are typically expressed as subscription, bookings or revenue.
Download the Sales Strategy Template
fourquadrant.com/product/strategic-account-plan-template/
The presentation covers elements of a GTM plan, what makes it disruptive and how does one measure it. The presentation was used at the NASSCOM Product Conclave in Cochin held on 14 Dec 2016 by Sunder Madakshira.
Developing Your Go to Market Strategy - For Startup Founders & EntrepreneursAdam Moalla
How to think about your new business go to market strategy?
In my accelerators mentoring sessions, I try to bring all the knowledge I have built in the last 10 years into a 30min presentation, aiming to inspire entrepreneurs and startups founders and give them hints and tips on how to think and develop their go to market strategy as an essential part of successfully launching and growing their business idea.
These slides are by no mean a go-to-market strategy template but rather an elaboration on the different aspects of what constructs the process of building the sales and marketing activities of a new business.
The slides touch the following topics:
Things that you can control for your idea to be successful
Re-thinking your new business KPIs
Analysing the market objectively
Identifying target customers
Defining the "Minimum Viable Sales Process"
Widening the marketing activities
Tracking and optimisation
Presentation I have done in a Sloan software class on sales, sales management, and sales strategy. Particularly applicable to companies doing b2b selling.
Inilah pitch deck dari raksasa media digital, Buzzfeed. Bagi kamu yang memiliki model bisnis yang serupa dengan BuzzFeed, mungkin kamu dapat terinspirasi dari pitch deck ini.
More startup pitch deck examples here: https://attach.io/startup-pitch-decks/
AirBnb's original pitch deck from 2008. They closed a $600k seed round with this deck.
This was our final Series A deck. Read more about raising the round in this blog post:
https://medium.com/@DanielleMorrill/welcome-brad-feld-to-the-mattermark-team-announcing-our-6-5m-series-a-dd9532fc1b39
The investor presentation we used to raise 2 million dollarsMikael Cho
The investor presentation we used to raise 2 million dollars for ooomf.com (now pickcrew.com)
View the online version here: https://pickcrew.com/investors/
The slide deck we used to raise half a million dollarsBuffer
This is the pitchdeck we used to raise half a million dollars from Angel investors. More here:
http://onstartups.com/tabid/3339/bid/98034/The-Pitch-Deck-We-Used-To-Raise-500-000-For-Our-Startup.aspx
Planning a Product launch ? Here is a guideline/template for Defining a Go To Market Strategy. The deck would be more apt for Technology Product / Solution launch. Feel free to download and customize the deck for your needs.
Looking to scale something up? Depending on how you're going after your market/ acquiring users, you may need to build a sales organization that's optimized for a top-down or bottom-up sales process (or perhaps both).
Watch the video overview at http://a16z.com/2015/03/06/go-to-market-bootcamp/ and then check out this slide deck, which shares some concrete tips and tools for accelerating time to market -- from the go-to-market experts at a16z, led by 'sales savant' Mark Cranney.
Because selling to enterprises is a lot like getting a bill passed through Congress: it can get stuck. And getting stuck -- or going down the wrong path -- can mean death to startups in a competitive market. Here's how to avoid that.
Driving to Market - V2! - How to "Drive" Competitive Advantage in your Go To ...Michael Skok
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/
Provides practical tips on how to prepare to enter the marketplace with your product. Relevant for all start-ups that are still in a development phase and contemplating the various pieces that need to be in place for product launch.
Presentation from Channel Focus delivered by Marc Monday on 15 May 2019. This presentation delves deeper into what Jay McBain at Forester calls the "shadow channel" and was an opener for a deeper discussion around customer acquisition through digital marketing and alliances.
One thing everyone can agree on is that the “new buyer’s journey” is changing how customers buy everything from cars to firewalls. The traditional roles of sales and marketing are changing like never before. Add the complexity of selling through an indirect channel and things can start to feel pretty complicated. The good news is that there are practical approaches that help align channel marketing and sales to help smooth these seemingly troubled waters.
Strategies for Managing Sales Teams: How to find, select and compensate these...MaRS Discovery District
Hiring, managing and compensating effective salespeople is one of the biggest challenges faced by young companies, it can also be the area where most executives have the least experience and the most discomfort from a management perspective. This practical, experience based session will work through the importance of identifying, sourcing and hiring the right person for the needs of your business, considerations in managing them, and structuring compensation plans to incent the right results, and protecting the company's ability to turn a profit.
Helen Robert and Lynn Cameron, Managing Partners of TechEdge, and
Margo Crawford, President & CEO, Business Sherpa
Parth\'s in it\'s endeavour to manage sales effectively with real time communication tools ,developed the crm,which will guide companies towards excellence in customer relationship.
360insights' Webinar: 8 Essentials for a Successful MDF & Co-Op Marketing Pro...360insights
How can we as incentive program managers increase channel satisfaction with our MDF and Co-Op marketing efforts? Diane Krakora, CEO of Partner Path and 360insights' VP of Alliances, Steven Kellam recently got together to shed light on this very topic. We had so many questions that the webinar went quite a bit over its allotted time window, but that's good – it shows that channel marketing professionals are engaged. They want to know more, and they want to do better work. You can watch the replay of the webinar in its entirety by searching for the blog post on our site of the same name as this deck.
The essence of International Marketing. Most fundamentals for every company and brand wishing to expand globally. Compass to effective export strategy and global brand building.
5 big bets to drive growth in 2024 without one additional marketing dollar AND how to adapt to the biggest shifting eCommerce trend- AI.
1) Romance Your Customers - Retention
2) ‘Alternative’ Lead Gen - Advocacy
3) The Beautiful Basics - Conversion Rate Optimization
4) Land that Bottom Line - Profitability
5) Roll the Dice - New Business Models
SEO as the Backbone of Digital MarketingFelipe Bazon
In this talk Felipe Bazon will share how him and his team at Hedgehog Digital share our journey of making C-Levels alike, specially CMOS realize that SEO is the backbone of digital marketing by showing how SEO can contribute to brand awareness, reputation and authority and above all how to use SEO to create more robust global marketing strategies.
Digital Money Maker Club – von Gunnar Kessler digital.focsh890
Title One is a comprehensive examination of the impact of digital technologies on
modern society. In a world where technology continues to advance rapidly, this article delves into the nuances and complexities of the digital age, exploring Its implications across various sectors and aspects of life.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
Financial curveballs sent many American families reeling in 2023. Household budgets were squeezed by rising interest rates, surging prices on everyday goods, and a stagnating housing market. Consumers were feeling strapped. That sentiment, however, appears to be waning. The question is, to what extent?
To take the pulse of consumers’ feelings about their financial well-being ahead of a highly anticipated election, ThinkNow conducted a nationally representative quantitative survey. The survey highlights consumers’ hopes and anxieties as we move into 2024. Let's unpack the key findings to gain insights about where we stand.
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
SMM Cheap - No. 1 SMM panel in the worldsmmpanel567
Boost your social media marketing with our SMM Panel services offering SMM Cheap services! Get cost-effective services for your business and increase followers, likes, and engagement across all social media platforms. Get affordable services perfect for businesses and influencers looking to increase their social proof. See how cheap SMM strategies can help improve your social media presence and be a pro at the social media game.
Unleash the power of UK SEO with Brand Highlighters! Our guide delves into the unique search landscape of Britain, equipping you with targeted strategies to dominate UK search engine results. Discover local SEO tactics, keyword magic for UK audiences, and mobile optimization secrets. Get your website seen by the right people and propel your brand to the top of UK searches.
To learn more: https://brandhighlighters.co.uk/blog/top-seo-agencies-uk/
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
The session includes a brief history of the evolution of search before diving into the roles technology, content, and links play in developing a powerful SEO strategy in a world of Generative AI and social search. Discover how to optimize for TikTok searches, Google's Gemini, and Search Generative Experience while developing a powerful arsenal of tools and templates to help maximize the effectiveness of your SEO initiatives.
Key Takeaways:
Understand how search engines work
Be able to find out where your users search
Know what is required for each discipline of SEO
Feel confident creating an SEO Plan
Confidently measure SEO performance
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Valters Lauzums
E-commerce in 2024 is characterized by a dynamic blend of opportunities and significant challenges. Supply chain disruptions and inventory shortages are critical issues, leading to increased shipping delays and rising costs, which impact timely delivery and squeeze profit margins. Efficient logistics management is essential, yet it is often hampered by these external factors. Payment processing, while needing to ensure security and user convenience, grapples with preventing fraud and integrating diverse payment methods, adding another layer of complexity. Furthermore, fulfillment operations require a streamlined approach to handle volume spikes and maintain accuracy in order picking, packing, and shipping, all while meeting customers' heightened expectations for faster delivery times.
Amid these operational challenges, customer data has emerged as an important strategy. By focusing on personalization and enhancing customer experience from historical behavior, businesses can deliver improved website and brand experienced, better product recommendations, optimal promotions, and content to meet individual preferences. Better data analytics can also help in effectively creating marketing campaigns, improving customer retention, and driving product development and inventory management.
Innovative formats such as social commerce and live shopping are beginning to impact the digital commerce landscape, offering new ways to engage with customers and drive sales, and may provide opportunity for brands that have been priced out or seen a downturn with post-pandemic shopping behavior. Social commerce integrates shopping experiences directly into social media platforms, tapping into the massive user bases of these networks to increase reach and engagement. Live shopping, on the other hand, combines entertainment and real-time interaction, providing a dynamic platform for showcasing products and encouraging immediate purchases. These innovations not only enhance customer engagement but also provide valuable data for businesses to refine their strategies and deliver superior shopping experiences.
The e-commerce sector is evolving rapidly, and businesses that effectively manage operational challenges and implement innovative strategies are best positioned for long-term success.
2. No Market Need 42%
Ran Out of Cash 29%
Not the Right Team 23%
Get Outcompeted 19%
Pricing/Cost Issues 18%
Poor Product 17%
Need/Lack Business Model 17%
Poor Marketing 14%
Ignore Customers 14%
Product Timing 13%
Lose Focus 13%
Team or Investors 13%
Pivot Gone Bad 10%
Lack of Passion 9%
Bad Location 9%
No Financing/Investor Support 8%
Legal Challenges 8%
Don’t Use Network/Advisors 8%
Burn Out 8%
Failure to Pivot 7%
3. 5. KNOW YOUR COST OF
ACQUIRING CUSTOMERS
4. ESTABLISH PRICING
STRATEGY
3. DEFINE YOUR BRAND
MESSAGE
2. KNOW WHERE THEY ARE
1. DEFINE YOUR AUDIENCE
Key Steps in
Developing Your
Go To Market
Strategy
5. • Biggest, most urgent pain and how
well you solve it
• Gaps in the market
• Segment size
• Alignment with your strategy and
competencies
• Competition
DEVELOP YOUR
MARKET PROFILE
It’s not about
who you want.
It’s about who
wants you.
Tip!
7. BUYER PERSONA
Understand his needs
• Objectives
• Challenges
• Support Needs
• Motivation
Communication
• Industry
• Informational
• Interaction Types
9. IDENTIFY THE RIGHT
MARKETING CHANNELS
Where they are
• Associations
• Web sites
• Trade shows
• Blogs
• Influencers
• Social media
10. Marketing Channel
Average
ROI
Average
Effort
Average
Cost
Tier1
Conversion Rate Optimization High High Mid
Search Engine Optimization High High Mid
Email Marketing High Mid Mid
Tier2
Viral Content Campaigns Mid High Low
PPC Advertising Mid Low High
Affiliate Marketing Mid Mid Mid
Tier3
Display Advertising Low Mid High
Social Media Marketing Mid High Mid
Online Public Relations Low Mid Mid
DETERMINING THE RIGHT MIX
12. WHAT’S IN A BRAND
MESSAGE
1. Target Customer
2. Market Definition
3. Brand Promise
4. Reason to Believe
13. BRAND PROMISE
What is the most
compelling
(emotional/rational)
benefit to your target
customers that your
brand can own
relative to your
competition?
WHY
HOW
WHAT
The Golden Circle
Simon Sinek
14. REASON TO
BELIEVE
What is the most
compelling
evidence that your
brand delivers on
its brand
promise?
18. PRICING
CONSIDERATIONS
• Positioning: premium brand vs.
value brand
• Audience: Broad audience vs.
highly targeted audience
• Methodology: Cost-based model
vs. a market-based model
The most common
pricing error in
startup business
plans is pricing too
low
Tip!
19. Maximization (Revenue Growth) - maximize revenue
growth in the short term. This is done when there are
no clear differences in customers willingness to pay,
and when the optimal short term and long term prices
are equal.
Penetration (Market Share) - price the product at a low
price to win dominant market share.
Skimming (Profit Maximization) - start with a high price
and systematically broaden the product offering to
address more of the customer base at lower prices.
PRICING
STRATEGIES
Once you choose
your pricing strategy,
make sure that your
sales, marketing,
product and
engineering efforts
fall in line.
Tip!
21. WHAT IS CAC?
Total
Marketing
Campaign
Cost
Wages
Associated
with Sales &
Marketing
Cost of Sales &
Marketing
Tools/Software
Any Other
Professional
Services Used
(consultants)
Other sales
and marketing
overhead
+ + + +
Total Customers Acquired
Lifetime Value of a Customer (CLV)
The Gross Margin expected to make from that customer over the lifetime of
your relationship. Gross Margin should take into consideration any support,
installation, and servicing costs.
22. CAC IN RELATION
TO CLV
-1:1 = Terrible. Bleeding money
1:1 = Danger!
You’re losing money
on every transaction
3:1 = Ideal.
Thriving business!
4:1 = Great!
Get more aggressive
23. IMPACTING CAC
Social Media
Inbound Marketing
Free Trials
Touchless conversion
Strategic partnerships
PR
High Churn
Rates
Low Customer
Satisfaction
Field Sales
Outbound Marketing
Recurring Revenue
Scalable Pricing
Cross Sell/Up Sell
Product Line Expansion
Cost to
Acquire a
Customer
(CAC)
Lifetime
Value (LTV)
24. “Understand your users. That's the
key. That's the reason to launch early, to
understand your users. Evolving your
idea is the embodiment of
understanding your users.
Understanding your users well will
tend to push you toward making
something that makes a few people
deeply happy. The most important
reason for having surprisingly good
customer service is that it helps you
understand your users. And
understanding your users will even
ensure your morale, because when
everything else is collapsing around
you, having just ten users who love you
will keep you going.”
Paul Graham, Co-Founder of Y
Combinator
Introduction: Hi my name is Kris Konrath
To get a sense of who’s in the room, can I get a raise of hands of those in a president/ceo/founder role? What about marketing? B2B, B2C?
A couple months ago CB Insights conducted 101 post mortem interviews of startups that failed.
They found two things:
There is rarely just one reason for failure and
2. The reasons are very diverse.
They distilled their data into a top 20 list that I think serves as a nice introduction to what we’re going to talk about today. Why? I can point out 4 of the top 10 that have a direct impact on developing a clear go to market strategy.
No market need
Pricing
Poor marketing
And ignoring customers
So let’s take a look at the components of a successful go to market strategy
Number 1 is your audience. Knowing who they are and segmenting your market is critical.
2. Knowing where they are, how to reach them. This is going to establish your marketing plan.
3. Developing and defining your brand message. It’s who you are and why they wan to buy from you above anyone else.
4. Pricing. Developing the pricing strategy that matches your objectives and position is key.
5 Understanding the cost of acquiring customers.
So let’s start out with your audience.
Defining your audience is really composed of two parts: market segments and the buyers within those market segments.
So let’s start with the first one. Market Segments.
Selecting the right market sounds simple, but it can be one of the most challenging tasks. A lot of times you feel that selecting just one or two is limiting your addressable market. But in fact, with limited resources and limited funding, you need to have a clear focus on the segment that gives you the best chance to succeed.
I’m sure you’re heard of the book Crossing the Chasm by Geoffy Moore. Start on a single beach head or target market. Own it. Then leverage your success to establish another one.
So how do you you decide which market? It’s all about matching your benefit to your markets biggest and most urgent pain.
Keep in mind, it’s not about who you want, it’s about who wants you.
Once you have your market selected, you need to understand your buyer.
If you’re a B2B company, let’s face it, decisions are still made by people with emotion and needs. Know who they are…the more the better.
Understand what their challenges are, and not just as it relates to your offering.
Buyer personas are key and you’ll likely need more than one. There are buyers, influencers and product owners. Knowing who you’re dealing with and how to talk to them is paramount.
Again, rely on your customers, your network, LinkedIn, industry publications and your own market research to find out where these people are. This is important because this is where you’ll be spending marketing dollars to reach them. It’s also about developing the appropriate sales channels.
Blog, article placement,
When you’re considering marketing channels, establish benchmarks for success and measure how well you’re doing along the way.
So now that we know who they are and where they are, let’s talk about your brand message.
There are really 4 key elements to your brand message. We’ve spent a bit of time on buyers and markets, so let’s jump in to brand promise.
What’s a brand promise? It’s the most compelling emotional or rational benefit to your target
Has anyone heard of the Golden Circle?
people don’t buy what you do, they buy why you do it.
What: it’s all about what you do, what you create
How: Your value proposition
Why: Your purpose, your reason for being
It’s all about the WHY. It’s not just features and benefits.
Once you establish the why, you have to give them a reason to believe.
A reason to believe can be accomplished through a case study or a testimonial. It can also be standing by your brand promise. A great example of this is Southwest Airlines.
In the heart of the great recession, gas prices were through the roof, travel was down and many companies like Southwest were scrambling.
As Southwest saw many of their competitors introduce bag fees to shore up revenue, they had a monumental decision to make.
Stand by their brand promise of being a customer first airline or stick it to their customers and immediately see their revenue increase by $450M by charging for bags.
You know the answer.
They didn’t just make the decision, they embraced it and promoted the hell out of it.
Staying true to themselves and their customer paid off.
Their load size increased by 5% and their market share increased 1%. That $450M in bag fees that they lost was offset by an increase in $800M.
Key point: stick to your brand promise. It’s who you are and it’s why your customers buy from you.
Pricing is another area where many startups have trouble.
When you’re evaluating pricing, keep in mind your audience and how you want to position your offering. Are you a premium brand or a value brand? Your pricing should reflect that.
The one mistake that many startups make is pricing too low.
Run a cost-based model and a market-based model. Look at your competition and how well you compete.
Here are a couple of pricing strategies to consider:
For companies focused on revenue growth, Maximization is optimal. In it you’re negotiating the highest possible price for each sale. A lot of mid market software companies follow this strategy.
On the other hand, if market share is important, Penetration is your best bet. Here your offering is priced low to minimize adoption friction and to grown fast. After broad penetration, you move up market. Examples of this are Expensify and Slack.
So let’s move from price to cost.
More specifically, the cost of acquiring customers
So what is the Cost of Acquiring a Customer?
Explain:
The key here is that CAC doesn’t mean a whole lot unless you know the lifetime value of each customer. The relationship between is critical.
So what’s the relationship look like?
The rule of thumb is if your cost of acquiring a customer is 3X your CLV, you’re in great shape.
At a 1 to 1 level, you’re still losing money and below that it gets pretty grim.
If you’re at a 4X level, congratulations! You’re doing great. However, consider reinvesting to get to a 3X level.
So what can you do to impact the relationship?
So I’ll leave you with this quote from Paul Graham, founder of Y Combinator. Kind of like a 3 month, on-site Venture Atlanta boot camp.
Twice a year we invest a small amount of money ($120k) in a large number of startups (most recently 107).
The startups move to Silicon Valley for 3 months, during which we work intensively with them to get the company into the best possible shape and refine their pitch to investors. Each cycle culminates in Demo Day, when the startups present their companies to a carefully selected, invite-only audience.
But YC doesn’t end on Demo Day. We and the YC alumni network continue to help founders for the life of their company, and beyond.
Understand your users. That's the key. The essential task in a startup is to create wealth; the dimension of wealth you have most control over is how much you improve users' lives; and the hardest part of that is knowing what to make for them. Once you know what to make, it's mere effort to make it, and most decent hackers are capable of that.
Understanding your users is part of half the principles in this list. That's the reason to launch early, to understand your users. Evolving your idea is the embodiment of understanding your users. Understanding your users well will tend to push you toward making something that makes a few people deeply happy. The most important reason for having surprisingly good customer service is that it helps you understand your users. And understanding your users will even ensure your morale, because when everything else is collapsing around you, having just ten users who love you will keep you goin