guillaume “g” cabane...- facebook campaigns are optimized towards “website conversions” but...

Crushing competition

@guillaumecabane

Guillaume Cabane, Head of Growth Marketing, Mention

Guillaume “G” CabaneCEO @ GROWTH EX MACHINA

50 -> 200

4 growth teams and counting

50 -> 300

15 -> ?

15 -> 30

Now I am a Growth Advisor

WEB TECHNOGRAHICS

TOPIC SURGING

CUSTOM SITE SCRAPING

Chat

Email

Web content

Advertising

Account, User and Campaign Record

Physical goods

Output Channels

VISITED WEBSITE

SCORE PROSPECTING

COLLECTION ACTION

Intent capture

Enrich & Fit scoring

SaaS reviews

Visited Website

Installed Web Tech

Reading About “Livechat”

Hiring Sales Director

TIME

Demo Request!

Predicting the lead value based on intent

SCORE: 0.12Intent

SCORE: 0.33Intent

SCORE: 0.61Intent

SCORE: 0.88Intent

VALUE: $130Prediction

VALUE: $200Prediction

VALUE: $350Prediction

VALUE: $600Prediction

@guillaumecabane

What makes a company succeed?

A distribution moat

@guillaumecabane

What’s the role of Marketing?

@guillaumecabane

Do we agree?

1: a better experience increases conversion2: with more budget, we can create a better

experience

@guillaumecabane

The challenge: We don’t have more budget *per user*

Channel Saturation & Rising CAC

@guillaumecabane

Distribution across every major channel has become more expensive

-25% CTR on Page 1 SEO in 2 years. -55% for mobile

@guillaumecabane

Inventory is stable … so costs go up

Facebook CPC's increased 136% just in 2017

CAC has grown >50% in the past 5 years

You can’t bruteforce your way into a market through sheer spend

Source: ProfitWell

CAC has

increased by 70% in the past 5 yearsbut LTV has remained constant.This cannot go on anymore.

The pitfall : averages

Your KPIs, as a uniform and representative understanding of each user at that stage, is fundamentally wrong

Huge variance of values per user you want to separate those based on their future value

Sale

s Ve

loci

ty in

$/m

onth

Company size5 50 200 1,000 10,000

Sales Velocity

Cost of sales

Contract size5 50 200 1,000 10,000

Enterprise

ABM

Self-Service

Marketing Automation

Likelihood to buy

Competitors budget per lead

Our budget per lead

high right better budget = better experiencelow left => bid is not profitable, let competitors loose money

Likelihood to buy

Competitors budget per lead

Our budget per lead

high right better budget = better experiencelow left => bid is not profitable, let competitors loose money

@guillaumecabane

Because we are bidding the right amount ...

we can spend more on the right people when our competitors can’t.

We won’t spam with emails or ads people who aren’t likely to buy our products.

@guillaumecabane

There is no insane innovation going on here.

All of this what derived from B2C bid optimization / retargeting

Building a moat to crush competition

@guillaumecabane

How can we built delightful experiences?

Ŵŵ

:KDW�LV�WKH�PRVW�LQIOXHQWLDO�LQ�\RXU�SXUFKDVH�GHFLVLRQ�SURFHVV"

:Ŵ��Ĩī�ŴŲųŻ�UǛųŵŸŴ

highlight the two bottom categories. Write “buyers don’t want us”

³:H�XVXDOO\�HQJDJH�D�VDOHV�SURIHVVLRQDO�RQO\�ZKHQ�ZH�KDYH�PDGH�D�SXUFKDVH�GHFLVLRQ�´

:Ŵ��Ĩī�ŴŲųŻ�UǛųŵŸŴŴŷ

����

@guillaumecabane

Creating a better experience … in outbound

@guillaumecabane

Good email G ….We’re missing an

illustration

@guillaumecabane

in Chat

Display LivechatFirmographic ScoreGet IP Address Returns DomainCOMPANY OBJECT IF SCORE > 0.9

Deliver coffeeBot data collection Create order

@guillaumecabane

in web pages

Change HomePage

Firmographic ScoreGet IP Address Returns DomainCOMPANY OBJECT

Intellimize Confidential

Optimizing for multiple weighted goals

Traditional approach With AI

One goal Multiple weighted goals

$100 $150 $200

$325 $250 $175

Note: All values are illustrative

$X

@guillaumecabane

What about Paid?

© 2019 MadKudu Inc. Proprietary and Confidential

The Challenge

- Facebook campaigns are optimized towards “website conversions” but this does not correlate to value

- Commonly the quality of facebook leads is low (<20% of good fits) and tends to deteriorate over time because of the aforementioned optimization criteria

- As a consequence CPAs increase and the CAC can get out of hand

Who you pay for

Who you’d like

https://andrewhubbard.co

Likely to Buy

© 2019 MadKudu Inc. Proprietary and Confidential

MadKudu predicts the value of each visitor and tells Facebook to bid only on your best leads

Your ad

© 2019 MadKudu Inc. Proprietary and Confidential

MadKudu predicts the value of each visitor and tells Facebook to bid only on your best leads

Your ad

MadKudu predicted values are sent back to facebook to train the AI to perform the best bidding

Facebook learns from that lead value to optimize spend moving forward for the rest

of the audience

MadKudu predicts the lead value in real time

New lead fills a form with their

email

© 2019 MadKudu Inc. Proprietary and Confidential

The results

Strategy Cost per Lead % Qualified Leads Expected Return on Investment

Expected Payback Period

Optimize to All Leads Baseline

Optimize to Good Leads Only

-27% 165% +200% -66%

Optimize to Value -49% 247% +766% -88%

Leveraging user revenue predictions in your day-to day

source: http://christophjanz.blogspot.com/2016/06/a-better-way-to-visualize-pipeline.html

rewrite name of stages , or add a marketing stage on topfallacy of averages

magasinstock en rayn-> chaque produit as-til la meme valeur? Non!

-> valeur entrant, ou du stock, doit etre modulee en fonction de la valeur de chaque produit … et de sa capacite a etre vendu

Learnings from Building Growth teams

@guillaumecabane

g@growth.li

Guillaume “G” CabaneGROWTH ADVISOR

Scan this for Linkedin