Will you survive?What you can do to grow in a world of new technologies
Sam Mallikarjunan
Sam @Mallikarjunan
Head of Marketing & Growth
@HubSpot Labs
(Don’t lie)
How does inbound marketing work?
Can you out-help your competitors?
(helping is hard!)
“We don’t make money when we sell things. We make money when we help customers make purchase decisions.” – Jeff Bezos
We live in the one of the most interesting periods in the history of commerce.
Disruptor Disruptee
Personal computers Mainframe and mini computers
Mini mills Integrated steel mills
Cellular phones Fixed line telephony
Community colleges Four-year colleges
Discount retailers Full-service department stores
Retail medical clinics
Phonographs
Traditional doctor’s offices
Pianos
Some examples of disruptive innovation include:
Examples of Disruptive Innovations
The Kodak Moment Went Bankrupt
Kodak Went Bankrupt
Not a disruptive innovation
A disruptive innovation
1877• Edison
invents the phonograph
1905• 400,000
pianos produced
1914
• $56M
1919• $158M
1944• Steinway
produces caskets with excess wood
We are at the very beginning of the greatest global transformation of our lives.
We live in an era of big bang disruptive innovation.
Just because your company has survived the last 100 years doesn’t mean it will survive the next ten.
>70% of businesses on the Fortune 1000 are new within the last decade.
“May you live in interesting times.”
We are in a mass extinction of businesses.
Diamonds may be forever, but the way they’re sold isn’t.
Imagine a world where eCommerce delivers in 30 minutes or less.
Imagine a world where every home has a 3D Printer.
“Our customers want to try the jewelry on before they buy it.”
Not possible now doesn’t mean
Anytime you can say “I’m safe because my customer needs…” you’ve identified a job-to-be-done.
No one wants a ¼ inch drill bit.
They want a ¼ inch hole.
The company that bestsolves for the customer
wins.
Disruptors are coming for you.
Your extendable core is the job you do
for customers that a competitor
couldn’t replicate without adopting the
same cost-structure.
An Extendable Core Insulates You From Disruption
Inbound marketing creates an extendable core that insulates you from disruption.
It’s not all sunshine and rainbows.
Inbound marketing is a business model innovation based on the fact that it’s more economically efficient to create an experience that attracts consumers than it is to interrupt someone else’s.
You can’t improve what you can’t measure.(It’s pretty hard to justify,
too.)
“I’m spending a bunch of money on
marketing, and I’m making more money
than I’m spending back.”
The Old Marketing Math Model
Expense Yearly Amount
PPC $50,000
SEO Firm $6,000
Content Writing
$60,000
Measure everything.
• “I spend $W to acquire customer of persona X from source Y, and they spend an average of $Z with me over their lifetime.”
• Customer Centric Economics Model
Starbucks has an AOV of ~$6*
Using the AOV:COTA model, to get a 3:1 ratio a
Starbucks marketer would spend ~$2 to acquire
that $6 transaction.
How Much Would You Spend?
*
*Source: KissMetrics
Customer centricity creates competitive leverage
Time to Payback
So easy, pretty, and simple to understand, ain’t it?
The Conventional LinearBuying Process
It’s not an end-stateIt’s an infinite loop
A Grand Unified Theory of eCommerce
A Grand Unified Theory of eCommerce
A Grand Unified Theory of eCommerce
A Grand Unified Theory of eCommerce
The marketing activities and tools to this point add up to the Cost Of
Customer Acquisition
Now the focus shifts to increasing the customer’s Life Time Value
A Grand Unified Theory of eCommerce
A Grand Unified Theory of eCommerce
A Grand Unified Theory of eCommerce
Everyone goes through this process
Key Takeaway: Compete in the Research Phase
C = # of new customers, D = # of downloads, V = Average LTV
Yes. I downloaded their eBook.Yes. They helped me make a decision.Yes. I bought from them.
And yes. She said yes.
This new age of marketing is the beginning of something truly remarkable, and your relationship with your customers will never be the same.