Developing a Replicable Sales & Marketing Model
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Developing a Replicable Sales & Marketing Model
- 1. Developing a Replicable Sales & Marketing Model Sean Ammirati Partner, BirchmereVentures Adjunct Professor, Carnegie Mellon University #CMULean
- 2. The Customer Development Model #CMULean Today’s Focus Customer Discovery Customer Validation Customer Creation Company Building A product solves a problem for an identifiable group of users The market is saleable and large enough that a viable business might be built The business is scalable through a repeatable sales and marketing roadmap Company departments and operational processes are created to support scale
- 3. Market Sizing #CMULean Total Addressable Market Served Available Market Target Market Top Down Bottom Up Take key variables in revenue model & multiple by market data assumptions Example: # of Potential Users x # of PageViews x (Average RPM in Mkt/1000)
- 5. Real Goal: Make sure this is worth your time! (and your investors money) #CMULean
- 7. $185 B 300,000 locations the table service market. 10%Fine Dining Reservation
- 8. $185 B 300,000 locations casual dining. OpenTable for Casual Dining Casual Dining Walk-in
- 9. Innovators Early Adopters Early Majority Late Majority Laggards Modified Source: http://www.slideshare.net/rstrad1/berkeley-digital-media-conference Technology Adoption Life Cycle #CMULean#CMULean
- 10. Market Types B2B: used & purchased by businesses B2C: used & purchased by consumers B2B2C: sold to business to acquire a consumer #CMULean
- 11. Innovators Early Adopters Early Majority Late Majority Laggards Modified Source: http://www.slideshare.net/rstrad1/berkeley-digital-media-conference Technology Adoption Life Cycle B2B: Pragmatists B2C: Engagers #CMULean
- 12. Replicable Customer Acquisition SalesMarketing A: Acquisition where / what channels do users come from? A: Activation what % have a "happy" initial experience? R: Retention do they come back & re-visit over time? R: Referral do they like it enough to tell their friends? R: Revenue can you monetize any of this behavior P: Process understanding the critical activities and stages to activate an account P: Pipeline measuring number of accounts at each stage and likelihood of closing S: SPIN a methodology for asking questions along 4 steps Situation Problem Implication & Need-payoff#CMULean
- 16. Replicable Customer Acquisition SalesMarketing A: Acquisition where / what channels do users come from? A: Activation what % have a "happy" initial experience? R: Retention do they come back & re-visit over time? R: Referral do they like it enough to tell their friends? R: Revenue can you monetize any of this behavior P: Process understanding the critical activities and stages to activate an account P: Pipeline measuring number of accounts at each stage and likelihood of closing S: SPIN a methodology for asking questions along 4 steps Situation Problem Implication & Need-payoff#CMULean
- 17. Sales Process • Predictable • Scalable • Automated • Clearly defined “levers” you can pull • Instrumented with great metrics • Cost Optimized #CMULean
- 18. Sales Funnel • Process should drive to defined stages • Measurable Location #CMULean Qualified Opp Proposal Sent Verbal Commitment 30% 60% 80% Sample
- 19. Tools • Salesforce.com (or another CRM) • HubSpot • Mailchimp (or another ESP) #CMULean
- 20. S.P.I.N Selling S: Situation Questions facts about buyers existing situation P: Problem Questions focus on the PAIN I: Implication Questions effects of the problem N: Need-Payoff Questions getting BUYER to state the benefit #CMULean
- 21. CEO Must OWN Customer Relationships until scaleable! #CMULean