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Health Tech Distribution

Health 2.0 - Silicon Valley
Paul Willard, Atlassian CMO • 12/18/2012
Serial Industry Disrupter
• Playbook from NextCard – Consumer Credit
• Groundhog Day Career
 • Business Banking
 • Consumer Banking
 • Consumer Price Promotion
 • Health Tech
2 Types of Industries

                     1.
Those that have been disrupted by software

                     2.
         Those that haven’t ... yet
Google Analytics
                                       KISS metrics


Agnostic
                                        Optimizely
                                 Visual Website Optimizer




Disruption      Bamboo                                            Agile
                Jenkins                                        GreenHopper



Toolkit
             JIRA                                                   Confluence




                       Git
                    Mercurial
                                                         AWS
                    Wordpress Joomla
                                                       RackSpace
                               Drupal
                              Bitbucket

                + Scalable distribution model
Scalable Distribution Methods
•   Press
•   Communities
                     Awareness
•   Refer-a-friend
•   Search           Consideration
•   Email
                      Conversion
•   App stores
•   Affiliates            Loyalty

•   Display             Advocacy
Don’t Ignore Distribution
• Startups need technology,
  product, and distribution
• Many fail on distribution
 • Myth:
   If you build it, they will come
 • Fact:
   The best distribution won
Learn to Fail, Don’t Fail to Learn
• Most ideas will not work
• Don’t invest too much in
  any one idea – no epic fails
• Plan to fail - fast, cheap
Simplify - Only 2 Charts

            Acquisition Exponential                        Cohort Curves




                                      Lifetime Value ($)
Customers




                     Month                                 Months as Customer
Feedback Loops
• Test quick, cheap, and dirty
 • Released vs polished
 • Front end flexibility
 • Standardize reporting

• Model LTV quickly
• Never stop what is working,
  be incremental & relentless
A/B Testing - A Practical Guide
• Hypothesis Testing Equation
 • Myth: A vs B, best one wins
 • Reality: Look at distribution,
   segmentation, learn about the
   market, and dream up C
How much should I spend?
• 12 month break even                                     Allowable
 • Conservative




                                   Lifetime Value ($)
 • Estimating is ok
 • Virality
 • Model LTV for each channel or
   even campaign

                                                        Months as Customer
Questions?

Health Tech Distribution
Health 2.0 - Silicon Valley
Paul Willard, Atlassian CMO • 12/18/2012
A/B Testing - A Practical Guide
• Conversion = Desire - Friction
• Hypothesis Testing Equation
 Myth: A vs B, best one wins
 Reality: Look at distribution,
 segmentation, learn about the
 market, and dream up C
Desire
• Behavioral design:
 • Cialdini’s book - Influence
 • Dan Ariely
 • Nir Ayal’s Desire Engine -
   NirAndFar.com
• Examples
 • Headlines
 • An authentic solution
 • Ask customer what they want
Friction
• UX testing useful for friction
• Minimize ambiguity through
  good design
 • Speed
 • Call to action - placement,
   color, shape
 • Grouping, contrast, IA
Product as Designer Drug
• Get your market hooked
 • Their fix = problem solved
 • Eliminate all friction

• Test conversion to “fix”
• Qualitative methods
Cohorts
• Do not A/B test your core                                Test impact on LTV
  repeat usage product
 • UX testing to show problems




                                      Lifetime Value ($)
 • Offer beta - to a subpop
 • Test newsletters, cross-sell/up-
   sell messaging, tutorials, first
   time user flows, etc
 • Find twitchy measures of                                  Months as Customer

   success

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Health 2.0 keynote

  • 1. Health Tech Distribution Health 2.0 - Silicon Valley Paul Willard, Atlassian CMO • 12/18/2012
  • 2. Serial Industry Disrupter • Playbook from NextCard – Consumer Credit • Groundhog Day Career • Business Banking • Consumer Banking • Consumer Price Promotion • Health Tech
  • 3. 2 Types of Industries 1. Those that have been disrupted by software 2. Those that haven’t ... yet
  • 4. Google Analytics KISS metrics Agnostic Optimizely Visual Website Optimizer Disruption Bamboo Agile Jenkins GreenHopper Toolkit JIRA Confluence Git Mercurial AWS Wordpress Joomla RackSpace Drupal Bitbucket + Scalable distribution model
  • 5. Scalable Distribution Methods • Press • Communities Awareness • Refer-a-friend • Search Consideration • Email Conversion • App stores • Affiliates Loyalty • Display Advocacy
  • 6. Don’t Ignore Distribution • Startups need technology, product, and distribution • Many fail on distribution • Myth: If you build it, they will come • Fact: The best distribution won
  • 7. Learn to Fail, Don’t Fail to Learn • Most ideas will not work • Don’t invest too much in any one idea – no epic fails • Plan to fail - fast, cheap
  • 8. Simplify - Only 2 Charts Acquisition Exponential Cohort Curves Lifetime Value ($) Customers Month Months as Customer
  • 9. Feedback Loops • Test quick, cheap, and dirty • Released vs polished • Front end flexibility • Standardize reporting • Model LTV quickly • Never stop what is working, be incremental & relentless
  • 10. A/B Testing - A Practical Guide • Hypothesis Testing Equation • Myth: A vs B, best one wins • Reality: Look at distribution, segmentation, learn about the market, and dream up C
  • 11. How much should I spend? • 12 month break even Allowable • Conservative Lifetime Value ($) • Estimating is ok • Virality • Model LTV for each channel or even campaign Months as Customer
  • 12. Questions? Health Tech Distribution Health 2.0 - Silicon Valley Paul Willard, Atlassian CMO • 12/18/2012
  • 13. A/B Testing - A Practical Guide • Conversion = Desire - Friction • Hypothesis Testing Equation Myth: A vs B, best one wins Reality: Look at distribution, segmentation, learn about the market, and dream up C
  • 14. Desire • Behavioral design: • Cialdini’s book - Influence • Dan Ariely • Nir Ayal’s Desire Engine - NirAndFar.com • Examples • Headlines • An authentic solution • Ask customer what they want
  • 15. Friction • UX testing useful for friction • Minimize ambiguity through good design • Speed • Call to action - placement, color, shape • Grouping, contrast, IA
  • 16. Product as Designer Drug • Get your market hooked • Their fix = problem solved • Eliminate all friction • Test conversion to “fix” • Qualitative methods
  • 17. Cohorts • Do not A/B test your core Test impact on LTV repeat usage product • UX testing to show problems Lifetime Value ($) • Offer beta - to a subpop • Test newsletters, cross-sell/up- sell messaging, tutorials, first time user flows, etc • Find twitchy measures of Months as Customer success