customer acquisition process. customer relationships – buying cycles source: steve blank web and...

Customer Acquisition Process

Customer Relationships – Buying Cycles

Source: Steve Blank

Web and Mobile

Physical Goods

Types of Customers

Consumers Businesses Government

Sales Cycle Short Moderate to Long Long

Sales Cycle Complexity Simple Moderate to Complex Complex

Speed to Scale Rapid Moderate Slow

Purchase Motivations Emotion, Instincts, Immediate Needs

Business Goals, Budgets, Vendor Relationships

Goals, Budgets, Vendor Relationships

Marketing Budget Requirements

High Moderate to Low Moderate to Low

Support Requirements Low Moderate to High Moderate to High

Design issues in Customer Definition

Lead time for researchMarketing budgetSize of customer service presence/budgetSpecialized staffFunding sourcesUse of the web (website, social, app) to drive sales Use of the web (website, social, app) to provide supportOther

Customer Roles?

B2C – All roles could be fulfilled by 1 personB2B or B2G – Could be 1 person per role or many people in each role

Customer Archetypes Drive Get/Keep/Grow

• What’s their role?– How this person is evaluated /

promoted / compensated?

• Who are they?– Buyer’s name– Position / title / age / sex

• How do they buy?– Discretionary budget (name of budget

and amount)

• What matters to them?– What motivates them?

• Who influences them?– What do they read/who do they listen

to?

Paid Demand Creation (Marketing) Activities“Paid” Media

• Public Relations• Advertising• Trade Shows• Webinars• Email marketing• On-line search engine

marketing• Business Development

Demand

Creation

Free Demand Creation (Marketing) Activities

“Earned” Media

• Publications in journals• Conference speeches/papers• Educational seminars• Public relations• Blogging / Sharable content• Social Media• Communities

Demand Creation

Customer Relationships Physical Products – Customer Acquisition

(Get Customers)

© 2012 Steve Blank

Customer Relationships Physical Products – Get Customers

© 2012 Steve Blank

CAC = Customer Acquisition Cost

Customer Relationships Physical Products – Get/Keep/Grow

© 2012 Steve Blank

LTV = Customer Lifetime Value

Customer Relationships Web/Mobile Products– Get Customers

© 2012 Steve Blank

Web/Mobile Products– Get Customers

© 2012 Steve Blank

CPM = cost per thousand hits

Web/Mobile Products– Get Customers

© 2012 Steve Blank

CPA = Cost per Action

SaaS Products– Get Customers

© 2012 Steve Blank

Organic Traffic, SEM, Other Paid Sources

Raw Leads

Registered VisitorsRegistered Visitors

Qualified Leads

Inside SalesClosed Deal

Web/Mobile Products– Keep Customers

Customer Relationships Web/Mobile Products– Grow Customers

© 2012 Steve Blank

Our Example Marketing Funnel

Quick Marketing Calculation 50% amount of traffic that is organic versus paid

$1.50 cost per paid visitor (Google AdWords, etc.) $ 0.75 Cost per visitor (both paid and unpaid)

3% visitors convert to raw leads 20% number of raw leads that turn into qualified leads

1 qualified lead 5 raw leads required

167 visitors required $125 Cost of visitors (also = Cost per qualified lead)

Source: David Skok Matrix Partners

Our Example Marketing Funnel

Quick Marketing Calculation 50% amount of traffic that is organic versus paid

$1.50 cost per paid visitor (Google AdWords, etc.) $ 0.75 Cost per visitor (both paid and unpaid)

3% visitors convert to raw leads 20% number of raw leads that turn into qualified leads

1 qualified lead 5 raw leads required

167 Visitors required

$125 Cost per qualified lead

Source: David Skok Matrix Partners