on target 2014, michael eckhardt, chasm institute

Update: 03/13/14

1 © 2014 Chasm Institute Contact: Angela Martinez [email protected]

All rights reserved. Contents may not be reproduced in any form without prior written permission.

Global Thought Leadership. Proven Impact.

Key Question for C-Level Execs and Sales & Marketing Directors:

What Concepts and Tools Will Drive Your B2B Growth in 2014-2015 ?

Michael Eckhardt Managing Director

Chasm Institute Palo Alto, California

Update: 03/13/14



Update: 03/13/14



3 Key Themes:

Content Marketing

Pipeline Marketing

Marketing Automation

Update: 03/13/14 3 © 2014 Chasm Institute Contact: Angela Martinez [email protected]


1991

1995 2001

2006

----------- Our 2 Newest Books for 2014 -----------

Crossing The Chasm 3.0 Escape Velocity

Chasm Institute expertise in B2B market success is based on: • Michael Eckhardt’s 500+ engagements with tech-based clients • our 6 best-selling strategy books by Chairman Geoffrey Moore • our 15 yrs of Thought Leadership on accelerating B2B results



Michael Eckhardt – Managing Director & Senior Workshop Leader at Chasm Institute, is a veteran of Hewlett-Packard, Pepsico, and Price Waterhouse.

An MBA graduate of Harvard Business School and Wall Street Journal Award winner, Michael Eckhardt is a recognized expert in strategic B2B marketing & high-tech market success. He provides clients: in Silicon Valley, the US, and Europe / Asia-Pacific with strategy workshops & practical marketing tools

for gaining (+ sustaining) leadership positions in highly-competitive markets

Michael Eckhardt has worked with over 90 technology-based businesses in 19 countries. Founded in 1993, our clients include: Intel, Cisco, Adobe, HP, AT&T Wireless, SAP, Agilent Technologies, Micron, LMC Data Systems, NetApp, Autodesk, Plantronics, Mentor Graphics, and other high-tech leaders.

His 3 primary areas of focus are: target market success, predicting customer reaction to new product intro’s, and driving profitable growth.

Michael Eckhardt and his Chasm Institute senior team have worked on market strategy for winning products, services and solutions in North America and worldwide. Geoffrey Moore is Chairman Emeritus of Chasm Institute, and Eckhardt has edited + contributed to several of Moore’s best selling high-tech strategy books, including the newest 2014 version of the best-selling B2B marketing best-seller, Crossing The Chasm.

Chasm Institute provides these advanced workshops to executives + teams:

“Driving Go-to-Market Results ” “B2B Market Strategy Success ” “Crossing The Chasm” “Inside The Tornado ”

... for more information please click on: www.chasminstitute.com

http://www.youtube.com/watch?v=4KMyvaZuaUI

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New Disruptive Innovation What Makes High-Tech Marketing Different?

• High Risk • Unproven products and promises • Incompatible and incomplete infrastructure • Social resistance to change

• Low Data • No product history • No company track record • No best practices

Update: 03/13/14



The Technology Adoption Life Cycle The Challenge Facing Every Disruptive Innovation



Innovators - Technology Enthusiasts

Willing to help. Have no money.



Early Adopters - The Visionaries

Willing to fund. Have big plans.



Early Majority - Pragmatists

On the fence. Will go with the herd.



Late Majority - Conservatives

Deer in the headlights. Need help.

Update: 03/13/14



Laggards - Skeptics

Not on your side.



How High-Tech Markets Develop The Technology Adoption Life Cycle

CHASM

EARLY MARKET

TORNADO

BOWLING ALLEY

MAIN STREET



Life-Cycle Metrics that Matter Tracking Performance Relative to the Chasm

• Early Market • One or more flagship customers making big-bet commitments

• In the Chasm • Cannot support yet another big-bet commitment • Pragmatists still holding back from entering the market

• Taking the Beachhead • Nailed a high-pain segment-specific use case • Getting strong word-of-mouth support within target segment

• In the Bowling Alley • Additional use cases coming on board, viral in adjacent segments

• Inside the Tornado • Horizontal “killer app” -- hyper-growth in the category

• On Main Street • Hyper-growth subsides – pecking order established • Customers seek sustaining innovation going forward



Crossing the Chasm Two Key Principles

• Target a “beachhead” segment • Highly focused approach to “rekindling the flame” • Segment with an intractable problem, not solvable by conventional means • Process owner is under pressure to find a solution • Pragmatists are willing to consider disruptive approach

• Commit to provide the “whole product” • Bring all the ingredients with you • Complete solution to the intractable problem • Typically involves products and services from partners and allies • Lead vendor takes responsibility for ensuring customer success



Crossing the Chasm What’s New? End User IT! • Digital Services

• Light to deploy, focus on user experience • The Lean Start-Up • Minimum viable product, rapid agile learning • In consumer use cases, leap to the tornado

• Critical Success Factors: The Four Gears • Acquire • Engage • Convert • Enlist

Update: 03/13/14



ENLIST ACQUIRE

ENGAGE CONVERT

Starter Motor

+ = Virality o = Retention

- = Churn

Tipping Point for B2B Markets The Four Gears Model

Performance Gear

Performance Gear

Power Gear

Power Gear

Update: 03/13/14



Four-Gears Metrics that Matter Tracking Performance Relative to the Tornado

• Acquire • Rate of gaining new users

• Engage

• Average length, depth, and frequency of user engagement

• Convert • Percentage of total users that participate in business model

• Enlist

+ Virality (New customers coming from existing customers – high NPS) - Churn (Existing customer defecting – “de-enlisting” – low NPS)



Slowest Gear Theory

• Thesis • Prior to the tornado • At any given point in time • One of the four gears is slowing the other three down

• Actions Required

• Identify the slowest gear • Focus everyone on speeding it up • Maintain attention on the other three gears • Repeat every quarter until • The tornado happens • Or you run out of gas



Crossing the Chasm What’s Not New? Enterprise IT! • Taking the Enterprise Digital

• Heavy to deploy, focus on end-to-end systems • Crossing the Chasm • Minimum viable whole product (add partners and allies) • Bowling alley strategy

• Critical Success Factors • Pre-chasm

─ Breakthrough projects with top-tier customers • Post-chasm

─ High value use cases with compelling reasons to buy



1. Target Customer

2. Compelling Reason to Buy

3. Whole Product

4. Partners & Allies

5. Sales Channel

6. Pricing

7. Competition

8. Positioning

9. Next Target

Key sponsor

Complete solution

Manages sales & fulfillment complexity

Legitimate alternatives

Next growth segment

Key motive

Fill in the gaps

Maps to all the above

Core differentiation

Target Market Initiative Framework A Checklist for Crossing the Chasm Planning



Target Customer Compelling Reason to Buy

Whole Product Partners & Allies

Sales Channel Pricing

Competition Positioning

Next Target Customer

Visionary business executive Dramatic competitive advantage

Application focus, differentiated BPR and SI service providers

Direct sales Value-based, gain motivated

Category vs. category Technology-based leadership

Another visionary in a different industry

This playbook is about creating budget

Before the Chasm



Target Customer Compelling Reason to Buy

Whole Product Partners & Allies

Sales Channel Pricing

Competition Positioning

Next Target Customer

Pragmatist function manager Fix a problem business process

Application focus, standardized Recruited for specific whole product

Direct sales transitioning to VARs Value-based, pain motivated

Market vs. market Segment leadership

Adjacent segment

This playbook is about redirecting budget

Crossing the Chasm



The New Examples

• Salesforce • VMware • Aruba • Lithium • Rocket Fuel • Infusionsoft • Mozilla • Box • Workday

Target Market Target Market

Whole Product Whole Product

Partners & Allies Partners & Allies Partners & Allies

Positioning Positioning





1991

1995 2001

2006

----------- Our 2 Newest Books for 2014 -----------

Crossing The Chasm 3.0 Escape Velocity

Chasm Institute workshops + consulting are based on : • Michael Eckhardt’s 500+ engagements with tech-based clients • our 6 best-selling strategy books by Chairman Geoffrey Moore • our 15 yrs of Thought Leadership on accelerating B2B success



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[email protected]

www.chasminstitute.com

Thank You

Michael Eckhardt Managing Director

Chasm Institute Palo Alto, California



mailto:[email protected]



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