lean launch pad itp 3.9.2015
TRANSCRIPT
Class 5 / 12
March 3, 2014
Jen van der Meer | jd1159 at nyu dot edu
Josh Knowles | chasing at spaceship dot com
LEAN LAUNCHPAD AT NYU ITP
Rockets Sketches borrowed from Harry Allen Design
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WE ARE HERE
1/27Business ModelsCustomer DevelopmentUX Tools Intro
2/3Value PropositionUX Tools, Frameworks
2/10Customer SegmentsResearch Tools
2/17President’s Day
2/24Revenue StreamsDistributionProduct Definition
3/3Customer RelationshipsPartners,Product Development
3/10 Resources, Activities, Costs,Product Development
3/17Spring Break
3/24Customer DevelopmentProduct Development
3/31Customer DevelopmentProduct Development
4/7Customer DevelopmentProduct Development
4/14Customer DevelopmentProduct Development
4/21Product MVP
4/28Lessons Learned
What’s their role
Who are they
How do they buy
What matters
What pain is being solved for them
CUSTOMER ARCHETEYPES
STRATEGY + TACTICS
Physical Digital
GET Strategy: Awareness, interest, Consideration, Purchase
Tactics: Earned Media, paid media, online tools
Strategy: Acquire, activate
Tactics: Websites, appstores, search, email, blogs viral social nets, reviews, pr, free trials, home/landing page, webinars
KEEP Strategy: Interact, Retain
Tactics: Loyalty programs, product updates, customer surveys, customer check-in calls
Strategy: Interact, retain
Tactics: Customization, user groups, blogs, online help, product tips, bulletins, outreach, affiliates
GROW Strategy: New revenue, referrals
Tactics: upsell, cross sell, referrals, unbundling
Strategy: New revenue, referrals
Tactics: upgrades, contests, reorders, refer friends, upsell, cross sell
How much will it cost us to get an “activated” customer?
“CAC” is cost of all of your sales and marketing expenses over a given period of time, divided by the number of customers acquired in that window.
Why this is valuable – test different tactics against each other, and understand how to create a customer acquisition system with you at the help of the inputs.
Bessemer Cost of Customer Acquisition:
http://www.bvp.com/sites/default/files/cac_ratio_-_one_number_to_manag__your_saas_sm_spend_-_october_2008.pdf
CUSTOMER ACQUISITION
CAC Ratio 1Q2015 = [Gross Margin (2Q15) – Gross Margin (1Q15)] *4
Sales and Marketing Costs (1Q15)
The CAC ratio determines the payback time on your sales and marketing investment: a CAC ratio of 0.5 for example means that half of your investment is paid back per year, so it is a two year payback period.
Bessemer Cost of Customer Acquisition:
http://www.bvp.com/sites/default/files/cac_ratio_-_one_number_to_manag__your_saas_sm_spend_-_october_2008.pdf
CAC RATIO
The viral co-efficient: the average number of invitations sent by each existing user times the conversion rate of invitation to new user. The viral coefficient is referred to as the K value.
THE MAGIC ACCELERATOR: THE VIRAL LOOP
Google Forms – free but you have to find your list
LinkedIn Polls
Free: if you’re already connected to your audience
Fee: to survey a specific demographic
Paid Survey Audience
B2B: Thinkspeed.com $3 - $5k survey design based on audience
B2C: SurveyMonkey.com/mp/audience: $3.00 per finished response for standard demographics, requires a $20 professional plan
Buying Facebook audiences (requires a FB account)
TESTING BEFORE YOU HAVE A PRODUCT
What are your priority segments?
What are your value proposition hypotheses?
What is your call to action in your marketing test?
Where will you test?
KEY MARKETING LEVERS TO TEST
Strategic alliances
– Social media software and WPP, Omnicom, Publicis
Joint new business development efforts
– Intel inside, Retail co-ops
Co-opetition
– Industry week (adweek, fashion week)
Key supplier relationships
– Historical relationship between Microsoft, Dell, and
PARTNERS
Hypothesis to get:
Acquisition
Activation
What is your hypothesis to keep:
Outreach
Events
Loyalty
Product updates
What is your hypothesis to grow:
Upsell
Cross-sell
Next-sell
Referrals
WHAT WILL YOU TEST?
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NEXT WEEK PREP:
REFINE YOUR SEGMENTS – EVERYONE’S SEGMENTS ARE TOO BROAD.
Watch Lecture on Activities, Resources and Costs
Read: Business Model Generation 226-261.
Presentation:
· Cover slide
· Latest version Business Model Canvas with changes marked
· Results of last week’s experiments. What passed, what failed, what did you learn?
· Proposals for next week’s experiments. What constitutes a pass/fail signal for each?