The Startup Guide - Customer Acquisition & Marketing

SHARE FREELY

CEO of Connect.com

Startup Guide

RYAN ALLIS

Building a Better World Through Entrepreneurship

With Ellen Daly

The

2013 Edition

More slides at www.startupguide.com

519 STARTUPGUIDE.COM

CUSTOMER ACQUISITION

Entrepreneurship


BUILD A REAL-TIME CONVERSION FUNNEL TO TRACK RESULTS

BUILD A CONVERSION FUNNEL CUSTOMER ACQUISITION

1,124,194

20,241

3,400

MONTHLY UNIQUE VISITORS

MONTHLY FREE USER SIGNUPS

MONTHLY NEW PAYING CUSTOMERS

100%

1.8%

16.8%


TRACK USER ACQUISITION COST AND CUSTOMER ACQUISITION COST

BUILD A CONVERSION FUNNEL CUSTOMER ACQUISITION

EXAMPLE: MARCH 2017

NEW USERS ACQUIRED 20,241

NEW CUSTOMERS ACQUIRED 3,400

SPENT ON ADVERTISING $1,000,000

COST PER NEW USER $49.40

COST PER NEW CUSTOMER $294.11


IF You don’t KNOW YOUR CUSTOMER ACQUISITION COST it’s really DIFFICULT TO

ACQUIRE CUSTOMERS

CALCULATE CAC CUSTOMER ACQUISITION


IF You don’t KNOW YOUR CUSTOMER LIFE TIME VALUE (LTV) It’s hard to scale Customer acquisition

CALCULATE CUSTOMER LTV CUSTOMER ACQUISITION


At icontact we acquired 1.1 million TRIAL users And 70,000 paying customers For our email & social marketing SERVICE From 2006-2012

CALCULATE CUSTOMER LTV CUSTOMER ACQUISITION


Monthly Revenue

Average Customer Life

Lifetime VALUE (LTV)

What You Can Spend to Acquire a

New Customer

Recurring Customer

$50 48 Months $2400 (50 x 48)

Up to $800 (1/3rd of LTV)

ROUGH EXAMPLE OF WHAT YOU CAN SPEND TO ACQUIRE A NEW RECURRING CUSTOMER

EXAMPLE: CALCULATE LTV CUSTOMER ACQUISITION


Average Purchase Price

Average Number of Purchases

Within 3 Years

3 Year Revenue Estimate

What You Can Spend to

Acquire a New Customer

Non-RECURRING Customer

$50 6 $300 (50 x 6)

Up to $100 (1/3rd of 300)

An EXAMPLE OF WHAT YOU CAN SPEND TO ACQUIRE A Non-recurring CUSTOMER

EXAMPLE 2: CALCULATE LTV CUSTOMER ACQUISITION


SCALE YOUR AD BUDGET SCIENTIFICALLY BY TRACKING LEAD

ACQUSITION COST & CONVERSION RATE

BY ADVERTISING CHANNEL

SCALE YOUR AD BUDGET SCIENTIFICALLY CUSTOMER ACQUISITION


10%-15% of your MONTHLY Advertising budget

Should be spent on TESTING NEW CHANNELS

TEST NEW CHANNELS CUSTOMER ACQUISITION


ONLINE MARKETING CHANNELS

SEO – GOOGLE, YAHOO, BING PPC - GOOGLE Adwords / BING ADCENTER SOCIAL PRESENCE – FACEBOoK, TWITTER, youTUBE SOCIAL ADS – FACEBOOK, TWITTER, Youtube ADS SOCIAL NETWORK INVITE SYSTEMs – AKA ‘GROWTH HACKING’ DISPLAY – BANNER ADVERTISING AFFILIATES – CJ & LINKSHARE Review SITES – YELP, CITYSEARCH, GOOGLE LOCAL DAILY DEALS – GROUPon & LIVING SOCIAL EMAIL FOLLOWUP – iCOntact & MAILCHIMP

ONLINE MARKETING CHANNELS CUSTOMER ACQUISITION


GROWTH HACKING IS USING VIRAL NETWORK EFFECTS TO INCREASE USER ACQUISITION

AND ALLOWING YOUR USERS To EASILY INVITE THEIR FRIENDS ON

SOCIAL NETWORKS

GROWTH HACKING CUSTOMER ACQUISITION


OFFLINE MARKETING CHANNELS

TELEVISION PRINT ADVERTISING RADIO YELLOW PAGES DIRECT MAIL TRADESHOWS EVENT SPONSORSHIPS BILLBOARDS CAMPUS REPS

OFFLINE MARKETING CHANNELS CUSTOMER ACQUISITION


THE KEY IS TO TEST ALL OF THE CHANNELS AND TRACK

THE ACTUAL RESULTS FROM

EACH ONE

TEST ALL CHANNELS CUSTOMER ACQUISITION


THE 6 KEYs TO SUCEESS WITH MARKETING ARE 1.  AMAZING WORD OF MOUTH FROM A GREAT PRODUCT

2.  KNOWING THE LIFETIME VALUE OF A CUSTOMER

3.  A TRACKING SYSTEM THAT CAN TELL YOU COST PER LEAD PER CHANNEL

4.  A TRACKING SYSTEM THAT CAN TELL YOU CONVERSION RATE PER CHANNEL

5.  CONSTANT TESTING OF NEW CHANNELS, CREATIVE, AND FUNNEL PROCESSES

6.  GREAT STORYTELLING

KEYS TO SUCCESS WITH MARKETING CUSTOMER ACQUISITION


TO INCREASE CUSTOMER ACQUISITION 1.  CALCULATE COST PER LEAD & COnVERSION RATE BY CHANNEL 2.  DETERMINE WHAT YOU CAN PAY PER NEW CUSTOMER 3.  TEST NEW ADVERTISING CHANNELS SCIENTIFICALLY 4.  CREATE A PREMIUM VERSION OF YOUR PRODUCt 5.  TEST DOUBLING YOUR PRICE AND SEE WHAT HAPPENS 6.  GET MORE AFFILIATES/DISTRIBUTORS 7.  OPEN UP MORE SALES OFFICES 8.  OPEN UP MORE RETAIL LOCATIONS 9.  BUILD ADDITIONAL PRODUCTS 10. HIRE MORE SALES PEOPLE 11. HIRE SOMEONE TO SELL MORE TO EXISTING CUSTOMERS 12. RAISe CAPITAL AND EXPAND YOUR ADVERTISING

INCREASING Customer ACQUISITION CUSTOMER ACQUISITION


A business is not a business

UNTIL IS HAS

CUSTOMER ACQUISITION ACQUIRING CUSTOMERS

PAYING CUSTOMERS


A BRAND IS SIMPLY THE AGGREGATEd SUM TOTAL OF EVERY Human BEING’S EXPERIENCE WITH YOUR COMPANY & PRODUCTs

WHAT IS A BRAND? CUSTOMER ACQUISITION


MARKETING IS ENSURING THAT THE RIGHT PEOPLE HAVE HEARD THE RIGHT THINGS ABOUT YOUR PRODUCT AND ORGANIZATION

WHAT IS MARKETING? CUSTOMER ACQUISITION


GOOD MARKETING IS JUST GOOD STORYTELLING ACROSS MULTIPLE MEDIA IN A TRACKABLE AND FINANCIALLY SCALABLE MANNER

WHAT IS GOOD MARKETING? CUSTOMER ACQUISITION


MARKETING IS GENERATING AN INTERESTED LEAD. SALES IS TURNING THE LEAD INTO A CUSTOMER. ACCOUNT MANAGEMENT IS TURNING A CUSTOMER INTO

A LIFETIME EVANGELIZER.

MARKETING vs. SALES CUSTOMER ACQUISITION


IN TODAY’s WORLD MARKETING STARTS WITH PRODUCT DEVELOPMENT

BUILD A GREAT PRODUCT CUSTOMER ACQUISITION


YOU Can’T SUCCEED FOR LONG MARKETING

A BAD PRODUCT

MARKET A GREAT PRODUCT CUSTOMER ACQUISITION


SO IF You’re marketing A BAD PRODUCT STOP

STOP MARKETING A BAD PRODUCT CUSTOMER ACQUISITION


AND PUT YOUR FUNDS INTO BUILDING A

GREAT PRODUCT

ONLY BUILD GREAT PRODUCTS CUSTOMER ACQUISITION


THEN WHEN YOU HAVE A GREAT PRODUCT START STORYTELLING

STORYTELLING AS MARKETING CUSTOMER ACQUISITION

SHARE FREELY

CEO of Connect.com

Startup Guide

RYAN ALLIS

Building a Better World Through Entrepreneurship

With Ellen Daly

The

2013 Edition

More slides at www.startupguide.com

Documents

The Startup Guide - Customer Acquisition & Marketing