Harvard innovation lab : Michael Driving to Market - V2! - How to "Drive" Competitive Advantage in your Go To Market (GTM) strategies and tactics for Startups - Harvard Innovation Lab Series

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market HiHi Harvard innovation lab #innovationlab @mjskok #startupsecrets www.mjskok.com START UP SECRETS An insider’s guide to unfair competitive advantage Going To Market (GTM) MICHAEL J SKOK North Bridge Venture Partners twitter: @mjskok mjskok.com 1

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secrets - Series • Sep 11: Perfect Pitch • Oct 11: Value Proposition • Oct 16: Company Formation • Nov 13: Business Model • Dec 4: Go-To-Market Strategy 2

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Introductions & connections • Our guests: • Your hosts: – Apperian – Harvard I Lab • Mark Lorion @mark_lorion #innovationlab – Demandware – Michael Skok @mjskok • Jamus Driscoll @jamusdriscoll – Startup Secrets #startupsecrets – Hubspot • Brian Halligan @bhalligan – www.mjskok.com – Matrix partners • http://www.mjskok.com/reso urces/go-market • David Skok @bostonvc 3

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets 4

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecretsA Startup GTM Framework Marketing & Sales Strategies Audience Cycle Tactics Channel Awareness Brand Direct vs. Targeting, Channel Segmentation Interest Positioning OUTbound / INboound Messaging Channel Personas Understanding Development, Social Management, Actors/Scenes Media Etc. Engagement PR Strategic Trial Services Partners References Purchase • Results Oriented, Metrics, Execution Driven • Continuous Iteration & Improvement 5

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Agenda Strategic 1. Brand 2. Positioning 3. Targeting, segmentation Tactical 1. The Marketing and Sales Cycle 2. Driving to market 3. Results Oriented, Measured Execution Execution – introductions to key areas 1. Inbound 2. Building your GTM machine 6

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Identity Name system Brand Essence Every Touch Product Point 7

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Brand • A science unto itself – don’t underestimate it’s power – Are you Coke or Pepsi, Apple or Dell? • But for starters, in startups – It’s about YOU, the founders – Your People – Your Culture (per the Company Formation session) – How you Execute • eg interact with your ecosystem of Customers, Partners, Suppliers, Stakeholders 8

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Brand Essence Framework Vision What about the world is changing that makes us necessary? Promise What do we promise to customers at the most fundamental level? Spike unique What makes us distinctly Attributes Special different & valuable to our better customers? How do we Standard cost of entry achieve over and over? Personality Style What does it feel Emotion If we were a person How would we present like to engage what would we be ourselves to the world? with us? like? 9

The Demandware Branding ChallengeFrom To & Control of software Control of ecommerce The cost to install The cost to stay cutting edge Expense Revenue driver For mid-size companies For high-growth brands Our platform Your Brands Risk Confidence For visionaries For great marketers Copyright 2012 Demandware, Inc. - Confidential

What It Meant • Demandware couldn’t differentiate on claims alone • Must go beyond rational and functional benefits • Address ambition • Speak the customer’s language • It’s not what we can do, it’s what the customer can do • Look and act like a marketing partner • Show, don’t just tell • Make it inspiring! Copyright 2012 Demandware, Inc. - Confidential

Stronger brands, faster, more The agility and profitable control to stay ahead growth and build my brandCEO/CMO Better economics over A more effective and the long term reliable business platform that frees up resources to higher- value uses E-COMMERCE FINANCE & IT

An industry leader to I ROCK!! watch A businessCEO/CMO facilitator, not just a bean A real business counter enabler; creative problem-solver E-COMMERCE FINANCE & IT

What Does This Mean to Our Customer? The Demandware Brand Promise: Our customers can count on Demandware to help them drive their business – and their own careers – to their full potential. Copyright 2012 Demandware, Inc. - Confidential

Brand Promise Rests On Brand Attributes Innovation Simplicity Partnership Performance Automatic global Single platform: Business model World-class releases Multi-brand/ operating Multi-country/ * * environment Omni-channel Thought Innovation leadership * * eco-system Uptime/Security Transparent, * * inclusive * Customer- Link partners pricing focused Scalability * * innovation Community Extensible/ * Interoperable Customer * * panels Labs Integrated 3rd * party services Open cloud-based and apps services Copyright 2012 Demandware, Inc. - Confidential

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secret: Be consistent from the start to get Brand Integrity • Consistency - Great brands are consistent; everywhere you touch they are the same. • Values – Great brands have attributes consistent with company values. • Reliability – Great brands consistently keep their promise. 21

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secret: Start how you mean to End 22

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Positioning Occupy a distinct place – in a potential customer’s mind – unique whitespace in market • For (target customers – beachhead segment only) • Who are dissatisfied with (current market alternative) Good news! • Our product is a (new product category) You already did a • That provides (key problem solving capability) simplified version • Unlike (reference competitive differentiation, to in the Value Prop alternative), session! • We have assembled (key whole product features for your specific application) 24

PositioningMark Lorion, CMO Apperian.Previously VP MarketingSpotfire Analytics DivisionTIBCO Software

Company/Product Overview & Positioning /MessagingSpotfire acquired by TIBCO Software ($1+B rev) in 2007Analytics software sold to enterprises in numerous vertical markets$xxxM Operating Unit w/ xxx employeesField teams in throughout Americas, EMEA, APAC• For line-of-business managers and data analysts at global enterprises• Who are dissatisfied with rigid BI reports (business intelligence software) that don’t answer questions and require IT support to modify• Our approach offers a user-driven and visual approach for looking at data• That rapidly uncovers new insights that lead to business opportunities, avoids threats, and helps people make better decisions• Unlike traditional Business Intelligence• Spotfire is an Analytics & Data Discovery software platform that provides dimension-free data exploration and freeform user control to ask and answer new questions at the speed of thought

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Competition • Unique differentiation – Not just technology • EG Targeted Segment • Barriers to entry – Rewind, repeat: Not just technology! • EG Business Model, GTM approach • What is sustainable? – IP, patents, network, data, process, etc • Consistent with your CORE value? 27

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Positioning 2 x 2 Whatever sets you up… for a unique white space High Define real {whitespace} BARRIERS a To entry into c each segment The choice of axes is b critical Bubble sizing for relative d size of competitors Low Low High 28

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Perfect Startup Storm Disruptive Business Model Disruptive New Market & Technology GTM 30

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Why does Targeting & Segmentation matter? • Product / Market fit • Packaging and Pricing • Channels, Distribution • Messaging, communication … and more • DEPEND on Targeting & Segmentation 31

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Perfect Startup Storm Focus on Value Prop FOR Target Segment Disruptive Business Model Disruptive New Market & Technology GTM TARGET segment 32

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Value Prop: Recap & Intersection – 3D Solution • Discontinuous • Defensible • Disruptive – 4U Need • Unworkable • Unavoidable • Urgent (For Targeting, • Underserved market Segmentation) 33

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Perfect Startup Storm Focus on Value Prop FOR Target Segment Disruptive Business Model Disruptive New Market & Technology GTM TARGET segment Unique Underserved 34

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Adding to Lean Startup thinking… Minimum Viable Product (MVP) AND Minimum Viable Segment (MVS) MV MV S S Smaller, Easier Target to Cover 35

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Segmentation Startup Secret: Common Set of Needs -> Reference • Segment according to the same NEEDS – Customers can compare solutions • When you deliver – They will REFERENCE each other • Leads to… – Initial Beachhead 36

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Targeting Segmentation Get to common Problem / NEEDS • Vertical – Automotive Vertical – Financial Services Siz – Government e Problem/NEED • Size S – Consumer – SMB – Enterprise • Problem / NEEDS – E.G. Regulatory Approval Process • Applicable Across Pharma, Fin Services, Govt, etc 37

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Targeting Segmentation Example, seeking Critical Need Mobile Professionals vs. Office Worker 38

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Targeting Segmentation Example, seeking Critical Need Mobile Professionals vs. Office Worker Field Workers vs. White Collar 39

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Targeting Segmentation Example, seeking Critical Need Mobile Professionals vs. Office Worker Field Workers vs. White Collar Services vs. Sales 40

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Targeting Segmentation Example, seeking Critical Need Mobile Professionals vs. Office Worker Field Workers vs. White Collar Services vs. Sales Medical Equipment vs. Office Equipment 41

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Targeting Segmentation Example, seeking Critical Need Mobile Professionals vs. Office Worker Field Workers vs. White Collar Services vs. Sales Medical Equipment vs. Office Equipment Hospitals vs. Medical Clinics 42

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Targeting Segmentation Example, seeking Critical Need Mobile Professionals vs. Office Worker Field Workers vs. White Collar Services vs. Sales Medical Equipment vs. Office Equipment Hospitals vs. Medical Clinics Critical Care vs. Diagnostics 43

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secret Don’t be afraid to FOCUS! • Narrow as possible to start! – Think Beachhead (Geoffrey Moore) • Which would you rather… – Expand on success? – Contract on failure? 44

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets The Startup Marketing & Sales Cycle Awareness Interest Understanding Engagement Trial Purchase 46

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Target, Segment AND Startup Secret: Personify ―Actors‖ Awareness Actors Interest Segment Understanding Target Engagement Trial Purchase Underserved, Uniquely valued 47

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secret: Customer ―Actors‖ Change Through ―Stages‖ Awareness Customer ―Actors‖ Actors Interest • Visionary Segment Understanding • Technocrat STAGES Target Engagement • Operator • Influencer Trial • Economic buyer Purchase Underserved, Uniquely • Decision maker valued 48

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Ultimately figure out Customer DMU: Decision Making Unit Awareness Customer ―Actors‖ Actors Interest • Visionary Segment Understanding • Technocrat STAGES Target Engagement • Operator DMU? • Influencer Trial • Economic buyer Purchase Underserved, Uniquely • Decision maker valued 49

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecretsStartup Secret: Qualify Early AND Often • Qualify early Target – Save all the $, Time and Focused Resources early in the process – Opportunity cost for another Segment suspect • Qualify often (things change) Awareness Customer ―Actors‖ – Create lead scoring, nurturing programs Interest • Visionary • Technocrat “SCENES” Understanding • Marketing qualifiers: Tie to • Operator Targeting & Segmentation DMU Engagement – Narrow criteria = easy • Influencer qualification • Economic buyer Trial • Decision maker • Sales qualifiers: Purchase – MANACT : Money, Authority, Need, Ability, Competition, 50

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets ―Driving‖ Startup Marketing & Sales YOU Control Neutral GEARS to build Momentum Awareness Interest Understanding Engagement Trial Purchase Overdrive 52

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets ―Driving‖ Startup Marketing & Sales YOU Control Customer Controls Neutral Accelerator / Brake / Clutch GEARS to build Momentum Awareness Interest Understanding Engagement Trial Purchase Overdrive 53

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Your controls: Gears in the sales cycle • Gears to build momentum – Why the analogy? • Because it’s tough to go from 1st gear to 5th gear in one step – likewise it’s tough to skip steps in a sales process • Don’t stay with a gear too long when accelerating – you’ll over rev the engine = same with customer = instead… – Engage a new Gear (sales or marketing tool) every time the customer puts the clutch in • Measure whether it enables customer to accelerate & build momentum for the sale 54

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Customer’s Controls: ABCs of sales cycle Accelerator – Accelerates the customer from one step to another – – e.g. SLIPPERY product, things like self service, free trials etc. Brake – Stops the customer moving from one step to another – e.g. lack of understanding of your solution, poor competitive positioning – DON’T assume it’s price! (ACTIVELY LISTEN to carefully dissect sales objections, recognize sales stops / starts) Clutch – Is engaged when the customer doesn’t know what the next step is, or there’s inertia and risk causing a stalled sales cycle 55

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Driving Marketing & Sales Proof Connecting it to CUSTOMER Gain/Pain Ratio Neutral Awareness Interest Understanding GEARS Engagement Accelerator Trial Purchase Overdrive 56

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Driving Marketing & Sales Proof Connecting it to CUSTOMER Gain/Pain Ratio Neutral Customer Gain: Awareness • Revenue Interest • Cost savings • Time Understanding GEARS • People Engagement Accelerator • Competitive advantage Trial • Reputation Purchase • Etc.. Overdrive Gain 57

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Driving Marketing & Sales Proof Connecting it to CUSTOMER Gain/Pain Ratio Neutral Customer Gain: Awareness Customer Pain: • Revenue • See, (Find) - Awareness Interest • • Try - Engagement, Trial Accelerator / Brake Cost savings • Time Understanding • Buy – Price, Package, GEARS • People License Engagement • Competitive • Fly - Implement, Deploy advantage Trial • Own, (TCO) – Service, • Reputation Support Purchase • Etc.. Overdrive Gain Pain 58

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Driving Marketing & Sales Proof Connecting it to CUSTOMER Gain/Pain Ratio Accelerator / Brake / Clutch Neutral Customer Gain: Awareness Customer Pain: • Revenue • See, (Find) - Awareness Interest • Cost savings • Try - Engagement, Trial • Time Understanding • Buy – Price, Package, GEARS • People License Engagement • Competitive • Fly - Implement, Deploy advantage Trial • Own, (TCO) – Service, • Reputation Support Purchase • Etc.. Overdrive Inertia, RISK on a startup : • Switching costs? • Default = do nothing • Alternatives? • Good enough = good enough! Inertia, Gain Pain RISK 59

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Driving Marketing & Sales Relating to Business Model CORE, levers & multipliers Awareness Interest Understanding Engagement Trial Purchase Multipliers s Lever CORE 60

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Driving Marketing & Sales Relating to Business Model CORE, levers & multipliersMultiplier Examples NeutralSales & Marketing Awareness  Tiered Pricing Interest  Freemium  Channel partners Understanding GEARSProduct  SLIPPERY products * Engagement  ―Russian Doll‖ Packaging * Trial  Technology stacks Purchase  WHOLE product Overdrive ACCELERATE In the Sales Multipliers Cycle s Lever CORE 61

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Driving Marketing & Sales Relating to Business Model CORE, levers & multipliersMultiplier Examples Lever Examples Accelerator / Brake / Clutch NeutralSales & Marketing Awareness Sales & Marketing  Tiered Pricing  Web Interest  Freemium  Inside sales  Channel partners  Inbound Understanding GEARSProduct  Referencing, viral  SLIPPERY products * Engagement Product  ―Russian Doll‖  Support Packaging * Trial  Services  Technology stacks Purchase  WHOLE product  WHOLE product Overdrive ACCELERATE Reduce In the Sales BRAKES Multipliers Cycle In the Sales Cycle s Lever CORE 62

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Road Test: put it all together Reduce Brakes, let out Accelerate in Gear via Clutch • Automation • Time • NOT people dependent • People • Self service for the • Resources customer Engage levers Use Multipliers • Distill to repeat & scale • SLIPPERY product • Eg Videos, Podcasts • Russian Doll packaging • Self service portals, Knowledge bases, (Around your Configurators CORE Value Prop) 63

Go-To Market Strategy & PlanningMark Lorion, CMO Apperian.Previously VP MarketingSpotfire Analytics DivisionTIBCO Software

Our go-to-market planning Corp and Division Objectives Playbooks Yearly executed & Business & Segmentation evaluated Marketing quarterly Plan “Plays” (limited set of cross-functional Platform initiatives  org Roadmap alignment and scale)

Our go-to-market map (2010 sample) The “Plays” Channels PlayAPJ FSI Play (China) Viral + Awareness Play ($$$) LS Play LS Play Manufacturing (research) (clinical) LS PlayEU Energy FSI Play (research) CPG Telco LS Play Channels Play Manufacturing TIBCO Play (clinical) CPG LS PlayUS FSI Play Energy (research) Telco Government LS Play Channels Play Manufacturing TIBCO Play (clinical) “Silver Spotfire” ($$) $0 (Sales driven) $ $$ $$$ Relative Marketing Programs Investment

Driving Sales and Marketing at Spotfire… Risk & Financial Services Play (2010 Sample)OVERVIEW TACTICAL OPTIONSObjectives: Demand Support  Sell risk analytics solutions to banks, I-banks, Insurance Co.,  Conferences: RiskMinds Geneva, GARP NYC 2/10 Asset managers, Hedge funds, and corporations  Outbound: telemarketing program to reach named list of  REVENUE POTENTIAL: ____ prospects, email db and lists for webcast series  EXPECTED INVESTMENT: ___  Inbound: Develop thought leadership content – Magazine articles, speaker slots at events, purchase magazine space forAudience columns/editorials; consider blogging series on Cap Markets  VP, Group Risk Mgmt, VP Cap. Mgmt, Trading Management trends re Risk at major banks  Web—PPC, Banner ads (GARP, MashRisk Network, others),  Head of-- Modeling and Research/Actuarial Team/Trading rationalize website and upgrade concentration of keywordsMessage:  Webcasts -- SF/S+ risk related series, 1/mo, RiskCenter, Fierce  Respond to changing competitive and regulatory landscape more Finance email blast for each event; E&Y compliance series, 6/yr, quickly, effectively and confidently audience is across verticals; Reuters, 3/yr SF use as embedded provider of visual analytics  Empower analysts and decision makers to explore and interrogate data to gain more complete understanding Equip Sales:  Deploy real-time data processing and visual /statistical analytics to  New ―solution‖ demos are required with support kits – based off uncover/discern hidden trends in data XYZ customer deals in 1H’09Offering:  Flash tours (4) Develop between 12/09 and 6/10  Enterprise Risk Aggregation ―solution‖  A dedicated presales resource needed in each major GEO!  Credit risk modeling and performance monitoring ―solution‖  Bloomberg subscription (share cost with Energy Play)Primary Competition: Partners/Resellers/OEM:  SAS, @Risk, FactSet, R, MatLab, SPSS, Algorithmics  Leverage ptship with Reuters, CapitalIQ for go-to-market programs  Internal apps (Excel, Homegrown applications)  Enable resellers with sales kits and investigate co-mkting opptyCompetitive Edge: Product Enhancements:  Open, adaptable, and scalable modeling platform  Updating time series data; 3d surface plots; Standard distribution reference curves; Custom calendar capability; Weighted average,  Fast, intuitive multi-dimensional, user-driven visualizations cumulative return; Productize FinMetrics and NuOpt; Bloomberg  Complete data spectrum capabilities – from inputs, quality, Data connection (1-Historic data, 2-’real time’ data) analysis, to post-processing reporting and visualizations  Greater range of visualization and computational capabilities

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets ROME Results Oriented, Measured Execution • You can’t manage what you can’t measure • Measure every step Awareness – Time – People Interest – Other resources Understanding • Conversion rates Engagement – Accelerators Trial – Brakes – Clutch Purchase – Gears 69

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Drill down - Marketing & Sales lead lead lead lead lead lead Awareness $,Time, Resources Interest Conversion rate % Understanding Break down measurable, manageable Engagement steps Trial Purchase ULTIMATELY: $, Time, Resources Conversion rate % Customer 70

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Marketing & Sales - FLOW lead lead lead lead lead lead lead lead lead lead lead Awareness Interest Understanding Seamlessly linked steps, that incent customers to Engagement flow from one step to another Trial Purchase Customers 71

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secret : Reverse Engineer $,Time, Awareness Resources Interest Conversion rate % REVERSE Understanding ENGINEER THE FUNNEL Engagement ULTIMATELY: Trial $,Time, Resources Purchase Conversion rate % 72

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Startup Secret: Closed Loop, Web $,Time, Resources Awareness Conversion rate % Interest Understanding Closed Loop Engagement via Web Trial Purchase ULTIMATELY: $,Time, Resources Conversion rate % 73

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets The Web: Changes (nearly) everything Positives: Negatives: • Measure everything • One click away • Closed loop  Competitors  Distractions • Lower cost Closed Loop via Web Virtual Sales, Marketing, Services Don’t forget the human factors  Webinars  Personal touch  Video  Relationships – better real than virtual!  Podcasts  Experiential learning is invaluable 74

Brian HalliganCEO, HubSpot@Bhalligan

content

CREATECONTENT• Blog Posts• Info graphics• Videos• E-books• White papers• Reports• Calculators• Freemium Appl• Grader

OPTIMIZE

PROMOTE

LINKS ARE TOTHE INTERNETAS DOLLARSARE TO THEECONOMY@BHalligan

Better More Usage Personalizati on Better Better ValueConversion

MIT 15.S16 Special Seminar inManagement: EntrepreneurialProduct Marketing andDevelopment (Spring)

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Inbound vs. Outbound ? $1M OUT-bound $500k Deal Size $100k $50k Hybrid ? $10k IN-bound $0 98

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets When some Outbound Marketing Makes Sense for the Startup Mark Lorion @mark_lorion Apperian, CMO RESOURCE ONLINE AThttp://mjskok.com/resource/gtm-outbound-marketing 99

Building aSALES & MARKETING MACHINEFUNNEL DESIGN AND OPTIMIZATION CAC ROI by Viral Lead Coefficient Time to Source Recover LTV CAC Churn Rate Viral Cycle Conversion Time Rate

1 stTHE BASICSOF FUNNEL DESIGN

ExpandSuspects Closed Deals Upsell Cross sell

IN A PERFECT WORLD… 1 Step

IN A PERFECT WORLD… MyProduct.com DESCRIPTION HOW IT WORKS Our product allows you … Only $9,999.99 BUY NOW!

THE ART OFMARKETING

THEBUYER

THE BUYING CYCLE PURCHASE CONSIDERATION CLOSED DEAL AWARENESS

TRIGGERS • Moving house • Movers, phones, cable TV, furniture, insurance, etc. • Starting a new software project • PaaS (Platform as a Service), Dev Tools, etc. • Need to hire a lot of new employees • Applicant Tracking System • Just lost my data in hard drive crash • Backup software/service • Read about a new scary computer virus • Anti-virus software

AN ORGANIZATIONALMETAPHOR FOR THE KEYFUNNEL STAGES SALES MIDDLE OF THE FUNNEL CLOSED DEALTOP OF THE FUNNEL

WHAT IS TOP OF THE FUNNEL? customer is not aware customer has athey have a problem, or problem and is that your product looking for a solution category existsGENERATE GET FOUNDAWARENESS

WHAT IS THE MIDDLE OFTHE FUNNEL? QUALIFY MQL (MARKETING QUALIFIED LEAD) NURTURE

WHAT IS THE MIDDLE OFTHE FUNNEL? QUALIFY MQL (MARKETING QUALIFIED LEAD) NURTURE • Blog • eMail Campaigns • Webinars Wait for a Trigger • Free Trials • Newsletters Or try to create a Trigger • etc.

THEBUYER CONSIDERATION ADDRESS THEIR QUESTIONS & CONCERNS • Will this work for my situation? • Is it the best product in the market? • Is it a safe choice? (Who else is using it?) • Will I get a return on my investment? • Is it scalable, secure? • Is it easy to implement? • Will I get good support? • Etc.

MEASURE "IF YOU CAN NOT MEASURE IT, YOU CAN NOT IMPROVE IT." - LORD KELVIN

WHAT TO MEASUREFOR EACH STEP / ACTION:NO OF ACTIONS % CONVERSION RATE TIME TIME

THE KEY METRICS CAMPAIGNS TO DRIVE TRAFFIC VISITORS OVERALL CONVERSION CONVERSION % % TRIALS CONVERSION % CLOSED DEALS

Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects Suspects SuspectsBUT EVEN IF YOU ARE MICROSOFT,CISCO, ORACLE, OR GOOGLEYOUR FUNNEL WILL HAVEBLOCKAGEPOINTS

3 IMPROVE

IN DIAGNOSING MANY FUNNEL BLOCKAGE POINTS,I HAVE FOUND THAT THERE IS ACLEARPATTERN…

YOU ARE HOPING YOURCUSTOMERS WILL DOSOMETHINGTHAT THEY ARENOT MOTIVATED TO DO

IN OTHER WORDS…YOU DESIGNED YOUR FUNNELTHE WAY YOU HOPED IT WOULDWORK…BUT YOU MAY NOT HAVE THOUGHT ENOUGH ABOUTTHE CUSTOMER’S POINT OFVIEW

JBOSS EXAMPLEPUT A REGISTRATION FORMON THEIR WEB SITE BEFOREA FREE DOWNLOADIMPACTCUT THE DOWNLOAD RATEBY MORE THAN 10X

GET INSIDE YOURCUSTOMER’S HEAD FRICTION CONCERNS

UNDERSTAND WHATMOTIVATES THEM FRICTION CONCERNS MOTIVATIONS

JBOSS EXAMPLE• Making $27,000 a month selling documentation • Solution: • Give away documentation to get their email address

EXAMPLE: DRIVING TRAFFIC TO YOUR WEB SITE GETTING FOUND Not going to find your site unless: friction & - On top page of Google concerns search results - Recommended by a trusted source - Referred to in social media or blogosphere

LESSONS FROM WEBSITEGRADER• Free tools drive viral spread• Low customer work required• High value delivered• Score leverages competitive urge, and acts as a trigger• Builds trust through clear demonstration of expertise

using engineering for marketing

First Contact Sell Build BuildFirst Contact Sell Relationship Trust

OFTEN NECESSARY TO FIND TOPICSTHAT ARE NOT RELATED TO THE SALE Build Build Relationship Trust First Contact Sell

SELLING IS 10X EASIER…ONCE YOU HAVE ESTABLISHED TRUST

THE KEYS TO SUCCESS THE BUYER GET INSIDE YOUR BUYER’S MIND

For More information Visit my blog at www.forEntrepreneurs.com

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Recap Marketing & Sales Strategies Audience Cycle Tactics Channel Awareness Brand Direct vs. Targeting, Channel Segmentation Interest Positioning OUTbound / INboound Messaging Channel Personas Understanding Development, Social Management, Actors/Scenes Media Etc. Engagement PR Strategic Trial Services Partners References Purchase • Results Oriented, Metrics, Execution Driven • Continuous Iteration & Improvement 138

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets What we did we NOT cover, case examples on www.mjskok.com • Brand elements • Channel / Distribution • Services, Professional Services • Guerilla Marketing – when you’ve got no $! • To come – Connection with business model – Whole product – Strategic partnering 139

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Key Points to Remember • Manage your brand from the start • Position to be unique • Target & segment around customer needs • Think about ―driving‖ your marketing & sales cycle • GTM is both strategic and tactical • But it is ultimately about ROME 140

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Remember, ROME wasn’t built in a Day Nor will your GTM strategy and tactics be – R esults Listen – O riented GTM Learn – M easured Business Lead Model Iterate – E xecution Pivot – D riven through iteration • Results Oriented, Metrics, Execution Driven • Continuous Iteration & Improvement 141

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Building an enduring company: GTM is a key part of your Execution Vision Executio Listen n Peopl Learn Value Lead e Prop Iterate Pivot Startup Enduring Cultural Consistency Compan y 142

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To MarketHi www.mjskok.com #innovationlab @mjskok #startupsecrets Thank you… • Apperian Follow online – Mark Lorion www.mjskok.com • Demandware @mjskok – Jamus Driscoll /mjskok • Hubspot linkedin.com/in/mjskok – Brian Halligan bit.ly/mjskok-google • Matrix partners bit.ly/mjskok-youtube – David Skok 143

Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market HiHi Harvard innovation lab #innovationlab @mjskok #startupsecrets www.mjskok.com START UP SECRETS An insider’s guide to unfair competitive advantage Going to Market MICHAEL J SKOK North Bridge Venture Partners twitter: @mjskok mjskok.com 144