startup istanbul 2016 / sam mallikarjunan - head of growth hubspot
TRANSCRIPT
![Page 1: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/1.jpg)
![Page 2: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/2.jpg)
Agile Strategy for Startups
Sam Mallikarjunan
![Page 3: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/3.jpg)
Principal Marketing Strategist @HubSpotAdvanced Marketing Instructor @HarvardContEd
Sam @Mallikarjunan
![Page 4: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/4.jpg)
historyWe live in the one of the most
of commerce.
interesting periods in the
![Page 5: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/5.jpg)
“May you live in interesting times.”
We are in a mass extinction of businesses.
![Page 6: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/6.jpg)
6
new within the last decade
1000 are >70%
of businesses on the US Fortune
![Page 7: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/7.jpg)
The average life expectancy of a Fortune
500 company has declined from around
75 years half a century ago to less than
15 yearstoday
and projected to be 5 years if disruption continues.
![Page 8: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/8.jpg)
Mass extinction brings opportunities for new species to flourish.
![Page 9: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/9.jpg)
Rogers Market segments
Innovators Early Adopters Early Majority Late Majority Laggards
Trial usersVastMajority
Big BangMarket segments
![Page 10: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/10.jpg)
1. Getting Product Market Fit — Can you build something useful that can pull in some money in some way?2. Getting the Math to Work — Can you acquire customers for X and get at least 3X in return?3. Getting the Math to Scale — Can you pour lots more money into the top of your machine and keep that at least 3x ratio?4. Getting Saturated — You are running out of potential customers in your market or being disrupted.
HubSpot’s Playbook for Going From Startup to Scale-up
![Page 11: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/11.jpg)
1Getting Product Market FitSTART-UP:
![Page 12: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/12.jpg)
Jobs-to-be-done
Step 0: Define the
User Assumption
“As an x I want to y so that I
can z.”
![Page 13: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/13.jpg)
No one wants a 9 ¾ inch drill bit.They want a 9 ¾ inch hole.
![Page 14: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/14.jpg)
![Page 15: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/15.jpg)
![Page 16: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/16.jpg)
Fake it before you make it.
![Page 17: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/17.jpg)
Animated explainer video.
01
![Page 18: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/18.jpg)
02Landing page to generate
sign ups
![Page 19: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/19.jpg)
Button in an existing user
interface
03
![Page 20: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/20.jpg)
Wizard of Oz
“Pay no attention to the man behind the curtain."
The question you have to answer isn’t “can you build this?”
It’s “do people want this?”04
![Page 21: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/21.jpg)
05Crowdfunding campaign
![Page 22: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/22.jpg)
Iterate
![Page 23: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/23.jpg)
It’s tempting (but wrong) to look at this chart for P/M fit.
![Page 24: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/24.jpg)
Product B Does NOT Have P/M Fit
Product A
Product A HasProduct/Market Fit
% Active
Time
Product B
0%
25%
50%
75%
100%
How to know when you’ve found product/market fit
![Page 25: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/25.jpg)
How to know when you’ve found product/market fit
![Page 26: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/26.jpg)
Just as important as knowing why
customers started using your product
is knowing why they stopped.
![Page 27: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/27.jpg)
Congratulations! You have something people will start – and stay – using.
![Page 28: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/28.jpg)
2Getting the Math to WorkSTART-UP:
![Page 29: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/29.jpg)
Start with the customer, and work your way back.“My CLTV is $1,200 and I want
a COCA:CLTV of 1:3”
CoCA: $400
CoLA: $40
CoVA: $2
5% Visit-to-lead
10% Lead-to-customer
![Page 30: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/30.jpg)
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.
$14,099Average LTV
How Much Would You Spend?
*
*Source: KissMetrics
![Page 31: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/31.jpg)
A Business Model
A More Profitable Business Model
COCACLTV$1 in, $2 out.
$2 in, $12 out.
A Faster Growing Business Model
$2 in, $4 out. Scalable model.
COCA
CLTV
Cost Of Customer Acquisition
Customer Life Time Value
CLTV
CLTVCLTV
CLTVCLTV
CLTVCLTV
CLTVCLTV
CLTVCLTV
CLTVCLTV
CLTVCLTVCLTVCLTV
COCACOCA
COCACOCA
![Page 32: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/32.jpg)
3Getting the Math to ScaleSCALE-UP:
![Page 33: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/33.jpg)
01
02
03
0405
06
07
Am I truly delighting my customers such that they are
helping lower my cost to acquire new ones with word
of mouth and increasing their own monetary value to me?
Am I a startup or a scale-up?
Persona perfection?
Are we focused?
Do I have enough resources on my core delightion?
Is my pricing model aligned with the success of my customers?
Are my sales reps’ incentives aligned with the
customers’ incentives?
![Page 34: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/34.jpg)
Complexity
![Page 35: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/35.jpg)
is the enemy of
scale
![Page 36: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/36.jpg)
![Page 37: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/37.jpg)
What made Jeff Bezos the best CEO in the world wasn’t that he runs a profitable business.
12%
59%
47%
78%
It was that he delivered the best shareholder returns.
![Page 38: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/38.jpg)
Profit isn't the only goal of business. You want to scale-up.
70% 80% 90% 100%
![Page 39: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/39.jpg)
Time
Investment Period
PaybackPeriod
ProfitPeriod
Growth Leverage
Self funding point Break even point
Disc
ount
ed ca
sh
Max Cash Consumed
![Page 40: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/40.jpg)
“Nice rocket ship, how far can it go?”“Oh, it doesn’t go anywhere. Looks cool, though. Right?”
![Page 41: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/41.jpg)
4Surviving Creating DisruptionSCALE-UP:
![Page 42: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/42.jpg)
What’s good for business today May send you plummeting to your demise tomorrow.
So how do you ensure that you’re still around in the future?
![Page 43: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/43.jpg)
Moats and Extendable Cores
![Page 44: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/44.jpg)
Your extendable core is the job you do for customers that a competitor couldn’t replicate
without adopting the same cost-structure.
You can survive disruption.
![Page 45: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/45.jpg)
You want to do more than survive disruption.
You want to create it.
![Page 46: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/46.jpg)
“We don’t want to wake up one morning to find ourselves left at the dock while the ship has sailed.” So we compete with ourselves. LeadIn is a good idea. Someone was going to build it. We made sure that someone was us.”
Christopher O’Donnell, VP of Product at HubSpot
![Page 47: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/47.jpg)
0201 03
Acknowledge Allocate Assess Adapt
04
Building a Moat
![Page 48: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/48.jpg)
S-CurveFigure 1.
![Page 49: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/49.jpg)
Reed Hastings knew DVDs, be it by mail or in stores, was not the only future to plan for — the internet was. By innovating a way to use the web and integrate with other products, Netflix’s streaming video effectively staved off disruption. Once-giant Blockbuster found themselves scrambling to react, and are now in the pantheon of distant memory.
NetflixFigure 2.
DVDs
![Page 50: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/50.jpg)
Sonos’ future market share is evaporating because of artificial intelligence and voice recognition technology. The company that did innovate for this type of disruption? Amazon.
SonosFigure 3.
WirelessSpeakers
![Page 51: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/51.jpg)
“When you’ve done something well enough, you deserve a trophy. But businesses that fail to continually compete against themselves, turn those very same trophies into anchors.”
– Christopher O’Donnell, HubSpot VP of Product
![Page 52: Startup Istanbul 2016 / Sam Mallikarjunan - Head of Growth HubSpot](https://reader036.vdocuments.us/reader036/viewer/2022070515/587719d51a28ab4c1d8b639b/html5/thumbnails/52.jpg)
Thank You!