Driving to Market - V2! - How to "Drive" Competitive Advantage in your Go To Market (GTM) strategies and tactics for Startups - Harvard Innovation Lab Series
New version 2 - including case examples from Spotfire, Demandware, Hubspot and David Skok.
Developed for the Harvard Innovation Lab workshop series on Startup Secrets.
This is part 4 of the 5 part series by Michael J Skok on how to get competitive advantage as a startup.
Michael's slides are the agenda for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://mjskok.com/
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Driving to Market - V2! - How to "Drive" Competitive Advantage in your Go To Market (GTM) strategies and tactics for Startups - Harvard Innovation Lab Series
1. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi
Hi 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
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2. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
3. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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4. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
4
5. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
A 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
6. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
7. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Identity
Name
system
Brand
Essence
Every Touch Product
Point
7
8. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
9. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
11. The Demandware Branding Challenge
&
Change the
Criteria
Copyright 2012 Demandware, Inc. - Confidential
12. The Demandware Branding Challenge
From 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
13. The Demandware Opportunity
Brand/
&
Marketing
eCommerce
Technology
Features Benefits Rewards
Copyright 2012 Demandware, Inc. - Confidential
14. 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
15. Brand Positioning
It’s not just about
how the customer
feels about you
It’s also about how
you make the
customer feel about
herself
Copyright 2012 Demandware, Inc. - Confidential
16. Stronger brands,
faster, more The agility and
profitable control to stay ahead
growth
and build my brand
CEO/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
17. An industry
leader to I ROCK!!
watch
A business
CEO/CMO facilitator, not
just a bean
A real business counter
enabler; creative
problem-solver
E-COMMERCE
FINANCE &
IT
18. 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
19. How Does the Customer Benefit?
Think It. Do It.
No limits. No worries. No surprises.
Copyright 2012 Demandware, Inc. - Confidential
20. 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
21. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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.
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22. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Startup Secret:
Start how you mean to End
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23. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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24. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
26. Company/Product Overview & Positioning /
Messaging
Spotfire acquired by TIBCO Software ($1+B rev) in 2007
Analytics software sold to enterprises in numerous vertical markets
$xxxM Operating Unit w/ xxx employees
Field 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
27. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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?
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28. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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29. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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30. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Perfect Startup Storm
Disruptive
Business Model
Disruptive New Market &
Technology GTM
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31. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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32. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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33. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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)
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34. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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35. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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36. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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37. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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38. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Targeting Segmentation
Example, seeking Critical Need
Mobile Professionals vs. Office Worker
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39. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Targeting Segmentation
Example, seeking Critical Need
Mobile Professionals vs. Office Worker
Field Workers vs. White Collar
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40. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
41. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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42. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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43. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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44. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
45. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
45
46. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
The Startup Marketing & Sales Cycle
Awareness
Interest
Understanding
Engagement
Trial
Purchase
46
47. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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49. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
50. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Startup 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
51. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
51
52. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
―Driving‖ Startup Marketing & Sales
YOU Control
Neutral
GEARS to build Momentum
Awareness
Interest
Understanding
Engagement
Trial
Purchase
Overdrive
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53. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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54. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
55. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
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56. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
57. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
58. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
59. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
60. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
61. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Driving Marketing & Sales
Relating to Business Model CORE, levers & multipliers
Multiplier Examples
Neutral
Sales & Marketing Awareness
Tiered Pricing
Interest
Freemium
Channel partners
Understanding
GEARS
Product
SLIPPERY products * Engagement
―Russian Doll‖
Packaging * Trial
Technology stacks Purchase
WHOLE product Overdrive
ACCELERATE
In the Sales
Multipliers
Cycle
s
Lever
CORE
61
62. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Driving Marketing & Sales
Relating to Business Model CORE, levers & multipliers
Multiplier Examples Lever Examples
Accelerator / Brake / Clutch
Neutral
Sales & Marketing Awareness Sales & Marketing
Tiered Pricing Web
Interest
Freemium Inside sales
Channel partners Inbound
Understanding
GEARS
Product 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
63. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
65. 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)
66. Our go-to-market map (2010 sample)
The “Plays”
Channels Play
APJ
FSI Play
(China)
Viral + Awareness Play ($$$)
LS Play LS Play
Manufacturing (research) (clinical)
LS Play
EU
Energy FSI Play
(research)
CPG Telco LS Play
Channels Play
Manufacturing TIBCO Play (clinical)
CPG LS Play
US
FSI Play
Energy (research)
Telco Government LS Play
Channels Play
Manufacturing TIBCO Play (clinical)
“Silver Spotfire” ($$)
$0 (Sales driven) $ $$ $$$
Relative Marketing Programs Investment
67. Driving Sales and Marketing at Spotfire…
Risk & Financial Services Play (2010 Sample)
OVERVIEW TACTICAL OPTIONS
Objectives: 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 for
Audience 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 keywords
Message: 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’09
Offering: 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 oppty
Competitive 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
68. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
68
69. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
70. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
71. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
72. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
73. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
74. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
75. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
75
97. MIT 15.S16 Special Seminar in
Management: Entrepreneurial
Product Marketing and
Development (Spring)
98. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Inbound vs. Outbound ?
$1M
OUT-bound
$500k
Deal Size
$100k
$50k
Hybrid
?
$10k IN-bound
$0
98
99. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
When some Outbound Marketing
Makes Sense for the Startup
Mark Lorion @mark_lorion
Apperian, CMO
RESOURCE ONLINE AT
http://mjskok.com/resource/gtm-outbound-marketing
99
100. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
100
101. Building a
SALES & MARKETING MACHINE
FUNNEL DESIGN AND OPTIMIZATION
CAC
ROI by
Viral Lead
Coefficient Time to Source
Recover
LTV CAC
Churn
Rate Viral
Cycle Conversion
Time Rate
109. 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
111. WHAT IS TOP OF THE
FUNNEL?
customer is not aware customer has a
they have a problem, or problem and is
that your product looking for a solution
category exists
GENERATE GET FOUND
AWARENESS
112. WHAT IS THE MIDDLE OF
THE FUNNEL?
QUALIFY MQL
(MARKETING QUALIFIED
LEAD)
NURTURE
113. WHAT IS THE MIDDLE OF
THE 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.
114. THE
BUYER 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.
115. MEASURE
"IF YOU CAN NOT MEASURE IT,
YOU CAN NOT IMPROVE IT."
- LORD KELVIN
116. WHAT TO MEASURE
FOR EACH STEP / ACTION:
NO OF ACTIONS % CONVERSION RATE
TIME TIME
117. THE KEY METRICS
CAMPAIGNS
TO DRIVE
TRAFFIC
VISITORS
OVERALL
CONVERSION
CONVERSION % %
TRIALS
CONVERSION
%
CLOSED DEALS
118. Suspects
Suspects
Suspects
Suspects
Suspects
Suspects
Suspects
Suspects Suspects Suspects
Suspects Suspects
BUT EVEN IF YOU ARE MICROSOFT,
CISCO, ORACLE, OR GOOGLE
YOUR FUNNEL WILL HAVE
BLOCKAGE
POINTS
126. JBOSS EXAMPLE
• Making $27,000 a month selling documentation
• Solution:
• Give away documentation to
get their email address
127. 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
128.
129.
130. LESSONS FROM WEBSITE
GRADER
• 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
137. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
137
138. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
139. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
140. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
141. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
142. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
143. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi 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
144. Harvard innovation lab : Michael J Skok : Startup Secrets : Go To Market
Hi
Hi 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
Editor's Notes
67 Billion – business week 2009, most valuable brand in the world.
This is always a fun section. Entrepreneurs often claim they have no competition because the idea is so unique. While that may indeed be true, it’s unlikely that you won’t have competition for at least the dollars that the customer has to spend on either existing approaches or alternatives.So what helps here is to describe very clearly what your unique differentiation isThen be clear what barriers there are to others following you. Technology is one obvious differentiator to bring out, but don’t forget others For example your business model, which may include your pricing advantage or your open source development capability or your ability to partner and or open up new channels. Other sustainable advantages may include the network of users you build up or the data being collected. In the end all these may be as compelling as your technology differentiation, and more important as a barrier to entry for competitors.
There may be many ways to express your unique positioning, but I’m a believer in pictures - in case you hadn’t already figured that out ;) So here’s the kind of simple picture I recommend using to clearly position yourself. The key to this particular diagram is the axes you choose. Suffice it to say you want to end up in the top right, positioned to win in a unique whitespace. Here bubble sizing is for relative size of competitors a,b,c,d.Catch me in person and I'll tell you the real key is to find a way to explain why the competitors just can't cross the barriers in this diagram to even enter the top quadrant. Then you know you're really onto a winner.It's a subject unto itself for a drill down, but you need to be able to get across the white space you have identified
Disruptive to the industry and the competition and NOT the customer (remember the gain/pain ratio)
5th U - Unique
a set of actual or potential customers for a given set of products or services who have a common set of needs or wants, and who reference each other when making a buying decision.Moore, Geoffrey A. (2009-03-17). Crossing the Chasm
W/ Inbound, success is much more about the width of your brain than the width of your walletTrad marketing – if you had money, you could buy customers through ads, buying lists, hiring a PR firm…every day those techniques work less and less well.Inbound marketing – You use your unique ideas and content to pull people in from se, tw, fb, etc.Inbound is about the width of your brain, not the width of your wallet! Rubbing braincells together, not rubbing greenbacks together.
With inbound, you succeed by creating your own marketing assets not renting space on someone else’s assets.Trad marketing – Here’s the way it works in trad marketing…every month, you take a pile of money and shovel into Google Adwords mouth…just like this. For every dollar in, you might get a dollar ten out, but it is a one time deal. Gotta do it again the next month.Inbound marketing – You create permanent assets that pull in links, twitter followers, fb fans, LI group members etc. Those assets never go away and continue to pull in customers for years and years. It grows like interest in your 401k accountInbound is about creating leverage w/ your marketing dollars.
With inbound, you succeed by loving up your marketplace, not irritating your marketplace.I have a guy at a Software QA co that cold calls me every Monday and Thursday at 8:07am…not only is that technique not effective, but it is ruining his co’s brand.You want your potential customers to love your brand and talk about them like LuLuLemon, Whole Foods, or Charity Water.
1st part is content…need to think of yourself as a content creation studio – cnn, hbo, pbs.
remarkable
NOTE: Bottom half of funnel
Imperial Palace
Assets – not inventory, machine tools, etc…links, ranks, reach.
In a perfect world, we would hope that we could take our suspected market directly to purchase in one step.
That would be like hoping we could simply put up a web site and expect that people would just find it and immediately buy our product.