Rijeka - 27.10.2016 - Startup Marketing
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This document provides advice for startup marketing in an environment of constant change. It emphasizes that most startups fail due to not acquiring customers, rather than building products. To succeed, startups must develop a brand, audience, consistency, marketing strategy, great product, and sales processes. They must also generate positive cash flow. The document outlines the importance of defining personas, traction channels, and product-market fit to develop a scalable marketing strategy focused on retention through optimization of funnels and analytics.
Rijeka - 27.10.2016 - Startup Marketing
- 1. Startup Marketing in a world of constant change
- 2. Hello! Goran Candrlic Twitter: @Chande FB: /chande LinkedIn: /gorancandrlic Instagram: /gorancandrlic
- 3. Bragging rightsBuilt 500+ websites Managed EUR 50M in online sales Success AutoGlobal, Adria24, Free.com.hr, IntechOpen, SEOCrawler, Kisha Umbrella, GlobalDots Failure Failed to build (to initial vision) @WebinyPlatform Many more :) (test, iterate, rinse & repeat)
- 4. Why Startups Fail? Most startups dont fail at building a product. They fail at acquiring customers. - Gabriel Weinberg (DuckDuckGo) 1
- 5. Why Startups Fail? And false thinking: Build it and they will come 2
- 6. Reason? If you are not a brand - they (customers) do not care. And to build brand you need? MONEY!!! AUDIENCE!!! CONSISTENCY!!! BRAND STRATEGY!!! GREAT PRODUCT!!! MARKETING AND SALES MACHINE!!! And most of all: CASH FLOW TO KEEP THE OPERATION GOING! 3
- 7. But lets get back to beginnings... What is a startup? A company that does not know what their product is and who their customers are! Dont mix it with growth companies (startups that get funded) Investors dont fund companies based on a vision, but on numbers! 4
- 8. Your goal as a startup Is to find a product / market fit Bullshit wording for: Knowing what customers will pay for! Creating a scalable sales and marketing strategy & processes Creating a positive cash-flow Creating an operation with LTV > CAC (customer lifetime value is larger than customer acquisition cost with positive cash flow (so you dont burn money before another investment round)) 5
- 9. WRONG This can be optimized. Dont waste time on crappy prototypes. 6
- 10. But MVPs Kinda Suck on the contrary to what everyone is evangelizing (like bullshit Fail harder mantra) Not applicable to copy-cats (just copy / scale) With copy-cats you just need low CAC, low operating costs, high retention *** MVP: Minimum Viable product 7
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- 12. How to know what is your EVP? You have a pretty good idea what you want to build You dont know yet if people will buy it You dont know yet if there is a scalable marketing / sales process (no audience, no evangelism, no free traffic, no press, no nothing) You dont know yet how big is your CAC or LTV 9
- 14. ...but dont worry 90% of startups fail unless you are totally lucky and you create a product that a lot of people want, that your competitors suck, that there is no regulation, that there are high barriers for competitors to enter the market... 11
- 15. ...but why (again) Most startups compete in disruptive (or saturated) markets that means either they are gambling on if the products in this niche will be commoditized by technology advancement (new tech + first mover advantage + branding) - very high barrier to entry or they are innovating in saturated or mature markets where they need to differentiate (brand) / create demand / solve previously non-adressed need (niche) 12
- 16. Examples Auto-industry: commoditization of personal transport Banking: global commerce and exchange need intermediary (BitCoin can change that) Telecom: commoditization of communication Google: commoditization of search & explosion of content (new channel) + advertising Apple: consumer electronics and PC + convergence of hw+sw+mobile Microsoft: commoditization of personal computing Zappos: using new channel for customer-service in segment Amazon: commoditization of ecommerce + development and optimization of workflows PayPal: easy online payments Facebook: personal (social) network commoditization + big data Skype: commoditization of global voice communication 13
- 17. Whats next? Internet of things (hyper-connected devices / programs) Mass-commoditization of consumer goods based on tech (new materials, processes) Automation and scalability of manufacturing processes (3d printing) New business processes New marketing processes New sales processes Consumers AND businesses have a variety of options Innovate or differentiate! 14
- 18. Whats driving the change? Standardization of IPv6, providing vastly more IP addresses The mainstreaming of cloud and fog computing (fog computing is Ciscos phrase for smart things, distributed widely, reaching up to the cloud) Pervasive collaboration of people and professionals via technology The explosion of apps for everything The trend of app developers to push intelligence from the app layer to the network layer, or the cloud Growing big data and analytics Ever-increasing network capacity at higher speeds and ever- cheaper rates The consumerization of enriched experiences with things Nanotechnology Explosion of communication touchpoints!!! 15
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- 21. So how to do startup marketing? 1. Develop your personas 2. Develop your traction channels 3. APPLY FINDINGS TO YOUR PRODUCT (marketing-driven product development)! 4. Scale 5. Rinse & Repeat 18
- 22. Personas Never skip this step! 19
- 23. Traction channels Viral Marketing Public Relations (PR) Unconventional PR Search Engine Marketing (SEM) Social and Display Ads Offline Ads Search Engine Optimization (SEO) Content Marketing Email Marketing Engineering as Marketing Target Market Blogs Business Development (BD) Sales Affiliate Programs Existing Platforms Trade Shows Offline Events Speaking Engagements Community Building 20
- 24. Bullseye Framework 3 channels 5 channels 11 channels Test, rinse, repeat Scale channel Move to the next after channel is saturated CPA (cost per acquisition) or CAC (Customer Acquisition Cost) vs LTV (customer lifetime value) Marginal CPA 21
- 25. Follow these non bullet-proof steps 1. Have an idea of product / problem you solve 2. Develop personas (who will use this product) 3. Develop user stories / use cases / how to interact (MOST IMPORTANT) 4. Find feature set (remove features) 5. Know their affinity, where to market to them, how to market to them (research your channels), how to scale sales+marketing, how big is the market (SECOND MOST IMPORTANT) 6. Develop canvas 22
- 26. Follow these non bullet-proof steps 1. Develop brand strategy 2. Build product (Embed Marketing & Sales processes INTO your product) 3. Launch 4. Optimize (basic optimization) of your funnels 5. Acquisition 6. Activation 7. Retention 8. Revenue 9. Referral 10.A/B test (and never stop) 11.Scale 23
- 27. Funnels will help you 24
- 28. Scale your channels Learn when to scale (only after product / customer development) Scale only after additional unit sold is costing less in CAC. If CAC grows with each unit > optimize 25
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- 32. Growth Hacking Bullshit overhyped word for: Finding the customer sweet-spot and low CAC (and low marginal CAC) in non-saturated acquisition channels Using network effect in hyper-connected world with 3C (constantly-connected consumer) Use technology / engineering to fuel new ways of customer acquisition 28
- 33. What if something goes wrong? Step 1: Pivot (business model, channels, pricing) Success? Yes - good for you No - give up (or pivot again, but chances are you made a wrong turn somewhere) 29
- 34. The Holy Grail of Marketing 30
- 35. Goal of online marketing Define and implement online marketing strategy Aligned with overall marketing strategy Brand Message Goals, KPIs, Targets Drive traffic Owned Inbound (earned) Outbound (paid) Drive leads / sales Conversion Scoring Nurturing Analyze, track, improve 31
- 36. Online marketing strategy Mission Vision Branding Value Proposition (Company) Communication framework Market conditions (SWOT, PEST) 32
- 37. Online marketing strategy Product Product / market fit Value proposition USP Key Selling Points Cross-sells & Upsells Pricing Acquisition channels Owned (website, mailing lists, other properties & audiences) Earned (SEO, Social, Content, Word of mouth, Reviews, Referrals) Paid (PPC, Display, Production, SEO, Remarketing) 33
- 38. Online marketing strategy Lead/Sale-generation & Funnels Conversion Rate Optimization Landing page optimization A/B testing Retention Action / non-action driven! Loyalty program Customer support Over-deliver Analytics Framework Main goal: calculate CAC & LTV per channel Include costs from all marketing and sales activities Use cohort analysis to fuel growth and scalability 34
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- 50. In a nutshell Product market fit Know your audience (personas) Build scalable sales & marketing process Know your funnels Build EVP product Focus on retention more than acquisition or revenue (if you can) Test everything (Conversion Rate Optimization) Invest in your Brand Track smart things - not vanity metrics Measure inbound vs outbound channels (Dont) ask customers what they want KISS (Keep it simple stupid!) 46