developing a replicable sales & marketing model
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Developing a Replicable Sales & Marketing
Model
Sean Ammirati
Partner, Birchmere VenturesAdjunct Professor, Carnegie Mellon University
#CMULean
The Customer Development Model
#CMULean
Today’s Focus
CustomerDiscovery
CustomerValidation
CustomerCreation
CompanyBuilding
A product solves a problem for anidentifiable group
of users
The market is saleable and large enough that a viable
business might be built
The business is scalable through a
repeatable sales and marketing roadmap
Company departments
and operational processes are
created to support scale
Market Sizing
#CMULean
Total Addressable Market
Served Available Market
TargetMarket
Top Down Bottom Up
Take key variables in revenue model & multiple by market
data assumptions
Example:# of Potential Users x
# of Page Views x (Average RPM in Mkt/1000)
Sample: VigLink
#CMULean
http://lsvp.com/2011/03/16/how-to-estimate-market-size/
Real Goal: Make sure this is worth your time!
(and your investors money)
#CMULean
Sample: NoWait
#CMULean
$185 B300,000 locations
the table service market.
10% Fine DiningReservation
$185 B300,000 locations
casual dining.
OpenTable for Casual Dining
Casual DiningWalk-in
Innovators EarlyAdopters
Early Majority Late Majority Laggards
Modified Source: http://www.slideshare.net/rstrad1/berkeley-digital-media-conference
Technology Adoption Life Cycle
#CMULean#CMULean
Market Types
B2B: used & purchased by businesses
B2C: used & purchased by consumers
B2B2C: sold to business to acquire a consumer
#CMULean
Innovators EarlyAdopters
Early Majority Late Majority Laggards
Modified Source: http://www.slideshare.net/rstrad1/berkeley-digital-media-conference
Technology Adoption Life Cycle
B2B: PragmatistsB2C: Engagers
#CMULean
Replicable Customer Acquisition
SalesMarketingA: Acquisition where / what channels do users come from?A: Activation what % have a "happy" initial experience?R: Retention do they come back & re-visit over time?R: Referral do they like it enough to tell their friends?R: Revenue can you monetize any of this behavior
P: Process understanding the critical activities and stages to activate an account P: Pipeline measuring number of accounts at each stage and likelihood of closing S: SPIN a methodology for asking questions along 4 steps Situation Problem Implication & Need-payoff
#CMULean
http://www.youtube.com/watch?v=irjgfW0BIrw&noredirect=1
#CMULean
#CMULean
http://www.flickr.com/photos/22017131@N05/5307153813/
http://www.flickr.com/photos/500hats/577630651/
#CMULean
Replicable Customer Acquisition
SalesMarketingA: Acquisition where / what channels do users come from?A: Activation what % have a "happy" initial experience?R: Retention do they come back & re-visit over time?R: Referral do they like it enough to tell their friends?R: Revenue can you monetize any of this behavior
P: Process understanding the critical activities and stages to activate an account P: Pipeline measuring number of accounts at each stage and likelihood of closing S: SPIN a methodology for asking questions along 4 steps Situation Problem Implication & Need-payoff
#CMULean
Sales Process
• Predictable
• Scalable
• Automated
• Clearly defined “levers” you can pull
• Instrumented with great metrics
• Cost Optimized
#CMULean
Sales Funnel
• Process should drive to defined stages
• Measurable Location
#CMULean
Qualified Opp
Proposal Sent
Verbal Commitment
30%
60%
80%
Sample
Tools
• Salesforce.com (or another CRM)
• HubSpot
• Mailchimp (or another ESP)
#CMULean
S.P.I.N SellingS: Situation Questions facts about buyers existing situation P: Problem Questions focus on the PAIN I: Implication Questions effects of the problem N: Need-Payoff Questions getting BUYER to state the benefit
#CMULean
CEO Must OWN Customer Relationships
until scaleable!
#CMULean
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