Developing a Replicable Sales & Marketing

Model

Sean Ammirati

Partner, Birchmere VenturesAdjunct Professor, Carnegie Mellon University

#CMULean

The Customer Development Model

#CMULean

Today’s Focus

CustomerDiscovery

CustomerValidation

CustomerCreation

CompanyBuilding

A product solves a problem for anidentifiable 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

Market Sizing

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Total Addressable Market

Served Available Market

TargetMarket

Top Down Bottom Up

Take key variables in revenue model & multiple by market

data assumptions

Example:# of Potential Users x

# of Page Views x (Average RPM in Mkt/1000)

Sample: VigLink

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http://lsvp.com/2011/03/16/how-to-estimate-market-size/

Real Goal: Make sure this is worth your time!

(and your investors money)

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Sample: NoWait

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$185 B300,000 locations

the table service market.

10% Fine DiningReservation

$185 B300,000 locations

casual dining.

OpenTable for Casual Dining

Casual DiningWalk-in

Innovators EarlyAdopters

Early Majority Late Majority Laggards

Modified Source: http://www.slideshare.net/rstrad1/berkeley-digital-media-conference

Technology Adoption Life Cycle

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Market Types

B2B: used & purchased by businesses

B2C: used & purchased by consumers

B2B2C: sold to business to acquire a consumer

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Innovators EarlyAdopters

Early Majority Late Majority Laggards

Modified Source: http://www.slideshare.net/rstrad1/berkeley-digital-media-conference

Technology Adoption Life Cycle

B2B: PragmatistsB2C: Engagers

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Replicable Customer Acquisition

SalesMarketingA: 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

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http://www.youtube.com/watch?v=irjgfW0BIrw&noredirect=1

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#CMULean

http://www.flickr.com/photos/22017131@N05/5307153813/

http://www.flickr.com/photos/500hats/577630651/

#CMULean

Replicable Customer Acquisition

SalesMarketingA: 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

Sales Process

• Predictable

• Scalable

• Automated

• Clearly defined “levers” you can pull

• Instrumented with great metrics

• Cost Optimized

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Sales Funnel

• Process should drive to defined stages

• Measurable Location

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Qualified Opp

Proposal Sent

Verbal Commitment

30%

60%

80%

Sample

Tools

• Salesforce.com (or another CRM)

• HubSpot

• Mailchimp (or another ESP)

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S.P.I.N SellingS: 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

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CEO Must OWN Customer Relationships

until scaleable!

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