Upload
sean-ellis
View
12.386
Download
1
Embed Size (px)
DESCRIPTION
Slides from guest lecture in Steve Blank's course in the Berkeley-Columbia Executive MBA Program.
Citation preview
Sean EllisBerkeley-Columbia Executive MBA Program (Steve Blank) October 16, 2009
Customer Development
Startup Risk & Upside = Customers
1. Traction is tough2. Acquiring at scale even tougher3. Where do you start?
Hundreds of things you “could do”Most early marketing effort wasted
2startup-marketing.com
Road to IPOs: What Really Mattered?
1. Apply engineering to marketing2. Focus on right metrics & optimize3. Understand users and use cases4. Early execution is most critical
3startup-marketing.com
4
CriticalZone IPO
sGrowth Stage
startup-marketing.com
My Key Focus Now Critical Zone
Then light advising in growth stage
Customer Development Sequence
startup-marketing.com
Growth
Transition to Growth
Product/Market Fit
5
Growth Starts with Right Product
startup-marketing.com 6
Growth
Transition to Growth
Product/Market Fit
What is Product/Market Fit?
1. People want/need your productAnd they represent large enough market
2. Differentiated from alternatives3. Users will pay for your product
Or you are advertising supported
startup-marketing.com 7
“Life of any startup can be divided into two
parts -before P/M fit and after P/M fit”
startup-marketing.com 8
Marc AndreessenFounder Netscape, Opsware, Ning
PayPal’s Quest for P/M Fit
1. $200K seed funding - cryptography“No one really needed it” Max Levchin
2. $4.5M VC funding - PDA paymentsPeople preferred web demo (100X users)
3. $1.5B sale to eBay – web payments
startup-marketing.com 9
Survey Your Product/Market Fit
• Free template at Survey.io
startup-marketing.com 10
startup-marketing.com
Key Product/Market Fit Question
“Very Disappointed” My Recommendation
0% – 25% Keep burn low, engage, iterate
26% – 39% Try repositioning, retargeting
40% – 100% Proceed up pyramid
“How would you feel if you could no longer use Product?”
11
Transition to Growth
startup-marketing.com
Growth
Transition to Growth
Product/Market Fit
12
Transition to Growth
1. Track/report right metrics
2. Positioning (based on perceived value)
3. Start recruiting head of marketing4. Viable economics (business model)5. Scalable growth strategy
startup-marketing.com 13
Hiring/Managing VP Marketing
1. Hire marketer with founder DNA2. CEO & VP Marketing form
partnershipCEO shouldn’t abdicate startup’s fateGoal = Scalable, profitable channelsInsist on perfect execution
startup-marketing.com 14
Optimize Before Growing
1. Landing pages
2. Funnel (acquisition through transaction)
startup-marketing.com
8% 12% 13%
15
…
Scalable Growth Now Possible
startup-marketing.com
Growth
Transition to Growth
Product/Market Fit
17
Test from Free to Paid Channels
startup-marketing.com
Channel Cost/user Scalability Viral/referral Free High Email (internal) Free Organic Blog Free Organic SEO Free or Paid Organic Widget Free or Paid Organic Biz Dev/Partners Free or Paid High Domains Paid (low) Low PR Paid (low) High Email (external) Paid (TBD) High SEM Paid (TBD) Can be High Contest Paid (TBD) Organic Affiliate/lead gen Paid (TBD) High Radio Paid (TBD) High TV Paid (TBD) High
18
Driving/Managing Growth
Monitor Growth
• Anything broken?
• Retention
Manage Campaigns
•Optimize and scale campaigns on ROI
Develop New Campaigns
• Test new sources
startup-marketing.com 19
Budget to maximize positive ROI spend
Improve Lifetime Value
1. Customer retention is critical2. Cross/up sell additional products3. This expands profitable channels
startup-marketing.com 20
Complete Startup Pyramid
Twitter: @seanellisBlog: startup-marketing.com
Growth
Optimize
Economics
Positioning
Product/Market Fit